Agenda

Return

C. 95

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	April 18, 2023

Contra

Costa

County

Subject:

Tax Exempt Revenue Bonds - Rodeo Gateway II, LP, Rodeo

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 04/18/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

John Gioia, District I Supervisor

Contact:

Deidre Hodgers, 925-655-2892

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: April 18, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2023/135 approving the issuance of Tax-Exempt Revenue Bonds by the California Municipal Finance Authority (CMFA) to make a loan to Rodeo Gateway II, L.P., a California limited partnership, or another ownership entity to be created by EAH Inc., a California nonprofit public benefit corporation or an affiliate of EAH (the “Borrower”), in an amount not to exceed $20,000,000 to finance the acquisition and rehabilitation of a 50-unit residential rental project located at 710 Willow Avenue, in the unincorporated community of Rodeo.

FISCAL IMPACT:

No impact to the General Fund. The repayment of the Bonds to be issued by the CMFA for the project will be the sole responsibility of the Borrower, and the County will have no financial, legal, moral obligation, liability or responsibility for the project or the repayment of the Bonds for the financing of the project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not general obligations of the County or the State of California but are to be paid for solely from funds provided by the Borrower.

BACKGROUND:

The Borrower has requested that the CMFA serve as the municipal issuer of the tax-exempt revenue bonds in an aggregate principal amount not to exceed $20,000,000. The bonds will be used to finance the acquisition and rehabilitation of a 50-unit qualified residential rental project to be owned and operated by the Borrower and located at 710 Willow Avenue, in the unincorporated community of Rodeo within the County of Contra Costa, California.

In order for all or a portion of the bonds to qualify as tax-exempt bonds, the County of Contra Costa must conduct a public hearing under the Tax Equity and Fiscal Responsibility Act (TEFRA), providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the project. The public TEFRA hearing was held by the County's staff on April 4, 2023, where members of the community were given an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. No public comments were received. Prior to such TEFRA hearing, reasonable notice must be provided to the members of the community. A notice of the hearing was published in the Contra Costa Times on March 17, 2023 (proof of publication attached).

Following the close of a TEFRA hearing, an applicable elected representative or representatives of the governmental unit in whose jurisdiction the project is located must provide its approval of the issuance of the bonds for the financing of the project. The approval by the Board of Supervisors of the proposed resolution would fulfill that requirement. The approval of the proposed resolution would not relieve or exempt the Borrower from obtaining other required permits or approvals required by law, nor obligate the County to incur any obligation or provide financial assistance with respect to the bonds or the project.

CONSEQUENCE OF NEGATIVE ACTION:

Negative action would prevent CMFA from meeting the public approval requirement of the Internal Revenue Code for issuing the Bonds and therefore; would not be able to provide tax-exempt financing for the acquisition and rehabilitation of the 50-unit residential rental project in Rodeo.

CHILDREN'S IMPACT STATEMENT:

The recommendation supports one or more of the following children's outcomes:
(1) Children Ready for and Succeeding in School;
(2) Children and Youth Healthy and Preparing for Productive Adulthood;
(3) Families that are Economically Self Sufficient;
(4) Families that are Safe, Stable and Nurturing; and
(5) Communities that are Safe and Provide a High Quality of Life for Children and Families.

CLERK'S ADDENDUM

Speaker: Caller 6770