HomeMy WebLinkAbout2018-07-24; City Council; ; Issuance of revenue bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $5,000,000 to refinance and rehabilitate a 28-unitDiscussion
The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to
promote economic, cultural and community development, through the financing of economic
development and charitable activities throughout California. To date, over 300 municipalities
have become members of CMFA.
The CMFA was formed to assist local governments, non-profit organizations and businesses
with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in
California. The CMFA's representatives and its Board of Directors have considerable experience
in bond financings.
The planned use for the bond funding is rehabilitation of the existing 28-unit multifamily rental
affordable housing facility -Vista Las Flores. Rehabilitation projects include acquisition and
installation of a photo voltaic system, exterior paint and stucco repair, new playground
equipment, sidewalk repair, new balcony railings, upgrades to the smoke/carbon monoxide
detectors, replacement of each unit's front door, upgrade of exterior lighting (moving to LED),
re-plumbing of several gas lines, new water heaters and drip pans to bring the units up to code,
appliances for each residence and other minor items. The proposed rehabilitation will ensure
that the property is well maintained, in compliance with the law and safe from deterioration
and financial loss. A clean, safe, and well-kept facility benefits the residents and the community
at large, and will extend the life of the development and continued affordable housing
opportunity for low income households.
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the
Borrower, and the City will have no financial, legal, or moral obligation, liability or responsibility
for the Project or the repayment of the Bonds for the financing of the Project. All financing
documents with respect to the issuance of the Bonds will contain clear disclaimers that the
Bonds are not obligations of the City of Carlsbad or the State of California, but are to be paid for
solely from funds provided by the Borrower.
The Board of Directors of the California Foundation for Stronger Communities, a California non-
profit public benefit corporation (the "Foundation"), acts as the Board of Directors for the
CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it
receives with its member communities and donates a portion of these issuance fees to the
Foundation for the support of local charities. A portion of the issuance fee ($1,400.00) will be
granted by the CMFA to the City. The Borrower will be the beneficiary of the CMFA's charitable
donation through a 25% reduction in issuance fees.
Staff is recommending that the City Council conduct the TEFRA hearing in connection with the
proposed issuance of tax exempt revenue bonds by the CM FA in an amount not to exceed
$5,000,000 for the tax exempt rehabilitation of an existing 28-unit multifamily rental affordable
housing facility to be owned and operated by the Borrower and located at 6408 Halyard Place
within the City of Carlsbad, and adopt the attached City Council resolution in favor of the
issuance of the Bonds by the CMFA.
Fiscal Analysis
July 24, 2018 Item #17 Page 2 of 6
The issuance of the bonds does not impose a fiscal obligation on the City of Carlsbad. The City
is not obligated in any way to repay the bonds. In addition, a portion of the bond issuance fee
($1,400.00) will be granted to the City of Carlsbad and deposited into the Housing Trust Fund to
financially support other affordable housing developments within Carlsbad and to contribute to
overall affordable housing administrative costs.
Next Steps
Staff will forward a certified copy of the City Council Resolution to bond counsel, Jones Hall.
Environmental Evaluation (CEQA)
Pursuant to Public Resources Code section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potential to cause either a direct physical change
in the environment, or a ·reasonable foreseeable indirect physical change in the environment.
Public Notification
A fourteen calendar day public TEFRA hearing notice was posted in the newspaper on June 27,
2018 and on the City website. Copies of the notice are available in the Office of the City Clerk.
Exhibits
1. City Council Resolution
July 24, 2018 Item #17 Page 3 of 6
RESOLUTION NO. 2018-146
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING ISSUANCE OF TAX EXEMPT REVENUE
BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN
AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $5,000,000
TO REFINANCE AND REHABILITATE A 28-UNIT MULTIFAMILY
RENTAL AFFORDABLE HOUSING FACILITY LOCATED AT 6408
HALYARD PLACE FOR THE BENEFIT OF VISTA LAS FLORES, LP., OR
ANOTHER ENTITY CREATED BY WAKELAND HOUSING AND
DEVELOPMENT CORPORATION (OR AN AFFILIATE).
