HomeMy WebLinkAbout7/20/2005 - STAFF REPORTS (2) PALM S.0
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°q<rFORN�P City Council Staff Report
DATE: July 20, 2005 PUBLIC HEARING
SUBJECT: CONDUCTING A TERFA (TAX AND EQUITY FISCAL RESPONSIBILITY
ACT) HEARING FOR THE PROPOSED ISSUANCE OF TAX-EXEMPT
MULTI-FAMILY MORTGAGE BONDS BY THE CITY OF PALM SPRINGS
(CONDUIT FINANCING) NOT TO EXCEED $12,000,000 AGGREGATE
PRINCIPAL AMOUNT ON BEHALF OF TAHQUITZ COURT HOUSING
PARTNERS, L.P., A CALFORNIA NON-PROFIT CORPORATION, FOR
THE REFINANCING AND REHABILITATION OF THE TAHQUITZ
COURT APARTMENTS AT 2800, 2890, 2900 and 2990 EAST TAHQUITZ
CANYON WAY.
FROM: David H. Ready, City Manager
BY: Community & Economic Development Department
SUMMARY
The owner of the Tahquitz Court Apartments is Corporate Fund for Housing ("CFH"),
d.b.a., LINC Housing Corporation of Long Beach, CA ("LING Housing") and the newly
formed limited partnership of Tahquitz Court Housing Partners, L.P. and its managing
general partner, LINC Housing, intends to apply for tax-exempt bonds and California 4%
Low Income Housing Tax Credits for the refinancing and rehabilitation. The
combination of this financing is designed to update and modernize, as well as
incorporate energy-efficiency improvements, at a hard cost of approximately $50,000
per unit. The City is required to conduct a TEFRA public hearing on all tax-exempt
bonds. This project retains and upgrades 107 affordable housing units as rent- and
income-restricted units, plus one unit reserved for the complex's management office.
RECOMMENDATION:
Approve Resolution No. , "Authorizing the issuance of not to exceed $12,000,000
aggregate principal amount of tax-exempt multi-family mortgage bonds by the City of
Palm Springs (Conduit Financing) on behalf of Tahquitz Court Housing Partners, L.P., a
California Non-Profit Corporation, for the refinancing and rehabilitation of the Tahquitz
Court Apartments at 2800, 2890, 2900 and 2990 East Tahquitz Canyon Way."
STAFF ANALYSIS:
Tahquitz Court is a 108-unit garden-style family apartment project situated on
approximately 5.4 acres. It is comprised of 108 units housed in 10 buildings, eac a
Item No. IA.
City Council Staff Report
July 20, 2005 - Page 2 of 2
Tahquitz Court Apartments' TEFRA Hearing
two-story walk-up of wood frame, slab-on-grade construction. The project is located
adjacent to City Hall and is a short walking distance to personal services and shopping.
It is comprised of 17 one bedroom/one bath units of approximately 700 square feet, 37
two bedroom/1.5 bath units of approximately 864 square feet, 38 two bedroom/2 bath
units of approximately 1,089 square feet, and 16 three bedroom/2 bath units of
approximately 1,390 square feet. The complex features two swimming pools, two spas,
central laundry facilities, and covered parking. Individual units feature central heat and
air conditioning, dishwashers, double sinks with garbage disposals, breakfast bars,
separate linen closets and private balconies or patios.
CFH, a California 501(c)(3) non-profit public benefit corporation, acquired the property
from Redlands Federal Bank (now CitiBank) which itself acquired the property through
foreclosure in 1992. Originally constructed circa 1963, Tahquitz Court had fallen into
disrepair in the hands of the previous owner, who operated it as a market-rate project
with no subsidized or designated affordable units.
On February 3, 1993, the Housing Authority of the City of Palm Springs adopted
Inducement Resolution No. 26 expressing its intent to issue tax-exempt bond financing
for the acquisition and rehabilitation of the Tahquitz Court Apartments, formerly the San
Carlos Apartments.
In August 1993, the Community Redevelopment Agency of the City of Palm Springs
approved Resolution 894 and 894A authorizing a $590,000 grant and transferring
Housing Set-Aside funds for the purpose of rehabilitation costs and bond issuance
costs.
In conjunction with CFH's acquisition of Tahquitz Court in September 1993, a
substantial rehabilitation program under Redlands' ownership was completed. CFH
was then able to reposition the property by lowering rents to attract and retain low- and
very low-income families. This project aided the City in meeting its' Regional Housing
Needs Assessment (RHNA) numbers for very low, low and moderate income housing of
325 units per year between 1989 and 1994. Eighteen (18) years remains of the initial
30-year affordability condition as regulated in the August 1993 Regulatory Agreement.
While Tahquitz Court continues to serve the needs of low-to-moderate income
individuals and families in Palm Springs, there now exists an opportunity to improve the
project and thus the living standards of its residents. Using a combination of low-
income housing tax credits through the California Tax Credit Allocation Committee
(TCAC) and tax-exempt bond financing through the California Debt Limit Allocation
Committee (CDLAC). CFH, through its parent company LINC Housing, proposes to
embark on a $16 million refinancing and rehabilitation program designed to update and
modernize, as well as incorporating energy-efficiency improvements, and to ensure
affordable housing choice for the long term.
