HomeMy WebLinkAboutMINUTES - 08142001 - C.112 TO: BOARD OF SUPERVISORS `f'' •.
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FROM: Dennis M. Barry, AICP - Costa
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Community Development Director �.;,;:_ <N " County
DATE: August 14, 2001
SUBJECT: Execution of Required Legal Documents for the Rodeo Senior Housing Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
AUTHORIZE the Deputy Director — Redevelopment or his designee to enter into required legal
documents to provide $896,425 in HOME Investment Partnership Act (HOME) and$572,750 in
Community Development Block Grant (CDBG) funds to Rodeo Senior Apartments, Inc. for
development of the Rodeo Senior Apartment Project.
FISCAL IMPACT
No General Funds are involved. HOME and CDBG funds are provided to the County on an annual
allocation basis through the U.S. Department of Housing and Urban Development.
BACKGROUND/REASONS FOR RECOMMENDATIONS
The purpose of the Rodeo Senior Housing Project is to provide affordable rental housing for extremely-
low and very-low income seniors in West County through the acquisition and new construction of a 50-
unit apartment building located on a currently vacant site on the southwest corner of San Pablo Avenue
and Willow Road in Rodeo. On April 28, 1998, the Board of Supervisors approved e allocation of
CONTINUED ON ATTACHMENT: X YES SIGNATURE: �G�
_ ECOMMENDATION OF COUNTY ADMINISTRATOR ECOM ENDATION OF BOARD
COM,MITTEE
--'APPROVE _OTHER
SIGNATURE(
ACTION OF B D ON APPROVED AS RECOMMENDED _,Y OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
XUNANIMOUS (ABSENT j eyw__ ) 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 (925) 335-1257 ATTESTED
Orig/cc: Community Development Dept. JO SWEETEN, tLERK OF
cc: County Administrator THE BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
BY PUTY
$372,750 in CDBG funds and$700,000 in HOME funds to Ecumenical Association for Housing(EAH)
for this project. On May 8, 2001, the Board approved an additional $200,000 in CDBG funds and
$196,425 in HOME funds to cover increased costs resulting from previously unidentified permit and
infrastructure requirements, alterations in project design required to increase functionality and
accommodate community issues, and generally rising construction costs associated with Bay Area
market conditions.CDBG and HOME funds allocated to this project now total$1,469,175($896,425 in
HOME funds and $572,750 in CDBG funds).
As structured, the project will achieve relatively deep affordability. Twenty-four apartments will be
designated as County-assisted and required to comply with the following occupancy and affordability
restrictions for a minimum of 60 years: 20 apartments must be affordable to/occupied by extremely-low
income senior households (incomes at/below 30% of the area median income or "AMI"); and four
apartments must be affordable to/occupied by households with incomes at/below 40% AMI.
Affordability restrictions imposed by other financing sources will require all remaining units to be
affordable to very-low income senior households for 40 years.
The total cost of this project is approximately$8 million. All funding sources are approved and consist
of the following:
County HOME funds $ 896,425
County CDBG funds $ 572,750
County Redevelopment Agency funds $1,463,000
HUD Section 202 Program $4,584,822
FHLB Affordable Housing Program $ 217,500
Cowell Foundation $ 200,000
Bank of America $ 5,000
TOTAL $7,939,497
The project will be owned and developed by Rodeo Senior Apartments,Inc.,a single-purpose nonprofit
to be formed by EAH in accordance with HUD requirements for the Section 202 Program.The Board of
Rodeo Senior Apartments will be appointed by EAH.
County CDBG and HOME funds will be provided to Rodeo Senior Apartments in the form of a residual
receipts loan in coequal lien position with the County Redevelopment Agency loan and subordinate to
the HUD 202 loan. The County loan will have the following terms: 4.0%simple interest;60-year term.
Affordability restrictions will be incorporated into a loan and regulatory agreement and secured by a
promissory note and deed of trust recorded against the property.
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