HomeMy WebLinkAboutMINUTES - 09101996 - C150 4
C. 149, C. 150, C. 151
C. 152 and C. 153
THE BOARD OF SUPERVISORS OF
CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on September 10, 1996, by the following vote:
AYES: Supervisors Rogers, Bishop, DeSaulnier, Torlakson and Smith
NOES: None
ABSENT: None
ABSTAIN: None
SUBJECT: Correspondence
C. 149 LETTER dated August 15, 1996, from State Senator Dan Boatwright, California Legislature,
Chairman, Committee on Business and Professions, Room 3086, State Capitol, Sacramento,
CA 95814, commenting on grant monies that may be available to Contra Costa County for
juvenile justice and criminal justice programs.
""REFERRED TO COUNTY ADMINISTRATOR
C.150 LETTER dated August 12, 1996, from Wilbert E. Cossel, 4091 - C Orwood Road, Brentwood,
CA 94513-5211, advising of his interest in purchasing the Bay View Mobilehome Park, with
funding secured through the Mobilehome Park Resident Ownership Program (MPROP).
""REFERRED TO COMMUNITY DEVELOPMENT DIRECTOR
C.151 LETTER dated August 18, 1996, from Harry Nichandros, 724 Miner Road, Orinda, CA 94563,
requesting assistance with the deer population and resulting problems in Lamorinda area.
****REFERRED TO ANIMAL SERVICES DIRECTOR
C.152 LETTER dated August 19, 1996, from Ronald Yeager, Director of Employee Benefits and Labor
Relations, Whittaker Corporation, Simi Valley, CA 93063, providing notification (pursuant to
Worker Adjustment and Retraining Act) that approximately 153 employees will be affected by
the closure of the of the Safety Sytems facility located at 2731 Systron Drive, Concord, on
December 31, 1996.
***`ACKNOWLEDGE RECEIPT AND REFER TO HUMAN RESOURCES DIRECTOR
AND EXECUTIVE DIRECTOR, PRIVATE INDUSTRY COUNCIL
C.153 LETTERS dated August 8, 1996, August 13, 1996, and August 19, 1996, from Jim Winningham,
Senior Manager, KPMG Peat Marwick LLP, 750 B Street, San Diego, CA 92101, presenting
claims for refund of property taxes paid in fiscal year 1992-93 on behalf of
Home Savings of America, FSB $ 1,831
Union Bank of California 1,200
Bank of America 10,800
""REFERRED TO TREASURER-TAX COLLECTOR, COUNTY COUNSEL AND
ASSESSOR
IT IS BY THE BOARD ORDERED that the recommendations as noted (****) are
approved.
c.c. Correspondents
Count Administrator I hereby certify that thle is a true and correct copy of
County sn boson takes and entered on the minutes of :
Community Development Director board or supe lsors the ace sh
Animal Services Director Xr 8MD: /99(0
PHIIL B.",-tCHELOR,Clerk of the board
Human Resources, Director of$upervis,r,End C untyAdministrator
Executive Director, PIC
Treasurer Tax Collector oaputy
County Counsel
Assessor
: r
WILBERT E COSSEL _
4.091-C'Orwood Road .
Brentwood; CA 94513-5211'
RECEVED ;
-August 12;.1996:
CONTRA COSTA COUNTY M 1.31996
BOARD OF SUPERVISORS , `
651 Pine:Street CLERK BOARD OF SUPERvisORS:
r CONTRA COSTA CO.
Martinez, CA-94553
Regarding: Implementation of-Mobifehome Park Resident'Ownership Program
(MPROP) . .
Dear Supervisors:
The State &California-Departmentof Housing and Community Development has"
recently.sent,me'a "Notice to Potential .Applicants" annou. cement.-The `'Request for'
'Proposals" announces that there•is availability of funds.for new applications:A copy of
.this notice is enclosed ' }
Contra Costa County has never applied for funds under,this program that'has�been
ongoing.for many,years.;Approximately$3 million is currently'available,of which
$600,60Ws reserved for projects"in rural areas.
The-presentowner of Bay View Mobilehome Park at 81 Bay.View Avenue, Bay Point, is.. .'
Donald R. HurnpheryThrough problems exasperated.by the Contra Costa County
Building,Inspection Department private funds to repair`the;sewer:sy$tbm and
Y completion of electrical code compliance are unavailable
Four:families and-la reresidents and most would prefer purchasing that Mobiiehome
Paris and keeping if available,to all tenants:as.low income,hou'sing. The MPROP was.
established formobilehome park-residents who wish to purchase their park and convert'
it to resident ownership:The,MPROP would require that Contra Costa County ,
Community Development act as.the.lead agency.
This is-a project that can and should be done.
Thank you for your consideration. _
•Sincerely,. .'