FISCAL IMPACT:
There is no fiscal impact to the City and issuance of the Mortgage Revenue Bonds does
not obligate the City financially in any way, nor does it affect the City's bonding capacity
City Council Staff Report
July 20, 2005 - Page 3 of 3
Tahquitz Court Apartments' TEFRA Hearing
for City-funded projects. The bonds would be repaid by LINC through the rents
received from the project.
J HN . RA ND DALE E. COOK, JR.
Di ctor of Community Development
Community & Economic Development Administrator
DAVID H. READY
City Manager
Attachment: Resolution
Da IeC/H o usi n g/Ta hq u itzCrt_CC_Reso_TEF RA.J u 105
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,I T Y `)F Ile tAL H S;r3;,1h,,'
Z�l� 1UL 13.
PROOF OF PUBLICATION This is space for Cowiiy� (lerk' FS1ifi8�aamp
(2015.5.C.C.P)
STATE OF CALIFORNIA
County of Riverside
--------------------------------------------
I am a citizen of the United States and a resident of Proof of Publication of
the County aforesaid;I am over the age of eighteen ----------------------------------------------
years,and not a party to or interested in the No. 2780
above-entitled matter.I am the principal clerk of a NOTICE OF PUBLIC HEARING
printer of the,DESERT SUN PUBLISHING CITY COUNCIL
COMPANY a newspaper of general circulation, CITY OF PALM SPRINGS
printed and published in the city of Palm Springs, ISSUANCE OF MULTI-
AI
County of Riverside,and which newspaper has been HOUSING REVENUE BONDS
adjudged a newspaper of general circulation by the TAHOUITZ COURT APARTMENTS
Superior Court of the County of Riverside,State of NOTICE IS HEREBY GIVEN that the City Council
California under the date of March 24, 1988.Case of the City of Palm Springs, California, will hold a
Cityli Counrdlgmeeth meeti9d of Jul 20,2005 The
Number 191236;that the notice,of which the Council Chamber at cry Flail a32000�Tah udz
annexed is a printed copy(set in type not smaller Canyon Way, Palm Springs, q
than non pariel,has been published in each regular The purpose of this hearing is to consider a
proval of the City's issuance of multifamily hous-
and entire issue of said newspaper and not in any mg revenue bonds In the a re ate principal
supplement thereof on the following dates,to wit: amount of approximately $12,0°d°0,g0o the ppnnci-
PI g pal amount of which will be applied to the flnanc-
ino of the rehabilitation and preservatto t of a 10G-
a known less the Tahquitz l Court Apartments(the
July 6 200$ "Project") located at 2890 East TO or
Can he
-------------------------------------------------------------- Way, Palm Springs, CA.The owner or the Pro an
is Corporate Fund Far Housing, f the, L NC
ct
Housing Corporation of Long Beach, CA and the
newly formed limited partnership will be Tahquitz
--`--`------------------------------------------------------- Court Housing Partners, L.P and the man he
All in the year 2005 general partner will be LINC Housing Corp oratfc'n.
I certify(or declare)under penalty of perjury that the REVIEW OF PROJECT INFORMATION:The staff
foregoing IS true and correct. report and other supporting documents regarding
g g this matter are available for public review at the
/--, City Hall between the hours of 8:00 a.m.and 5:00
ili p;m. Monday through Friday. Please contact the
pCalifornia this-----14 ----day City Clerks department at P-Int ant to if you
r/ would like to schedule an appointment to review
these documents.
0t'---e`-1- l y-!-- j`-------------2005 COMMENT ON THIS PROJECT: Response to
this notice can be made verbally at the Public
Hearing and/or In writing before the heannq. Writ-
ten comments can be made to the City Council
--- by letter (for mail or hand delivery) to.
1
James Thompson, City Clerk
1 Signature \� 3200 E. Tahquitz Canyyon Wayy li
Palm Springs, CA 92262-2743
Any challenge of the proposed project In court
may be limited to raising only those issues raised
at the public hearing described in this notice, or
in written correspondence delivered to the City
Clerk at, or poor, to the public hearing. (Govern-
ment Code Section 65009(b)(2)).
An at s
Interested pers ns to beity will given
heard DI'd hearing ri g far a l ing this case may be directed to Dale Cook,
Community Development Administrator 8 Dal- w
1111 eC0ol.palm-springs.ca.us, or inistr t.r at
F`
O 7G0.864.9527.
