HomeMy WebLinkAboutMINUTES - 08131996 - C61 r-
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TO: BOARD OF SUPERVISORS • ;- Costa
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FROM: Harvey E. Bragdon County
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Director of Community Development Co,;t�
DATE: August ' 13, 1996
SUBJECT: Allocation of Community Development Block Grant Funds for the Parkway
Estates Affordable Homeownership Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
( 1 ) APPROVE the allocation of $226,000 in FY 1995/96 Community
Development Block Grant (CDBG) Housing Development Assistance Funds
for the Parkway Estates Affordable Homeownership Project sponsored by
Community Housing Development Corporation of North Richmond. and
Oakland Community Housing, Inc. ; and (2 ) AUTHORIZE the Deputy
Director, Redevelopment, or his designee to execute a CDBG Project
Agreement and required loan documents for this purpose.
FISCAL IMPACT
No General Funds are involved. Funds for this project will come from
the FY 1995/96 CDBG Housing Development Assistance Fund. CDBG funds
are provided to the County through the U. S. Department of Housing and
Urban Development (HUD) .
CONTINUED ON ATTACHMENT: X YES SIGNATURE:b,�.'
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMIT EE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON I aq „ 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 K. Hamm
335-1257 ATTESTED '
cc : County Administrator PHILBATCHELOR', CL RE F
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR
Community Development
CHDC/OCHI via Comm. Dev. BY , DEPUTY
_ n /
BACKGROUND/REASONS FOR RECOMMENDATIONS
On February 14 , 1995, the Board of Supervisors approved the
allocation of $632,550 in FY 1995/96 CDBG funds to the Housing
Development Assistance Fund (HDAF) for use in funding affordable
housing projects which develop during the program year. The
current unobligated balance in the FY 1995/96 HDAF is $594 ,211 .
On May 30, 1996, the Affordable Housing Finance Committee voted to
recommend that the Board of Supervisors approve an allocation of
$226, 000 from the HDAF to Community Housing Development Corporation
of North Richmond (CHDC) and Oakland Community Housing, Inc. (OCHI )
for the Parkway Estates Project. The purpose of this project is
to:
o provide affordable homeownership opportunities for 36 lower-
income households; and
o assist in the revitalization of the North Richmond
Redevelopment Area through an increase in the incidence of
homeownership and the new construction of 87 units of single-
family housing on a currently blighted site located at 217
West Gertrude Avenue.
The project will include three and four bedroom homes suitable for
families and will be built in two major phases : Parkway Estates I
and II .
Funds currently approved to support this project include: $268, 000
in FY 1993 County HOME funds; $300,000 in FY 1993/94 CDBG funds;
$300,000 in County Redevelopment Agency (RDA) funds; $600, 000 in
City of Richmond funds; and $200, 000 in Local Initiatives Support
Corporation funds . CHDC and OCHI have also obtained preliminary
approval of construction financing totaling approximately $10
million. The total development cost of this project is $13 . 1
million.
Previously approved County CDBG, HOME and RDA funds totaling
$728,000 were used for partial site acquisition. The additional
CDBG/HDAF funds requested will be used for a final balloon payment
of $226 , 000 required to complete acquisition of the Parkway site.
Assuming approval of the additional funds, construction is
anticipated to begin this fall . Following construction, a portion
of the CDBG, HOME, and RDA site acquisition funds ($560, 000) will
be rolled over into deferred second mortgages to assist a minimum
of 25 lower-income first-time homebuyers in acquiring homes .
CHDC/OCHI will be required to sell an additional 11 homes at prices
affordable to lower-income households ( incomes at/below 80 percent
of the area median) to provide a minimum of 36 affordable
homeownership opportunities .
Parkway Estates has been in development since 1992 . Substantial
site and funding difficulties have been largely overcome and,
assuming approval of the additional CDBG/HDAF funds requested, the
project is now ready to proceed.
k14/Park3