HomeMy WebLinkAboutMINUTES - 08041998 - C59 - rev
Contra.
'• •
TO: REDEVELOPMENT AGENCY , Costa
FROM: Phil Batchelor County
Executive Director
DATE: August 4, 1998
SUBJECT: Additional Allocation of FY 1997-98 Housing Tax Increment -Main Street Apartments, Oakley
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOADENDADONS
(1) APPROVE an additional allocation of$99,206 in FY 1997-98 Housing Tax Increment Funds to
Ecumenical Association for Housing for the Silver Oak Apartment Project in Oakley and (2)
AUTHORIZE the Deputy Director-Redevelopment, or his designee to execute required legal documents
for this purpose.
FIS � ,1MPAU
No impact on the General Fund. The total new loan amount is $473,426. Funds will be provided from
the housing set-aside portion of tax increments and bond proceeds. The previous appropriation was
provided for in the Agency's 1997-98 adopted budget and the additional funds will be provided for in the
Agency's 1998-99 adopted budget.
r
A major goal of the Oakley Redevelopment Plan is to improve and expand the supply of affordable
housing in the project Area. The Oakley Municipal Advisory Council has been a strong supporter of this
project.
The Ecumenical Association for Housing (EAH), a nonprofit housing development corporation,
CONTINUED ON ATTACHMENT: YES SIGNATURE: it i
RECOMMENDATION OF EXECUTIVE DIRECTOR � � COMM I�DATION OF A NCY
COMMITTEE APPROVE OTHER
`�A 4
SIGNATURE(S): dd
ACTION OF AGENCY ON; A PROVED AS RECOMMENDED OTHER
VOTE OF COMMISSIONERS
I HEREBY CER'T'IFY THAT THIS IS A
UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN
AYES: NOES: _- ACTION TAKEN AND ENTERED ON THE
ABSENT: ABS'T'AIN:_ MINUTES OF THE REDEVELOPMENT
AGENCY ON THE DATE SHOWN.
Contact: Beth Lee
335-1256 ATTESTED( I
prig: Redevelopment Agency PHIL B TELOR,
cc: Community Development AGENCY S CRE'TARY
Redevelopment Agency
.Auditor-Controller
via Redevelopment
EAI I � r '
BY � DEPT,r
TY
rev
proposes to construct and manage 24 unit housing project for low- and moderate-income physically
disabled persons in the Oakley Redevelopment Project Area. They have identified a parcel at the
southwest comer of State Route 4 and Gardenia Avenue as an appropriate site.
On July 22, 1997, the Agency approved an allocation of$374,220 in FY 1997-98 Housing Tax
Increment and Bond Proceeds to EAH for this project. Since the original approval, total project costs
increased, creating a substantial funding gap. The increased costs were due to general construction
market conditions, changes in project design and construction specifications, and increased sitework
and soft costs. EAH has worked to resolve the funding gap through a value engineering process to
reduce construction costs and they have reduced their administrative fees. In addition, EAH was
successful in obtaining fee waivers, additional HOME Investment Partnership Funds, and securing
funding from the Federal Home Loan Bank Affordable Housing Program CFHLB").
EAH has requested Agency tax increment funds in the amount of$99,206 to fund the remaining
funding gap. The Oakley FY 1997-98 Budget has sufficient unallocated housing tax increment funds
available to fulfill this request, The Oakley Municipal Advisory Council reviewed this request and,
on July 13, 1998, they unanimously voted to support the project and recommend the necessary
funding.
The total cost of the Silver Oak Project is $3,277,617. Financing Sources include:
1997-98 HOME/HDAF funds $ 140,000
1996-97 County CDBG funds $ 205,000
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
The redevelopment funds will be structured as a 60-year residual receipts loan, secured by a
promissory note and deed of trust against the land and planned improvements. Affordability and use
restrictions will be recorded against the property and will apply throughout the loan term. At the end
of 60 years, the loan may be renegotiated in exchange for an additional period of required
affordability and use as housing for lower income populations.
Staff analyses indicate that the potential benefits to the Project Area from the project is significant
as the construction of new affordable housing will assist the Agency/County in meeting its affordable
housing requirements,
C:oakhouse\eand1a$.bos