COUNTY OF SAN MATEO

Inter-Departmental Correspondence

COUNTY MANAGER'S OFFICE

DATE:

April 25, 2003

BOARD MEETING DATE:

May 13, 2003

TO:

Honorable Board of Supervisors

FROM:

Paul Scannell, Assistant County Manager

SUBJECT:

CSCDA Financing for Hallmark House Apartments

Recommendation

Adopt a resolution subsequent to a public hearing approving the issuance of bonds by the California Statewide Communities Development Authority for the financing of the acquisition and rehabilitation of the Hallmark House Apartments.

Background

The County is a member of the California Statewide Communities Development Authority ("CSCDA'). Under the Marks-Roos Local Bond Pooling Act (Government Code section 6500 and following), joint powers authorities are authorized to issue bonds to finance the acquisition and rehabilitation of multifamily residential rental facilities. However, Internal Revenue Code of 1986 requires that before CSCDA can authorize such bonds, the local agency within whose boundaries the multifamily residential rental facility is to be located must: (1) hold a public hearing and (2) approve the issuance of the bonds.

KDF Communities has requested CSCDA to issue multifamily housing revenue bonds (the "Bonds") to assist in financing the acquisition and rehabilitation of the Hallmark House Apartments located at 531 Woodside Road in the City of Redwood City (the "Project"). The bond proceeds will be loaned to the Borrower in exchange for a pledge of revenues from the Project.

Discussion

CSCDA will undertake this financing on behalf of the Borrower which will own and operate the Project. However, in order to comply with the Internal Revenue Code of 1986, the County of San Mateo is requested to approve the issuance of the bonds after holding a public hearing.

Vision Alignment

This item keeps the commitments of responsive, effective and collaborative government through goal number 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.

Fiscal Impact

The proposed Bonds are payable solely form the revenues of the Project and are not payable from or secured by any revenues of the County. Therefore, the County's approval of the Bonds will have no short-term or long-term budgetary implications for the County.

cc: Thomas F. Casey III, County Counsel