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HomeMy WebLinkAbout5/7/2003 - STAFF REPORTS (14) DATE: MAY 7, 2003 TO: CITY COUNCIL FROM: DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT CONDUCTING A TEFRA (TAX AND EQUITY FISCAL RESPONSIBILITY ACT) HEARING FOR THE PROPOSED ISSUANCE OF CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY BONDS IN AN AMOUNT NOT TO EXCEED $11,000,000 FOR THE PURPOSE OF ASSISTING MATTHEW FAMILY APARTMENTS, L.P. CONSTUCT A 129-UNIT APARTMENT PROJECT ON MATTHEW DRIVE RECOMMENDATION: It is recommended that the City Council consider an application by Matthew Family Apartments, L.P. for tax-exempt bond financing for the construction of Matthew Family Apartments on Matthew Drive, with bonds issued by the California Statewide Communities Development Authority. Though the City is already a member of the Authority, such an approval requires the City to conduct the public hearing and approve the Authority's issuance of indebtedness. SUMMARY: Heritage Community Housing, Inc. and American Senior Living, partners in Matthew Family Apartments, are proposing a 129-unit apartment project on Matthew Drive, near East Palm Canyon Drive and Gene Autry Trail. The project has not been submitted to Planning for approval yet. The developer applied in the April 16, 2003 round of tax-exempt bond approvals through the California Debt Limit Advisory Commission, in order to beat the deadline on the prevailing wage exemption under SB 975. SB 975, enacted in 2001, requires the payment of prevailing wages to all state-funded projects, including affordable housing projects. Even those funded by tax-exempt bonds or other state housing money, as well as redevelopment funds, would be subject to prevailing wage laws. The law allowed an exemption, however, to affordable housing projects entitled by December 31, 2003. The bonds would be issued by California Communities, a statewide community development JPA. Federal tax law requires that the recipient of such financing set aside 20% of its units for low- or moderate income residents. This project is proposed as a 100% affordable family project (2, 3-, and 4- bedrooms). The City, however, is required to conduct a TEFRA public hearing required of all tax-exempt bonds; the City is already a member of the California Statewide Communities Development Authority. BACKGROUND: Matthew Family Apartments, L.P. has applied for an allocation of tax-exempt bonds from the State of California to construct a 129-unit rental housing project on Matthew Drive in Palm Springs. The developers, based in Orange County, have constructed and awn several thousand units of rental housing in the state. This project would feature 100% affordable family units (at either 50% or 60% of area median income, with some possible lower), but has not yet been submitted to Planning. The push for the approval of the financing prior to the entitlement n is due to the provision in SB 975, which grants relief on the prevailing wage requirement to projects that have received their funding and are entitled by December 31, 2003. Staff is recommending the approval of the TEFRA resolution because the 129 units made available under the bond issue would count toward the Agency's 15% "inclusionary housing" responsibility under Redevelopment Law, which require that the Agency ensure that 15% of housing units constructed or rehabilitated within a project area be made available to persons of low-or moderate income. This project is in Merged Project Area#1 (formerly Project Area#9). The bond issue is for a not-to-exceed amount of$11,000,000, or$85,271 per unit. The Developers are also applying for the (nearly automatic) 4% Low Income Housing Tax Credits, but have not yet formally requested any Agency assistance, nor has the Agency made any financial commitment to the project. The City is required to conduct a TEFRA public hearing required of all tax- exempt bonds; the City is already a member of the California Statewide Communities Development Authority. CA J�Hfi S. RAY Dir`ct of Co m ity and Economic Development City Manager — r ATTACHMENTS: 1. Resolution 2. Public Hearing Notice qlqcV CITY OF PALM SPRINGS NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the Palm Springs City Council at its regular meeting on May 7, 2003 at City Hall, located at 3200 East Tahquitz Canyon Way, Palm Springs, CA will hold a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986, and consider approval of the issuance by the California Statewide Communities Development Authority (the "CSCDA") of multifamily housing revenue bonds in the aggregate principal amount of not to exceed $11,000,000 to finance the acquisition, construction and development of a 129-unit multifamily rental housing project located at 4401 East Matthew Drive, Palm Springs, California, and generally known as Matthew Family Apartments (the "Project'). The Project will be owned and operated by Matthew Family Apartments, L.P., a California limited partnership, or affiliated entities. All those interested in matters related to the issuance of the revenue bonds are invited to attend and be heard at the meeting or submit written comments, which must be received by the City prior to the hearing. If you have any questions regarding this matter, please call Michael LaPierre of the CSCDA, at 800/635-3993 ext 12. Written comments should be sent to the City of Palm Springs, 3200 East Tahquitz Canyon Way, California 92262, Attention: City Clerk. By: /s/ Patricia A. Sanders Dated: April 21, 2003 City Clerk Mkt tgEyv M KLT[-FAALY WRT MENTS k k y N 94 O STOR U1TS Y *kk ^' • j r 24 CM BEDROOM 48 TWO BEDROOM 24 TH.