03-09-2004 CC RPT 13 - Laserfiche WebLink

Home

People Serving People CITY OF RIVERSIDE CITY COUNCIL MEMORANDUM Riverside HONORABLE MAYOR AND CITY COUNCIL DATE: March 9, 2004 ITEM NO: t3 SUBJECT: PUBLIC HEARING ON TOPAZ AND TURQUOISE TAX EXEMPT REVENUE BOND ISSUANCE BY HOUSING DEVELOPER~ IN COMPLIANCE WITH THE TAX AND EQUITY FISCAL RESPONSIBILITY ACT (TEFRA) BACKGROUND: On May 6, 2003, the City Council and Redevelopment Agency board approved the Topaz & Turquoise project, which consists of the acquisition and substantial rehabilitation of sixteen (16) fourplexes and two (2) vacant lots located between Topaz Drive and Turquoise Street. The City and Agency are assisting this project, which is being implemented by the Southern California Housing Development Corporation ("Developer"), an experienced and successful non-profit affordable housing developer that operates throughout southern California. At the May 6, 2003 meeting, the City and Agency allocated approximately $3.8 million to this project - the total project cost is estimated to be $11,241,269. As part of the project financing, Developer has sought out funding sources that provide financing for affordable housing projects. This fall, they successfully applied for and were awarded $2.9 million in State Multi-Family Housing Program ("MHP") funds. They are currently applying for up to $2.59 million in 4% Low Income Housing Tax Credits through the State Tax Credit Allocation Committee, and are applying for up to $6 million in tax-exempt revenue bond funds through the California Debt Limit Allocation Committee ("CDLAC"). The bonds will be issued through the California Statewide Communities Development Authority, a Joint Powers Authority that has assisted over 370 cities, counties, and special districts to issue bonds. CURRENT ISSUE: For the bonds to be issued to the project, the City Council of the City of Riverside - as the local governing body of the jurisdiction in which the project is located - must hold a public hearing to comply with the Tax and Equity Fiscal Responsibility Act of 1982 ("TEFRA"). The TEFRA hearing allows the public the opportunity to speak on behalf of or against the location and nature of the project. This hearing, being held today, has been duly noticed in a paper of general local circulation at least 14 days prior to the meeting. By law, the City Council - as the governing body of the jurisdiction in which the project is located - must also adopt a Resolution (attached as Exhibit A) approving the issuance of tax-exempt bonds for the financing of the project. FISCAL IMPACT: There is no fiscal impact to the City for holding this public hearing, adopting the Resolution, or approving the issuance of the bonds. The bonds relate specifically to the Project and are the fiscal responsibility of 13-1