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HomeMy WebLinkAboutMINUTES - 09212010 - C.92RECOMMENDATION(S): As the Governing Board of the Contra Costa County Redevelopment Agency, and the Board of Supervisors of the County of Contra Costa, APPROVE AND AUTHORIZE the Redevelopment Director on behalf of the Redevelopment Agency and the County to execute a Memorandum of Understanding between the Local Initiatives Support Corporation (LISC), City of Richmond, Richmond Redevelopment Agency, Richmond Housing Authority, Community Housing Development Corporation of North Richmond, Contra Costa County Housing Authority, Contra Costa County, and Contra Costa County Redevelopment Agency to cooperatively pursue a housing and revitalization strategy for the North Richmond community with a term of ten (10) years, beginning September 21, 2010 through September 21, 2020 FISCAL IMPACT: No impact on the General Fund. The Redevelopment Agency is programming $4.4 million in Agency capital project funds and housing set-aside funds, and the County is programming $3 million in housing funds over the life of the agreement. The MOU Partners will be working collectively to secure additional federal, state, and other public/private funds. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 09/21/2010 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: Jim Kennedy, 925-335-7225 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: September 21, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.92 To: From:David Twa, Redevelopment Agency Executive Director Date:September 21, 2010 Contra Costa County Subject:North Richmond Housing and Revitalization Memorandum of Understanding BACKGROUND: The recommended Memorandum of Understanding (MOU) between the Local Initiatives Support Corporation (LISC), City of Richmond, Richmond Redevelopment Agency, Richmond Housing Authority, Community Housing Development Corporation of North Richmond, Contra Costa County Housing Authority, Contra Costa County, and Contra Costa County Redevelopment Agency (the Partners) is intended to provide a framework for revitalization efforts in the North Richmond community through various economic development and housing initiatives. In December of 1996, the Partners entered into an original agreement (1996 MOU) setting forth a comprehensive revitalization strategy that committed all agencies to collectively work together to construct housing, eliminate blight, and acquire vacant parcels for development. This MOU is an update to the 1996 MOU. Under the 1996 MOU several community resource projects were launched such as the 1st Time Homebuyers Program, Individual Development Account, Homeownership and Post Purchase Counseling programs. Since 1996, CHDC with City and County support has produced 315 housing units (263 single family units), 52 multi-unit senior apartments, and several in-fill developments. Over the past decade, the Partners have successfully implemented various planning and implementation strategies to improve the living conditions of North Richmond residents. Several community organizations such as the Shields Reid Neighborhood Council, North Richmond Beautification Committee, North Richmond Mitigation Committee and North Richmond Municipal Advisory Council have, and will, actively participate in the development of these projects. The achievements of the 1996 MOU prompted all agencies to pursue an updated MOU to continue implementing proven programs and projects. The term of the recommended MOU is ten (10) years, with three-year progress reviews which entails reviewing the goals and accomplishments to date, and revising them if warranted to respond to current market conditions. Immediate action plan items include: • The construction of the Filbert Street townhouse style units; • Grove Point residential mixed use development; • numerous in-fill housing developments; • Las Deltas Feasibility Study; • construction of scattered sites for 1st time homebuyers; • adoption of a Section 8 Homeownership program; and • enhanced enforcement of code violations. The MOU Partners have a longstanding relationship in conducting activities for the revitalization of North Richmond and will continue to promote and encourage long term housing investments and other revitalization efforts. The recommended MOU will also be adopted by the respective boards of each participating agency, as well as each non-profit organizations. The North Richmond Municipal Advisory Council, as well as County and Agency staff recommend approval of the Housing and Revitalization Memorandum of Understanding for North Richmond, effective September 21, 2010. CONSEQUENCE OF NEGATIVE ACTION: The Agency will not be able to continue its revitalization efforts in the North Richmond community without a strong partnering program with other organizations. ATTACHMENTS N. Richmond MOU MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding (“MOU”) is entered into this ____ day of _______________, 2010, by and between Local Initiatives Support Corporation (“LISC”), County of Contra Costa and Contra Costa County Redevelopment Agency (collectively the “County”), the Redevelopment Agency and Housing Department of the City of Richmond (collectively the “City”), Contra Costa