HomeMy WebLinkAboutMINUTES - 09221992 - 1.53 t 165 c
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS DATE: September 22, 1992
FROM: Richard J. Martinez, Acting Interim Executive Director
SUBJECT: AUTHORIZE EXECUTION OF LOAN DOCUMENTS FOR A $2,295,000
CONSTRUCTION LOAN FROM BANK OF AMERICA STATE BANK FOR
CASA DEL RIO SENIOR HOUSING DEVELOPMENT, ANTIOCH
I. RECOMMENDED ACTION:
ADOPT Resolution No. 3656 authorizing the execution of a loan agreement and any
amendments thereto, a promissory note and any other documents ';Iequired to secure a
construction loan for $2,295,000 from the Bank of America State Bank Affordable
Housing Group by the Chair of the Board of Commissioners, as recommended by the
Advisory Housing Commission.
II . FINANCIAL IMPACT:
None, as the construction loan will be paid off at the end of construction by
the $2,295,000 California Housing Finance Agency (CHFA) loan for permanent financing
which received a final commitment from CHFA on September 10, 1992.
III . REASONS FOR RECOMMENDATION/BACKGROUND:
The Housing Authority has been working with the Bank of American State Bank
Affordable Housing Group to secure a loan for almost half of the construction
financing for the 82-unit Casa del Rio Senior Housing Development in Antioch. Bank
of America anticipates providing a $2,295,000 loan for the 1•,';.-month construction term
with an interest rate based on prime rate plus one point, currently 7%. The Housing
Authority will pay off this loan off completely at the end of construction wi8th the
$2,295,000 CHFA loan for permanent financing.
The remainder of the development costs are being funded by several sources.
Pursuant to Resolution No. 3639, adopted on April 28, 1992, the Housing Authority has
already entered into an agreement with the California Department of Housing and
Community Development (HCD) for $3,085,597 in construction and permanent financing
for the project. The City of Antioch is contributing the land, valued at $380,000;
providing tax increments equivalent to $115,000 per year for the next 40 years;
$100,00 in additional development funds; and is waiving or dE 'erring $357,185 in
development fees. Additionally, the Housing Authority is providing $150,000 in
Owner's Equity for the project.
CONTINUED ON ATTACHMENTS YES SIGNATURE:
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARIf COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF COMMISSIONERS
UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS A TRUE AND
AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND
ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD
OF COMMISSION RS ON THE DATE SHOWN.
CC: ATTESTED �i l�7o�
Phil Batchelor, Clerk of the
Board of Commissioners
BY , DEPUTY
IL
Board of Commissioners
September 22, 1992
Page -2-
The two construction loans, from Bank of America and HCD, should be ready to
close September 30, 1992. In order to secure this $2,295,000 construction loan, the
Housing Authority must execute a loan agreement and any amendments thereto, a
promissory note and any other documents required by the Bank of America.
At its Regular Meeting on Monday, September 14, 1992 the Advisory Housing
Commission voted to recommend approval of Resolution No. 3656 authorizing the
execution of a loan agreement and any amendments thereto, a promissory note and any
other documents required to secure a construction loan for $2,295,000 from Bank of
America State Bank Affordable Housing Group by the Chair of the Board of
Commissioners.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect to not adopt Resolution No. 3656 the
Housing Authority would be unable to proceed with the 82 unit: Casa Del Rio Senior
Housing Development in the City of Antioch.
THE BOARD OF COMMISSIONERS
THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
RESOLUTION NO. 3656
RESOLUTION AUTHORIZING THE EXECUTION OF A LOAN APPLICATION,
THE INCURRING OF AN INDEBTEDNESS, THE EXECUTION OF A
LOAN AGREEMENT AND ANY AMENDMENTS THERETO, A PROMISSORY NOTE,
AND ANY OTHER DOCUMENTS NECESSARY TO SECURE CONSTRUCTION
FINANCING FROM THE BANK OF AMERICA STATE BANK AFFORDABLE
HOUSING GROUP BY THE CHAIR OF THE BOARD
WHEREAS, the Bank of America State Bank Affordable Housing Group
( "Bank of America" ) provides construction financing for
development of low income, multi-unit rental housing; and
WHEREAS, the Housing Authority of the County of Contra Costa is a
public entity and is applying for Bank of America
construction financing to develop Casa del Rio, a 82-unit
low income senior housing complex; and
WHEREAS, the Bank of America will prepare all documents required
to secure a construction loan from Bank of America for
the project; and
WHEREAS, County Counsel shall review and approve all documents
prepared to secure this loan prior to execution; and
WHEREAS, the Chair of the Board will act on behalf of the Housing
Authority of the County of Contra Costa and will sign all
necessary documents required to secure the loan; and
WHEREAS, the Executive Director will act on behalf of the Housing
Authority of the County of Contra Costa to sign all
necessary documents required to disburse the funds :
NOW, THEREFORE, BE IT RESOLVED, as follows :
1 . That the Board of Commissioners of the Housing
Authority of the County of Contra Costa hereby
authorizes the Chair of the Board to apply for and
to accept a $2, 295, 000 construction loan for Bank
of America State Bank Affordable Housing Group and
to execute all required loan documents and any
amendments thereto, a promissory note, and any
other documents necessary to secure said loan.
2 . That the Executive Director is authorized to sign
all necessary documents required to disburse the
funds .
3 . That this resolution shall take effect immediately.
PASSED AND ADOPTED THIS 22nd day of September , 19 92 , by the
following vote of the Commissioners :
AYES : Commissioners Powers, Fanden, Schroder, Torlakson, M cPeak
NOES : None
ABSENT: None I hereby certify that this Is a true and correct copy of
an action taken and entered on the minutes of th3
ABSTAIN: None Boar!of SupABAT
s on the date hown.
ATTESTED:
PHILHELOR,Clerk of the Board
Of Superviaora and County Administrator
cc: County Administrator
County Counsel
Housing Authority By `" - JOPUN