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RQ.;VELOPMENT AGENCY.Q:QUEST FOR~/COUNCIL A~ION
Of
From: Glenda Saul
Qept: Redevelopment Agency
Subject:
Cooperative
Authority
Agreement
with
Housin,
Date: May 13, 1985
Synopsis of Previous Commission/Council ection:
None
Recommended motion:
(FOR MAYOR AND COMMON COUNCIL)
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Author1ze etaff to prepare an agreement with the County Houeing Authority for the pUrpose
of 1esuing Multifamily Mortgage Revenue Bonds with1n the City of San Bernardino.
Contect person:
,~ du/
Signature
Glenda Saul
YES
Phone: 383.5081
N/A
Supporting date attached:
Ward:
N/A
FUNDING REQUIREMENTS:
Amount: $
M/A
Project:
May 13, 1985
No edvers8 Impact on City:
Date:
Oneil Notes:
Agenda Item No.
I</t)
.
REOVELOPMENT AGENCY-OuEST FOR OMMISSION/COUNCIL AGoN
o
STAFF REPORT
The State cap of $900,000,000 for the issuance of Mult1fami1y Mortgage Revenue
Bonds was reached the last week in April, 1985. There currently is
legislation pending to increase the cap, but a final decision is yet to be
reached.
Under Health and Safety Code Statutes, a Redevelopment Agency may .sti11 issue
these bonds in Redevelopment Project Areas, without being subject to this cap
limitation. However, for hous1ng projects not located in Redevelopment Areas,
the State cap would apply.
Staff suggests the Agency enter into an agreement with the County Housing
Authority, granting the authority to act as the issuer of Multifamily Mortgage
Revenue Bonds for projects within the City not located in Redevelopment
Project Areas as Housing Authorities are also exempt from the State cap
limitations.
We currently have two bond issues which are not 1n a Redevelopment Area and
are very close to final closing. (Fredericks and Meyers Ranch)
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Staff met with officials from the Housing Authority on May 8, 1985. The
Housing Authority has already agreed to act as issuer for the County of San
Bernardino, and is willing to do the same for the City. In return, the
Housing Authority has requested a fee. Two alternatives are presented for
your co~ation.
~ Pay the Housing Authority 12.5% of the City's 1% IDB
fee with no restriction on how that fee 1s used.
b) Pay the Housing Authority 25% of the 1% IDB fee to be
targeted for use in bui1d1ng senior housing in the
City of San Bernardino.
Staff is requesting the authorization to prepare this agreement and for the
Commiss10n to determine the fee sharing. (Either "a" or "b" above.)
Two other pieces of information:
a) A new State cap w111 take effect in 1986. When this
new State cap is available, we will again process our
own Bond issues.
b) The Housing Authority may collect an annual
monitoring fee estimated to be 1/8 of 1% of the Bond
issue. Currently, the trustee is paid to do the
required monitoring of the 20% set aside for low to
moderate income housing This monitoring fee is
negotiated between the applicant and the Housing
Authority. The Agency would not be involved.
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5/13/85
848L