HomeMy WebLinkAboutMINUTES - 09011998 - C163 HOUSING AUTHORITY OF THE COUNTY OF CONTRA.COSTA
TO: BOARD OF COMMISSIONERS
FROM: Robert McEwan,Acting Executive Director
DATE: September 1, 1998
SUBJECT: AUTHORIZE EXECUTIVE DIRECTOR.TO EXECUTE AGREEMENTS TO PROVIDE A
$350,000 LOAN FROM AUTHORITY RESERVE FUNDS FOR DEVELOPMENT OF
AFFORDABLE HOUSING IN THE PARKWAY ESTATES PROJECT IN NORTH
RICHMOND.
sP CIFIC REQL`E R C TIONS &BACKGRO AND PLT TI ICATI
L RECOMMENDED ACTION:
AUTHORIZE the Executive Director of the Housing Authority of the County of Contra Costa to enter into a
secured lean agreement and related documentation,as required to provide a$350,000 loan to Parkway housing,Inc.
with interest at the rate of 4%per annum, for construction of 47 single family homes in the first two phases of
development in Parkway Estates subdivision in North Richmond,subject to review by County Counsel. This
Authorization is to supercede a previous Board Order approved August 11, 1998 to correct the borrower's name.
H. FINANCIAL IMPACT:
Operating reserve funds from the Authority will provide a loan of $350,000 for part of the construction costs of the
Parkway Estates housing project. Loan interest of four percent is approximately the same as Authority's return on other
investments. Partial repayments will be made from the sale of each home and the entire loan is expected to be repaid
within two years. To allow flexibility,the term of the loan will be set for five years. Authority's reserves will
continue to exceed statutory requirements. The Authority's loan will be secured by a Deed of Trust and guaranteed by
the Contra Costa County Redevelopment Agency through its pledge of Affordable Housing Trust Fund assets and/or by
housing set-aside portion of tax increment funds from the North Richmond Redevelopment!Project Area.
M. REASONS FOR RECOMMENDATION/BACKGROUND
Authority participation was requested to help meet the need for affordable owner-occupied homes for low and moderate
income families and for revitalization in North Richmond, Parkway Estates needs additional financing to complete the
project budget and get final approval on a larger construction loan for the first two construction phases containing 47
homes. The Redevelopment Agency has advised that this project meets affordability and related requirements for
assistance under Health and Safety Code Section 34312.3.
IV. CONSEQUENCES OF NEGATIVE ACTION:
CONTINUED ON ATTACHMENT: —X—YES SIGNA'T'URE
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
t
Z&
ACTION OF BOARD ON September 1, 1998 APPROVED AS RECOMMENDED X 460M
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT None ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
COMMISSIONERS ON THE DATE SHOWN.
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THE BOARD OF COMMISSIONERS
AND COUNTY ADMINISTRATOR
.,DEPUTY
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CONSEQUENCES OF NEGATIVE ACTION (continued)
Without this funding it is likely that the project will not be built. Low-income homebuyers will continue to find few
affordable homes and North Richmond residents will suffer as the neighborhood fails to meet its potential for growth.
In addition,already committed Contra Costa County Redevelopment Agency investments it North Richmond might not
be supported for improvement of the tax base.
ADDDITIONAL INFORMATION REGARDING PARKWAY ESTATES
Parkway Estates is a proposed$7 unit single-family home project located at the corner of the Richmond Parkway and Gertrude Ave.
in the North Richmond Redevelopment Project Area.The first two construction phases contain 47 homes. The developer,Parkway
Mousing Inc.,is a joint venture of Community Housing Development Corp.of North Richmond and Oakland Community Housing
Inc. which are non-profit corporations devoted to creating housing for low-income people.
Substantial allocations from Contra Costa County Redevelopment Agency housing set-aside funds,County Community
Development Block Grants and:HOME Program:funds have already been made for the Parkway project to assist with land
acquisition and other project start-up costs. The City of Richmond has provided funds for street and soundwall improvements that
directly benefit the project.The City will also provide some first-time homebuyer financing. The Federal Nome Loan Bank is
granting Affordable Housing Program funding as well.
Parkway is in the final stages of arranging a larger,bank funded construction loan but the project depends upon an additional
$350,000 loan to balance the budget.
Staff analysis indicates that the community benefits are significant and include:
New built-for-sale homes affordable to low and moderate income families.
Increase of the owner-occupancy level of residents in North Richmond.
Creation of more local employment in housing construction.
Productive use of vacant land and utilization of existing infrastructure.
Betterment of the tax base to support public services.
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