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HomeMy WebLinkAbout2015-09-08 - AGENDA REPORTS - SENIOR APARTMENTS TEFRA (2)Agenda Item: 9 CITY OF SANTA CLARITA ... AGENDA REPORT PUBLIC HEARING A) 7 APPROVAL: n4l 40�� DATE: September 8, 2015 SUBJECT: BOUQUET CANYON SENIOR APARTMENTS TAX EQUITY AND FISCAL RESPONSIBILITY ACT (TEFRA) HEARING DEPARTMENT: Administrative Services PRESENTER: Kevin Tonoian RECOMMENDED ACTION City Council conduct a public hearing and adopt a Tax Equity and Financial Responsibility Act (TEFRA) resolution approving the issuance of tax-exempt obligations by the California Statewide Communities Development Authority (CSCDA) in an aggregate amount not to exceed $39 million to finance the acquisition and rehabilitation of the Bouquet Canyon Senior Apartments. BACKGROUND The California Statewide Communities Development Authority (CSCDA) is ajoint exercise of powers authority created under the California Joint Powers Authority Act. More than 500 California cities and counties (including Santa Clarita) are members of the CSCDA, which issues bonds on behalf of their members and to nonprofit and private entities within the members' geographical jurisdictions where public benefit projects are proposed to be located. The CSCDA has requested that the City Council approve the issuance of tax-exempt obligations by CSCDA in an aggregate amount not to exceed $39 million to finance the acquisition and rehabilitation of the Bouquet Canyon Senior Apartments by Vintage at Bouquet Canyon, L.P. In addition to financing this acquisition, rehabilitation identified by Vintage includes improvements to the residents' units and common -area amenities. Bonds issued by CSCDA are limited obligations of the borrower, not CSCDA or the Program Participant. Member agencies of the CSCDA are not responsible for any repayment of debt by borrowers, nor are they named in any of the bond documents. Therefore, no City revenues are considered or at risk by this bond issuance. Page I I Packet 5757_1 l� Federal tax law and the CSCDA joint powers agreement require that a Tax Equity and Financial Responsibility (TEFRA) public hearing be held in the jurisdiction where any public benefit project funded by the CSCDA is located. This hearing provides members of the public and the governing board with the ability to comment and approve or disapprove the issuance of bonds for the project. Any project not approved by the local jurisdiction will not be financed through the CSCDA. The Bouquet Canyon Senior Apartments is a 264 -unit senior multifamily rental housing complex located in the Saugus community. This complex was originally approved on May 12, 1998, by the City Council as part of a development agreement executed with the project applicant. The public benefits conveyed by this development agreement require the applicant to restrict the project to persons 55 years of age or older and 100% of all units affordable at or below 60% of area median income for a term of 30 years from the date of completion of the project. Records associated with the City Council's original approval of this project, including the May 12, 1998, staff report and the approved development agreement, are available for review in the City Clerk's Reading File. Adoption of the TEFRA Resolution to approve the issuance of the tax-exempt revenue bonds does not place the City or CSCDA under any pecuniary liability. Finally, the City's credit and bond ratings are not at risk by adopting the attached TEFRA Resolution. ALTERNATIVE ACTION City Council decline approval of the issuance of bonds by the CSCDA for the Bouquet Canyon Senior Apartments. 2. Other direction as determined by City Council. FISCAL IMPACT None. ATTACHMENTS Public Hearing Notice TEFRA Resolution Bouquet Canyon Senior Apartments Report - May 12, 1998 (available in the City Clerk's Reading File) Bouquet Canyon Senior Apartments Development Agreement (available in City Clerk's Reading File) Page 2 Packet �g7572 CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING REGARDING ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS FOR BOUQUET CANYON SENIOR APARTMENTS NOTICE IS HEREBY GIVEN that, at 6:00 p.m., or as soon thereafter as the matter can be heard, on Tuesday, September 8, 2015, at the City Council Chambers, 23920 Valencia Boulevard, I st Floor, Santa Clarita, California, the City Council of the City of Santa Clarita (the "City") will conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986, at which it will hear and consider information concerning a proposed plan of financing providing for the issuance by the California Statewide Communities Development Authority of multifamily housing revenue bonds in one or more series issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, and at no time to exceed $39,000,000 in outstanding aggregate principal amount, to finance the acquisition and rehabilitation of a 264 -unit senior multifamily rental housing project located at 26705 Bouquet Canyon Road, Santa Clarita, California. The facilities are to be owned by Vintage at Bouquet Canyon, L.P. (the "Borrower"), operated by FPI Management, Inc., and are generally known as Bouquet Canyon Senior Apartments (the "Project"). Those wishing to comment on the proposed financing and the nature and location of the Project may either appear in person at the public hearing or submit written comments, which must be received by the City prior to the hearing. Written comments should be sent to City of Santa Clarita at 23920 Valencia Boulevard, Suite 120, Santa Clarita, California 91355, Attention: City Clerk. If you wish to challenge the action taken on this matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Santa Clarita at, or prior to, the public hearing. Dated: August 25, 2015 Kevin Tonoian, City Clerk Publish Date: August 25, 2015 I Packet Pg. 53 1 RESOLUTION NO. 15- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS FOR THE BOUQUET CANYON SENIOR APARTMENTS WHEREAS, the California Statewide Communities Development Authority (Authority) is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988, (Agreement), among certain local agencies throughout the State of California, including the City of Santa Clarita (City), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; and WHEREAS, Vintage at Bouquet Canyon, L.P., a limited partnership or related entities, has requested that the Authority adopt a plan of financing providing for the issuance of multifamily housing revenue bonds (Bonds) in one or more series issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, and at no time to exceed $39,000,000 in outstanding aggregate principal amount, to finance the acquisition and rehabilitation of a 264 -unit senior multifamily rental housing project located at 26705 Bouquet Canyon Road, Santa Clarita, California, generally known as Bouquet Canyon Senior Apartments (Project) and operated by FPI Management, Inc.; and WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes of the Internal Revenue Code of 1986 (Code); and WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private activity bonds are required to be approved by the "applicable elected representative" of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the members of this City Council (City Council) are the applicable elected representatives of the City of Santa Clarita; and WHEREAS, there has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the Bonds would be held on a date specified in such notice; and WHEREAS, such public hearing was conducted on such date, at which time an opportunity was provided to interested parties to present arguments for and against the issuance of the Bonds; and IPacket WHEREAS, the Authority is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Authority for the purpose of refinancing the Bonds which financed the Project (Refunding Bonds), but only in such cases where federal tax laws would not require additional consideration or approval by the City Council; WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(t) of the Code and Section 9 of the Agreement; and WHEREAS, the Bonds will not constitute a debt, liability, or obligation of the City. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The City Council hereby approves the issuance of the Bonds and the Refunding Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitutes approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 9 of the Agreement. SECTION 3. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to, and comply with the terms and intent of this resolution and the financing approved hereby. SECTION 4. The City Clerk shall forward a certified copy of this Resolution and a copy of the affidavit of publication of the hearing notice to: Justin Cooper, Esq. Orrick, Herrington & Sutcliffe LLP 405 Howard Street San Francisco, CA 94105 SECTION 5. This resolution shall take effect immediately upon its passage. I Packet Pg. 55 1 PASSED, APPROVED, AND ADOPTED this 81h day of September 2015. MAYOR ATTEST: CITY CLERK DATE: STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss. CITY OF SANTA CLARITA 1, Kevin Tonoian, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 8th day of September 2015, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK Packet Pg. 56