Agenda

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C. 85

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	September 15, 2015

Contra

Costa

County

Subject:

Multifamily Housing Revenue Bonds - Mission Bay Apartments, Bay Point

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 09/15/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Karen Mitchoff, District IV Supervisor

ABSENT:

Mary N. Piepho, District III Supervisor
Federal D. Glover, District V Supervisor

Contact:

Kristen Lackey (925) 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: September 15, 2015
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2015/332 approving the issuance of Multifamily Housing Revenue Bonds (the “Bonds”) in an amount not to exceed $15 million to finance the acquisition and rehabilitation of the Mission Bay Apartments, a 120-unit residential rental housing development located at 1056 Weldon Lane, Bay Point, California (APN 098-240-060-8) (the "Project"), including:


1) FINDING and DECLARING that the recitals contained in the proposed Resolution are true and correct;

RECOMMENDATION(S): (CONT'D)

2) APPROVING the issuance of the Bonds by County of Contra Costa, the applicable elected representative of the governmental unit having jurisdiction over Bay Point, for purposes of and in accordance with Section 147(f) of the Internal Revenue Code of 1986; and

3) AUTHORIZING and DIRECTING any authorized officer and agent of the County 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 intent of the Resolution.

FISCAL IMPACT:

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 requirements 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.

BACKGROUND:

Contra Costa County, through the Department of Conservation and Development (DCD), operates a multifamily mortgage 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, approving the issuance of Multifamily Housing Revenue Bonds that will be used to finance the acquisition and rehabilitation of Mission Bay Apartments, a 120-unit affordable rental housing development located at 1056 Weldon Lane, Bay Point, California (APN 098-240-060-8).

Willow Partners LP, an affiliate of KDF Communities, currently owns Mission Bay Apartments and proposes the use of housing revenue bonds to refinance and rehabilitate the project with a new limited partnership, Mission Bay 1056, LP. Mission Bay MGP LLC will be the Managing General Partner of Mission Bay 1056, LP with Willow Assets LLC, an affiliate of KDF Communities, serving as Co-General Partner. Willow Assets LLC will also be the Developer of the project. The limited partner will be a tax credit investor.

The proposed financing would implement County policies to preserve the supply of affordable housing. Mission Bay Apartments will provide 119 units of affordable housing for families for 55 years from the date the bonds are issued, an extension to the duration of existing affordability assurances for the project. At its August 18, 2015 meeting, the Board of Supervisors approved an Inducement Resolution for Mission Bay Apartments. 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 Community Development Bond Program Manager on August 24, 2015, 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 was submitted to the California Debt Limit Allocation Committee on August 20, 2015. The expected timing for a Bond Sale Resolution would be November, 2015.

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.

CONSEQUENCE OF NEGATIVE ACTION:

Negative action would prevent the County from meeting the public approval requirement of the Internal Revenue Code for issuing Multifamily Housing Revenue Bonds.

CHILDREN'S IMPACT STATEMENT:

The Mission Bay Apartments project will provide 119 units of affordable rental housing appropriate for families. This supports outcome #3: Families are Economically Self Sufficient.