County Housing Authority (“County Housing Authority”), City of Richmond Housing Authority (“City Housing Authority”) and the Community Housing Development Corporation of North Richmond (“CHDC”) to cooperatively pursue the revitalization of the North Richmond neighborhood. All parties to the MOU will be collectively referred to as the “Partners.” I. RECITALS A. The North Richmond neighborhood is located in Census tract 3650.02 and includes approximately 2.25 square miles, two-thirds of which lies within the unincorporated area of Contra Costa County with the remaining one-third lying within the City of Richmond. (Exhibit A) B. CHDC is a neighborhood-based housing development corporation whose mission is to provide permanent owner and rental affordable housing in North Richmond and to improve the total economic and social well-being of the North Richmond community. C. In December 1996, LISC, the County, the City and CHDC entered into a Memorandum of Understanding (“1996 MOU”) setting forth a revitalization strategy to be pursued cooperatively. The accomplishments as a result of the 1996 MOU prompted parties of that agreement to seek a follow-up MOU setting forth a revitalization strategy that all Partners would endeavor to support by providing resources and helping to identify additional private, public and philanthropic resources to leverage. D In September 2004, all Partners entered into a second Memorandum of Understanding (“2004 MOU”) setting forth a revitalization strategy to be pursued cooperatively. The accomplishments as a result of the 2004 MOU are set forth in the attached Exhibit C. E Additional collaborative efforts between the City and County to further revitalization efforts in North Richmond include securing infrastructure improvement funding through the Metropolitan Transportation Commission. F In 2009 and 2010, the housing needs identified by the community through various community action plans (Exhibit B) developed in the past decade was compiled into one document, the “Summary of Consolidated Plans”. 1. The housing needs identified by the plans included the need to increase the supply of housing by ensuring an adequate supply of home ownership opportunities in quality housing, the rehabilitation of older properties, and the elimination of vacant lots. 2010 North Richmond MOU Page 2 of 13 2. The need and importance of revitalizing the North Richmond community was evident in all plans. All parties to this MOU desire to cooperate to encourage this revitalization and recognize the need for a long-term commitment to the revitalization effort. G. The term of this MOU shall be for ten years, with three-year progress reviews which entails reviewing the goals and accomplishments to-date, and revising them if warranted to respond to the current conditions. H. The Partners have generally agreed that the revitalization strategy needs to engage the community and should address the following: 1. The need to increase the level of home ownership in North Richmond from the current rate of 33% in the unincorporated area and 22% in the City of Richmond to approximately 40% throughout the area. 2. The need to identify in-fill development opportunities through vacant lots or reclaiming where determined appropriate and feasible abandoned buildings which serve as a blighting influence on the North Richmond community. 3. The need to increase the number of housing units affordable to low income households and create long-term affordable housing options through the development of non-profit or public agency controlled or regulated multi-family housing. 4. Concurrent with the housing development activities, there is a need to improve the physical infrastructure and service delivery to North Richmond residents, as well as create employment and workforce development opportunities. 5. The potential to use new housing development as a catalyst for the overall economic development of North Richmond. 6. The need for new market rate housing developments that would include units affordable to current residents of North Richmond. 7. The need to address the foreclosure crisis with increased and enhanced foreclosure and first time homebuyer counseling services as well as the infusion of more affordable homeownership units into the neighborhood. 8. The need to develop neighborhood serving retail operations on and adjacent to the main North Richmond transportation corridors. II. AGREEMENT Now, therefore, be it resolved that LISC, the County, the City, the City Housing Authority and County Housing Authority and CHDC hereby agree to work cooperatively to pursue housing and other community development opportunities within the North Richmond community. 2010 North Richmond MOU Page 3 of 13 A. ELEMENTS OF THE REVITALIZATION STRATEGY CHDC, LISC, the County, the City, the City Housing Authority and County Housing Authority agree to coordinate their funding commitments, in addition to alternative private and philanthropic commitments, to the area to achieve a greater measure of success in the development of new housing in the area by leveraging available funds to increase the level of private financing in the area. Specifically, the following projects will be jointly supported: 1. Anchor Developments - New Construction a) Filbert Townhomes Up to 56 townhouse style mutual housing units to be developed in two phases along the Filbert Street corridor from Vernon to Duboce. To date, the City has committed a total of $1,564,000 in total to the development of Filbert Townhomes. Grove Point A mixed-use development with affordable family housing units over a ground floor retail component. The County has committed $50,000 for technical assistance to CHDC and provided $2.9 million for land assembly. 