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 Community Development Authority (CSCDA) to benefit Hunt Capital Partners, LLC, or its affiliates, in an amount not to exceed $7,500,000. (District 9)
DISCUSSION
Hunt Capital Partners, LLC, Western Community Housing, Inc., Davila Properties, LLC, and Ashwood Construction, Inc., formed a limited partnership and have requested the CSCDA to issue bonds on its behalf in an aggregate amount not to exceed $7,500,000. The CSCDA is a joint exercise of powers authority consisting of over 500 California cities, counties and special districts, including the City of Long Beach.
The CSCDA will issue tax-exempt debt to finance the acquisition and rehabilitation of an apartment building located at 6301 Atlantic Avenue, which is referred to as the Belwood Arms Apartments (BAA). The BAA building is intended for low- and very low-income residents and includes 34 apartment units. The development will replace kitchens and bathrooms in all the units; replace floor coverings, appliances, and lighting; upgrade the roof-mounted solar and auxiliary hot water systems; upgrade plumbing and electrical systems; replace the roof; install new energy efficient windows; and provide extensive exterior improvements, including new siding, architectural treatments, landscaping and lighting. The building does not and will not include a community room. However, there is funding included in the project's budget for a social services coordinator, and it is anticipated that Western Community Housing will coordinate with existing service providers throughout the City to provide services to the residents.
The Internal Revenue Service Code requires that CSCDA seek approval from the City Council of the bonds issued, a portion of which will benefit facilities within the City. A TEFRA public hearing notification was published in the Long Beach Press-Telegram on June 30, 2011. The TEFRA hearing was held on July 14, 2011 at 1:45 pm. 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 July 12, 2011 and Budget Management Officer Victoria Bell on July 8, 2011.
TIMING CONSIDERATIONS
City Council action is requested on August 16, 2011 to facilitate CSCDA'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 150 jobs during construction of the project.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS FOR TEH BELWOOD ARMS APARTMENTS PROJECT
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER