HomeMy WebLinkAboutMINUTES - 09191995 - C41 TO: REDEVELOPMENT AGENCY o� Contra
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FROM: Phil Batchelor a
Executive Director J
County
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DATE : September 19, 1995
.SUBJECT: Second Amendment to Development Loan Agreement - Parkway Estates
Housing Project, North Richmond
SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE and AUTHORIZE the Deputy Director of Redevelopment to execute
a Second Amendment to the Development Loan Agreement with the
Community Housing Development Corporation of North Richmond for an
affordable housing project predevelopment costs .
FISCAL IMPACT
None to the General Fund. This Loan of $115, 000 would be. made from
the housing set-aside portion of Bond Proceeds . This appropriation
will be provided for in the Agency' s 1995-96 adopted budget.
BACKGROUND/REASONS FOR RECOMMENDATIONS
Community Housing Development Corporation (CHDC) of North Richmond is
a nonprofit housing development corporation interested in constructing
quality for-sale single . family homes in the North Richmond
Redevelopment Project Area. It has identified a parcel at 217 W.
Gertrude Avenue as an appropriate site. CHDC will construct 87 for-
sale single family homes on the approximate 10 acre site.
CONTINUED ON ATTACHMENT: _ YES SIGNATURE : rO
RECOMMENDATION OF EXECUTIVE DIRECTOR RECO DATION AGENCY COMMI EE
APPROVE OTHER
SIGNATURE (S)
ACTION OF AGENCY ON September 19 , 1995 APPROVED AS RECOMMENDED x OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
x UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT
AGENCY ON THE DATE SHOWN.
Contact: Beth Lee
646-4076 ATTESTED September 19 , 1995
cc: Community Development PHIL BATCHELOR,
Redevelopment Agency AGENCY SECRETARY
Auditor-Controller
Via Redevelopment,
CHDC '
OCHI
BYMAA , DEPUTY
The North Richmond Municipal Advisory Council has reviewed and
voted to support this project .
CHDC is leveraging the Redevelopment allocation with funds from a
variety of sources . It has applied for, and received, funding from
the Community Development Block Grant (CDBG) and HOME programs as
well as from the Local Initiatives Support Corporation. CHDC is
currently working with several lenders to provide favorable
construction and permanent financing under their Community
Reinvestment Act programs .
CHDC is finalizing the engineering and site plans for the
development . Cost estimates show that construction/material costs
have risen and an approximate $1 million is needed to complete the
project . CHDC has applied for additional funds from CDBG. CHDC
has also requested funds from the City of Richmond to pay for
project-related improvements (i .e . the sound wall and Gertrude
Avenue improvements) located within the City' s boundaries . In
addition, CHDC has requested that the Redevelopment Agency provide
an additional $115, 000 necessary to complete the engineering and
site plans. Without additional Agency assistance the project would
be significantly delayed which could result in higher costs and
jeopardize other funding needed to maintain project affordability.
The redevelopment funds will be structured as a loan, secured by a
promissory note and deed of trust against the land and planned
improvements . The loans will be forgiven upon the sale of the
lower income units to qualified lower income homebuyers .
Staff analyses indicate that the potential benefits to the Project
Area from the project are significant:
1 . The construction of new affordable housing will assist
the Agency/County in meeting its affordable housing
requirements;
2 . Providing affordable for-sale single family homes will
further stabilize the North Richmond community; and
3 . CHDC will also sign an agreement to hire North Richmond
residents for new jobs during construction.