TITLE
Recommendation to receive supporting documentation into the record regarding the Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing; and adopt resolution approving the issuance of revenue bonds by the California Statewide Communities Development Authority (CSCDA) to benefit the Retirement Housing Foundation (RHF) in an amount not to exceed $45,000,000. (District 8)
DISCUSSION
The Retirement Housing Foundation, a national nonprofit public benefit corporation, has requested that the California Statewide Communities Development Authority (CSCDA) issue revenue bonds on its behalf in an aggregate amount not to exceed $45,000,000 to refund and refinance their 1998 Select Auction Variable Rate Securities. The purpose of this refunding is to refinance the auction rate structure and move to a more competitively priced debt structure in the market. The CSCDA will issue tax-exempt debt and refund current variable rate debt, which will be loaned to the Retirement Housing Foundation (RHF) in an amount not to exceed $45 million. The Bixby Knolls Towers, located at 3737 and 3747 Atlantic Avenue in Long Beach, is one of the five properties that will benefit from this refunding. Since the Bixby Knolls Towers is located in Long Beach, the City held the TEFRA hearing.
CSCDA is a joint exercise of powers authority consisting of over 480 California cities, counties, and special districts, including the City of Long Beach. RHF is a California nonprofit provider of housing options and services to senior adults, persons with disabilities, and low-income families. RHF was incorporated in 1961 and has thus grown to become one of the nation's largest nonprofit providers and managers of these services. They have expanded to 155 facilities. in 25 states, Puerto Rico and the Virgin Islands. In total, RHF serves approximately 16,000 residents with approximately 14,750 units and beds.
The Internal Revenue Service (IRS) Code requires that the CSCDA seek approval from the City Council of the bonds issued, a portion of which will benefit facilities within the City. A Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing notification was published in the Press-Telegram on February 8, 2008. The TEFRA hearing was held on March 4, 2008 at 9:00 a.m. The public hearing, required by Federal tax law regulations, was conducted by the City Treasurer in the sixth floor conference room at City Hall. No public comment was presented.
This matter was reviewed by Assistant City Attorney Heather A. Mahood on March 3, 2008 and Budget Management Officer Victoria Bell on February 29, 2008.
TIMING CONSIDERATIONS
City Council action is requested on March 11, 2008 to facilitate the forthcoming revenue bond issuance.
FISCAL IMPACT
The proposed action has no fiscal impact on the City of Long Beach. The City has no financial obligation or liability associated with this financing. No City interest or taxing authority was pledged in support of this financing.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE ISSUANCE OF THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY REVENUE BONDS (RETIREMENT HOUSING FOUNDATION OBLIGATION GROUP), SERIES 2008 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $45,000,000 FOR THE PURPOSE OF REFINANCING CERTAIN PRIOR INDEBTEDNESS USED TO FINANCE HEALTH CARE AND RESIDENTIAL FACILITIES, AND CERTAIN OTHER MATTERS RELATING THERETO
Respectfully Submitted,
Lori Ann Farrell
Director of Financial Management
NAME |
APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |