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 multifamily housing revenue bonds by the California Municipal Finance Authority (CMFA), to benefit Beacon Pointe, L.P., a partnership to be formed by Century Housing Corporation (Century Housing), a nonprofit corporation, in an amount not to exceed $45,000,000. (District 1)
DISCUSSION
Century Housing has requested that CMFA issue bonds on its behalf, in an aggregate amount not to exceed $45,000,000, for the development of a new affordable senior rental housing facility known as Beacon Pointe, which is located at 1201-1235 Long Beach Boulevard (Project).
Century Housing was established in 1995 as a 501(c)3 nonprofit organization. In addition to being a lender to other affordable housing developers throughout the State of California, Century Housing also has extensive development experience. Over the past 18 years, Century Housing has developed more than 375,000 square feet of housing and supportive service space, which includes 987 residential units across 10 developments. The CMFA is a joint exercise of powers authority, consisting of over 240 California cities, counties, and special districts, whose mission is to support economic development, job creation and social programs throughout the State of California.
The CMFA will issue tax-exempt debt, the proceeds of which will be loaned to Beacon Pointe, L.P. This limited partnership formed by Century Housing will develop and own the Project, which will include 121 housing units and amenities including a community room, supportive services space, computer rooms, laundry rooms, a media room, bicycle storage, and a fitness facility. The Project will provide housing for low-income seniors age 62 and above. Rental occupancy will be restricted for 55 years to households with incomes no greater than 60 percent of the area median income. Revenues from the financed Project will be the source of funds to repay the tax-exempt debt.
The Internal Revenue Code requires that CMFA seek City Council approval in order for bonds to be issued, which will benefit facilities within the City. As required by Federal tax law, a TEFRA public hearing notification was published in the Long Beach Press-Telegram on September 8, 2016. The TEFRA hearing was scheduled for September 28, 2016 at 9:00 a.m. The public hearing was conducted by the City Treasurer in the sixth floor conference room at City Hall. No public comment was presented at the hearing.
This matter was reviewed by Deputy City Attorney Richard Anthony on September 8, 2016 and by Assistant Finance Director Lea Eriksen on September 15, 2016.
TIMING CONSIDERATIONS
City Council action is requested on October 4, 2016, to facilitate CMFA’s forthcoming debt issuance.
FISCAL IMPACT
There is no fiscal impact associated with this action. The City has no financial obligation or liability associated with this financing. No City funds or taxing authority will be pledged in support of this financing. The Project will provide continued support to our local economy by providing up to 13 jobs during the construction phase.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
AMY J. BODEK
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER