HomeMy WebLinkAboutMINUTES - 06022009 - C.72RECOMMENDATION(S):
1. APPROVE request from STAND! Against Domestic Violence (STAND) to sell property
located at 3142 Grant Street, Concord, renegotiate the Deed of Development Rights, and
repay the Community Development Block Grant (CDBG) program the principal loan
amount of $52,500.
2. AUTHORIZE the Deputy Director – Redevelopment, or his designee, to execute the
appropriate documents to reconvey the Deed of Development Rights and accept payment.
FISCAL IMPACT:
No General Fund impact. All CDBG funds are provided to the County on a formula basis
through the U.S. Department of Housing and Urban Development.
CFDA numbers: CDBG Program – 14.218
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/02/2009 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Kara Douglas.
335-7223
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: June 2, 2009
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: Katherine Sinclair, Deputy
cc:
C.72
To:
From:Jim Kennedy, County Redevelopment Director
Date:June 2, 2009
Contra
Costa
County
Subject:Community Development Block Grant Loan Repayment From STAND! Against Domestic Violence
BACKGROUND:
On July 20, 1989, the County loaned STAND! Against Domestic Violence (formerly named
Battered Women’s Alternatives) $52,500 in Community Development Block Grant (CDBG)
funds for the acquisition and rehabilitation of a 16 unit apartment complex known as the
Margaret Lesher Center (MLC) located at 3142 Grant Street, Concord.
The County and STAND entered into a Deed of Development Rights (Deed). The Deed
gave the County the right to approve any development, change in use, or sale of the
property. In addition, the Deed provided that in event of a sale, the County would receive all
sales proceeds.
The project also received funds from the U.S. Department of Housing and Urban
Development (HUD), the City of Concord (City), donations and STAND equity. The
County contributed approximately six percent of the total acquisition and rehabilitation
funds for the project. CDBG regulations require that the County recapture the CDBG funds
if the term of affordability is not met. The Deed states that the ‘development rights’ run in
perpetuity.
STAND requests that the County approve the sale of MLC and permit STAND to pay only
the original principal amount of the CDBG loan. STAND has made the same request from
the City and HUD. HUD has agreed to these terms and City staff is recommending to the
City Council that it also agrees. HUD is also forgoing interest calculated on a pro rata share
of the appreciation over time. HUD is requiring that STAND use this amount for operation
of its supportive housing project.
MLC provided transitional housing for women and their children who were victims of
domestic violence for 16 years. STAND received operating support funds through the
McKinney Act program. Due to changes in the focus of the McKinney Act, operating funds
were no longer available to STAND. In addition, soil conditions caused movement of the
building foundation, which resulted in cracks. STAND worked for over one year to secure
funds to rehabilitate the structure, but was not successful. STAND then worked to find
another provider of housing for low income families to purchase and rehabilitate the
development. While they did receive one letter of interest, this too was ultimately not
successful. STAND now has a purchase offer from a qualified buyer who is seeking to close
on the sale by the middle of June.
CONSEQUENCE OF NEGATIVE ACTION:
Denial of this request would create a hardship for STAND. They do not have the resources
to repair or operate the facility.