Item No.
1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: JUDDY MONTENEGRO, SENIOR MANAGEMENT ANALYST
DATE: APRIL 22, 2025
SUBJECT: RESOLUTION AUTHORIZING THE LOS ANGELES COUNTY
DEVELOPMENT AUTHORITY TO ISSUE BONDS TO FINANCE THE
DEVELOPMENT OF THE VETERAN COMMONS HOUSING
DEVELOPMENT
EXECUTIVE SUMMARY
The City Council will consider adopting a Resolution to authorize the Los Angeles County Development Authority to issue bonds in an amount not to exceed $44,000,000 and make or acquire mortgage loans to finance the development of a multifamily rental housing project in the City of Downey known as Veteran Commons.
RECOMMENDATION
That the City Council:
Adopt Resolution No. 25-8298, authorizing the Los Angeles County Development Authority to issue bonds or notes in an amount not to exceed $44,000,000 and make or acquire mortgage loans to finance the development of a multifamily rental housing project in the City of Downey.
BACKGROUND
On June 24, 2022, the City of Downey approved the application for the 100-unit Veteran Commons housing development. The development will be built at 11269 Garfield Avenue, formerly the site of American Legion Hollydale Post 723. Once complete, Veteran Commons will be owned and operated by Abode Communities and PATH Ventures via a 99-year ground lease agreement, in partnership with Los Angeles County Development Authority (LACDA).
This mixed-use development will combine supportive and affordable housing for Veterans and Veteran families, with 14,000 square feet of open space and a 4,400 square feet
APPROVED BYCITY MANAGER
RESOLUTION AUTHORIZING TO ISSUE BONDS TO FINANCE VETERAN COMMONS APRIL 22, 2025
PAGE 2
Workforce Development Hub. This Hub will serve both the residents and the community at-large with job search assistance, employment training,
and skill building services. Residential amenities include a 1,500 square foot resident center, four case management/resident offices, and Veteran’s memorial public art located at the corner of Gardendale and Garfield.
Veteran Commons will consist of 99 affordable units (30% to 60% of Area Medium Income) and 1 manager’s unit. Out of the 99 units, 50 will be supportive units with onsite services such as case management, behavioral health, physical health, and employment training. Service provider, PATH, will provide services to families and partner with the Department of Veteran Affairs, among other agencies, to assist veterans in obtaining housing. This development is envisioned to be a vibrant, residential community that supports Veterans and their families with the services they need to succeed and maintain a high quality of life.
Construction is anticipated to begin in June 2025 and be complete by May 2027. The developers aim to have 100% occupancy by December 2027.
ANALYSIS
As part of the financing process, the developers for the Veteran Commons project are working with the Los Angeles Community Development Authority (LACDA) as their issuer to submit a bond application to the California Debt Limit Allocation Committee. In order for LACDA to serve as the issuer, the City will need to adopt the attached resolution authorizing LACDA to issue the bonds and sign an Interlocal Cooperation agreement.
This is necessary as the City has the legal authority to issue bonds for affordable housing projects in its jurisdiction and LACDA needs its permission to do this for this project. Per the California Health and Safety Code, an Interlocal Cooperation agreement is required and the resolution authorizes the City to sign it and agree to its terms. This agreement with L.A. County serves to confirm the City’s cooperation with the County and LACDA for purposes of financing the Veteran Commons housing development.
CITY COUNCIL PRIORITIES
Quality of Life, Safety & Infrastructure
Public Engagement
FISCAL IMPACT
There is no fiscal impact associated with this item. Under the proposed agreement, the bonds to be issued by LACDA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, or moral obligation, liability or responsibility for the Project, or the repayment of the Bonds for the financing of the Project.
