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TO: BOARD OF SUPERVISORS Costa
FROM: Dennis M. Barry, AICP Courcy
Community Development Director
DATE: July 28, 1998
SUBJECT: Allocation of FY 1997/98 CDBG Housing Development Assistance Funds
and Execution of Required Legal Documents for the Grayson Creek
Affordable Housing Project
. SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
( 1) APPROVE the allocation of $1 . 1 million in FY 1997/98 Community
Development Block Grant Housing Development Assistance Funds
(CDBG/HDAF) to BRIDGE Housing Corporation for the Grayson Creek
Affordable Housing Project in Pleasant Hill and (2) 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 CDBG/HDAF. CDBG 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:
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RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATI F BOARD MMITTEE
APPROVE OTHER 0
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SIGNATURE(S) :
ACTION OF BOARD ON - July 28, 2998 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT II, 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 ATTESTED July 28, 1998
cc: County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller AND COUNTY ADMINISTRATOR
Community Development
BRIDGE via Comm. Developmt. BY. / , DEPUTY
BACKGROUND/REASONS FOR RECOMMENDATIONS
on April 8, 1997, the Board of Supervisors approved the allocation
of $1, 104, 300 to the FY 1997/98 CDBG/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 CDBG/HDAF is $1,642, 178.
On July 15, 1998, the Affordable Housing Finance Committee (AHFC)
voted unanimously to recommend that the Board of Supervisors
approve an allocation of $1 . 1 million in CDBG/HDAF funds to BRIDGE
Housing Corporation for the Grayson Creek ApartmentProject. If
approved by the Beard, the FY 1997/98 CDBG/HDAF will have a
remaining balance of $542, 178 .
The purpose of the Grayson Creek Apartment Project is to increase
the supply of multifamily rental housing affordable to and occupied
by very-low income households in Central County through the new
construction of 71 apartments on a currently vacant site located at
1070 Chilpancingo Parkway in Pleasant Hill. The apartments will
include 16 one--bedroom (BR) , 32 2-BR, and 23 3-BR apartments to
serve a variety of household types ranging from senior citizens to
households with children. All common areas and 12 apartments will
be fully accessible to disabled households. As proposed, the
project will have relatively deep affordability: eight apartments
will be required to be affordable to and occupied by extremely-low
income households (incomes at/below 30 percent of the area median
income or AMI) ; 55 units will be affordable to/occupied by
households with incomes at/below 40 percent AMI; and' 8 units will
be affordable to very--low income households (incomes at/below 50
percent AMI) . A total of 35 apartments will be designated as
County-assisted. All apartments will be required to remain
affordable to the target population for a minimum of 55 years .
The total cost of the Grayson Creek Apartment Project is $14
million. Permanent financing sources include:
Requested CDBG/HDAF funds $ 1, 100,000
County land donation/CDBG $ 650,000
Pleasant Hill Redevelopment Agency $ 150,000
Permanent loan/private lender $ 2,750,0001
Investor equity (9% LIHTCs) $ 7 ,579,419
Developer equity $ 724,775
FHLB Affordable Housing Program $ 284,000
Fee waivers and credits $ 738, 106
Deferred interest $ 57,000
TOTAL COST $14,033, 300
In addition to the above resources, the City of Pleasant Hill
Redevelopment Agency (RDA) has approved an annual, payment of
$150,000 in RDA tax increment funds to support project operating
costs and debt service payments for a total of 30 years (includes
the initial payment above) . The net present value of this
contribution is estimated at $1 .75 million.
As proposed, FY 1997/98 and 1998/99 CDBG/HDAF funds will be used
for site acquisition. If approved, County funds will be provided
to BRIDGE in the form of a residual receipts loan with the
following terms: 3 percent simple interest; term of 55 years; loan
to be coequal in lien position with the City of Pleasant Hill RDA
loan; and loan repayments from residual receipts to be split
between the City and the County on a pro rata basis dependent on
the relative investment of each jurisdiction in the project.
Affordability and use restrictions will be incorporated into the
County loan documents .
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