HomeMy WebLinkAboutMINUTES - 08171993 - 1.81 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS DATE: August 17, 1993
FROM: Richard J. Martinez, Executive Director cc:
SUBJECT: ADOPTION OF RESOLUTION NO.3690 ACCEPTING A LOAN OF$195,000 FROM THE COUNTY
HOUSING BOND TRUST FUNDS FOR THE CASA DEL RIO SENIOR HOUSING DEVELOPMENT
AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL NECESSARY LOAN
DOCUMENTS
I. RECOMMENDED ACTION
ADOPTION of Resolution No.3670 ACCEPTING a loan of$195,000 from the Contra Costa County Housing
Bond Trust Funds for the Casa del Rio Senior Housing Development in Antioch and AUTHORIZING the Executive
Director to execute documents necessary to secure the loan from the County.
II. FINANCIAL IMPACT:
Loan funds will be provided from the Contra Costa County Housing Bond Trust Funds. The loan will be
repaid from the annual project cash flow within the first live years.
III. REASONS FOR RECOMMENDATION/BACKGROUND
The Housing Authority is currently building 82 units of very low income senior housing at the Casa del Rio
Senior Housing Development in Antioch,CA. The existing funding for this$7 million project comes from the California
Housing Finance Agency (CHFA),State Rental Housing Construction Program (RHCP),Antioch Development Agency
(ADA), Housing Authority, and Bank of America Community Development Bank sources.
Due to unanticipated cost overruns, there is now a $195,000 funding gap. The majority of these overruns are
due to unforseen construction costs as well as to costs related to saving the Eucalyptus tree. In order to continue the
current funding and to complete the construction, the Housing Authority needs to be able to cover these cost overruns
by the end of August 1993. The Housing Authority requested that the County provide a short-term loan from the
Housing Bond Trust Funds to cover this funding gap. Due to an increase in the RHCP approved rents and a reduction
in the interest rate for the CHFA loan, there will be sufficient cash flow to enable the Authority to repay the loan over
the first rive years the project is in operation. The proposed loan terms include:
a. Total repayment by July 1999, a five year term;
b. Zero interest (001o) charged if repaid within the five year term;
C. Subordination of the County loan to CHFA, RHCP, City and Bank of America financing; and
d. Repayment commencing in July 1994,with a lump-sum payment of$115,000,with full payment out of
project cash flow as soon as possible thereafter, but not later than July of 1999.
CONTINUED ON AITACFIM NP.. SIGNATURE:51,
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
nrPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON August 17, 1993 APPROVED AS RECOMMENDED XX OTHER
VOTE OF COMMISSIONERS
X r tNANIMOUS(ABSENT - - - I I IEREBY CERTIFY THAT TI-IIS IS A TRUE AND CORRECT
AYES: NOES: COPY OF AN ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUFES OF 11-IE BOARD 017 COMMISSIONERS ON TILE
DATE SHOWN.
ATIUSIED August 17, 1993
Phil Batchelor,Clerk of the Boanl of Commissioners
BY :7 ,DEPUTY
In July 1994,the Antioch Development Agency(ADA)will repay the Authority$115,000 for the Authority's short
term loan to the ADA. At that time, the Authority will rollover that amount to the County for the initial lump-sum
payment on its loan. The remainder of the County loan will be repaid from the additional cash flow described above.
The Housing Authority will be reimbursed for the rolled over amount from the cash flow over the first five years of
project operation.
At its regular meeting on August 16, 1993, the Advisory Housing Commission recommended adoption of
Resolution No.3690 accepting the loan and authorizing the Executive Director to execute all necessary loan documents
to secure this loan from the County Housing Bond Trust Funds.
IV. CONSEQUENCES OF NEGATIVE ACTION;
Should the Board of Commissioners elect not to approve Resolution 3690 accepting the loan and authorizing
the Executive Director to execute all necessary loan documents,the Housing Authority will not be able to complete the
construction of Casa del Rio. No other short term funding was available which was acceptable to the State RHCP
program.
mirb"195.ash
THE BOARD OF COMMISSIONERS
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
RESOLUTION NO. 3690
RESOLUTION ACCEPTING A $195, 000 LOAN. FROM COUNTY OF CONTRA COSTA
HOUSING BOND TRUST FUNDS FOR THE CASA DEL RIO SENIOR HOUSING
DEVELOPMENT AND AUTHORIZING THE EXECUTIVE DIRECTOR
TO EXECUTE ALL NECESSARY LOAN DOCUMENTS
WHEREAS, the Housing Authority of the County of Contra
Costa is currently building 82 units of very low income senior
housing at the Casa del Rio Senior Housing Development in Antioch;
WHEREAS, there is now a $195, 000 short-term funding gap
due to unanticipated cost overruns resulting from unforseen
construction costs as well as costs related to saving the
Eucalyptus tree; and
WHEREAS, in order to continue the current funding and to
complete the construction, the Housing Authority needs to cover
these cost overruns by the end of August 1993;
WHEREAS, the Housing Authority requested that the County
provide a short-term loan from the County Housing Bond Trust Funds
to cover this funding gap; and
WHEREAS, due to increased allowable rents and a reduced
interest rate on the CHFA loan, there will be sufficient cash flow
within the first five years of project operation to repay the loan;
and
WHEREAS, the County Community Development Department is
recommending the loan with terms of : 1 ) total repayment within the
first five years of operation; 2 ) zero interest charged if repaid
within the five years; 3 ) repayment commencing on July 1994 with an
initial lump-sum payment, of $115, 000, with full payment out of
project cash flow as soon as possible thereafter, but not later
than July 1999 ; and 4 ) subordination of the loan to the CHFA, RHCP,
City of Antioch/ADA, and Bank of America financing;
NOW, THEREFORE, BE IT RESOLVED, as follows :
1 . That the Board of Commissioners of the Housing
Authority of - the County of Contra Costa does hereby
approve and accept a loan, for $195, 000, from County of
Contra Costa Housing Bond Trust Funds and any and all
documents deemed necessary or appropriate in order to
evidence and secure the loan.
2 . That the Executive Director is hereby authorized and
directed to execute all necessary loan documents, and any
amendments or modifications thereto .
3 . That this resolution shall take effect immediately.
PASSED AND ADOPTED THIS 17th day of August 19 93
by the following vote of the Commissioners :
AYES: Commissioners Powers, Smith, Bishop, McPeak, Torlakson
NOES: None
ABSENT: None
ABSTAIN: None
cc: County Administrator
County Counsel
Housing Authority