To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Executive Director
Date: September 12, 2023
Report Title: APPROVE AND AUTHORIZE THE EXECUTIVE DIRECTOR, OR HIS DESIGNEE, TO EXECUTE AN AGREEMENT WITH GOLDFARB & LIPMAN, LLP FOR REAL ESTATE LEGAL SERVICES ON AN AS-NEEDED BASIS FOR HACCC DEVELOPMENT ACTIVITY
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Executive Director of the Housing Authority, or designee, to execute a contract with Goldfarb & Lipman, LLP, in an amount not to exceed $500,000 to provide, as needed, real estate legal services surrounding HACCC development activity (which includes disposition activities), through October 27, 2027.
BACKGROUND:
HACCC is the limited partner in the DeAnza Gardens, L.P., a California limited partnership that is the owner of record for DeAnza Gardens Apartments in Bay Point, CA. Goldfarb & Lipman has provided invaluable service and advice to HACCC, specifically with regards to DeAnza Gardens and the original tax credit syndication of the property in 2003 and the substitution of HACCC as the limited partner in 2001.
Currently, HACCC is seeking to dissolve the limited partnership and refinance the loans on DeAnza Gardens Apartments which come with a balloon payment of approximately $6.5 million due on October 1, 2023. These two transactions are complex and involve legal documents that must be created and submitted to the California Tax Credit Allocation Committee and the Secretary of State. In addition, there is a need for legal services to review and amend, as needed, loan documents from the new lender to protect the interests of HACCC and the new ownership entity of DeAnza Gardens Apartments.
Moreover, HACCC is continuing to work towards the conversion of its entire public housing portfolio to project-based Section 8 rental assistance in the coming years and real estate legal services needed for these transactions will be sporadic but necessary to ensure compliance with HUD reg...
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