HomeMy WebLinkAboutMINUTES - 07281998 - C124 •, * Contra
Costa
TO: BOARD OF SUPERVISORS CountyFROM: Dennis M. Barry, AICD
Community Development Director
DATE: July 21, 1998
SUBJECT: Allocation of FY 1997/98 HOME Housing Development Assistance Funds
and Execution of Required Legal Documents for the Silver Oak
Affordable Housing Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
( 1) APPROVE the allocation of$140,000 in FY 1997/98 'HOME Investment
Partnership Act Housing Development Assistance Funds (HOME/HDAF) to
Ecumenical Association for Housing for the Silver' Oak Apartment
Project in Oakley and ( 1) AUTHORIZE the Deputy Director,
Redevelopment, or his designee to execute required legal documents for
this purpose.
FISCAL IMPACT
No General Fund impact. Funds for this project will come from the FY
1997/98 HOME/HDAF. HOME funds are provided to the County on a formula
allocation basis through the U.S. Department of Housing and Urban
Development (HUD) .
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT 6 ; OF HOOD COMMITT
APPROVE OTHER
f
SIGNATURE S) :
ACTION OF BOARD ON JuIy 71998 APPROVED AS RECOMMENDED _ X.
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT Il) IV ) 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 ATTESTEDD
cc: County Administrator PHIL AT ELOR, CLERK. OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller AND COUNTY ADMINISTRATOR
Community Development
EAH via Comm. Developmt. BY A&4� r DEPUTY
BACKGROUND/REASONS FOR RECOMMENDATIONS
On April 8, 1997, the Board of Supervisors approved the allocation
of $875,500 to the FY 1997/98 HOME/HDAF for use in funding
affordable housing projects as they develop during the program
year. Including prior year carryover and reallocated funds, the
current balance of the FY 1997/98 HOME/HDAF is $1,2101,751.
The purpose of the Silver Oak Apartment Project is to increase the
supply of multifamily rental housing affordable to very-low income
households with a physically disabled member. The project involves
the new construction of 24 fully accessible one and two bedroom
apartments on a currently vacant site located at the Southwest
corner of Gardenia Avenue and Highway 4 in Oakley. Eleven of the
units are designated as County-assisted and will be r=equired to be
affordable to and occupied by very-low income physically disabled
households for a minimum of 60 years . Very-low income households
are defined as households with incomes at or below 50 percent of
the area median income for Contra Costa. As required by other
financing sources, all remaining units will be affordable to the
target population for a minimum of 40 years.
On February 11, 1997 , the Board of Supervisors approved an
allocation of $199,000 in FY 1996/97 HOME funds and $205,000 in
Community Development Block Grant (CDBG) funds to Ecumenical
Association for Housing (EAH) for this project. Since the original
approval, EAH has been successful in obtaining an allocation of
critically needed funds through the HUD Section 811 Housing for the
Disabled Program. However, during the time required to obtain HUD
approval, project development costs increased, creating a
substantial funding gap. The increased costs were dote in part to
general construction market conditions, changes in final project
design and construction specifications, and higher than anticipated
sitework and soft costs. EAH has worked to address the funding gap
through a value engineering process to reduce construction costs by
$130,000, a successful campaign to obtain fee reductions and
waivers saving $225,000, and a reduction in EAH administrative fees
of $20,000 . In addition, EAH has been successful in obtaining
additional financing from HUD and the Federal Home Loan Bank
Affordable Housing Program. EAH has requested County HOME funds in
the amount of $140,000 to fill the remaining funding gap. This
request was reviewed by the Affordable Housing Finance Committee
and, on January 29, 1998, the Committee voted to recommend that the
Board of Supervisors approve the additional HOME funds in the
required amount. If approved, the FY 1997/98 HOME/HDAF will have
a remaining balance of $1,070,751 . As proposed, the additional
funds will be provided in the form of a residual receipts loan.
The total cost of the Silver Oak Project is $3,277 ,617 . Sources of
financing include:
Requested FY 1997/98 HOME/HDAF $ 140,000
FY 1996/97 County CDBG funds $ 205,000
FY 1996/97 County HOME funds $ 199,000
HUD Section 811 Program $2, 130, 300
Contra Costa County Redevelopment Agency $ 473,220
FHLB Affordable Housing Program $ 120,000
EAH Equity $ 10,097
All sources of financing are approved with the exception of $99,000
in supplemental funding requested from the County Redevelopment
Agency (in addition to $374,220 previously approved) and the
additional requested HOME funds . Assuming approval of both
sources, EAH anticipates the initiation of construction this fall
with completion and full occupancy by qualified households in 12
months.
kh/k17/B06-0ak