HomeMy WebLinkAbout13 SET DATE FOR THE CALIFORNIA STATE COMMUNITIES DEVELOPMENT AUTHORITY PUBLIC HEARING• Agenda Item 13
AGENDA REPORT Reviewed:
City Manager
Finance Director N/A
MEETING DATE: AUGUST 3, 2010
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: CHRISTINE SHINGLETON, ASSISTANT CITY MANAGER
SUBJECT: SCHEDULING OF A PUBLIC HEARING TO CONSIDER ISSUANCE BY
THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY OF BONDS WITHIN THE CITY OF TUSTIN
SUMMARY:
The California Statewide Communities Development Authority (CSCDA) has requested
that the City Council hold a public hearing to consider the issuance by CSCDA of tax
exempt multi-family housing revenue bonds for purposes of financing the acquisition
and construction of the Coventry Court project.
RECOMMENDATION:
It is recommended that the City Council confirm a special meeting date sometime
between August 17 and August 23, 2010.
FISCAL IMPACT:
No fiscal impact anticipated.
BACKGROUND:
The City Council at its meeting on July 7t" approved the Coventry Court project for 240
senior apartment tenured units. California Statewide Communities Development
Authority (CSCDA) has proposed issuing tax exempt multi-family housing revenue
bonds for the purpose of financing the acquisition and construction of the project. The
Developer has also applied through astate-wide non-competitive round for an allocation
of the state ceiling on qualified private activity bonds for a qualified residential rental
project, and for tax credits through the California Debt Limitation Allocation Committee.
CSCDA was created in 1987 as a public entity pursuant to the Joint Exercise of Powers
Act to be separate and apart from program participants and to serve as a conduit for
certain financings and bond issuances, including private activity bonds for multi-family
rental housing acquisition, development and rehabilitation. CSCDA is jointly sponsored
August 3, 2010
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by the League of California Cities and California State Association of Counties. CSCDA
issues bonds for purposes of exercising its powers and raising the funds necessary to
carry out the purposes under the Joint Powers Agreement with its program participants.
The bonds issued by CSCDA, together with the interest and premium, do not represent
a debt of the program participant (the City of Tustin in this case) or a pledge of the faith
and credit of a program participant.
The City became a member of CSCDA in 2000 which permits CSCDA to issue bonds in
our jurisdiction. However, in order to initiate such a financing, the member participant
(the City of Tustin) must: (1) conduct a public hearing; and (ii) approve the CSCDA's
issuance of indebtedness, but only if issuance of such bonds is approved by the City. It
was thought that the Council's role in holding a hearing could be delegated, but bond
counsel for CSCDA has provided federal statutory authority indicating that the Council
must approve and authorize CSCDA to issue bonds in our jurisdiction. CSCDA has
informed the City that the City must conduct a local hearing between August 17th and
August 23rd in order for Coventry Court to be eligible for CSCDA bonds in this current
cycle.
While the City Council has already cancelled its regular meeting of August 17cn, the
hearing required by CSCDA can be held at any time of the day between August 17cn
and August 23`d at the convenience of members of the City Council and will be noticed
by CSCDA in a local paper of general circulation. The City Council will need to confirm
a time at the August 3`d meeting in order to adjoin to a special meeting with a date
certain so that CSCDA can publish the notice as soon as possible.
~w
Christine Shingleton
Assistant City Manager