CONTRA COSTA COUNTY - File #: 23-389

• File #: 23-389
• Version: 1
• Type: Discussion Item
• Status: Passed
• File created: 9/6/2023
• In control: HOUSING AUTHORITY
• On agenda: 9/12/2023
• Final action: 9/12/2023
• Title: ADOPT Resolution No. 5253 to authorize the Housing Authority Executive Director to approve the sale of DeAnza Gardens to DeAnza Housing Corporation, a California non-profit public benefit corporation, and to approve the assignment of the ground lease and Housing Assistance Payment Contract to DeAnza Housing Corporation and the dissolution of the limited partnership at DeAnza Gardens.

Date	Ver.	Action By	Action	Result	Tally
9/12/2023	1	HOUSING AUTHORITY	approved	Pass	7:0

To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Executive Director
Date: September 12, 2023
Report Title: AUTHORIZE THE EXECUTIVE DIRECTOR TO APPROVE THE SALE OF DEANZA GARDENS TO DEANZA HOUSING CORPORATION, APPROVE THE ASSIGNMENT OF THE GROUND LEASE AND HAP CONTRACT TO DEANZA HOUSING CORPORATION AND THE DISSOLUTION OF THE LIMITED PARTNERSHIP AT DEANZA GARDENS


RECOMMENDATIONS:
AUTHORIZE and ADOPT Resolution No. 5253 for the Executive Director to approve the sale of DeAnza Gardens to DeAnza Housing Corporation (DHC), a California non-profit public benefit corporation, approve the assignment of the ground lease and HAP Contract to DeAnza Housing Corporation and the dissolution of the limited partnership at DeAnza Gardens.

BACKGROUND:
DeAnza Gardens (the "Project") is comprised of 180 units constructed in 2004 - 2005 and funded by several resources including Low Income Housing Tax Credits ("LIHTC"). As part of the transaction, DeAnza Garden, L.P., a California limited partnership (the "Partnership") was formed for the purpose of owning, constructing, and operating the Project. DeAnza Housing Corporation was formed as a California nonprofit public benefit corporation to serve as a general partner in the Partnership along with the Housing Authority of the County of Contra Costa ("HACCC"). On May 18, 2021, this Board approved the transfer of the limited partner interest from BCP/DeAnza Gardens, LLC, a Delaware limited liability company and BCCC, Inc., a Massachusetts corporation, are the investor limited partner and the special limited partner of the Partnership, respectively (collectively, the "Limited Partners") to HACCC and removed HACCC as a co-General Partner of the Partnership.

Since then, HACCC has been working to refinance the debt on DeAnza Gardens because the initial funding included a balloon mortgage payment that would be due on October 1, 2023, for approximately $6.5 million. HACCC procured a new lender, PNC...