^,EE BEDROOM{ ' ' co PARKING 194 • 6 REG.HAN]ICAPED 186 STANDARD k • k If ■ O .� z a k � em k c� s a. y k m ti � k � 4, © p0 * � z v N V xTereex HERITAGE PARK @PALM SPRINGS �w� S+°i:"ra+ w iruE a,anY AYE 8UT6 WI ^. UWA ANA.G• l Proof of Publication In Newspaper STATE OF CALIFORNIA County of Riverside Jacquelin K. Welch says: 1. 1 am a citizen of the United States, a resident of the City of Desert Hot CITY OF PALM SPRINGS Springs, County of Riverside, State of NOTICE OF PUBLIC HEARING California, and over the age of 18 years. NOTICE IS HEREBY GIVEN that the Palm Springs City Council at its regular meeting on May 7,2003 at City Hall,locat- 2. 1 am the Research & Production ed of 3200 East Talmudic,Canyon Way,Palm Springs,CA will Assistant of The Public Record, a hold a public hearing as required by Section 147(f) of the Inlernal Revenue Code of 1986,and Consider approval of the newspaper of general circulation printed ssuance by the California Statewide Communities Development Authority(the"CSCDA')of multifamily housing and published in the City of Palm revenue bonds in the aggregate principal amount of not to Springs, County-of--Riverside,- State of -excaed$11,000.000 to finance the acquisition, construction and development of a 129-unit multifamily rental housing pro- California. Said The Public Record is a tect located at 4401 East Matthew Drive, Palm Springs, Califbmis,and generally known as Matthew Family Apartments newspaper of general circulation as that (the"Project'). The Protect will be owned and operated by term is defined in Government Code Matthew Family Apartments,L.P.,a California limited padner- section 6000, its status as such having ship,or affiliated entities. Ail those interested in matters related to the issuance ofhe been established by judicial decree of the revenue bonds are invited to attend and be heard at the meet- et- Superior Court of the State of Californian ing or submit written comments,which must be received by the F" City prior to the hearing. It you have any questions regarding and for the County of Riverside n this matter, please call Michael LaPmme of the CSCDA, at 800/635-3993ext12 Wmancommentsshouldbesenttothe Proceeding No. Indio 49271, dated City of Palm Springs, 32DO East Tahgmtz Canyon Way, March 31, 1987, entered in Judgment California 92262,Attention-City Clerk Book No. 129, page 355, on March 31, By:/a/Pamela A.Sanders Dated: April 21,2003 1987 City Clerk 3. The Public Record is a newspaper of April 22,2003 general circulation ascertained and established in the City of Palm Springs in the County of Riverside, State of California, Case No. RIC 358286, Filed June 8, 2001. 4. The notice, of which the annexed is a true printed copy, was published in the newspaper on the following publication dates to wit: April 22, 2003 1 certify under penalty of perjury that the above is true and correct. Dated at Palm Springs, California, this 22"d day of April 2003. Jacquelin K. Welch „ ,A Research & Production Assistant �' /? RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY WHEREAS, the California Statewide Communities Development Authority (the "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 (the "Agreement"), among certain local agencies throughout the State of California, including the City of Palm Springs (the "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, Matthew Family Apartments, L.P., a California limited partnership (collectively, with any related entity, the "Borrower") has requested that the Authority issue multifamily housing revenue bonds in an aggregate principal amount not to exceed $11,000,000 (the "Bonds") for the purpose of providing financing for the acquisition, construction and development of a 129-unit multifamily residential rental project located at 4401 East Matthew Drive, Palm Springs, California and generally known as Matthew Family Apartments; and WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes of the Internal Revenue Code of 1986 (the"Code"); and WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private activity bands 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 (this "Council") are the applicable elected representatives of the City; 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 the date hereof; and WHEREAS, such public hearing was conducted on said date by the City Council, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; and WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. The Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the Council that this resolution constitute 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 of the City 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 Old Federal Reserve Bank Building 400 Sansome Street San Francisco, California 94111 Section 5. This resolution shall take effect immediately upon its passage. ADOPTED THIS day of 2003. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA City Clerk Mayor REVIEWED AND APPROVED AS TO FORM: IqC.O"