2. Scattered Site Development - lnfill New Construction and Acquisition/Rehabilitation. LISC, the County, the City, the City Housing Authority and County Housing Authority and CHDC agree that the elimination of vacant and abandoned properties and the provision of homeownership opportunities for low-income families is an important part of the revitalization process. Therefore: a) The City has specified North Richmond as a high priority area for funding in-fill housing and other home ownership opportunities for low to moderate income families. The City has committed $1,212,061 in Neighborhood Stabilization Program (NSP) funds to CHDC to acquire and/or rehabilitate single and multi-unit dwellings for resale or lease to low and moderate income homebuyers or renters. b) For the next 3 years, the County will prioritize their commitment of funds (including NSP program funds) to CHDC to assist in the acquisition and/or development of 5 units of housing for low-income and moderate first time homebuyers and renters in the North Richmond area. To date, the County has committed $3 million for these housing activities from their pool of funds which CHDC can access. These funds can be used either for new construction or acquisition and rehabilitation of vacant, abandoned, and foreclosed properties. Any further expenditures by the County will require approval by the Board of Supervisors. c) For the next 3 years the County will commit to exploring collaborative infill housing development opportunities and coordinate the first time homebuyer and lease-purchase programs of the County, the County Housing Authority and CHDC. d) In the 2004 MOU, the County and County Housing Authority committed to jointly financing a feasibility analysis for revitalizing the County Housing Authority’s Las Deltas housing development. An initial feasibility analysis 2010 North Richmond MOU Page 4 of 13 was completed by Bay Area Economics under the 2004 MOU. The County Housing Authority commits to funding a revitalization plan for Las Deltas within 2 years. e) The County Housing Authority has a HUD approved Housing Choice Voucher (HCV) Homeownership program, and Family Self-Sufficiency (FSS) program. The County Housing Authority commits to informing participants in these programs of homeownership opportunities in North Richmond. f) For the next 10 years, the County Housing Authority commits to informing the County and CHDC of opportunities to acquire County Housing Authority properties and the availability of Housing Choice Vouchers (formerly known as Section 8 vouchers) to assist in developing affordable homeownership and rental housing under its HUD approved programs. g) For the next 10 years, the County Housing Authority commits to informing the County, CHDC, voucher holders and other low-income households of homeownership and/or rental housing opportunities available through the Housing Choice Voucher (formerly known as Section 8 vouchers) program. Furthermore, in addition to its housing programs, the County Housing Authority will also work with CHDC's Homebuyer program to inform low and moderate-income households of homeownership opportunities as available through the County Housing Authority’s affordable or assisted housing programs. h) The City Housing Authority commits to continuing a Section 8 Homeownership Program in their Administrative Plan. For the next 10 years, the City Housing Authority commits to informing the City, CHDC, voucher holders and other low-income households of homeownership opportunities and rental housing available through the Housing Choice Voucher (formerly known as Section 8 vouchers) program. i) Furthermore, the City of Richmond and Contra Costa County commit to working with CHDC's Homebuyer program to educate and counsel low and moderate income households on homeownership opportunities, foreclosure intervention and financial literacy services. Each jurisdiction commits to making CHDC’s homeownership program services a funding priority for North Richmond. j) It is the goal of the City Housing Authority to provide at least 15 Housing Choice Vouchers over the next three years for homeownership The City Housing Authority commits to working with CHDC to provide education and counseling services for very low, low and moderate income households. k) With funding from the City of Richmond and Contra Costa County, CHDC commits, subject to funding availability, to continuing its participation in CCMATCH the County’s Individual Development Account program that focuses on asset building services for North Richmond residents. 2010 North Richmond MOU Page 5 of 13 l) With sufficient funding, CHDC commits to continuing its homeownership counseling programs (a component of which is post-purchase counseling), as well as its financial literacy programs and asset building services. 