At Tuesday's Board of Supervisors meeting, a request by the California Statewide Communities Development Authority to re-syndicate up to $7.5 million dollars in Multifamily Housing Revenue Bonds was unanimously approved in a 5-0 vote by Supervisors.
The Courtyards Penn Valley Apartments complex is located at 10533 Broken Oak Court in Penn Valley and provides low to very low income county residents with 42 units of affordable housing at below market rental rates. It was originally constructed in 2004 with a majority of funding coming from the issuance of multifamily housing revenue bonds. These bonds provided 15 years of tax advantages for the investment bondholders.
With those tax advantages now expired, the bondholders could call in the bonds and possibly force the sale or foreclosure of the apartment complex. If a transfer of ownership occurred, the new property owners would not be obligated to continue the rental rate limitations required by the existing bonds and there was a potential that apartment renters could be priced out of their homes.
By re-syndicating the Multifamily Housing Revenue Bonds, the California Statewide Communities Development Authority would protect the affordability of the apartment units for an additional 55 years. While no county funds are required for this re-syndication of the bonds, the Board of Supervisors had to approve their issuance as the complex is physically located in county jurisdiction.
By supporting the re-syndication of these multifamily housing revenue bonds, the Board of Supervisors has allowed for the protection of the affordability of these housing units for generations to come.