Agenda

Return

C.118

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	July 19, 2016

Contra

Costa

County

Subject:

Termination Agreement Related to Delta View Apartments, Antioch

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 07/19/2016

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

Karen Mitchoff, District IV Supervisor

Contact:

Kristen Lackey, 674-7888

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: July 19, 2016
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2016/462 authorizing the execution and delivery of a termination agreement related to the Regulatory Agreement and Declaration of Restrictive Covenants for Delta View Apartments in Antioch as recommended by the Director of the Department of Conservation and Development, including:
1. Approving the form of the Termination Agreement,

2. Authorizing and directing the Chair or Vice Chair of the Board of Supervisors, the County Administrator, the Director of the Department of Conservation and Development, and the Community Development Bond Program Manager to execute and deliver the Termination Agreement, and to do any and all things, take any and all actions, and execute and deliver any and all certificates, agreements, and other documents which the officer may deem necessary or advisable in order to effectuate the purposes of the resolution.

FISCAL IMPACT:

No fiscal impact.

BACKGROUND:

In 1999, the County issued $8,750,000 in multifamily housing revenue bonds (the "Bonds") to finance the acquisition and rehabilitation by Delta View Associates, L.P. (the "Former Owner") of a 205-unit apartment project (the "Project") known as Delta View Apartments located in the City of Antioch. In connection with the issuance of the Bonds, the County entered into a Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory Agreement") that set forth certain affordability restrictions related to the Project, and annual fees associated with the monitoring of the project.

In February 2016, the Former Owner conveyed its interest in the Project to Delta View Family Apartments, L.P. (the “New Owner”) and the New Owner assumed the obligations of the Regulatory Agreement. The New Owner obtained a loan (the “2016 Loan”) from the California Statewide Communities Development Authority (CSCDA) to finance its acquisition and rehabilitation of the Project which required a new regulatory agreement (the “New Regulatory Agreement”) with at least the same affordability restrictions as the original Regulatory Agreement with the County. A portion of the new loan was used to fully redeem the outstanding Bonds issued by the County, however the terms of the original Regulatory Agreement remained in place.

In order to have only one regulatory agreement, the New Owner requested the County to terminate its Regulatory Agreement and has agreed to make the County a beneficiary under the New Regulatory Agreement. The New Regulatory Agreement will cover the affordability restrictions of the Regulatory Agreement and provide for the continuation of annual fees to the County for the period it would otherwise be payable.

CONSEQUENCE OF NEGATIVE ACTION:

If the County does not execute the Termination Agreement, there will be two regulatory agreements recorded on the property and the owner will be obligated to pay annual issuer fees to both the County and CSCDA.

CHILDREN'S IMPACT STATEMENT:

N/A