3. Existing Owner-Occupied Homes - Home Improvement Loans The City and the County will participate in joint marketing activities to encourage homeowners to participate in their respective low-interest home loan program. CHDC will assist in outreach efforts. The City has made North Richmond a priority area for its home improvement loan program, which is funded with CDBG and HOME funds. The City and the County will establish a goal of 10 new loans per year. 4. Rental Properties - Rehabilitation Loans and Property Management The City, the County Housing Authority and the County will participate in joint marketing activities to encourage rental property owners to participate in their respective rental rehabilitation program. The City, the County Housing Authority and the County will establish a goal of 9 new rental loans over a 3 year period, with a commitment to increasing program effectiveness. 5. Operating Support - Community Housing Development Corporation The City and the County commit to provide operating support to CHDC on a project-by-project basis to ensure the long term success of both the organization and the housing projects. Levels of support will depend upon availability of funds and determination of financial need as demonstrated on the projects’ proformas. Recognizing the importance of ongoing operating support to the viability of CHDC, the City and County support CHDC’s efforts to secure operating support funds. LISC will provide management assistance support to CHDC in the areas of accounting, administration and human resources. LISC will continue to make available to CHDC all of its training and peer-support programs such as affordable housing development, financial management, asset and property management, economic development, and AmeriCorps; subject, however, to the extent of available resources. 6. Code Enforcement The City and County commit to enforcing their respective building regulations and environmental regulations through an aggressive code enforcement program in the North Richmond area. B. Funding Provisions LISC and affiliates, intends to make available, subject to available resources, standard underwriting criteria and approval processes, a minimum of $3 million during the term of this MOU for additional development financing in the North 2010 North Richmond MOU Page 6 of 13 Richmond area. The City and County have previously committed approximately $6.9 million and $5.95 million, respectively, for the components of the revitalization strategy enumerated above. The City and County agree to work with LISC, and CHDC to solicit future funding to support the revitalization goals for the area. Any further expenditures by the County will require approval by the Board of Supervisors. The foregoing is agreed to this _______ day of ___________, 2010 by Local Initiatives Support Corporation, County of Contra Costa, Contra Costa County Redevelopment Agency, City of Richmond, Richmond Community Redevelopment Agency, Contra Costa County Housing Authority, City of Richmond Housing Authority, and the Community Housing Development Corporation of North Richmond. COMMUNITY HOUSING DEVELOPMENT CORPORATION OF NORTH RICHMOND By______________________________________ Its______________________________________ LOCAL INITIATIVES SUPPORT CORPORATION By_____________________________________ Its_____________________________________ COUNTY OF CONTRA COSTA By______________________________________ Its______________________________________ CONTRA COSTA COUNTY REDEVELOPMENT AGENCY By_____________________________________ Its_____________________________________ CITY OF RICHMOND By______________________________________ Its______________________________________ RICHMOND COMMUNITY REDEVELOPMENT AGENCY By_____________________________________ Its_____________________________________ CONTRA COSTA COUNTY HOUSING AUTHORITY By_____________________________________ Its_____________________________________ CITY OF RICHMOND HOUSING AUTHORITY By_____________________________________ Its_____________________________________ 2010 North Richmond MOU Page 7 of 13 This MOU is endorsed by: __________________________ Member, Contra Costa County Board of Supervisors, District I __________________________ Mayor, City of Richmond 2010 North Richmond MOU Page 8 of 13 EXHIBIT A - Map Not to scale 2010 North Richmond MOU Page 9 of 13 EXHIBIT B – Community Plans PLAN TITLE ADOPTING AGENCY DATE ADOPTED Las Deltas Reuse and Financing Alternatives Contra Costa County Housing Authority Pending Contra Costa County 2010-2011 Action Plan Contra Costa County March 2010 Contra Costa Consortium 2010-2015 Consolidated Plan Contra Costa County City of Richmond + Other Jurisdictions Pending (May 2010) Contra Costa Consortium Analysis of Impediments to Fair Housing Choice Contra Costa County City of Richmond + Other Jurisdictions Pending Contra Costa County Housing Element 2009-2014 Contra Costa County December 2009 Contra Costa County Redevelopment Agency Five-Year Implementation Plan - FY 2009/10 to FY 2014/15 Contra Costa County Redevelopment Agency January 2010 North Richmond Specific Plan Contra Costa County Redevelopment Agency Pending North Richmond Redevelopment Area Amended