EXHIBIT I
WHEREAS, on behalf of Vista Las Flores, LP., a California limited partnership, or another entity
created by Wakeland Housing and Development Corporation (or an affiliate) (the "Borrower"),
Borrower has requested that the California Municipal Finance Authority (the "Authority") issue one or
more series of tax exempt revenue bonds in an aggregate principal amount not to exceed $5,000,000,
as part of a plan to finance the rehabilitation of an existing 28-unit multifamily rental affordable housing
facility (the "Project") to be owned and operated by the Borrower and located at 6408 Halyard Place
within the City of Carlsbad (the "City"); and
WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"), the
issuance of the Bonds by the Authority must be authorized by the City because the Project is located
within the territorial limits of the City; and
WHEREAS, the City Council of the City (the "City Council") is the elected legislative body of the
City and is one of the "applicable elected representatives" required to authorize the issuance of the
Bonds under Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the City Council authorize the issuance of the Bonds
by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and
the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California
Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local
agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly
given, held a public hearing regarding the issuance of the Bonds, and now desires to authorize the
issuance of the Bonds by the Authority;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
July 24, 2018 Item #17 Page 4 of 6
EXHIBIT 1
1. That the above recitations are true and correct.
2. That the City Council hereby authorizes issuance of the Tax Exempt Revenue Bonds by
the Authority for the rehabilitation project of the existing 28-unit multifamily affordable
rental property located at 6408 Halyard Place for the benefit of Vista La Flores, LP., or
another entity created by Wakeland Housing and Development Corporation (or an
affiliate).
3. That is the purpose and intent of the City Council that this resolution constitute approval
and authorization for issuance of the Bonds by the Authority, for the purposes of
Section 147(f) of the Internal Revenue Code by the applicable elected representative of
the governmental unit having jurisdiction over the area in which the Project is located,
in accordance with said Section 147(f).
4. That the officers of the City are hereby authorized and directed, jointly and severally, to
do any and all things to execute and deliver any and all documents which 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 transaction approved hereby.
5. That the City Clerk shall forward a certified copy of this Resolution to the Authority in
care of its counsel:
Ronald E. Lee, Esq.
Jones Hall, APLC
475 Sansome Street, Suite 1700
San Francisco, CA 94111
6. This resolution shall take effect immediately upon its adoption.
July 24, 2018 Item #17 Page 5 of 6
EXHIBIT 1
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 24th day of J..!!!.y, 2018, by the following vote, to wit:
AYES:
NOES:
ABSENT:
M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard.
None.
None.
MATT HALL, Ma
(SEAL)
July 24, 2018 Item #17 Page 6 of 6
TO:
AFFIDAVIT OF MAILING
NOTICE OF PUBLIC HEARING
CITY CLERK
']/ ;}Lf )J8 DATE OF PUB~C HEARING:
SU BJ E CT: _;_)=-----=[=----· ~'1-+-1--,1--~1-,,,,==~.J..J.f-+----'-"---'--->--'-"-=-___._.,.oc::..._.__~:..>....><-~~~,,,..,.,,..~
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DATE NOTICES MAILED TO PROPERTY OWNERS: -----------
I declare und enalty of perjury under the laws of the State of California that I am
employed the City of Carlsbad and the foregoing is true and correct.
CITY CLERK'S OFFICE
(Signature) (Date)
SENT TO FOR PUBLICATION VIA E-MAIL TO: ~Union Tribune
D Coast News
PUBLICATION DATE: Union Tribune (_p / :;)7 / /,Y ----~--#-,~~------
Coast News ----------------
I declare under penalty of perjury under the laws of the State of California that I am
employed by the City of Carlsbad in the Cit~Office and the foregoing is true and
correct. -/!;_, .
