To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Multifamily Housing Revenue Bonds - TEFRA for Riverhouse Hotel in Martinez
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. ADOPT a resolution approving the issuance of Multifamily Housing Revenue Bonds or Notes ("Bonds") in the amount of up to $40,000,000 to finance the acquisition, development, construction, and rehabilitation of an 84-unit multifamily residential rental housing development currently identified as Riverhouse Hotel located at 700 Alhambra Avenue in Martinez, California (the "Project").
2. FIND AND DECLARE that the recitals contained in the proposed resolution are true and correct;
3. ACKNOWLEDGE that such approval is solely for the purposes of satisfying the requirements of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), to finance the costs of the acquisition, development, construction, or rehabilitation of the Project subject to Boad or Supervisors approval of all documents related to the Bonds to which the County is a party;
4. ACKNOWLEDGE that adoption of this resolution does not relieve or exempt the project sponsor from obtaining required permits or approvals, nor obligate the County to incur any obligation to provide financial assistance with respect to the Bonds or the Project; and
5. AUTHORIZE and DIRECT the Director of the Department of Conservation & Development, or designee, to take any and all actions and execute and deliver any and all certificates, agreements and other documents needed in connection with the Bonds.
FISCAL IMPACT:
No impact to the General Fund. The County will be reimbursed for any costs incurred in the process of conducting the TEFRA Hearing and Board of Supervisors’ approval. The issuance authorization is for the sole purpose of satisfying the provisions of the Code. No County funds are pledged to secure the Bonds.
BACKGROUND:
Contra Costa County, through the Conservation and Development Department, operates a multifamily mortgage revenue bond financing program. The purpose of the program is to increase or preserve the supply of affordable rental housing available to low and very low-income households. The County program may be undertaken within the unincorporated County and within the cities located in the County that have agreed to let the County operate the program in their jurisdiction. The County is authorized to issue multifamily housing revenue notes and bonds pursuant to Section 52075 and following the California Health and Safety Code.
The recommended action is the adoption of a Tax Equity and Fiscal Responsibility Act (TEFRA) resolution by the Board of Supervisors (the “Board”), as the legislative body of the County, authorizing the issuance of multifamily housing revenue bonds or notes (the "Bonds") in the maximum principal amount of $40,000,000, and the loan of the Bond proceeds to Eden Housing, Inc., a California nonprofit public benefit corporation (the "Borrower"), to provide financing for costs of the acquisition, development, construction, and rehabilitation of an 84-unit multifamily residential rental housing development located at 700 Alhambra in the City of Martinez, currently identified as Riverhouse Hotel (the "Project").
A public hearing was held by the Department of Conservation and Development on May 29, 2025, where members of the community were given an opportunity to speak in favor of or against the use of tax-exempt financing for the Project. No public comments were received. A notice of the hearing was published in the East Bay Times (proof of publication attached) on May 16, 2025.
The proposed bonds cannot be issued until a separate, future resolution is adopted by the Board of Supervisors specifically authorizing the sale of the bonds. The separate resolution to authorize the sale of bonds would come before the Board after receipt of an allocation from the State of California for Private Activity Bond Authority. An application for Private Activity Bond Authority has been submitted to the California Debt Limit Allocation Committee. The expected timing for a Bond Sale Resolution is anticipated by the end of September 2025.
The proposed resolution would not relieve the Borrower from obtaining other required permits or approvals required by law, nor obligate the County to incur any obligation or provide financial assistance with respect to the Bonds or the Project. Annual expenses of the County related to the monitoring of the Regulatory Agreement are provided for in the bond issue.
CONSEQUENCE OF NEGATIVE ACTION:
Without the approval of the issuance, the multifamily residential rental housing development will not be built.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
And for Special Districts, Agencies and Authorities Governed by the Board
IN THE MATTER OF Resolution No. 2025/XX
RESOLUTION APPROVING THE ISSUANCE OF
MULTIFAMILY HOUSING REVENUE BONDS OR NOTES
ISSUED TO FINANCE A MULTIFAMILY RESIDENTIAL
HOUSING DEVELOPMENT KNOWN AS
RIVERHOUSE HOTEL
WHEREAS, the County of Contra Costa (the “County”) has indicated its intent to adopt a plan of financing to sell and issue multifamily housing revenue bonds or notes in one or more series issued from time to time, and at no time to exceed $40,000,000 in outstanding aggregate principal amount (the “Bonds”), pursuant to the authority set forth in Section 52075 and following of the California Health and Safety Code; and
WHEREAS, the proceeds of the Bonds, if issued, will be used to assist in financing (including reimbursement of borrower’s expenditures) the acquisition, construction, development and rehabilitation of a multifamily rental housing development consisting of 84 units (including one manager’s unit), located at 700 Alhambra Avenue in the City of Martinez, California (the “Project”); and
WHEREAS, the Project will be owned by Eden Housing, Inc., a California nonprofit public benefit corporation (or an affiliate, assignees or designee approved by the County) (the “Borrower”); and
WHEREAS, all of the rental units in the Project, except for one unit set aside for an on-site property manager, will be rented to persons and families of very low or low income; and
WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the “Code”), the Bonds are required to be approved prior to their issuance by the applicable elected representative of the governmental unit on whose behalf the bonds are expected to be issued and by each governmental unit having jurisdiction over the area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and
WHEREAS, the interest on the Bonds may qualify for exclusion from gross income under Section 103 of the Code, only if the Bonds are approved in accordance with Section 147(f) of the Code; and
WHEREAS, the Project is located wholly within Contra Costa County, California; and
WHEREAS, this Board is the elected legislative body of the County and is the applicable elected representative of the County within the meaning of Section 147(f) of the Code; and
WHEREAS, pursuant to Section 147(f) of the Code, the County has, following notice duly given, held a public hearing regarding the plan of financing and the issuance of such Bonds on May 29, 2025, and now desires that the Board approve the issuance of such Bonds within Contra Costa County; and
WHEREAS, the Assistant Deputy Director of the Department of Conservation and Development of the County has, following notice duly given, held a public hearing regarding the issuance of the Bonds and the financing of the Project, and a summary of any oral or written testimony received at the public hearing has been presented to the Board for its consideration; and
WHEREAS, the Board now desires to approve the issuance of the Bonds.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the County of Contra Costa, as follows:
Section 1. The Board hereby finds and declares that the foregoing recitals are true and correct.
Section 2. The Board hereby approves the issuance of the Bonds for purposes of Section 147(f) of the Code.
Section 3. The adoption of this Resolution does not (i) relieve or exempt the Borrower from obtaining any permits or approvals that are required by, or determined to be necessary from, the County in connection with the Project, nor (ii) obligate the County to incur any obligation or provide financial assistance with respect to the Bonds or the Project.
Section 4. All actions heretofore taken by the officers and agents of the County with respect to the financing of the Project and the issuance of Bonds are hereby approved, ratified and confirmed, and the Chair of the Board of Supervisors, the Vice-Chair of the Board of Supervisors, the County Administrator, the Director of the Department of Conservation and Development, the Assistant Deputy Director of the Department of Conservation and Development, the County Counsel and the Clerk of the Board are each hereby authorized and directed, for and in the name and on behalf of the County, to do any and all things and take any and all actions and execute and deliver any and all certificates, agreements and other documents needed in connection with the modifications to the documents for the Bonds so long as the modifications do not in any way increase the obligations or liability of the County under such documents.
Section 5. This Resolution shall take effect upon its adoption.