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HomeMy WebLinkAboutMINUTES - 09132005 - C135 ..... TO: BOARD OF SUPERVISORS :- ���- �:... Contra . , � � • Costa FROM: Dennis M. Barry,AICP Director of Community Development County ;-�� t DATE: September 13, 2005 SUBJECT: Allocation of FY 2005/06 HOME Investment Partnership Act funds SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. APPROVE the allocation of$1,840,000 in FY 2005/06 HOME for the development of three affordable housing projects, and AUTHORIZE the Deputy Director—Redevelopment, or his designee, to execute required loan documents. 2. ACCEPT report on use of FY 2005/06 HOME Investment Partnership Act(HOME) funds. 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(HUD). BACKGROUND/REASONS FOR RECOMMENDATIONS On August 18, 2005 the Affordable Housing Finance Committee recommended the allocation of$205,000 in FY 2005/06 HOME funds to the Brentwood Senior Commons project in Brentwood and$1,135,000 in HOME funds to the Villa Vasconcellos project in Walnut Creek. Five Hundred Thousand of FY 2005/06 funds will be CONTINUED ON ATTACHMENT: X YES SIGNATURE: de 4 L..,-nCOMMENDATION OF COUNTY ADMINISTRATOR COMMEN6 TION OF BO COMMITTEE ✓APPROVE OTHER SIGNATURESlqro ACTION OF BOARD ON h 1 / APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT Aft tJ6r ) 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: Kara Douglas, 335-7223 ATTESTED ^cf A 1-3 /V ro� Orig: Community Development/CDBG JOH SWEETEN, CLERK cc: County Administrator OF THE BOARD OF SUPERVISORS County Counsel AND COUNTY ADMINISTRATOR Auditor-Controller BY , DEPUTY used for the Giant Road Apartment project in San Pablo, rather than the FY 2006/07 funds originally allocated to this project. Brentwood Senior Commons will provide 80 units of multi-family housing affordable to and occupied by extremely-low, very-low, and low income seniors in Brentwood. On November 2, 2004,the Board of Supervisors approved an allocation of$2.8 million in Community Development Block Grant(CDBG) funds to Eden Housing, Inc (Eden) for the Brentwood Senior Commons project. Since that time, Eden has purchased the land and received an allocation of Low Income Housing Tax Credits. However, since the allocation of CDBG funds,projects costs have risen due to increases in construction materials costs. The total development budget is $19.6 million. Construction will begin in October 2005. Villa Vasconcellos will provide 70 units of multi-family housing affordable to and occupied by lower income seniors in Walnut Creek. This project is unique in that it will reserve 5 units for formerly homeless seniors and 3 units for seniors with HIV/AIDs. The project will have an extensive services plan to allow for seniors to age in place. On May 16, 2005, the Board of Supervisors allocated$500,000 in HOME for Chronically Homeless funds to Resources for Community Development (RCD) for this project. On May 24, 2005,the Board allocated $351,863 in Housing Opportunities for Persons with AIDS funds. Even with this award of$1.135 million in HOME funds, RCD will be seeking an additional $600,000 in FY 2006/07 HOME funds, for a total of $2,586,863 in County subsidy. The total development budget is $18.4 million. Construction is scheduled to begin in July 2006. On February 15, and April 5, 2005, the Board of Supervisors approved suspending the review of new applications for FY 2005/06 HOME funds and allocating funds as needed to five projects with financing gaps. At the same time, the Board approved the pre-allocation of FY 2006/07 HOME funds as needed to finance any gap not covered by the FY 2005/06 HOME funds. The financing gaps were a result of the lack of anticipated project-based Section 8 vouchers. A summary status report of the five projects follows: 1 Giant Road Apartments, San Pablo—The East Bay Asian Local Development Corporation (EBALDC) is the developer of this project. The project involves the new construction of 82 units of multi-family rental apartments. The project had a gap of$1.6 million following the loss of project- based vouchers. An additional $100,000 gap developed as a result of increasing construction costs. This gap has been filled with a combination of City of San Pablo Redevelopment Agency funds ($1.2 million) and $500,000 in HOME funds. Based on information available to staff last April, it appeared that this project would require a pre-allocation of FY 2006/07 HOME funds to fill the gap. However, due to alternate sources of financing being available to other projects, this gap can be filled with FY 2005/06 funds. The project is expected to start construction in October or November. 2 Lakeside Apartments, Concord - Resources for Community Development (RCD) is the developer of this project. This project had a$1.2 million gap following the loss of project-based vouchers. RCD was able to secure an additional award of State Multi-housing Program funds, which completely covered the gap. No additional HOME funds were required. The project is under construction. 3 Villa Amador, Brentwood—Mercy Housing California(Mercy) is the developer of this project. This project had a$1.8 million gap following the loss of project-based vouchers. Mercy was able to secure an additional award of State Multi-housing Program funds, which completely covered the gap.No additional HOME funds were required. The project is expected to start construction in October or November. 4 Hercules Senior, Hercules—Eden Housing, Incorporated(Eden) is the developer of this project. This project had a$1.5 million gap following the loss of project-based vouchers. Eden was not able to secure any additional financing from any other source. Eden contributed as much owner equity to the project as feasible. The County provided an additional $1,055,000 in HOME funds. This amount was included in the FY 2005/06 CDBG/HOME Action Plan submitted to HUD last May. The project is under construction. 5 Trinity Apartments, Walnut Creek— Satellite Housing is the developer of this project. This project had a$350,000 gap following the loss of project-based vouchers. Funds were transferred from the Satellite-sponsored Casa Montego II project in Walnut Creek to cover the gap. Trinity is under construction. Satellite will apply for FY 2006/07 HOME funds for Casa Montego II, and the project is expected to begin construction in 2007.