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HomeMy WebLinkAboutMINUTES - 09101996 - C156 To: BOARD OF SUPERVISORS Contra FROM: SUPERVISOR JIM ROGERS s Costa County DATE: September 5, 1996 YCOSTq cTr coux RESOLUTION IN SUPPORT OF THE CITY OF RICHMOND'S SUBJECT: APPLICATION FOR FUNDS FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT the attached Resolution supporting an application by the City of Richmond for funds from the U.S. Department of Housing and Urban Development's Section 108 Loan Guarantee Program and Economic Development Initiative Homeownership Zone Grant Program for the property in the vicinity of the Richmond Intermodal Station. BACKGROUND: The U. S. Department of Housing and Urban Development has established a new initiative called the "Homeownership Zone" as a part of its goal to increase the number of homeowners nationally by 8,000,000 households by the year 2000. The program is designed to assist the development of sizable homeownership developments in distressed urban areas to provide a catalyst for neighborhood revitalization, private investment, and business and economic development. HUD has issued a Notice of Funds Availability (NOFA) for $50,000,000 of Economic Development Initiative (EDI) grant funds which are coupled with $200 to $400 million of Section 108 loan guarantee funds nationally for this round of Zones. The program also stresses leverage of other federal, state, local and private funding sources for housing development which must work in conjunction with other neighborhood development efforts such as infill new housing, housing rehabilitation, commercial revitalization, access to public transportation, job generation and access strategies which create vital and "complete urban neighborhoods." CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVEA AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. Gj ATTESTED !P 4 2 L- y4,0 y / Contact: County Administrator PHIL BATCHELOR,CLERK OF THE BOARD OF CC. Community Development Director SUPERVISORS AND COUNTY ADMINISTRATOR Public Works Director Mayor, City of Richmond BY DEPUTY The City of Richmond's staff believes the City can develop and submit a very competitive application for this program which parallels the City's priorities for housing and economic development. While there are a number of areas of Richmond in which the City is promoting and developing homeownership, the Richmond BART Station and the blocks extending from Harbour Way to 23rd Street and Garvin Avenue to Chanslor Avenue appear to offer benefits of high priority for the City and competitive advantage for the application. The program is evolving and the actual boundaries of the proposed Zone will have to be refined; however, the objective of Richmond's program will be the addition of 200 plus homeowners within the Zone, the revitalization of commercial activity on Macdonald Avenue and the creation of 250 or more new jobs in the area. Specifically, the application is proposed to cover the following items: 1 . BART Station Plan Implementation - The elements of the BART Station site mixed use development on approximately 16 acres of City/Agency and BART owned properties include public improvements to improve security, circulation and attractiveness of public spaces, development of 90 new for sale townhomes, new retail/commercial and cultural art facilities, and improvements to the multi-modal transit facility. 2. Wood School Site-A portion of the funds can be used for the acquisition and site work at the Wood School site in conjunction with other local and state funds proposed to assist the development of 22 for sale single family detached homes. 3. Jelani Park - Completion of this project is pivotal to the development of new housing on the BART site. Through a number of public and private sources, the six existing vacant units and the nine to eleven additional units required to complete the development will be constructed and offered to potential low and moderate income buyers through a rent-to-own lease option program. 4. Commercial Revitalization - With the major access to the downtown from 23rd Street, the commercial corridor on Macdonald Avenue from 23rd Street to Marina Way needs improvement. Funds can be used to accelerate renovation of commercial structures and infill development on the corridor. 5. Homeownership within the Zone - Within five blocks of the core project at the BART Station are 60 to 75 opportunities for new homeownership with vacant parcels, boarded-up houses, and dilapidated rental or other rental housing candidates for conversion to fully rehabilitated owner occupied homes. The City is exploring the possibility that some current Section 8 renters in the Zone may be assisted to purchase homes in the Zone (either the single family houses they currently occupy or others in the Zone). It is anticipated that the City's EDI grant request will be between $1,000,000 and $1,500,000 and the Section 108 loan guarantee request will be between $4,000,000 and $5,000,000. The repayment of the Section 108 loan will be made from Redevelopment Project 10-A tax increment, Redevelopment 20% housing set-aside funds as well as some program income from deferred and commercial loan repayments in out years. Based on a 20-year repayment term and the most recent interest rate of 6.93%, the annual debt service would be between $470,000 and $575,000, which would be manageable from current resources. -2- I believe that continued development of the Richmond BART area and the other areas noted above are important to the economic vitality of the entire County and deserve the support of the Board of Supervisors. I am, therefore, recommending that the Board of Supervisors adopt the attached Resolution to indicate the Board's support of the application from the City of Richmond for these funds. -3- THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA IN THE MATTER OF: Supporting the Application of the } City of Richmond for HUD Funds ) RESOLUTION NO. 96/390 to Increase Homeownership ) WHEREAS, the City of Richmond has indicated that it plans to apply for funds from the U.S. Department of Housing and Urban Development's Section 108 Loan Guarantee Program in an amount between $4 million and $5 million; and WHEREAS, the City of Richmond has indicated that it plans to apply for funds from the U.S. Department of Housing and Urban Development's Economic Development Initiative Homeownership Zone Grant Program in an amount between $1 million and $ 1 .5 million; and WHEREAS, receipt of these funds will assist in revitalizing important parts of the City of Richmond; and WHEREAS, receipt of these funds will dramatically assist in stimulating home ownership among the residents of Richmond; and WHEREAS, home ownership is an important way to demonstrate commitment to a community and concern about its future; and WHEREAS, receipt and use of these funds in the ways described by the City of Richmond's staff would provide important economic development stimulation for Contra Costa County as a whole; and WHEREAS, development of the multi-modal transit facility at the Richmond BART Station will provide an important public transportation stimulus; NOW, THEREFORE, be it by the Board of Supervisors of the County of Contra Costa, RESOLVED, that Contra Costa County supports the application of the City of Richmond for the above noted HUD funds, and BE IT FURTHER RESOLVED, that the Board of Supervisors urges the U.S. Department of Housing and Urban Development to approve the City of Richmond's application in the amount and for the uses indicated. PASSED and ADOPTED by the unanimous vote of the Board on the tenth day of September 1996. I hereby certify that the foregoing is a true and correct copy of a resolution entered on the minutes of the Board of Supervisors on the date aforesaid. Witness my hand and the seal of the Board of Supervisors affixed this tenth day of September 1996. Phil Batchelor, Clerk of the Board of Supervisors and County Administrator 11 By 2,,jU, _,—) Deputy Clerk