Date:___________ ~W1Y( o ,ca~1!1~
Attachments: 1) Mailing Labels
2) Notice w/ attachments
(Signature)
~ c~.J! r~ ~ HrJ2P
cf,.o~ no1,__~
California Newspaper Service Bureau
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Tel 1-800-788-7840 Fax 1-800-474-9444
Local Offices and Representatives in:
Los Angeles, Santa Ana, San Diego, Riverside/San Bernardino,
San Francisco, Oakland, San Jose, Sacramento
Special Services Available in Phoenix
DECLARATION
I am a resident of Los Angeles County, over the age of
eighteen years and not a party to or interested in the
matter noticed.
The notice, of which the annexed is a printed copy
appeared in the:
SAN DIEGO UNION-TRIBUNE
On the following dates:
06/27/2018
I certify (or declare) under penalty of perjury that the
foregoing is true and correct.
Dated at Los Angeles, California, this
29th day of June 2018
Signature
3147083
"The only Public Notice which is justifiable
from the standpoint of true economy and the public interest,
is that which reaches those who are affected by it"
I lllllll llll lllll lllll lllll lllll lllll lllll llli 1111111111111111~1111111111 * A O O O O O 4 7 9 0 7 5 5 *
NOTICE OF
PUBLIC HEARING
NOTICE IS HEREBY
GIVEN that on Tues· doy, July 24, 201 B, a public hearing as
required by Section
147(f) of the Inter· nal Revenue Code of 1985 wl II be held
with respect to the
proposed Issuance by the California Munici-pal Finance Author-
ity (thl! "Authority")
of Its revl!nue bonds
In one or more series
In an amount not to
exceed ss,000,000, Including but not llm• lted to revenue bonds
Issued a, part of a
LP.Ian to nnance the ,.c111,1es s described I herein (the "Bonds").
i~~/sro~~fd~e ofu!~~
to: (1) finonce or refi-
nance the acquisition
and rehabllltatlon of
a 2B-unlt multifamily
rental housing fac/1/ty
located at 540B Hal-
yard Place, Carlsbad, California: and (2) pay certain expenses In-
curred In connection
with the Issuance of the Bonds. The faclll-
tles are to be owned
and operated by Vista
Las Flores, LP. a Coll-
fornla llmlted partner•
ship, or another entity
created by Wakeland
Housing and Devel-opment Corporation
(or an affiliate) (the HBorrower"),
The Bonds, and the obligation to pay prlnclpal thereof and
Interest thereon and
any redemption pre-
mium with respect
thereto, do not con-I stltute Indebtedness,
or an obllgatlon of
the City of Carlsbad,
the Authority, the State of Collfornla or any political subdlvl· slon thereof, within
the meaning of any
constltutlonal or stat-
utory debt llmltotlon, or a charge against
the general credit or
taxing powers of any
of them. The Bonds
shall be a llmlted obllgatlon of the Au-thority, poyable solely
from certain revenues
du:y pledged therefor an generally repre-
senting amounts paid by the Borrower. The hearing will com-mence at 6:00 p.m.
or as soon thereafter as the matter can be heard, and will be held In the City Coun-cil Chamber within
the City of Carlsbad located at 1200 Carls-
bad VIiiage Drive,
Carlsbad, California. Interested persons
tt.1!~1
~?ew;0 on";~;",!~
suance of the Bonds
or on the nature and
location of the foclll-tles proposed to be fi-nanced or refinanced
may attend the r,ubllc ~he:r~r~e ~~ t~~ 0~e~~
Ing, submit written
comments,
Additional Informa-tion concerning the above matter may be
obtained from, and
written comments should be addressed to, City Clerk, City of Carlsbad, 1200 Carls-
bad VIiiage Drive,
I
Carlsbad, California 92009,
Dated: June 27,201 B
5/27/1 B
I
, CNS-3147083#
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