COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

March 17, 2008

BOARD MEETING DATE:

April 8, 2008

SPECIAL NOTICE/HEARING

10 Day Notice,
Public Hearing

VOTE REQUIRED

Majority

TO:

Honorable Board of Supervisors

FROM:

Duane Bay, Director, Department of Housing

SUBJECT:

Executive Summary - Public Hearing and Resolution Approving California Municipal Finance Authority Bonds for the Construction of Trestle Glen Apartments

Recommendation

1.

Conduct a public hearing regarding the issuance by California Municipal Finance Authority (“CMFA) of Multi-Family Housing Bonds for the Construction of Trestle Glen Apartments in Unincorporated Colma; and

2.

Adopt a resolution authorizing the approval of multi-family housing bonds by the California Municipal Finance Authority to benefit the development of Trestle Glen Apartments.

Background/DIsuccsion

BRIDGE Housing Corporation, sponsor for the development of Trestle Glen Apartments, a 119-unit affordable housing project located adjacent the Colma BART Station, would like to finance the construction of the Project with tax-exempt bond proceeds issued by CMFA. BRIDGE, through Trestle Glen Associates, L.P., an affiliate limited partnership formed for the Project, has requested the County to hold the subject public hearing and to adopt a resolution approving the bond financing. The public hearing and Board resolution are both needed to obtain tax exempt status on the bonds

CMFA will issue up to $30 million for construction, with $9 million to be converted to permanent financing upon Project completion. Although the County would be approving the bond financing for the purposes of federal tax law and the IRS, the County will not have any financial liability for the bond. The County, in holding the hearing, assumes no liability for the financing.