Vlfilbert E..Cossel
enclosure
'STATE CIF CALIFORNIA-BUSINESS TRANSPORTATION AND HOUSING AGENCY PETE WILSON Govemor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT oW tPENT O{H
a�
DIVISION OF COMMUNITY AFFAIRS
1800 TMRD STREET,Suite 390
SACRAMENTO,CA 95814ynno�"``
P.O.BOX 952054 (�tt'C ryE®
SACRAMENTO,CA 94252-2054 0 H f� �/
(916)322-1560 FAX(916)327-6660
AIN 131996
CLERK BOARD OF SUPERVPSORS
CONTRA COSTA CO.
NOTICE TO POTENTIAL APPLICANTS
RE: REQUEST FOR PROPOSALS
MOBILEHOME PARK RESIDENT OWNERSHIP PROGRAM
January 1996
I am pleased to announce the availability of funds for new applications under the
Mobilehome Park Resident Ownership Program (MPROP).
MPROP provides financing for mobilehome park resident organizations who wish to
purchase their park and convert it to resident ownership. Approximately $3 million is currently
available. Enclosed is a Request for Proposals (RFP) detailing the program's requirements and
the application process. The'first application deadline is March 1, 1996. Application workshops
are scheduled for January 30, 1996 (Sacramento) and February 1, 1996 (Escondido).
To request an application package, please contact Kathyrn Garrett at (916)445-0110, or
Mail a request to the address shown on the second page of the RFP.
If you have any questions, please contact the MPROP staff at (916) 445-0110.
Richard B. Nels
Deputy Director
MOBILEHOME PARK RESIDENT OWNERSHIP PROGRAM
REQUEST FOR PROPOSALS
.JANUARY 1996
A. INTRODUCTION
The Department of Housing and Community Development (HCD) is pleased to announce
that it is accepting applications for funding under the Mobilehome Park Resident
Ownership Program (MPR')P). MPROP provides financing for mobilehome park
resident organizations who wish to purchase their mobilehome park and convert it to
resident ownership. Its purpose, as established by the State Legislature, is to encourage
and facilitate the resident purchase of mobilehome parks, to protect low-income park
residents from physical and economic displacement, to obtain a high level of private and
other public financing, and to help establish acceptance for resident-owned mobilehome
parks in the private market.
Approximately $3 million is currently available for new loans, of which $600,000 is
reserved for projects in rural areas, as defined by Health and Safety Code Section 50101.
Application deadlines are specified in Section B.
Limited technical assistance from the Department is available for potential applicants.
The Department, however, recommends that applicants consider the use of contract
consultants and other professional services to assist in the purchase process, as the
process is complex, time consuming, and requires a high level of expertise.
The program provides three types of loans: short term conversion loans, long term
blanket loans to resident organizations for the purpose of achieving affordable housing
costs for low-income residents, and long term loans to low-income residents to purchase
their ownership interest. All loans are 3 percent simple interest.
In accordance with the program regulations, the maximum total funding amount for one
park will be finalized by the Department's Director following consideration of program
staff's recommendation on this subject at a January 19, 1996 meeting of the Department's
Loan and Grant Committee. Program staff is recommending that this amount be set at
$750,000. Parties receiving this RFP will be notified if the Director approves a different
amount.
B. LEGAL AUTHORITY AND CAUTION
The Mobilehome Park Resident Ownership Program is authorized by Chapter 11 of.Part
2, Division 31 of the Health and Safety Code (Section 50780, et sejc.), implemented by
regulations adopted thereunder, and set out as Subchapter 13, Chapter 7, Part 1, Title 25
of the California Code of Regulations (Sections 8000, et seq.). Copies of the regulations
and enabling legislation are included in the application package.
This Request for Proposals is intended to provide an overview of the MPROP
requirements. Interested applicants are expected to read the MPROP statutes and
regulations which are contained in the application package and will be held responsible
for complying with those statutes and regulations if awarded a loan commitment.
The Department is currently in the process of amending the MPROP regulations. The
amended regulations are expected to be in force prior to the second funding window
covered by this RFP, and may modify some of its requirements. Additionally, the
Department reserves the right, at its sole discretion, to suspend, amend, or modify the
provisions of this RFP. If any of these actions should occur, the Department will provide
as much advance notice as possible to parties on the MPROP mailing list.
C. APPLICATION PROCEDURES AND SCHEDULE
1. Application: Windows and Deadlines
Applications will be accepted and reviewed approximately every nine months, in
accordance with the following schedule:
APPLICATION SUBMITTAL PERIOD TARGET FUNDING DECISION DATES
1/1/96 to 3/1/96 6/1/96
9/1/96 to 11/1/96 2/1/97
6/1/97 to 8/1/97 11/1/97
An application window will be canceled in the unlikely event that there is less than
$600,000 available for new loans one month prior to the date that applications for that
window are first accepted.
Two copies of the complete application must be received in the MPROP office by 5 p.m.
on the last day of the submittal period applicable to a particular application window to be
considered for funding under that window. Applications will be accepted only during
application submittal periods, and may not be added to in any substantial manner by the
applicant following submission.
All proposals must be made on the Department's 1995 application forms and must be
complete. A separate appl;'cation must be submitted to the Department for each project.
To request an application package, please contact the MPROP program secretary at the
telephone number or address below.
2
i
Department of Housing and Community Development
Division of Community Affairs
Mobilehome Park Resident Ownership Program
P.O. Box 952054, MS 390-5
Sacramento, CA 94252-2054
Telephone: (916) 445-0110, or FAX: (916) 327-5942
2. Workshop Schedule
Two application workshops will be held as follows:
1) Sacramento: January 30, 1996
9:30 a.m. to 3:00 p.m.
1800 3rd Street, Room 185
2) Escondido: February 1, 1996
9:30 a.m. to 3:00 p.m.
210 North Broadway
City Council Chambers
D. DESCRIPTION OF FUNDING PROCESS FROM RFP TO PROJECT
COMPLETION
Complete and eligible applications will be rated by MPROP staff according to the
criteria set forth in Section I of this RFP. Generally, staff will recommend awarding the
full amount of available funds in a priority order based on rating score, with rural projects
competing only against themselves for 20 percent of these funds. Applications for
projects in non-rural areas that receive less than 60 percent of the available rating points
will receive a negative staff recommendation, regardless of the availability of funds.
Similarly, applications from projects in rural areas that receive less than 50 percent of the
available points will also receive a negative recommendation. The recommendations of
staff will be presented to the Department's Local Assistance Loan and Grant Committee.
Copies of the staff recommendation will be distributed to the co-applicants prior to the
Committee meeting. The Committee will consider applications and will make
recommendations to the Director for Department action. The Director's approval of a
project constitutes a conditional commitment.
After Director approval, a contract (the Standard Agreement) between the co-applicants
(the Resident Organization and the Local Public Entity) and HCD is prepared. This
contract will contain the conditions that must be satisfied prior to the closing and funding
of the MPROP loan(s). Standard conditions include:
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I. Achievement of specified minimum presale or membership purchase
requirements. Typically, two-thirds of the total individual interests in the park
must be sold or under contract of sale prior to the closing of any MPROP loan.
Long-term leases may not be substituted for sales to meet this requirement.
2. Verification that park residents are not being displaced, through rent increases or
other means, and in accordance with the requirements detailed in the MPROP
application package.
3. Verification of the adequacy of the collateral securing the Department's loan(s).
Typically, this means an appraisal or appraisals ordered by the Department and
paid for by the borrower(s) from their own funds (with reimbursement from loan
proceeds possible at closing).
4. Approval of a Phase I toxics report, and any follow-up studies indicated by the
Phase I. Payment for these items will also need to be made in advance of the
closing.
5. Execution of loan documents as required by the Department, including: a) a
promissory note or notes evidencing the Department's loan(s); b) security
documents as necessary to secure the Department's loan(s), and c) where a
blanket loan is being made, a regulatory agreement governing the operation of the
park for the term of the MPROP loan. The regulatory agreement, and all trust
deeds, will be recorded against the borrower's interests.
6. Issuance of a title insurance policy or policies insuring the Department's security
interest(s). The residents may pay for this policy from the proceeds of their
loan(s).
7. Approval of all project costs, and of the terms, conditions and documentation for
all sources of funds to be used to defray these costs.
8. Approval of a first year operating budget.
9. Approval of a replacement reserve study performed in accordance with the
requirements of the Department of Real Estate for subdivision projects. There
will be a cost for this item.
10. Approval of an Assistance Analysis Chart detailing, for each recipient of MPROP
assistance, their incomes, the amount of their loans, and related information.
4
11. Approval of the property management company that will manage the park upon
loan funding, and of their contract and management plan.
12. Verification that the park and any homes occupied by the recipients of MPROP
assistance comply with the Mobilehome Parks Act (Title 25).
13. If any rehabilitation or construction work is planned in connection with the
conversion, approval of the scope of work, detailed budget, construction
contractor and the construction contract documents.
14. If loans to individu;:l residents will be made, approval of a third-party loan
originator, and of their contract.
15. Approval of all professional services contracts entered into or to be entered into in
connection with the conversion.
16. Approval of the resident organization's organizational documents, resident lease
agreements, and other legal documents as specified by the Department. If
required by the Department, issuance of an opinion of the Borrower's counsel
addressing such legal issues as specified by the Department.
17. Verification of hazard, liability, flood and fidelity insurance coverage in
accordance with Department requirements.
18. Verification that all required governmental approvals have been received,
including, as applicable, approvals by local planning agencies and the state
Department of Rea?. Estate or the Department of Corporations.
E. ELIGIBLE APPLICANTS
Applications must be made by a mobilehome park Resident Organization and a Local
Public Entity as co-applicants. The Resident Organization must: 1) have, both at the time
of application and funding, no less than two-thirds of the resident households as
members; 2) be a legally recognized entity; 3) be able to enter into a contract; and 4) be
capable of suing or being sued. The Local Public Entity may be a city, county, housing
authority, redevelopment agency, community development commission, or other
governing body, as defined in Section 50079 of the Health and Safety Code.
The governing bodies of the local public entity and the resident organization must
authorize, by resolution, participation in the program and submission of the application.
These resolutions must be submitted with the application itself. No exceptions will
be made to this rule.
5
0, 15
F. ELIGIBLE PROJECTS
The project must result in resident ownership. Either a subdivision must occur, with at
least two-thirds of the residents purchasing their individual (condominium or planned unit
development) interests, or the resident's organization must acquire a fee or long-term
leasehold interest (of at least 15 years duration) in the park's real property.
At the time of application, the resident organization must have site control. Acceptable
forms of site control include an executed contract to purchase and an executed irrevocable
option.agreement.
The mobilehome park may include manufactured homes, mobilehomes, recreational
vehicles, or factory-built housing, or a combination thereof.
G. ELIGIBLE BORROWERS AND RENTAL ASSISTANCE RECIPIENTS
MPROP may provide conversion and/or blanket loans to eligible resident organizations.
MPROP may also provide individual loans to eligible lower-income residents.
To be eligible to benefit from an MPROP blanket loan or to receive an individual loan, a
resident household must: 1) reside in the mobilehome park as the household's principal
residence at the time the application is submitted; 2) have a gross income which is not
greater than the lower-income limits for the county in which the park is located, and
which are listed in the application package; 3) demonstrate that the household's monthly
housing costs upon completion of the resident park purchase would exceed 30 percent of
the household's gross monthly income without program assistance; and 4) complete and
submit a reservation for assistance or a loan. (A request for reservation is not binding on
the part of the lower-income resident household.)
H. LOAN TYPES
Conversion loans provide interim financing to Resident Organizations for the period prior
to the funding of the permanent loan(s), with a three year maximum term. The maximum
loan amount is 95 percent of the conversion costs attributable to the low-income residents
of the park, or such lesser amount as required for project feasibility. The maximum loan-
to-value ratio (counting senior debt as the MPROP loan) is 100 percent. Eligible costs
include: 1) the park acquisition cost; 2) loan origination, appraisal, and inspection fees,
and other related financial costs; 3) title and escrow fees; 4) legal and other professional
fees; 5) relocation costs; and 6)park rehabilitation costs. Monthly payments of interest
only are required during the conversion loan term unless an alternative repayment
schedule is approved by the Department.
6
• � C',lib
Blanket loans provide long-term financing to resident organizations that purchase their
parks without subdividing them. The maximum loan-to-value ratio (counting senior debt
as well as the MPROP loan) is 100 percent. The loan amount may be up to 95 percent of
the conversion costs attributable to spaces occupied by low-income residents, or such
lesser amount as required for project feasibility. To qualify for a loan in an amount
greater than 50 percent of the costs attributable to the spaces occupied by low-income
residents, the applicants must demonstrate that they have been unsuccessful in pursuing
other financing.
Blanket loans may be used for the following eligible costs: 1) to repay a conversion loan;
2) to establish operating reserves; 3) to provide long-term financing for a project; 4) to
supplement other public or private financing; 5) to enable low-income residents to obtain
individual interests; and 6) to enable low-income residents to remain in the project.
The Resident Organization must establish a program of assistance to direct the benefits of
a blanket loan to low-income residents. This may include rent adjustments and/or
internal loans from the organization to eligible lower income households. The net present
value of the benefits received by low-income residents must equal the blanket loan
amount.
Blanket loans have monthly payments amortized over a maximum 30-year term.
Alternative repayment terms may be approved, if necessary, to achieve affordable
housing costs for low-income residents. A third party entity must certify the eligibility of
the low-income residents who benefit from the blanket loan. Typically, this third party is
a local government entity, which either performs the certifications directly or contracts
with a private firm to do so.
Individual loans provide long-terns financing to low-income residents. They are only
available to eligible lower income residents in parks which have received an MPROP
loan commitment. They are not available to the public at large.
Loan amounts may not exceed 95 percent of the acquisition costs (including closing and
financing costs) of a lot or other individual interest in a mobilehome park, or such lesser
amount as required to reduce the borrower's housing costs to an affordable level (30
percent of income).
MPROP is designed to fill the gap between the private financing that residents can afford
and 95 percent of the costs of purchasing their individual interests. Potential MPROP
borrowers are expected to secure loans from private lenders in the maximum amount that
they qualify for, up to the amount that results in their paying 30 percent of income for
housing. If the lender offers them less than the amount applied for, they are expected to
accept this offer. If they have recently refinanced their homes, they must apply any cash
taken out towards their purchase. (If necessary to consummate the purchase of their
individual interests, housing costs up to 40 percent will be allowed.)
Borrowers of individual loans shall have no less than five percent equity in the collateral
securing the loan. Collateral includes the lot or other individual interest and the
mobilehome. Individual loans have monthly payments amortized over a maximum term
of 30 years unless, in order to achieve affordability, alternative repayment terms are
approved by the Department. Such alternative terms will require payments to the extent
that the resident can afford them. They may require periodic (e.g., every five years)
verification of income to ensure that borrowers still qualify.
Loans to individuals are due on sale, transfer or non-occupancy of the MPROP
borrower(s).
I. RATING CRITERIA
This section first lists the application rating criteria and the maximum score applicable to
each, then details how each criterion will be applied.
CRITERION MAXIMUM SCORE
Financial Feasibility and Loan Security 30
Project Cost 25
Efficiency of Use of Program Funds 20
Organizational Capacity 20
Avoidance of Displacement 20
Project Support 15
Speed and Ease of Conversion 10
Below Market Financing 10
Affordability for Low-Income Residents 10
Security of Tenure 5
Local Housing Programs 5
Under-Served Areas 5
Total Possible Points 175
Minimum Required for Positive Recommendation
Non-Rural Areas (60% of Total Possible) 105
Rural Areas (50% of Total Possible) 87
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CRITERIA APPLICATION
(The text in bold is a summary of criteria specified in the program regulations. Please
consult the regulations if you would like more details. The bracketed numbers refer to
the particular regulation sections to consult for this purpose.)
(1) Financial Feasibility and Loan Security [§8015(a)(8)]. Maximum score: 30
points.
This criterion encompasses the financial feasibility of the conversion itself, the long term
financial viability of the park, and security of the MPROP loan(s).
Subdivided Parks
In parks that will be subdivided, indicators of the private financial feasibility of the
conversion that will be evaluated include:
• The proportion of surveyed residents who indicate that they intend to purchase
their subdivided interest at the projected price.
• The extent of lender interest in providing financing.
• The proportion of residents who appear to qualify for private financing, based on
an analysis of individual resident characteristics, such as incomes, existing
indebtedness, and home values, and the quality of this analysis.
Indicators of long-term, post-conversion financial viability and MPROP loan security
include:
• The strength of the local market for subdivided mobilehome interests, as
measured by price trends, marketing time, sale rates, number of homes for sale,
and similar factors.
• The potential competitiveness of the park within the local re-sale market. Factors
to be analyzed include space prices, location, park amenities, and coach
occupancy and sale rates.
• The amount of debt and equity that will be junior to the MPROP loans, in
proportion to the amount of MPROP funds. The higher the proportion of junior
debt and equity, the better.
9
The need for MPROP conversion financing (blanket loan funding prior to the
subdivision). If project feasibility hinges on the subdivision occurring, applications
requesting conversion financing will receive low scores.
Non-Subdivided Parks
In parks that will not be subdivided, indicators of the financial feasibility of the
conversion that will be evaluated include:
• The proportion of surveyed residents who indicate that they intend to purchase
their interests at the projected price, to the extent that.such purchases are essential
to project feasibility.
• The extent of lender interest in providing supplemental financing, and the status
of the lender's processing. Firm commitments not subject to major conditions, of
course, provide the strongest evidence that financing will be available in the
amount required.
Indicators of long-term, post-conversion feasibility and MPROP loan security include:
• The strength of the local market for mobilehomes, as measured by price trends,
marketing time, sales rates, number of unsold listings, and similar factors.
• The competitiveness of the park within the local market. Factors to be analyzed
include space rents (including an imputed amount for any share or membership
purchase costs), location, park amenities, and indicators of market activity, such
as coach marketing time and occupancy and sale rates.
• The anticipated marketability of the share or membership interests. MPROP has
observed that residents in parks with high share values (generally over$5,000 to
$10,000) have recenily experienced significant difficulty selling their shares.
Unless the local resale market for such high value shares can be clearly
demonstrated, applicants proposing this structure will receive low scores.
• The terms and conditions of other financing, and especially financing that will be
senior to the MPROP loan. Fixed rate financing is preferable to variable rate
financing. Balloon payments prior to the maturity of the MPROP loan are
generally unacceptable, as is senior seller financing.
10
(2) Project Cost [§801 5(a)(10)]. Maximum score: 25 points.
Two measures of cost will be calculated: total per space development costs, and per space
soft costs (costs other than acquisition and rehabilitation). Projects with lower costs will
receive higher scores. Total per space development costs will be adjusted to reflect local
market conditions using median home sale same prices, as reported by the California
Association of Realtors. Attached at the end of this RFP is a chart showing the
adjustment factors applicable to the first application window covered by this Request for
Proposals.
(3) Efficiency of Use of Program Funds [§8015(a)(9)]. Maximum score: 20
points.
Efficiency will be judged by the proportion of low-income residents currently in the park
and the amount of MPROP funding per low-income resident.
(4) Organizational Capacity [§8015(a)(4)]. Maximum score: 20 points.
MPROP will evaluate the capacity of the resident organization and the proposed property
management agent to manage the park once it has been converted. Factors that will be
considered when evaluating the resident organization include:
• The business experience and expertise of individual board members and the extent
of their involvement with the park conversion.
• The long-term availability of professional assistance related to management
issues.
• The unity of the residents, and the presence of opposing factions.
Management firms will be evaluated primarily based on their experience with
mobilehomes and MPROP.
The capacity of the conversion team (conversion consultant(s), residents, and loan
originator, if applicable) to complete the conversion will also be evaluated. This
evaluation will focus on the prior conversion experience of the team members, and
especially experience with MPROP projects.
(5) Avoidance of Displacement [§8015(a)(2)]. Maximum score: 20 points.
The maximum score will be awarded to projects that will fully and clearly comply with
the Department's relocation guidelines, or provide a specific, detailed alternative plan
that ensures that residents will not be displaced. Lower scores will be awarded where the
C 150
plan for avoiding displacement is unclear, inaccurate, not specific, or lacks adequate
supporting documentation
(6) Project Support [§8015(a)(9)]. Maximum score: 15 points.
Both resident and local government non-financial support will be evaluated.
Resident support will be gauged by (a) the proportion of surveyed residents who indicate
their support for the conversion, (b) the proportion of surveyed residents who indicate
their interest in purchasing ownership interests, where these interests will be sold, and (c)
the presence or absence of factional groups opposed to the conversion. The presence of an
organized faction opposed to the conversion will cause points to be deducted, with the
amount of the deduction based on the size of the faction and the intensity of their
opposition effort.
Points for non-financial support from local government support will be allocated based
on the level of this support.
(7) Speed and Ease of Conversion [§8015(a)(3)]. Maximum score: 10 points.
Factors to be considered include:
• The firmness of necessary financing commitments.
• The degree of uncertainty about whether the borrower(s) will qualify for
financing.
• The level of resident support.
• The status of approvals required from the Departments of Real Estate or
Corporations, local planning bodies, and other regulatory agencies.
• The potential for delays due to litigation, toxic waste problems, and other unique
circumstances.
(8) Below market financing [§8015(a)(11)]. Maximum score: 10 points.
Points will be assigned based on the net present value per low-income resident of any
subsidy provided to the project, other than the MPROP loan(s). The periodic amount of
the subsidy will be calculated as the difference between (a) the payment required to
service a 30 year, 10 percent fully amortized loan in the amount of the contribution from
the subsidy source, and (b) the actual projected payment amount. The net present value
of the subsidy will be computed using a discount rate of 9 percent.
To take into account the differing resources that are available to local public subsidy
sources, however, a discount rate of 4 percent will be used for projects located in areas
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not served by a local agency that is either an "entitlement jurisdiction," for purposes of
the Community Development Block Grant (CDBG) program, or a "participating
jurisdiction," for purposes of the Home Investment Partnership (HOME) program.
MPROP will assign a subsHy value of$500 per low-income resident to projects with a
commitment from a local public agency to provide loan origination services without
charge.
(9) Affordability for Low-Income Residents [§8015(a)(1)]. Maximum score: 10
points.
The impact of the conversion on affordability levels for low-income residents will be
measured by the ratio of(a) average post-conversion housing costs as a percentage of
resident household income, or 30 percent, whichever is greater, to (b) average pre-
conversion housing costs as a percentage of income, or 30 percent, whichever is greater.
10. Security of Tenure [§8015(a)(5)]. Maximum score: 5 points.
Points will be awarded as follows:
Ownership Structure Point
Individuals will have fee title to their lots 5
Individuals will have proprietary leases 2
from a corporation that will have fee title
to the park.
All others. 0
(11) Local Housing Programs [§8015(a)(6)]. Maximum score: 5 points
Projects located in jurisdictions that have local plans or programs aimed at the
preservation of mobilehome paries as affordable housing will receive the maximum score.
Other projects will receive zero points.
(12) Under served Areas [§8015(a)(6)]. Maximum score: 5 points
Points will be awarded based on whether there have been previous MPROP awards to
projects located in the same county as the proposed project, and based on whether the
proposed project is located in the northern or southern sections of the state.
13
L
Projects in County? North or South? Points
No North 5
No South 3
Yes North 2
Yes South 0
PROJECT COST ADJUSTMENT FACTORS
The following factors will be used to adjust total per space project costs for the purpose of rating
applications under the "Project Cost" criterion. The adjustment will be performed by multiplying
the applicable factor by total project costs.
These factors represent the ratio of(a) the median sale price of detached homes in California to
(b) the median sales price of detached homes in the local market area. The sources of these
figures is the California Association of Realtors.
MARKET AREA . FACTOR
Monterey .78
Northern Wine Country .94
Northern California 1.31
Riverside/San Bernardino 1.47
Ventura Area .90
Santa Barbara Area .88
High Desert 1.87
San Luis Obispo 1.09
Los Angeles 1.00
San Francisco .70
Santa Clara .70
San Diego , 1.04
Orange County .86
Central Valley 1.64
Sacramento 1.50
Palm Springs/Lower Desert 1.49
14
Building InspectionContra Franklin Lew C.B.O.,S.E.
Director of Building Inspection
Department Costa
651 Pine Street, 3rd Floor, N.Wing County . , �������®
Martinez, California 94553-1290
(510) 646-2300 4
FAX (510) 646-1219 \\. AUG I I
996
C /
March 51 1996 `;;,, ,; CLERK BOARD OF SUPERVISORS
Donald Humphrey =
2910 Lowell Ave.
Richmond CA 94804
Site: 81 Bay View, Bay Point CA
APN: 095-102-020
REF: RF950658
Dear Mr. Humphrey,
A follow-up inspection of February 15, 1996 by inspector Henry Cox
and myself revealed not only severe contamination from a purposely
breached sewer lateral serving your six tenant spaces but many
other serious and potentially hazardous conditions, ie. :
Electrical : Improper and non permitted electrical wiring e.g. ,
hazardous taps, splices, and improperly sized
overcurrent protection for conductor' s capacity;
cable installed ' without protection from physical-:-_,•.,,Y.
damage, broken and incomplete raceways, cords used
as permanent wiring; obstructions in required
electrical work spaces, etc.
Mechanical: Unvented space heater installed in bathroom
(prohibited location) .
Plumbing: Water heater vent terminates within building;
improper, unsanitary sewage connection materials
and methods; improper gas and water supply
connectors; unsanitary and inoperable toilet and
shower facilities.
Building: Two accessory buildings constructed without
permits; reroofing and framing in progress on
restroom building without permits.
Nuisances: Piles of trash and debris, open sewage, abandoned
and substandard buildings and abandoned vehicles.
Zoning/
California
Mobile Homes
Park Act: Installation of mobile home (S.E. corner) without
permit and it also constitutes a violation of
Conditional Land Use Permit 2100-78 which allows
only trailers. Violations of Title 25 are also
existent regarding permanent additions and
alterations to trailer/s and units without current
registrations .
Your property has been noted to be in violations of California
Title 25, Chapter 2 , Subchapter 2 , Article 8 Section 2778. Permits
must be obtained and repairs made within 30 days to correct the
aforementioned violations or this office shall commence further
action e.g. :
1. Record "Notice of Abatement"
2 . Refer to County Counsel for legal action
3 . Obtain abatement resolution and bill owner
4 . Issue citation
This letter constitutes your "Notice to Comply" . I may be reached
at 335-1113 between 8 : 00 and 10 : 00 a.m. if you require additional
information regarding this matter.
Sincerely, :
Marc Omernik
Building Inspector II
MAO:dcf
cc: Transamerica Financial Services
3220 Blume Drive, #154
Richmond CA 94806
WILBERT E.'.COSSEL
4091-C Orwood Road
Brentwood, CA 94513-5211
RECE ED
August 12.1996- r
CONTRA COSTA COUNTY : AS 131996
BOARD OF SUPERVISORS
651 Pine.Street CLERK BOARD.OF SUPERVISORS:
Martinez, CA 94,553CONTRA COSTA Co.
Regarding: Implementation of-Mobilehome Park ResidenfOwnership Program
(MPROP)
Dear Supervisors:.
The State of Califomia-Department of Housing and Community Development has
recently sent me.a "Notice to Potential .Applicants" announcement. The "Request for
Proposals" announces that there is availability of funds.for new applications.A copy of
this notice is enclosed.
'Contra Costa County has never applied for funds underthis.prograrn that'has been :
ongoing.for manyyears. Approximately$3 million is currently available of which
$600,600,is reserved for projects,in rural areas.
- The present owner of Bay View Mobilehome Park at 81 Bay.View Avenue, Bay Point, is.. .
Donald R. Humphery.Through problems exasperated by the Contra Costa County
Building Inspection Department private funds to repair'66 sewer system and
completion of electrical code-compliance are unavailable.
Four families and l.are residents and most would prefer purchasing that Mobilehome
Park and keeping it available,to all tenants:as low income housing. The MPROP was.
established for mobileho_me park residents who wish to purchase their park and convert
it to resident ownership-. The MPROP would,require that Contra Costa County
Community Development act as the.lead agency.
This is a-project that can and should be done.
Thank you for your consideration. -
Sincerely, .. "
Wilbert E. Cosset-:`
enclosure :
'STATE OF-CALIFORNIA-BUSINESS.TRANSPORTATION AND HOUSING AGENCY PETE WILSON,Governor
�1pfN10fp
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF COMMUNITY AFFAIRS ' -®
1800 THIRD STREET,Suite 390
SACRAMENTO,CA 95814 _
P.O.BOX 952054REC2�p E
SACRAMENTO,CA 94252-2054 l�IS WED
(916)322-1560 FAX(916)327-6660
AUG 131996
CLERK BOARD OF SUPERVISORS
CONTRA COSTA CO.
