COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

DATE:

January 6, 2005

BOARD MEETING DATE:

January 25, 2005

SPECIAL NOTICE/HEARING

Yes

VOTE REQUIRED

Majority

TO:

Honorable Board of Supervisors

FROM:

Paul T. Scannell, Assistant County Manager

SUBJECT:

Public Hearing and Approval of California Statewide Communities Development Authority Revenue Bonds for the benefit of Fairfield Affordable Housing LLC

RECOMMENDATION:

Conduct a public hearing regarding the issuance by California Statewide Communities Development Authority (“CSCDA”) of bonds for the benefit of Fairfield Affordable Housing LLC or its affiliate (“Fairfield”) and financing the acquisition and rehabilitation of French Village Apartments / Normandy Square Apartments located within the County of San Mateo. Following the hearing, adopt a resolution approving such bond issuance.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government
Goal 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.

BACKGROUND:

Fairfield proposes to acquire and rehabilitate two multifamily housing complexes located at 621-641 Old County Road, Belmont, California. Both facilities are to be maintained as affordable housing in which 10% of the units are restricted to residents earning 50% or below the Area Median Income and 90% of the units are restricted to residents earning 60% or below the Area Median Income (the “Project”).

DISCUSSION:

Fairfield has applied to CSCDA for its assistance in financing the Project through the issuance of revenue bonds in an amount not to exceed $30 million. CSCDA is a joint exercise of powers authority consisting of numerous California counties, cities and special districts, including the County of San Mateo. CSCDA is authorized in its Joint Exercise of Powers Agreement (“Agreement”) to assist California charitable organizations through the issuance of revenue bonds. Said Agreement also requires a public approval by each participating member of CSCDA in which any portion of the project being financed is located. The federal tax law also requires a public hearing to be conducted by a government unit having jurisdiction over the area in which the financed facility is located and approval by the governing body prior to the issuance of tax-exempt bonds. The Bonds will be publicly offered by Newman & Associates, serving as Underwriter, and are expected to be credit enhanced by Fannie Mae or Freddie Mac with a rating of at least “AA.”

Jones Hall, bond counsel to CSCDA, has prepared and caused to be published the required notice of public hearing. Jones Hall also prepared the form of resolution submitted to the County of San Mateo Board of Supervisors for its consideration.

The County is not liable for payment with respect to the bonds.

FISCAL IMPACT:

By holding this hearing and approving the Bonds the County does not obligate itself in any way for the payment of debt service on the Bonds. The principal and interest on the Bonds will be paid solely from the payments to be made by Fairfield, supported by the project revenues.