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HomeMy WebLinkAboutMINUTES - 09282004 - C.73 TO: BOARI?OF SUPERVISORS �J' Contra Costa FROM: Dennis M. Barry, AICP Director of Community Development County 73 DATE: September 28, 2004 SUBJECT: Allocation of$500,000 in FY 2004/05 HOME Housing Development Assistance Funds, FY 2003/04 Housing Opportunities for Persons with AIDS Funds, and Execution of Required Legal Documents for the Lakeside Apartment Housing Project. SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) &BACKGROUND AND JUSTIFICATION RECOMMENDATIONS (1) APPROVE the allocation of$500,000 in HOME Investment Partnership Act(HOME) Housing Development Assistance Funds (HDAF) and$339, 890 in Housing Opportunities for Persons with Aids (HOPWA) funds to Lakeside Apartments L.P. for the Lakeside Apartment project in Concord and(2) AUTHORIZE the Deputy Director, Redevelopment, or his designee to execute all legal documents required to complete this project. FISCAL,IMPACT No General Fund impact. HOME funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development. HOPWA funds are provided to the County through a contract with the City of Oakland. CONTINUED ON ATTACHMENT: X YES SIGNATURE: ;! ­RPECOMMENDATION OF COUNTY ADMINISTRATOR MMEN ON OF BOARD COMMITTEE -- pPROVE OTHER I 5� ,# 4 S:IGNAT[JRE(S : 4 ' m -yam " ACTION OF BOARD O1,J APPROVED AS RECOMMENDED OTHER t VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT ;` F `^ ...- ) 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: Dara Douglas, 3351253 ATTESTED Orig: Community Development/CDBG J09N SWEETEN:CLE R � cc: County Administrator OF THE BOARD OF SUPERVISORS County Counsel AND COUNTY ADMINISTRATOR Auditor-Controller BY %- , DEPUTY BACKGROUND/REASONS FOR RECOMMENDATIONS On August 18, 2004 the Contra Costa HOME Consortium recommended that the Board of Supervisors allocate $339,890 in HOPWA funds to RCD for the Lakeside Apartment project in Concord. On September 13, 2004, the Affordable Housing Finance Committee (AHFC)recommended that Board allocate $500,000 in FY 2004/05 HOME HDAF funds to this project in addition to the $2 million previously allocated. The purpose of this project is to increase the supply of multifamily rental housing affordable to and occupied by lower income households in Central County. RCD has purchased the 124 unit Lakeside Apartment complex and proposes to rehabilitate the apartments. All units will be affordable to households earning less than 60 percent of the area median income(AMI) with a mix of units affordable/occupied by households at 30 and 50 percent AMI. Sixty units will be HOME-assisted units including 10 units at 30 percent AMI, 27 units at 50 percent AMI, and the remaining 23 units at 60 percent AMI. Five of the units affordable at 30 percent AMI will be further restricted to people with HIV/AIDS. All apartments will remain affordable for 55 years. The total development cost for the project is $21,578,480,or$170,020 per unit. HOME/HDAF FUNDS REQUESTED $ 500,000 HOPWA FUNDS REQUESTED 339,890 FY 2004 HOME funds allocated 2,000,000 Concord Redevelopment Agency 3,183,945 FHLB Affordable Housing Program 558,000 Tax-exempt bonds 6,641,300 Tax-exempt bonds(project-based Sec. 8) 971,000 Low Income Housing Tax Credits 6,602,338 Developer equity 392,298 $21,578,480 On September 9, 2003 the Board adopted an inducement resolution providing for the issuance of revenue bonds to assist with the financing of this project. The ownership entity of this project will be Lakeside Apartments, L.P. Resources for Community Development will be the managing general partner. A tax credit investor to be determined will be the limited partner. Required legal documents for this transaction will include, but may not be limited to the HOME Project Agreement, HOPWA Project Agreement,escrow instructions, loan agreement,regulatory agreement, promissory note, deed of trust and security agreement, intercreditor agreement, subordination agreement, and estoppel certificate. There is a current balance in the HOME/HDAF account of$1,781,453. Assuming approval of this request and a request for$1 million for the Courtyards at Cypress Grove Apartments in Oakley(which is on this September 28 agenda)will leave a HOME/HDAF balance of$281,453. There is a potential demand for HOME funds over the next year of$3.3 million.