NOTICE TO POTENTIAL APPLICANTS
RE: REQUEST FOR PROPOSALS
MOBILEHOME PARK RESIDENT OWNERSHIP PROGRAM
January 1996
I am pleased to announce the availability of funds for new applications under the
Mobilehome Park Resident Ownership Program (MPROP).
MPROP provides financing for mobilehome park resident organizations who wish to
purchase their park and convert it to resident ownership. Approximately $3 million is currently
available. Enclosed is a Request for Proposals (RFP) detailing the program's requirements and
the application process. The'first application deadline is March 1, 1996. Application workshops
are scheduled for January 30, 1996 (Sacramento) and February 1, 1996 (Escondido).
To request an application package, please contact Kathyrn Garrett at (916) 445-0110, or
Mail a request to the address shown on the second page of the RFP.
If you have any questions, please contact the MPROP staff at (916) 445-0110.
112
2 Richard B. Nels
Deputy Director
MOBILEHOME PARK RESIDENT OWNERSHIP PROGRAM
REQUEST FOR PROPOSALS
JANUARY1996
A. INTRODUCTION
The Department of Housing and Community Development (HCD) is pleased to announce
that it is accepting applications for funding under the Mobilehome Park Resident
Ownership Program (MPR')P). MPROP provides financing for mobilehome park
resident organizations who wish to purchase their mobilehome park and convert it to
resident ownership. Its purpose, as established by the State Legislature, is to encourage
and facilitate the resident purchase of mobilehome parks, to protect low-income park
residents from physical and economic displacement, to obtain a high level of private and
other public financing, and to help establish acceptance for resident-owned mobilehome
parks in the private market.
Approximately $3 million is currently available for new loans, of which $600,000 is
reserved for projects in rural areas, as defined by Health and Safety Code Section 50101.
Application deadlines are specified in Section B.
Limited technical assistance from the Department is available for potential applicants.
The Department, however, recommends that applicants consider the use of contract
consultants and other professional services to assist in the purchase process, as the
process is complex, time consuming, and requires a high level of expertise.
The program provides three types of loans: short term conversion loans, long term
blanket loans to resident organizations for the purpose of achieving affordable housing
costs for low-income residents, and long term loans to low-income residents to purchase
their ownership interest. All loans are 3 percent simple interest.
In accordance with the program regulations, the maximum total funding amount for one
park will be finalized by the Department's Director following consideration of program
staff's recommendation on this subject at a January 19, 1996 meeting of the Department's
Loan and Grant Committee. Program staff is recommending that this amount be set at
$750,000. Parties receiving this RFP will be notified if the Director approves a different
amount.
B. LEGAL AUTHORITY AND CAUTION
The Mobilehome Park Resident Ownership Program is authorized by Chapter 11 of.Part
2, Division 31 of the Health and Safety Code (Section 50780, et se .), implemented by
regulations adopted thereunder, and set out as Subchapter 13, Chapter 7, Part 1, Title 25
of the California Code of Regulations (Sections 8000, et seq.). Copies of the regulations
and enabling legislation are included in the application package.
This Request for Proposals is intended to provide an overview of the MPROP
requirements. Interested applicants are expected to read the MPROP statutes and
regulations which are contained in the application package and will be held responsible
for complying with those statutes and regulations if awarded a loan commitment.
The Department is currently in the process of amending the MPROP regulations. The
amended regulations are expected to be in force prior to the second funding window
covered by this RFP, and n::ly modify some of its requirements. Additionally, the
Department reserves the right, at its sole discretion, to suspend, amend, or modify the
provisions of this RFP. If any of these actions should occur, the Department will provide
as much advance notice as possible to parties on the MPROP mailing list.
C. APPLICATION PROCEDURES AND SCHEDULE
1. Application: Windows and Deadlines
Applications will be accepted and reviewed approximately every nine months, in
accordance with the following schedule:
APPLICATION SUBMITTAL PERIOD TARGET FUNDING DECISION DATES
1/1/96 to 3/1/96 6/1/96
9/1/96 to 11/1/96 2/1/97
6/1/97 to 8/1/97 11/1/97
An application window will be canceled in the unlikely event that there is less than
$600,000 available for new loans one month prior to the date that applications for that
window are first accepted.
Two copies of the complete application must be received in the MPROP office by 5 p.m.
on the last day of the submittal period applicable to a particular application window to be
considered for funding under that window. Applications will be accepted only during
application submittal periods, and may not be added to in any.substantial manner by the
applicant following submission.
All proposals must be made on the Department's 1995 application forms and must be
complete. A separate appl;cation must be submitted to the Department for each project.
To request an application package, please contact the MPROP program secretary at the
telephone number or address below.
2