Si necesit,ayuda can ecta cart,, par favor(lame
a la Cludad tla Palm Spnngs y puede nobler on
Nadine Fieger telefono 322-8 y6n ext-8758
/s/James Thompson, City Clerk
Published: July 6,2005
Y
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS AUTHORIZING THE
ISSUANCE OF NOT TO EXCEED $12,000,000
AGGREGATE PRINCIPAL AMOUNT OF TAX-
EXEMPT MULTI-FAMILY MORTGAGE BONDS BY
THE CITY OF PALM SPRINGS (CONDUIT
FINANCING) ON BEHALF OF TAHQUITZ COURT
HOUSING PARTNERS, L.P., A CALIFORNIA NOW
PROFIT CORPORATION, FOR THE REFINANCING
AND REHABILITATION OF THE TAHQUITZ COURT
APARTMENTS AT 2800, 2890, 2900 and 2990 EAST
TAHQUITZ CANYON WAY.
WHEREAS, the City of Palm Springs (the "City") is a municipal corporation and
charter city organized and existing pursuant to the Constitution and laws of the
State of California and charter of the City (collectively, the "Law") and is
authorized to issue bonds to be used to make loans to finance or refinance the
acquisition, rehabilitation and development of multifamily residential rental
facilities located within the area of operation of the City which are to be occupied,
in part, by very low-to-moderate income tenants; and
WHEREAS, Tahquitz Court Housing Partners, L.P., a California limited
partnership, or a limited liability company to be formed by its' managing general
partner, LINC Housing Corporation, (the "Borrower") has requested the City
issue and deliver multifamily housing revenue obligations in the anticipated
principal amount of $12,000,000 (the "Obligations"), the proceeds of which shall
be used for the purpose of refinancing and rehabilitation of a 108-unit affordable
multifamily residential rental facility commonly known as the Tahquitz Court
Apartments which is located at 2800, 2890, 2900 and 2890 Tahquitz Canyon
Way in the City of Palm Springs, California (the "Project"); and
WHEREAS, the Obligations to be issued and delivered to finance the refinancing
and rehabilitation of the Project will be considered "qualified exempt facility
bonds" under Section 142 (a) of the Internal Revenue Code of 1986, as amended
(the "Code"), and Section 147(f) of the Code requires that the "applicable elected
representative" with respect to the Project hold a public hearing on the issuance
and delivery of the Obligations; and
WHEREAS, the City Council of the City of Palm Springs as the "applicable
elected representatives" to hold said public hearing, has held said public hearing
at which all those interest in speaking with respect to-the financing of the Project
were heard.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby finds and determines that the foregoing
recitals are true and correct.
Resolution No.
Page 2
SECTION 2. The City Council hereby approves the financing of the Project by
the City with the proceeds of the Obligations.
SECTION 3. The issuance and delivery of the Obligations shall be subject to the
approval of and execution by the City of all financing documents
relating thereto to which the City is a party and subject to the sale
of the Obligations by the City.
SECTION 4. This resolution shall take effect upon its adoption.
ADOPTED THIS _th day of July, 2005.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
D a l e C/Housing/Ta h q u itzC rt_C C_R e s o_T E F RA.J u 105
NOTICE OF PUBLIC HEARING
CITY COUNCIL
CITY OF PALM SPRINGS
ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS
TAHQUITZ COURT APARTMENTS
NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs,
California, will hold a public hearing at its meeting of July 20, 2005. The City Council
meeting begins at 6:00 pm, in the Council Chamber at City Hall, 3200 E. Tahquitz
Canyon Way, Palm Springs.
The purpose of this hearing is to consider approval of the City's issuance of multifamily
housing revenue bonds in the aggregate principal amount of approximately $12,000,000
the principal amount of which will be applied to the financing of the rehabilitation and
preservation of a 108-unit multifamily residential rental facility commonly known as the
Tahquitz Court Apartments (the "Project") located at 2890 East Tahquitz Canyon Way,
Palm Springs, CA. The owner of the Project is Corporate Fund For Housing, d.b.a.,
LINC Housing Corporation of Long Beach, CA and the newly formed limited partnership
will be Tahquitz Court Housing Partners, L.P. and the managing general partner will be
LINC Housing Corporation.
REVIEW OF PROJECT INFORMATION: The staff report and other supporting
documents regarding this matter are available for public review at the City Hall between
the hours of 8:00 a.m. and 5:00 p.m. Monday through Friday. Please contact the City
Clerks Department at 760.323.8204 if you would like to schedule an appointment to
review these documents.
COMMENT ON THIS PROJECT: Response to this notice can be made verbally at the
Public Hearing and/or in writing before the hearing. Written comments can be made to
the City Council by letter (for mail or hand delivery) to:
James Thompson, City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262-2743
Any challenge of the proposed project in court may be limited to raising only those
issues raised at the public hearing described in this notice, or in written correspondence
delivered to the City Clerk at, or prior, to the public hearing. (Government Code Section
65009(b)(2)).
An opportunity will be given at said hearing for all interested persons to be heard.
Questions regarding this case may be directed to Dale Cook, Community Development
Administrator at DaleC(bci.palm-springs.ca.us, or 760.323.8198/TDD 760.864.9527.
Si necesita ayuda con esta carta, por favor flame a la Ciudad de Palm Springs y puede
hablar con Nadine Fieger telefono 322-8364 ext-8758 , f
/ames Thompson, City Clerk