HomeMy WebLinkAboutMINUTES - 03232010 - C.128RECOMMENDATION(S):
1. APPROVE the Affordable Housing Finance Committee recommendation for the
allocation of $500,000 in HOME Investment Partnership Act (HOME) Housing
Development Assistance Funds in addition to $800,000 in HOME funds previously awarded
for the Woods Manor Apartment project in Pittsburg; and
2. Substantially amend the FY 2009/10 Action Plan to move $500,000 in HOME Housing
Development Assistance Funds to the Woods Manor Apartment 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 (HUD). CFDA#
14.256
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 03/23/2010 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Mary N. Piepho, District III
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: March 23, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C.128
To:Board of Supervisors
From:Catherine Kutsuris, Conservation & Development Director
Date:March 23, 2010
Contra
Costa
County
Subject:APPROVAL OF SUBSTANTIAL AMENDMENT OF THE FY 2009/10 ACTION PLAN AND
ALLOCATION OF $1.3 MILLION IN HOME FUNDS FOR WOODS MAN
BACKGROUND:
The purpose of the Woods Manor Apartment project is to improve the supply of
multi-family rental housing affordable to and occupied by lower income households in East
County through the rehabilitation of an existing 80 unit apartment development in Pittsburg.
BRIDGE Housing Corp., purchased this development in 2008 and is working to secure
financing for substantial rehabilitation.
On April 29, 2009, the Board of Supervisors approved $800,000 in HOME funds for this
project.
On March 17, 2010, the Affordable Housing Finance Committee recommended the
allocation of an additional $500,000 from HOME Housing Development Assistance Funds
(HDAF). The current HOME HDAF balance is $760,819. Approval of this request will
leave a balance of $260,819. These funds will be allocated to projects through the FY
2010/11 Action Plan.
Approval of the additional $500,000 will result in a total County commitment of $1.3
million. The total cost of this project is $19,300,742 million. BRIDGE is seeking the
remaining funds from the City of Pittsburg, private lender construction loan, low income
housing tax credits, and a loan through BRIDGE from the MacArthur foundation.
Eleven of the units will be designated as HOME-assisted. Nine will be affordable and
available to households earning up to 30 percent of the area median income (AMI). The
remaining two units will be affordable and available to households earning up to 40 percent
AMI. HOME funds will be provided to BRIDGE in the form of a 55-year, residual receipt
loan a three percent interest rate. The loan will be in a co-equal lien position with the City
of Pittsburg. Affordability and use restrictions will be incorporated into the County loan
documents. Staff will return to the Board of Supervisors at a later date for approval of the
legal documents and for CEQA determination.
Due to the high construction costs and limited revenue from the restricted rents, the total
amount of the financing provided to the project will likely exceed the value of the completed
project. Even though the proposed equity investment from low income housing tax credits
is substantial compared to the amount of long term debt, the partnership agreement will have
numerous safe guards of the investors equity. These safe guards essentially subordinate the
County’s debt to the investor’s equity. Therefore, the County funds may not be fully
secured through the value of the property.
CONSEQUENCE OF NEGATIVE ACTION:
CHILDREN'S IMPACT STATEMENT: