RECOMMENDATION(S): (CONT'D)
1. Approving the issuance of Multifamily Housing Revenue Bonds (the "Bonds") by the Golden State Finance Authority (GSFA) in an amount not to exceed $13,500,000, for the benefit of Montevista San Pablo AR, L.P., a California limited partnership, or related entity (the "Borrower"), to provide for the financing of the acquisition, rehabilitation, improvement and equipping of an 82-unit multifamily housing development generally known as Montevista Senior Apartments located at 13728 San Pablo Avenue in the City of San Pablo. Such adoption is solely for the purposes of satisfying the requirements of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), the Code and the California Government Code Section 6500 (and following).
2. Authorizing and directing the Chair of the Board of Supervisors, the Vice-Chair of the Board of Supervisors, the County Administrator, the County Assistant Deputy Director of Conservation and Development, County Counsel and the Clerk of the Board to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of the Resolution and the transactions authorized.
FISCAL IMPACT:
No impact to the General Fund. The County will be reimbursed for any costs incurred in the process of conducting the TEFRA Hearing. The GSFA will issue tax-exempt revenue bonds on behalf of the Borrower. Repayment of the Bonds is solely the responsibility of the Borrower.
BACKGROUND:
Montevista San Pablo AR, L.P., with the City of San Pablo's support, requested the County to conduct a Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) hearing for the Golden State Finance Authority (GSFA) issuance of Multifamily Housing Revenue Bonds in an amount not to exceed $13,500,000 to be used to finance the acquisition, development and construction of an 82-unit multifamily rental housing development commonly known as Montevista Senior Apartments located at 13728 San Pablo Avenue in the City of San Pablo, California (the "Project"). The Project will be operated by Highridge Costa Housing Partners. A TEFRA Hearing must be held by an elected body of the governmental entity having jurisdiction over the area where the project is located in order for all or a portion of the Bonds to qualify as tax-exempt bonds for the financing of the Project. The County is a member of the GSFA and qualifies as an elected body of the governmental entity having jurisdiction over the area where the project is located.
The main purposes of the proposed Resolution are to acknowledge that a public hearing was held by the County's Assistant Deputy Director on August 15, 2018, 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 and to approve of GSFA's use of tax-exempt bonds for the financing of the Project. No public comments were received. A notice of the hearing was published in the Contra Costa Times (proof of publication attached) on July 30, 2018.
The County's only role in this transaction was to hold the TEFRA hearing and to grant the limited approval described above. Additional actions related to the bond issuance will be the responsibility of GSFA and the Borrower. In a letter dated July 25, 2018, the City of San Pablo acknowledged the County's role in holding the TEFRA.
CONSEQUENCE OF NEGATIVE ACTION:
Negative action would prevent GSFA from providing tax-exempt financing for the Montevista Senior Apartments project in San Pablo.