HomeMy WebLinkAboutMINUTES - 09282004 - C.87 _: .... .
TO: REDEVELOPMENT AGENCY Contra; .,,
FROM: JOHN SWEETEN n;�--' ;' Costa
EXECUTIVE DIRECTOR
DATE: September, 2004 ° ` County
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SUBJECT: Application for California Hbusing Finance Agency HELP Funds
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION: AUTHORIZE the Redevelopment Director to submit an application to
the California Housing Finance Agency for a $1.1 million loan of HELP funds for the ABC
Apartments project in EI Sobrante, incur the HELP loan indebtedness, and execute required
legal agreements.
FINANCIAL IMPACT: NONE. No impact on the General Fund. The project will be funded
with California Housing Finance Agency HELP funds. The total loan request will be $1.1
million. The HELP loan obligation to CalHFA will be repaid by State Multifamily Housing
Program funds that have been committed to the project. No Redevelopment Agency funds are
pledged, the Agency is a conduit for the state funds.
BACKGROUND:
California Autism Foundation is the non-profit developer of a nine unit affordable housing
project for the developmentally disabled. The project is located on Corte Arango, off Appian
Way in EI Sobrante. A Final Development Plan for the project was approved by the County in
December, 2043. The project provides permanent housing for developmentally disabled
adults. The residents will have access to on-site supportive services, living skills training, and
social/recreational activities.
On May 6, 2003 the Board of Supervisors awarded California Autism Foundation $340,000 in
County HOME funds to build the ABC Apartments project. The project has also received HUD
Section 811 funds. Other committed funding sources are the State Multifamily Housing
Program, and fundraising. The project has a construction funding gap of $1.1 million due to
construction costs that came in well above the original projections.
CONTINUED ON ATTACHMENT: ® YES SIGNATURE: ,
._.
['"`RECOMMENDATION OF EXECUTIVE DIRECTOR ® RECOM EN TION WFIAGENCY COMMITI EE
4PPROVE ❑ OTHER rl '
SIGNATURE(S):'
ACTION OF AECY ONY
s'
APPROVED AS RECOMMENDED OTHER ❑
VOTE OF SUPERVISORS: 1 HEREBY CERTIFY THAT THIS IS A TRUE AND
41 CORRECT COPY OF AN ACTION TAKEN AND
UNANIMOUS(ABSENT , 1A 0611 .t ._. ) ENTERED ON THE MINUTES OF THE
AYES: NOES: REDEVELOPMENT AGENCY ON THE DATE
SHOWN.
ABSENT: ABSTAIN: {
ATTESTED
Contact:' D
JOHN SWEETEN,AGENCY SECRETARY i
cc: CAO
County Counsel </
Redevelopment Agency <, r
Community Development By:
,teDeputy
To bridge this gap, California Autism has proposed that the project secure a California Housing
Finance Agency Housing Enabled By Local Partnerships (HELP) loan to act as a construction
loan for this project. These construction funds will be paid back upon permanent close by the
State Multifamily Housing Program (MHP). MHP funds are already committed to the project.
The HELP program offers a 3 percent interest rate loan to local government agencies for
locally determined affordable housing activities and priorities.
The HELP funds can only be applied for by redevelopment agencies and housing authorities.
Non-profit developers like California Autism are not able to apply directly. The HELP funds will
be provided to the Agency, who will provide the funds to California Autism as a construction
loan. The loan will be repaid to the Agency upon permanent close of the project. The Agency
would repay the HELP program. Loan documents include a Loan Agreement with the
California Housing Finance Agency.
The Redevelopment Agency is authorized to undertake housing activities outside of
redevelopment project areas. For example, the Agency was utilized to acquire and resell
affordable inclusionary homes for resale to moderate income households in the Somerset
(Danville area) project within the last year. No pledge of redevelopment revenues is involved
in the proposed transaction. Furthermore, there is no presumption of a redevelopment area
establishment in El Sobrante by this action.