HomeMy WebLinkAboutMINUTES - 08081995 - C85 `L Contra
TO: BOARD OF SUPERVISORS .rte;--''" Cosa
..� County
•J
FROM: Harvey E . Bragdon
Director of Community Development
DATE: August 8, 1995
SUBJECT: HOME Project Agreement and Loan Documents for the Church Lane
Apartment Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS.(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
( 1) APPROVE the allocation of an additional $200,000 in FY 1994 HOME
Investment Partnership Act (HOME) funds for the Church Lane Apartment
Project sponsored by Church Lane Housing Corporation in San Pablo; and
(2) AUTHORIZE the Deputy Director, Redevelopment or his designee to
execute a HOME Project Agreement and required loan documents for this
purpose.
FISCAL IMPACT
No General Funds are involved. Funds for this project will come from
previously unallocated FY 1994 HOME funds provided to the Contra Costa
Consortium through the U.S. Department of Housing and Urban
Development:
BACKGROUND/REASONS FOR RECOMMENDATIONS
The purpose of this project is to provide additional multifamily
rental housing affordable to and occupied by very-low and low-income
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT OF BO D_ COMMITT E
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON $ APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
•✓ UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Kathleen Hamm
646-4208 ATTESTED g Q R
cc : County Administrator PHIL BATCHELOW, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR
Community Development ,
Rubicon via Community Developmt. BY lip, C0 0.4 DEPUTY
families and individuals in West County. The project will be
located on a currently vacant site at 2560 Church Lane in San Pablo
and will involve the new construction of 22 units, including eight
three and four-bedroom units suitable for large families . Six one-
bedroom units will be targeted to special needs populations,
including the disabled, very-low income seniors, and households
which have successfully completed transitional programs for the
homeless . Eleven units will be occupied by and affordable to
households with incomes at or below 50 percent of the area median
income (AMI ) , including a minimum of 10 units to be designated as
HOME-assisted. All remaining units will be affordable at 60
percent AMI . The project will remain affordable for a minimum of
60 years . The project will be developed and managed by Church Lane
Housing Corporation, a new, single-purpose nonprofit with Rubicon
Programs, Inc. as the General Partner.
The Board of Supervisors previously approved $245,000 in FY 1994/95
Community Development Block Grant (CDBG) funds and $245, 000 in FY
1994 HOME funds for the Church Lane Apartment Project. The project
has also been approved for funding from Citibank, LISC, and Limited
Partner Capital from the sale of Low-Income Housing Tax Credits
(LIHTCs) . These funds were adequate to complete the project based
on the original cost estimates . However, construction bids for the
project exceeded the original estimates by $600,000, leaving a
significant funding gap. Church Lane Housing Corporation has
worked with the project architect, engineer, and contractor to
reduce the gap to $200,000 and has requested additional HOME funds
to cover this amount. As proposed, the total development cost for
this project is now $2, 948, 931 or $134,042 per unit, including
$31,364 per unit in County CDBG and HOME funds . If approved, the
additional HOME funds will be used for construction and provided in
the form of a low-interest deferred loan.
Following approval of an allocation of LIHTCs in December, 1994,
Church Lane Housing Corporation acquired the project site with
County CDBG funds . In order to meet LIHTC deadlines, construction
must be initiated by October 1995 . Wells Fargo Bank has agreed to
provide construction financing, contingent on approved commitments
for all required sources of financing, including the additional
$200,000 in additional HOME funds requested to cover the remaining
construction gap.
Project budget:
SOURCES - Total $2,948,931
FY 1994 HOME $ 200,000 requested
FY 1995/96 County CDBG $ 245, 000 approved
FY 1994 Contra Costa HOME $ 245, 000 approved
LISC $ 50, 000 approved
Citibank $ 650,000 approved
LIHTCs $1,549,693 approved
Deferred developer fee $ 24, 137 approved
USES - Total $2,948,931
Site acquisition $ 150,000
Site improvements $ 250,000
Construction $1,922 ,535
Permits and fees $ 142 ,833
Architecture/engineering $ 165, 000
Financing, legal and other
soft costs $ 318,563
kh/kll/cll