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 Municipal Finance Authority (CMFA) to benefit Abode Communities, Evergreen Apartments Multifamily Housing, in an amount not to exceed $14,000,000. (Districts 4,9)
DISCUSSION
Abode Communities, founded as Los Angeles Community Design Center in 1968 to build sustainable, multi-family affordable housing to address the needs of Southern California's large workforce, low-income families, seniors and individuals with special needs, has requested the CMFA to issue bonds on its behalf in an aggregate amount not to exceed $14,000,000. The CMFA is a joint exercise of powers authority, consisting of over 125 California cities, counties and special districts, whose mission is to support economic development, job creation and social programs throughout the State of California while giving back to California communities.
The CMFA will issue tax-exempt debt, which will be loaned to Abode Communities, to finance the acquisition and rehabilitation of 81 units of multifamily rental housing located on three sites in the City of Long Beach, including 1823 E. 68th Street (36 units), 1801 E. 68th Street (26 units) and 1528 N. Freeman Avenue (19 units) to be known as the Evergreen Apartments.
The original TEFRA hearing was held on October 5, 2010 and City Council originally adopted a Resolution approving the issuance of revenue bonds by CMFA for this project on November 9, 2010. The project was delayed due to a restructuring of the project financing. It is expected that these bonds will be issued before the end of 2011. Under applicable Federal tax law, the public hearing must be held no earlier than one year from the date of issuance of the bonds, and because the bonds were not issued before October 5th, a new public hearing was needed for the bonds to be tax-exempt.
The Internal Revenue Code requires that CMFA seek approval from the City Council in order for the bonds to be issued which will benefit facilities within the City. A TEFRA public hearing notification was published in the Press-Telegram on September 26, 2011. The second TEFRA hearing was held on October 17, 2011 at 11:00 a.m. The public hearing, required by Federal tax law regulations, was conducted by the City Treasurer in the sixth floor conference room of City Hall. No public comment was presented at the hearing.
This matter was reviewed by Chief Assistant City Attorney Heather A. Mahood on October 17, 2011 and Budget Management Officer Victoria Bell on October 20, 2011.
TIMING CONSIDERATIONS
City Council action is requested on November 8, 2011 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 interest or taxing authority was pledged in support of this financing. This project will provide up to 125 jobs during the rehabilitation phase of the project.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE ISSUANCE OF MUNTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE PURPOSE OF FINANCING THE ACQUISITION AND REHABILITATION OF MUNTIFAMILY RENTAL HOUSING FACILITIES KNOWN AS EVERGREEN APARTMENTS
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
AMY BODEK
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER