No impact to the General Fund. In the event that the bonds are issued, the County is reimbursed for costs incurred in the issuance process. Annual expenses for monitoring of Regulatory Agreement provisions are provided for in the bond issue. The bonds will be secured solely by revenues (e.g. rents, reserves, etc.) pledged under the bond documents. No County funds are pledged to secure the bonds.

Contra Costa County, through the Conservation and Development Department, operates a multifamily housing revenue bond financing program. The purpose of the program is to increase or preserve the supply of affordable rental housing available to lower income households and very low income households. The County program may be undertaken within the unincorporated County and within the cities.  
  
The recommended action is the adoption of a Tax Equity and Fiscal Responsibility Act (TEFRA) Resolution by the Board, as the legislative body of the County, authorizing the issuance of Multifamily Housing Revenue Bonds, which will be used to finance the acquisition and rehabilitation of Marina Heights Apartments, a 200-unit residential rental housing development located at 2 Marina Boulevard (APN 085-064-015-2 0) in Pittsburg, California.   
  
Marina Heights Apartments, LP is a limited partnership with Foundation for Affordable Housing (FFAH) as the managing general partner and Spira Equity Partners as the tax credit equity investor. The partnership proposes the use of housing revenue bonds to refinance and rehabilitate the project, and extend the affordability to 2075. Twenty units will be reserved for families at or below 50% of the area median income and 178 units will be reserved for families at or below 60% of the area median income.  
  
The proposed financing would implement City of Pittsburg and County policies to increase the supply of affordable housing. At its July 9, 2019 meeting, the Board of Supervisors approved an Inducement Resolution for Marina Heights. The Inducement Resolution conditionally provided for the issuance of housing revenue bonds.  
  
The main purpose of the proposed Resolution is to acknowledge that a public hearing was held by the Affordable Housing Program Manager on July 15, 2019, with no public comment, and to meet other bond issuance requirements, which are specified in Section 147(f) of the Internal Revenue Code. The proposed bonds cannot be issued until a separate, future resolution is adopted by the Board of Supervisors specifically authorizing the sale of the bonds. Such separate resolution to authorize the sale of bonds would come before the Board after receipt of an allocation from the State of California for Private Activity Bond Authority. An application for Private Activity Bond Authority will be submitted to the California Debt Limit Allocation Committee on August 16, 2019. The expected timing for a Bond Sale Resolution would be January, 2020.  
  
The proposed resolution would not relieve 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. Annual expenses of the County related to the monitoring of the Regulatory Agreement are provided for in the bond issue.

Negative action would prevent the County from meeting the public approval requirement of the Internal Revenue Code for issuing Multifamily Housing Revenue Bonds, and prior actions of officers and agents of the County would not be confirmed and ratified. As a result the Multifamily Housing Revenue Bonds could not be issued by the County.

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.