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HomeMy WebLinkAboutMINUTES - 06232009 - C.119RECOMMENDATION(S): 1. SUPPORT the Peace Grove, Inc. application to U.S. Department of Housing and Urban Development (HUD) for Green Retrofit Loan (GRL) for energy improvements at Peace Grove, Clayton, and 2. AUTHORIZE the Deputy Director – Redevelopment, or his designee, to execute a subordination agreement with HUD that is substantially consistent with the terms in prior subordination agreements with HUD, and in a form to be approved by County Counsel. FISCAL IMPACT: No General Fund impact. The County loaned Community Development Block Grant (CDBG) funds in 1992 to Peace Grove, Inc. for the development of Peace Grove in Clayton. CDBG funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development (HUD). BACKGROUND: In 1991, the County provided $200,000 in CDBG funds to Peace Grove, Inc. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/23/2009 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 23, 2009 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: Katherine Sinclair, Deputy cc: C.119 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:June 23, 2009 Contra Costa County Subject:Support for Peace Grove, Inc. Application for Green Retrofit Loan Application to U.S. Department of Housing and Urban Development. BACKGROUND: (CONT'D) for development of Kirker Court (now named Peace Grove) apartments in Clayton. HUD provided a $1,898,300 loan through its Section 811 program and the Clayton Redevelopment Agency loaned $567,000. Peace Grove consists of 20 units of multifamily housing reserved for people with disabilities. The American Recovery and Reinvestment of 2009 (ARRA) includes a program for green retrofit of HUD funded projects. Eligible applicants can request up to $15,000 per unit ($300,000 maximum for Kirker Court). Funds can be used to reduce energy costs, reduce water use, improve indoor environmental quality, and provide other environmental benefits. HUD requires that any existing subordinate lenders agree to subordinate to the GRL. The County has provided CDBG and HOME Investment Partnerships Act (HOME) funds to over 15 HUD Section 811 and 202 projects. The County has subordinated the CDBG and HOME funds on all of those projects. This subordination request is consistent with prior transactions. HUD has not provided the form of its subordination agreement for the GRL program. Staff expects that it will be substantially similar to the terms in prior HUD subordination agreements. HUD will only provide the GRL to Peace Grove if both the County and the Agency agree to subordinate to the GRL funds.