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 Long Beach Senior Artist Colony, LP, in an amount not to exceed $30,000,000. (District 1)
DISCUSSION
Long Beach Senior Artist Colony, LP, a California limited partnership formed by Meta Housing Corporation (Meta), has requested the CSCDA to issue bonds on its behalf in an aggregate amount not to exceed $30,000,000. 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, which will be loaned to Long Beach Senior Artist Colony, LP, to finance the construction of a new affordable senior rental housing development at 1235 Long Beach Boulevard, which is referred to as the Senior Artist Colony (SAC). The SAC building is intended for very low-, and low-income active seniors age 55 and above, and includes 147 apartment units and amenity space that is designed to provide opportunities for lifelong learning for the residents. The development will also include a pool and spa, community room, library, theater, game room, art studios, classrooms and a gym.
The SAC is one component of a mixed-use and mixed-income two-phased development that includes 186 senior rental units in two buildings over parking (Phase I), and 170 mixed-income condominiums over parking and retail space (Phase II). The second building in Phase I includes 39 affordable senior rental units over parking, with shared use of the SAC amenities previously mentioned. The whole project was approved by the Planning Commission on January 15, 2009, and is fully entitled.
Meta and the City of Long Beach have been awarded approximately $26,000,000 by the State of California Department of Housing and Community Development through the Transit Oriented Development and Infill Infrastructure Grant Programs. In addition, The Long Beach Housing Development Company has approved a loan of $13,145,000 to Meta for Phase I of the project. Meta has also applied for low-income housing tax credits that are expected to be awarded in September. If awarded, Phase I will be fully funded, and will likely begin construction in early 2011. Phase II of the project will likely begin in 2012 when construction financing for condominiums may be more readily available.
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 Press-Telegram on June 14, 2010. The TEFRA hearing was held on June 29, 2010 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 July 9, 2010 and Budget Management Officer Victoria Bell on July 12, 2010.
TIMING CONSIDERATIONS
City Council action is requested on August 10, 2010 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 400 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 OF MULTIFAMILY HOUSING REVENUE BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION AND CONSTRUCTION OF THE LONG BEACH SENIOR ARTIST COLONY.
Respectfully Submitted,
LORI ANN FARRELL
DIRECTOR OF FINANCIAL MANAGEMENT/CFO
DENNIS J. THYS
DIRECTOR, DEPARTMENT OF COMMUNITY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER