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RECJVELOPMENT AGENCY-IOlJEST FOR ~ISSION/COUHCIL A~ION
From: Glenda Saul, Executive Director
Subject: TO ACCEPT OR NOT ACCEPT NEW
INDUCEMENTS FOR PROJECTS SEEKING
MULTIFAMILY MORTGAGE REVENUE BONDS
,,-...
I........ It: Redevelopment Agency
Date: December 10, 1985
Synopsis of Previous Commission/Council ection:
1984 & 1985
Council has induced $219,539,983 of Multifamily Bonds, totaling 4,610
units.
Racommendad motion:
(MAYOR AND COMMON COUNCIL)
c
A)
Motion of the Mayor and Common Council of the City of San Bernardino
declaring a moratorium on any new applications for Multifamily Mortgage
Revenue Bonds.
or
B)
Motion of the Mayor and Common Council of the City of San Bernardino to
continue to accept applications for Multifamily Mortgage Revenue Bonds for
approval on a case-by-case basis by the Mayor and Common Council;
,~A.~
Signatu re
Contact person:
G:ICluta Saul
Phone: 383-5081
Supporting data attached:
YEE
Ward: X/A
FUNDING REQUIREMENTS:
Amount: $
N/...
Project: >>1.\
No adverse Impact on City:
Date:
l71G/EB
12 16 85
BLL~mb~r 1&, 1985
Council Notes:
C
Agenda Item No,R- / b
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CIO OF SAN BERNARDIQ) - REQU~T FOR COUNCIL ACWON
r-
~
STAFF REPORT
Staff is seeking direction in policy for multifamily mortgage revenue bonds. If
the current Tax Reform Act pending in the congreas passes, it will severely
limit the city's ability to issue private activity bonds. Pending legislation
would put IDB' s, Multifamily Mortgage Revenue Bonda and Single Family Mortgage
Revenue Bonds under the same allocation cap. In other words, the city would
have approximately a $7,000,000 allocation to do these types of bonds - which
would limit the city to one issue.
Transfers of allocation would be much more difficult to obtain because although
other citiea may not be issuing industrial development bonds,many do issue
hOUSing bonds and will need their allocation for these housing issues.
The status of multifamily mortgage revenue bonds is as follows:
Pending TEFRA
Induced Closed Closing in 85 Hearing Held No TEFRA
$ amt 219,539,983 45,175,000 33,000,000 46,400,000 94,964,983
'units 4,610 1,140 873 1,071 1,526
Reported to State
C 160,575,000 45,175,000 33,000,000 40,900,000 41,500,000
(3,883 (1,140 (873 units) (1,000 units) (870 units)
units) units)
c
75.0264
As you can see, the city has approximately $175,000,000 of multifamily mortgage revenue bon<
induced. Staff is still receiving requests from developers to induce this type of
financing. Currently, there is no way to call whether or not the Congress will pass the
legislation. It will probably not be passed in 1985, but the effective date of the
legislation would remain January 1, 1986, if passed in early 1986.
Staff recommends a moratorium on new inducements for multifamily mortgage revenue bonds.
l71G/EB
12-16-85