RESOLUTION AUTHORIZING TO ISSUE BONDS TO FINANCE VETERAN COMMONS APRIL 22, 2025
PAGE 2
ATTACHMENT
Attachment A: Resolution No. 25-8298, authorizing the Los Angeles County Development Authority to issue bonds or notes in an amount not to exceed $44,000,000 and make or acquire mortgage loans to finance the development of a multifamily rental housing project in the City of Downey
Attachment B: Interlocal Cooperation Agreement
RESOLUTION NO. 25-8298
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
AUTHORIZING THE LOS ANGELES COUNTY DEVELOPMENT
AUTHORITY TO ISSUE BONDS OR NOTES IN AN AMOUNT NOT TO
EXCEED $44,000,000 AND MAKE OR ACQUIRE MORTGAGE LOANS
TO FINANCE THE DEVELOPMENT OF A MULTIFAMILY RENTAL
HOUSING PROJECT IN THE CITY OF DOWNEY
WHEREAS, the Los Angeles County Development Authority (the “LACDA”) has determined to engage in a multifamily rental housing finance program pursuant to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of California (the “Act”), and to issue revenue bonds or notes to finance the acquisition, construction, development and/or rehabilitation of multifamily rental housing in the County of Los Angeles (the “County”), all as provided for in the Act (the “Program”); and
WHEREAS, the LACDA intends, in the exercise of its powers under the Act and the Program, to issue bonds or notes and make or acquire mortgage loans to finance the development of a 100-unit (including one manager unit) multifamily rental housing development (the “Project”) located at 11269 Garfield Avenue, Downey, Los Angeles County, California 90242, in the City of Downey (the “City”);
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The LACDA may issue bonds or notes pursuant to a plan of financing in an amount not to exceed $44,000,000 and make or acquire mortgage loans under the Program, all as more specifically set forth in the Act, with respect to the Project within the City and further agrees that the LACDA may exercise any or all of its powers for the purpose of financing mortgage loans pursuant to the Act and the Program with respect to the Project. The City will have no responsibilities relating to the Program, this resolution shall not bind the City to any financial obligation or credit risk or allow any repayment recourse to the City and nothing herein shall be deemed to bind the City to make any expenditure or to incur indebtedness in relation to the Program or the revenue bonds or notes referred to above. This resolution shall not alter any term or condition of the agreements entered into by the LACDA with the developer of the Project. Nothing herein shall bind the City to any land use or other approval pertaining to the Project and the City expressly retains all discretionary authority with regard to review, consideration, imposition of conditions of approval and/or other discretionary action with regard thereto.
SECTION 2. The City is hereby authorized and directed to enter into an Interlocal Cooperation Agreement with the LACDA on behalf of the County which shall evidence the City’s agreement to cooperate with the LACDA with respect to LACDA’s financing of the Project located within the City.
SECTION 3. This Resolution shall become effective upon its adoption.
ATTACHMENT A
Resolution No. 25-8298
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this ___ day of April, 2025.
_________________________
HECTOR SOSA
Mayor
ATTEST:
______________________________
MARIA ALICIA DUARTE, CMC
City Clerk
APPROVED AS TO FORM:
_______________________________
JOHN M. FUNK
City Attorney
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of the City of Downey at a Regular meeting held on the ____ day of April, 2025, by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
_____________________________
MARIA ALICIA DUARTE, CMC
City Clerk
INTERLOCAL COOPERATION AGREEMENT
THIS INTERLOCAL COOPERATION AGREEMENT (this “Agreement”) is entered into as of April 22, 2025, by and between the City of Downey (“City”), and the County of Los Angeles, a political subdivision of the State of California, (“County”), pursuant to the provisions of Section 52086 of the Health and Safety Code of the State of California (the “Law”) for the purpose of evidencing the agreement of City and County to cooperate with one another in the exercise of their powers pursuant to the provisions of Chapter 7 of Part 5 of Division 31 and Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of California, as amended (the “Act”), to permit County acting through the Los Angeles County Development Authority (“LACDA”) to issue revenue bonds or notes for the purpose of financing the acquisition, construction and rehabilitation of multifamily rental housing located in the City.
WHEREAS, Veteran Commons, L.P. (or an LACDA approved affiliate, assignee or designee, the “Borrower”) has requested that LACDA issue its revenue bonds or notes pursuant to the Act for the purpose of financing the acquisition, construction, and equipping of Veteran Commons Apartments, a multifamily residential rental housing project (the “Project”) located at 11269 Garfield Avenue in the City; and WHEREAS, LACDA has applied or will apply to the California Debt Limit Allocation Committee for an allocation of federal tax exempt volume cap for purposes of financing the Project; and
WHEREAS, the Law authorizes a county and one or more cities within the county to enter into agreements to join or cooperate with one another in the exercise jointly, or otherwise, of any or all of their powers for the purpose of financing multifamily rental housing development pursuant to the Act; and
WHEREAS, the Project is located within the City and the City is located within the County, therefore this Agreement is required by the Act.
NOW, THEREFORE, City and County hereby agree, pursuant to the provisions of the Act, as follows:
Section 1. The recitals above are true and correct.
Section 2. LACDA shall issue its revenue bonds or notes (the “Bonds”) in accordance with the Act in one or more series for the purpose of financing the Project.
The City hereby consents to the issuance by LACDA of such Bonds and to the use of the proceeds of the Bonds to finance the acquisition, construction and equipping of the Project.
Section 3. The City, the County and LACDA agree to cooperate to facilitate the issuance of the Bonds and each shall take such actions as reasonably requested by any party hereto to permit the issuance of Bonds including, without limitation, taking such actions as are necessary to comply with the requirements of the Internal Revenue Code
ATTACHMENT B
of 1986 (the “Code”) with respect to the issuance of the Bonds. Without limiting the generality of the foregoing, the City acknowledges and the County certifies that the County acting through LACDA has noticed or will notice a public hearing, with respect to the issuance of the Bonds and the financing of the Project and such hearing shall be or has been conducted by LACDA. The County shall submit or has submitted the proposed issuance of Bonds by LACDA to finance the acquisition and construction of the Project to the Board of Supervisors for the County for consideration for approval pursuant to the requirements of Section 147(f) of the Code. The City consents, in accordance with any applicable California statutes, including the Act, to such action on the part of the County and LACDA; however, the City makes no representations with respect to the validity of such hearing or whether LACDA has taken all such actions necessary to comply with the requirements of the Code with respect to the noticing and issuance of the Bonds.
Section 4. Any Bonds issued under and pursuant to the terms of this Agreement shall be limited obligations solely of LACDA, and the City shall not be obligated thereon or with respect thereto. This Agreement shall not bind the City to any financial obligation or credit risk or allow any repayment recourse to the City and nothing herein shall be deemed to bind the City to make any expenditure or to incur indebtedness in relation to the Bonds or the Project.
Section 5. The City hereby agrees and acknowledges that the terms, conditions and provisions of any Bonds issued pursuant to this Agreement shall be determined in the sole and absolute discretion of LACDA and that no further review or approval thereof shall be required by the City; provided, LACDA shall, upon the issuance of the Bonds, cause the Borrower to pay all expenses of the City in connection with the Bonds and the Project and shall cause the Borrower to indemnify, hold harmless and defend the City and each of its officers, directors, agents, officials, employees, counsel, attorneys and members of the City’s governing body, past, present and future, in the same manner as the indemnification by the Borrower of the County and LACDA.
Section 6. Nothing herein shall obligate the City to expend any funds or incur any expenses. Nothing herein shall be interpreted to obligate any payment of any kind by the County or LACDA to the City or by the City to the County or LACDA.
Section 7. Each of the County and the City represents and warrants that it has all necessary power and authority to enter into this Agreement, and that it has taken all such actions and received all such approvals as are necessary to authorize the execution and performance of this Agreement.
Section 8. This Agreement is entered into under and pursuant to the laws of the State of California and shall be effective immediately upon its execution and delivery by the parties hereto.
Section 9. This Agreement may be entered into in one or more counterparts, each of which shall be considered an original for all purposes.
Section 10. If any provision of this Agreement is, for any reason, unenforceable, such provision shall be void and of no further force and effect, and the remainder of this Agreement shall remain binding and enforceable against the parties hereto. [Remainder of page intentionally left blank.]
This Agreement is entered into by the County and the City as of the date first set forth above.
CITY OF DOWNEY, as City
By
Name: Roger Bradley
Title: City Manager
[Signature page to Veteran Commons Interlocal Agreement]
THE COUNTY OF LOS ANGELES, as
County
By: Los Angeles County Development
Authority
By:_____________________________
Executive Director or Designee
_____________________________
Print Name
APPROVED AS TO FORM:
COUNTY OF LOS ANGELES
Dawyn R. Harrison, County Counsel
By:
Deputy
[Signature page to Veteran Commons Interlocal Agreement]