HomeMy WebLinkAboutReso 2018-056RESOLUTION NO. 2018-056
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADDING CHAPTER 19 (HOUSING
AUTHORITY FEES) TO THE CITY’S MASTER FEE
SCHEDULE AND ESTABLISHING FEES RELATED TO
HOUSING AUTHORITY BOND ISSUANCES
WHEREAS, the California Debt Limit Allocation Committee (CDLAC) was created to
set and allocate California’s annual debt ceiling, and administer the State’s tax -exempt bond
program to issue the debt through its adopted CDLAC Regulations; and
WHEREAS, private activity bonds, specifically multifamily mortgage revenue bonds, are
a significant funding source to support the development and financing of affordable housing for
low income households and require an allocation of bond authority from CDLAC; and
WHEREAS, to receive an allocation of bond authority from CDLAC, a local or state
governmental agency or joint powers authority must submit an application to CDLAC on behalf
of a private project that has a qualified public benefit; and
WHEREAS, since 1993, with the establishment of the Chula Vista Housing Authority
(Housing Authority) by the City Council of the City of Chula Vista (City Council) by its
Resolution No. 1993-17021, the Housing Authority has exercised its powers as set forth in
California Health and Safety Code Section 34350 et. seq. to issue bonds in support of the
development and financing of affordable housing in the City of Chula Vista (City); and
WHEREAS, staff has prepared the Chula Vista Multifamily Mortgage Revenue Bond
Policies, inclusive of fees for the administrative costs associated with holding a public hearing in
compliance with the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), preparation of
the bond issuance, and ongoing administration and monitoring costs (e.g. financial and site
monitoring, and annual reporting) required throughout the Qualified Project Period and until
expiration of the CDLAC Compliance Period, consistent with CDLAC’s regulations and
guidance and in compliance with IRS requirements; and
WHEREAS, the Housing Authority, in its collection and establishment of fees for the
preparation, issuance, administration and ongoing compliance and monitoring of bonds for
private projects that have a qualified public benefit, provides its services to a limited segment of
the public, specifically housing developers, to obtain unique services and substantial economic
benefits available to them only under the State of California’s tax-exempt bond program to issue
the debt, not the least of which may be financing at interest rates substantially lower than
conventional financing interest rates, if such rates are available, and/or the ability to obtain
financing without equity compensation to the lender; and
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Resolution No. 2018-056
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WHEREAS, an analysis of the staff effort and the current fully burdened hourly rates for
impacted staff associated with preparing, issuing and the ongoing administration, compliance
and monitoring of bonds for private projects has been conducted to determine the cost of service
associated with providing these administrative services; and
WHEREAS, in order to achieve full and equitable cost recovery for bond issuance,
administration, compliance and monitoring services provided, the Council and the Housing
Authority wishes to add Chapter 19 of the City’s Master Fee Schedule, as set forth in Exhibit 1,
attached hereto and incorporated herein by reference as if set forth in full; and
WHEREAS, the proposed fees do not exceed the estimated reasonable cost of providing
the associated services; and
WHEREAS, Article XIII C of the California Constitution requires a vote of the electorate
to increase any levy, charge, or exaction imposed by a local government, unless specifically
exempted; and
WHEREAS, the proposed fees are exempt from the vote requirement per Sections 1(e)(2)
and 1(e)(3); and
WHEREAS, the proposed amendments to the Master Fee Schedule Chapter 19 shall
become effective upon adoption of this Resolution by the City Council and the Housing
Authority; and
WHEREAS, in accordance with the requirements of CEQA, the Environmental Review
Coordinator has determined that the activity is not a “Project” as defined under Section 15378 of
the California Environmental Quality Act State Guidelines; therefore, pursuant to State
Guidelines Section 15060(c)(3) no environmental review is required.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
and the Chula Vista Housing Authority, that it does hereby amend the City’s Master Fee
Schedule to add Chapter 19 (Housing Authority) to establish administrative fees related to the
Housing Authority Multifamily Housing Revenue Bond financing program as set forth in Exhibit
1 to this Resolution.
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Resolution No. 2018-056
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Presented by Approved as to form by
Kelly G. Broughton, FASLA Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 10th day of April 2018 by the following vote:
AYES: Councilmembers: Aguilar, Diaz, McCann, Padilla, and Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2018-056 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 10th day of April 2018.
Executed this 10th day of April 2018.
Kerry K. Bigelow, MMC, City Clerk
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MASTER FEE SCHEDULE FEE BULLETIN
Chapter 19 – Housing Authority
19-100 General Housing Authority Fees
City of Chula Vista Development Services
276 Fourth Avenue, Chula Vista, CA 91910 March 2018
City of Chula Vista www.chulavistaca.gov 619.585.5600
TEFRA HEARING FEE
Applies to public hearings conducted pursuant to
Section 147(f) of the Internal Revenue Code, in
compliance with the Tax Equity and Fiscal
Responsibility Act of 1982 (TEFRA). The TEFRA
Hearing Fee shall only be charged if the City or
Housing Authority does not serve as the Issuer of
the subject bonds.
TEFRA Hearing fee, non-refundable ............ $3,500
ISSUANCE DEPOSIT & FEE
Issuance Deposit
An issuance deposit shall be collected at the time
of application submission. The deposit is
nonrefundable, unless the Housing Authority or
CDLAC declines the proposed financing. If the
financing proceeds, the issuance deposit is
applied to offset issuance fees at closing.
Issuance deposit ........................................... $3,500
Issuance Fee
The Housing Authority charges issuance fees
associated with the application, preparation and
issuance of multifamily housing revenue bonds on
behalf of a Project Sponsor. Issuance fees shall be
assessed based on the total original principal
amount of the bonds (both tax-exempt and
taxable) to be issued, and are inclusive of the
TEFRA Hearing.
Issuance fee ....................... 20 basis points (0.20%)
Minimum Issuance fee ............................... $15,000
ANNUAL ADMINISTRATIVE FEE
An annual fee for the ongoing administration and
monitoring costs (e.g. financial and site
monitoring, and annual reporting) of Housing
Authority issued Bonds required throughout the
Qualified Project Period and until expiration of
the CDLAC Compliance Period, reportable to
CDLAC. Administrative fees shall be assessed on a
dwelling unit (DU) basis.
Annual Administrative Fee
0 – 50 DUs .................................................. $13,000
51 – 199 DUs .............................................. $17,000
200 or more DUs ........................................ $21,000
Additional Staff Services ............ Full Cost Recovery
FULL COST RECOVERY
For all full cost recovery fee items, an initial
deposit shall be collected to cover the City’s full
cost, including overhead, incurred in conjunction
with review and processing as request by the
applicant. Additional funds may be collected, as
requested by applicant. Additional funds may be
collected as required, to cover City costs. Should
the application be withdrawn at any time, the
deposit shall be adjusted to cover the City’s actual
costs, including overhead, up to that time. Any
funds remaining on deposit at the time of the
completion or withdrawal of the application shall
be returned to the depositor, after accounting for
expenses incurred to date.
See Master Fee Schedule Bulletins 1-100 and 1-
200 for additional discussion of full cost recovery
and current hourly rates.
ATTACHMENT 1
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