No impact to the General Fund. At the closing for the Note, the County is reimbursed for costs incurred in the issuance process. Annual expenses for monitoring of Regulatory Agreement provisions ensuring units in the Development will be rented to low income households will be reimbursed through issuer fees established in the documents for the Note. The Note will be solely secured by and payable from revenues (e.g. Development rents, reserves, etc.) pledged under the Note documents. No County funds are pledged to secure the repayment of the Note.

The recommended action is the adoption of Resolution 2020/235 by the Board of Supervisors, as the legislative body of the County, authorizing the issuance of a multifamily housing revenue note, the proceeds of which will be used for the construction of Veterans Square, a 30-unit affordable housing development located at 901 Los Medanos Street and 295 East 10th Street in the City of Pittsburg (the “Development”). The ownership entity for the development is Veterans Square, L.P. (the "Borrower"), a California limited partnership that consists of an entity related to Satellite Affordable Housing Associates (SAHA) as the managing general partner and an entity related to California Housing Partnership Corporation (CHPC) as the tax credit equity investor. On December 17, 2019, the Board adopted reimbursement Resolution No. 2019/665 to conditionally approve the issuance of multifamily housing revenue bonds.  
  
Department of Conservation and Development staff held a noticed public hearing on January 21, 2020, to permit interested parties to comment on the proposed financing and the Development. No comments were received from the public. The Board adopted Resolution No. 2020/25 on February 4, 2020, to authorize proceeding with the issuance of the Note to finance the Development in satisfaction of public approval requirements of the Code pursuant to Section 147(f) of the Internal Revenue Code and the submittal of an application by the County for tax-exempt private activity bond authority from the California Debt Limit Allocation Committee. On April 14, 2020, the California Debt Limit Allocation Committee awarded the County authority to issue the Note in a maximum principal amount of $11,434,610 through its Resolution No. 20-081.  
  
The structure of the financing will be one Note (the term “Note” is interchangeable with “Bond” as they both evidence a borrowing). The County of Contra Costa, California Multifamily Housing Revenue Note (Veterans Square) Series 2020 D (the “Note”) will be purchased by JPMorgan Chase, National Association (the “Funding Lender”) and the proceeds of the sale will be loaned by the County (the “Governmental Lender”) to Veterans Square (the “Borrower”) to finance the construction of the Development pursuant to a borrower loan agreement (the “Borrower Loan Agreement”) between the County and the Borrower, with amounts due from the County to the Funding Lender under the Note and the Funding Loan Agreement to be payable solely from amounts paid by the Borrower under the Borrower Loan Agreement. In addition to the proceeds of the Note, the Development has applied for other funding from the County HOME program of $2,200,400. The Development will also be funded with awards from the City of Pittsburg and Silicon Valley Housing Trust. The transaction is expected to close on or about October 15, 2020.

Negative action would prevent the County from issuing the Multifamily Housing Revenue Note in order to provide a loan to Veterans Square, L.P. to finance the construction of Veterans Square, L.P.

The recommendation supports one or more of the following children's outcomes: