A G E N D A
JOINT MEETING: GLENDALE CITY COUNCIL AND GLENDALE HOUSING AUTHORITY (STAFF ACCESS ONLY) COUNCIL CHAMBERS
613 E. Broadway, 2nd Floor
Glendale, CA 91206
Meetings are broadcast live on Glendale TV, viewable on Spectrum Cable, channel 6, and AT&T U- verse, channel 99. Meetings are also streamed live in high definition (HD) on the city's webpage, glendaleca.gov/live , on YouTube.com/myglendale , and on Apple TV, Roku, and Amazon Fire devices using a free app called Screenweave and choosing “Glendale TV” from the menu. Meetings are also archived on the City Website for viewing anytime at glendaleca.gov/agendas . Call (818) 548-4013 for program schedules. DVDs of the proceedings are available for purchase in the City Clerk's Office.
If you have any question about matters on the agenda, or requests for assistance, please contact the City Clerk at (818) 548-2090 during regular business hours.
PLEASE TURN OFF CELLULAR PHONES WHILE INSIDE THE MEETING LOCATION In compliance with the Americans with Disabilities Act (ADA) of 1990, auxiliary hearing aids, sign language translation, and Braille transcripts are available upon request. Assisted listening devices are available same-day upon request. At least 48 hours (or two business days) notice is required for requests regarding sign language translation and Braille transcription services. All documents related to open session items on this agenda that are received less than 72 hours prior to this meeting, and are public records, will be available for review in the Office of the City Clerk, 613 E. Broadway, RM 110, Glendale, CA 91206.
Translation services are provided for meetings through the use of bilingual staff for speakers who wish to utilize the service as available. Speakers should state their request by contacting the City Clerk’s office at (818) 548-2090, at least 24 hours prior to the scheduled meeting. Please specify the language for which you require translation. The exclusive use of City provided interpreters is not required and persons are welcome to use their own interpreter or speak in their native language.
MARCH 1, 2022 AT 2:00 PM
To help slow the transmission of COVID-19, and protect the health and safety of the community, City Council, as well as Board & Commission meetings, will continue to be closed to the public for in-person attendance.
The public is encouraged to watch and participate from the safety of their homes to practice social distancing. Meetings are broadcast live on Glendale TV, viewable on Spectrum Cable, channel 6, and AT&T U-verse, channel 99. Meetings are also streamed live in high definition (HD) on the city's webpage, glendaleca.gov/live , on YouTube.com/myglendale , and on Apple TV, Roku, and Amazon Fire devices using a free app called Screenweave and choosing “Glendale TV” from the menu.
For public comments and questions during the meeting, call (818) 937-8100. Public comments on a specific agenda item will be taken when that agenda item is discussed. 1 TYPED 2/23/2022 9:06:50 PM
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ROLL CALL
- 2:00 PM
- Report of the City Clerk of the City Council and Housing Authority, re: Posting of Agenda.
The Agenda for the Tuesday, March 1, 2022 joint public meeting of the City Council and Housing Authority was posted on February 23, 2022 on the Bulletin Board outside City Hall.
A JOINT PUBLIC MEETING of the City Council and Housing Authority is hereby called to meet at 2:00 PM on Tuesday, March 1, 2022 , in the Council Chamber, 613 E.
Broadway, 2nd Floor, Glendale, CA 91206 to Consider the Following Item(s) of Business, to wit;
1. Public Hearing: Community Development, re: Tax Equity and Fiscal Responsibility Act Public Hearing for California Municipal Finance Authority Proposed Issuance of Approximately $20 Million in Tax Exempt Revenue Bonds in Support of The Gardens Low-Income Senior Affordable Housing Apartments, Owned and Operated by HumanGood
a. Resolution of the City Council of the City of Glendale Approving the Issuance of Approximately $20 Million Tax Exempt Revenue Bond Obligations in Support of HumanGood and Certain Other Matters Relating Thereto by the California Municipal Finance Authority (CMFA)
ADJOURNMENT
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1 CITY OF GLENDALE, CALIFORNIA
REPORT TO THE JOINT MEETING: GLENDALE CITY COUNCIL AND
GLENDALE HOUSING AUTHORITY
AGENDA ITEM
Report: Tax Equity and Fiscal Responsibility Act Public Hearing for California Municipal Finance Authority Proposed Issuance of Approximately $20 Million in Tax Exempt Revenue Bonds in Support of The Gardens Low-Income Senior Affordable Housing Apartments, Owned and Operated by HumanGood.
(1) Resolution of the City Council of the City of Glendale Approving the Issuance of Approximately $20 Million Tax Exempt Revenue Bond Obligations in Support of HumanGood and Certain Other Matters Relating Thereto by the California Municipal Finance Authority (CMFA).
COUNCIL ACTION
Item Type: Public Hearing
Approved for March 1, 2022 calendar
EXECUTIVE SUMMARY
HumanGood, has applied for the issuance of approximately $20 million in revenue bonds by CMFA in an amount not to exceed $20 million to refinance the acquisition and rehabilitation of a Housing Authority sponsored 75-unit multifamily rental housing facility for low-income seniors located at 333 Monterey Road. In order to issue revenue bonds which will be utilized within Glendale, the City of Glendale has been requested to conduct a Tax Equity and Fiscal Responsibility Act hearing on behalf of HumanGood and CMFA.
Section 147 (f) of the Internal Revenue Code of 1986 requires that the local elected public body conduct a public hearing related to the proposed issuance of revenue bonds and that the public be provided an opportunity to present arguments both for and against the issuance of these bonds by CMFA. The bonds to be issued by the CMFA for the proposed 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 proposed project or the repayment of the bonds for the financing of the proposed project. 3 of 10
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COUNCIL PRIORITIES
Balanced, Quality Housing: The bond issuance will assist in the maintenance, preservation, development of balanced housing opportunities.
RECOMMENDATION
That the City Council conduct a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing and approve the issuance of up to approximately $20 million in Tax Exempt Revenue Bonds in order to refinance the acquisition and rehabilitation of a 75-unit multifamily rental housing facility for low-income seniors (the “Project”) to be owned and operated by the Borrower and located at 333 Monterey Road.
BACKGROUND
HumanGood
HumanGood is a holding company that serves as the corporate parent to HumanGood NorCal, HumanGood SoCal and HumanGood Fresno, each of which are California nonprofit public benefit corporations. Formerly known as American Baptist Homes of the West and Southern California Presbyterian Homes, respectively, HumanGood NorCal and HumanGood SoCal were originally separate organizations with rich histories of serving older adults and their families.
American Baptist Homes of the West began in 1949 with the establishment of Pilgrim Haven Retirement Community (now known as The Terraces at Los Altos) in Los Altos.
American Baptist Homes of the West’s original purpose was to provide quality housing and health care for retired ministers and missionaries but grew quickly to include older people regardless of occupation or religious affiliation. From one community serving nine residents in 1949, American Baptist Homes of the West and its affiliates expanded to 12 life plan communities in five states, including the addition of Judson Park in 1982 and The Terraces of Phoenix in 1998, and 36 affordable housing communities in California and Washington.
Southern California Presbyterian Homes began in 1955 when the leaders of three Southern California presbyteries of the Presbyterian Church recognized the need for communities that would support older adults in their aging journeys. Beginning with the acquisition of properties in La Jolla and Bradbury to serve as the homes to White Sands La Jolla and Royal Oaks, the organization grew to encompass six life plan communities and 27 affordable housing communities throughout California. From 2011 to February 2017, Southern California Presbyterian Homes and its affiliates were branded as “be.group.”
HumanGood, through the previously named be.group, has developed 5 affordable senior housing projects totaling over 400 units in Glendale. The complete listing of those projects are in Table 1 below. The subject property was completed in 1992 with the Housing Authority providing a small amount of gap funding.
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Table 1
SCPH Affordable Senior Projects in Glendale
Casa de la Paloma 167
Park Paseo 97
Palmer House 22
The Gardens 75
Otto Gruber 40
Total 401 units
ANALYSIS
HumanGood, has applied for the issuance of approximately $20 million in revenue bonds by CMFA in an amount not to exceed $20 million to refinance the acquisition and rehabilitation of a 75-unit multifamily rental housing facility for low-income seniors located at 333 Monterey Road.
In order to issue revenue bonds which will be utilized within Glendale, the City of Glendale has been requested to conduct a TEFRA hearing on behalf of HumanGood and CMFA.
Section 147 (f) of the Internal Revenue Code of 1986 requires that the local elected public body conduct a public hearing related to the proposed issuance of revenue bonds and that the public be provided an opportunity to present arguments both for and against the issuance of these bonds by CMFA. The City Council has previously conducted TEFRA hearings for city and other privately sponsored projects such as Glendale Adventist Medical Center, Maple Park, Casa de la Paloma, Park Paseo and previous HumanGood financings.
The CMFA was created on January 1, 2004 to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities, including the City of Glendale, have become members of the CMFA. The CMFA is a public entity, separate and apart from each member. The debts, liabilities and obligations of the CMFA do not constitute debts, liabilities or obligations of the members.
The bonds to be issued by the CMFA for the proposed project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the proposed project or the repayment of the bonds for the financing of the proposed project. All financing documents with respect to the issuance of the bonds will contain clear disclaimers that the bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the borrower.
The City became a member of the CMFA in August 2012. The City will in no way become exposed to any financial liability by reason of its membership in CMFA. In addition, participation by the City in CMFA will not impact the City’s appropriations limits nor will it constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing and adopting the required resolution, no other participation or activity by the City or the City Council with respect to the issuance of the bonds will be required.
The bond proceeds will benefit HumanGood and will allow for a refinancing and rehabilitation expenditures at The Gardens. The rehabilitation will include ADA upgrades 5 of 10
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in common areas and designated units; new common area HVAC systems; upgrades to the plumbing systems, including a new high efficiency boiler and low flow fixtures/toilets throughout; new kitchen cabinets, countertops, and appliances in all units. Additionally, new duel pane, low-e windows throughout the building; new flooring in all units and common areas; as well as new interior and exterior paint throughout building will be part of the rehabilitation. As a result of the bond issuance, affordability covenants of the project will be extended for a new 55 year term.
Project Development Team
Lender: Citibank, N.A.
Bond Counsel: Jones Hall, APLC
Issuer Counsel: Jones Hall, APLC
Borrower Counsel: Goldfarb & Lipman LLP
STAKEHOLDERS/OUTREACH
Pursuant to Section 147(f) of the Internal Revenue Code of 1986, a Notice of Public Hearing was published in the Los Angeles Times at least 7 days in advance of the hearing offering the date and time of the TEFRA hearing and describing the manner in which interested members of the public can call in and voice their support or opposition to the bond issuance.
FISCAL IMPACT
There is no fiscal impact to the City of Glendale associated with this TEFRA hearing or with the issuance of tax-exempt revenue bonds by the CMFA. The bonds proposed to be issued will be the indebtedness of the Borrower, and the City will not be asked to approve or execute any of the documents relating to the financing.
Through its conduit issuance activities, the CMFA shares a portion of the bond issuance fees it receives with its member communities. With respect to the City of Glendale, it is expected that 25% of the issuance fee, up to approximately $10,000 will be granted by CMFA to the City. Such grant may be used for any lawful purpose of the City. This revenue will be received by the City after bond issuance and will also be deposited into the Housing Authority’s Affordable Housing Trust Fund.
Due to the fact that there are no current outstanding loans on this property, the refinancing of the project will not result in any loan repayment to the Housing Authority.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is exempt from CEQA. It is an existing, developed project and there is no reasonable likelihood that the actions taken with respect to this item will result in any significant impacts to the environment.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements. 6 of 10
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ALTERNATIVES
Alternative 1: Adopt a resolution approving the issuance of approximately $20 Million Tax Exempt Revenue Bond Obligations in support of HumanGood; Alternative 2: Decline adopting a resolution approving the issuance of approximately $20 Million Tax Exempt Revenue Bond Obligations in support of HumanGood; Alternative 3: Consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Prepared by:
Peter Zovak, Assistant Director of Community Development Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
None.
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RESOLUTION NO. _________
RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE,
CALIFORNIA APPROVING THE ISSUANCE OF REVENUE BONDS BY
THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $20,000,000 TO FINANCE AND REFINANCE A 75-UNIT MULTIFAMILY HOUSING
FACILITY FOR THE BENEFIT OF 333 MONTEREY, L.P., A CALIFORNIA
LIMITED PARTNERSHIP, OR ANOTHER ENTITY CREATED BY
HUMANGOOD AFFORDABLE HOUSING OR AN AFFILIATE THEREOF,
AND CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, HumanGood Affordable Housing, a California nonprofit public benefit corporation (the “Sponsor”), on behalf of 333 Monterey, L.P., a California limited partnership, or another entity created by the Sponsor or an affiliate thereof for the purpose of owning the project described herein (such limited partnership or other entity being referred to herein as the “Borrower”), has requested that the California Municipal Finance Authority (the “Authority”) issue one or more series of revenue bonds in an aggregate principal amount not to exceed $20,000,000 (the “Bonds”), including but not limited to revenue bonds issued as part of a plan to (1) finance and refinance the acquisition and rehabilitation 75-unit multifamily rental housing facility for low-income seniors (the “Project”) to be owned and operated by the Borrower and located at 333 Monterey Road in Glendale, California (the “City”), and (2) pay certain expenses in connection with the issuance of the Bonds; and
WHEREAS, an “applicable elected representative” of a jurisdiction in which the Project is located is required to approve the issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the Council of the City (the “Council”) is the elected legislative body of the City and is an “applicable elected representative” for purposes of Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(f) of the Code, the Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Glendale, California as follows:
Section 1. The foregoing recitals are true and correct. 8 of 10
Section 2. The Council hereby approves the issuance of the Bonds by the Authority, including but not limited to Bonds issued as part of a plan to finance and refinance the facilities described herein. It is the purpose and intent of the Council that this Resolution constitutes approval of the issuance of the Bonds by the Authority for the Project, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of a governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.
Section 3. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.
Section 4. The Clerk shall forward a certified copy of this Resolution to the Authority in care of its counsel:
Ronald E. Lee, Esq.
Jones Hall, A Professional Law Corporation
475 Sansome Street, Suite 1700
San Francisco, California 94111
Section 5. This Resolution shall take effect immediately upon its adoption.
Adopted this ______ day of ____________________, 2022.
___________________________________
Mayor
ATTEST:
_________________________
City Clerk
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STATE OF CALIFORNIA )
) SS
COUNTY OF LOS ANGELES)
I, Aram Adjemian, City Clerk of the City of Glendale, certify that the foregoing Resolution No. ___________ was adopted by the Council of the City of Glendale, California, at a special meeting held on the _____day of __________, 2022, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
_________________________
City Clerk
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