and Restated Plan Contra Costa County Redevelopment Agency May 20, 2008 City of Richmond 2001-2006 Housing Element City of Richmond Planning Department November 2005 Five Year Strategic Plan 2010-2015 Community Housing Development Corporation of North Richmond Pending 2010 North Richmond MOU Page 10 of 13 EXHIBIT C – 2004 North Richmond MOU Accomplishments Report ELEMENTS OF THE NORTH RICHMOND REVITALIZATION STRATEGY A 1 Anchor Developments - New Construction PROJECTED GOAL OUTCOME a. Chesley Avenue — ~30 townhouse style units to be built in the mutual housing model. Chesley Mutual Housing completed in fall of 2005, offering 30 townhouse units. City commitment of $5.1 million, and County sold $5.6 million in housing bonds for the project. b. KB Homes — ~35 units (20%) of the planned 173 market rate single family homes will be affordable to lower income households (below market rate). Bella Flora development (KB Homes) completed in winter of 2006/2007, 35 below market rate homes were sold. 2 Scattered Site Development - Infill New Construction and Acquisition/Rehabilitation PROJECTED GOAL OUTCOME a. Minimum of 20 in-fill units for low to moderate income families to be built in North Richmond. 8 units - Filbert Homes completed in Fall of 2008 4 units - YouthBuild Homes 2 units - Gertrude Homes _____________________________________ Total in-fill units completed: 14 b. County has committed $1.275 million for housing activities including YouthBuild efforts. These funds can be used either for new construction or acquisition and rehabilitation of vacant and abandoned properties. New Construction: $362,000 committed. Acq/Rehab: $510,000 committed. _____________________________________ Total committed by County: $872,000 c. County will commit to exploring collaborative infill housing development opportunities and coordinate the first time homebuyer programs of the County, the County Housing Authority and CHDC. County efforts were directed to YouthBuild. See section 2a and 2b (above). 2010 North Richmond MOU Page 11 of 13 d. County and County Housing Authority commit to jointly financing a feasibility analysis for revitalizing the County Housing Authority's Las Deltas housing development. The County Housing Authority contracted with Bay Area Economics (BAE) to perform a feasibility analysis in 2006. e. County Housing Authority will commit to seeking U.S. Department of Housing and Urban Development funds to demolish 4 existing substandard units and explore infill development on these (121 Chesley and 1601-1605 2nd Street). Current Status: In Process f. County Housing Authority has donated 3 sites to CHDC for the YouthBuild program and is in the process of donating an additional 2 sites pending final HUD approval. Total sites donated by County: 7 sites donated to the YouthBuild program. g. County Housing Authority has a HUD approved Housing Choice Voucher (HCV) Homeownership program, and Family Self- Sufficiency (FSS) program. The County Housing Authority commits to informing participants in these programs of homeownership opportunities in North Richmond. The County Housing Authority and CHDC have worked together to provide assistance to Section 8 participants through the Family Self-Sufficiency (FSS) program in North Richmond. h. County Housing Authority commits to informing the County and CHDC of opportunities to acquire County Housing Authority properties and the availability of Housing Choice Vouchers (formerly known as Section 8 Vouchers). - i. County Housing Authority commits to informing the County, CHDC, voucher holders, and other low -income households of homeownership and/or rental housing opportunities available through the Housing Choice Voucher (formerly known as Section 8 vouchers) program. - j. City Housing Authority commits to adopting a Section 8 Homeownership Program in their Administrative Plan and operationalizing a Section 8 Homeownership Program within 12 months of the date on this MOU. To date, a Section 8 Homeownership Program has not been established in North Richmond. 2010 North Richmond MOU Page 12 of 13 k. City of Richmond Housing Authority to provide at least 28 Housing Choice Vouchers over the next five years for homeownership. The Richmond Housing Authority has made 28 Housing Choice Vouchers available for homeownership. l. CHDC commits to continue its participation in the West County Individual Development Account Collaborative (IDA Collaborative). 70 individuals/households have participated in the Individual Development Account (IDA) program through the assistance of CHDC. m. CHDC commits to continuing its homeownership counseling programs. 4010 individuals/households have been provided with homeownership and foreclosure crisis counseling through the assistance of CHDC. 3 Existing Owner-Occupied Homes - Home Improvement Loans PROJECTED GOAL OUTCOME City and County to jointly participate in the home improvement loan program (funded with CDBG and HOME funds) with the goal of 10 new loans per year. County - 2 county loans provided through the home improvement loan program. 4 Rental Properties - Rehabilitation Loans and Property Management PROJECTED GOAL OUTCOME City, County, and the County Housing Authority will jointly encourage rental property owners to participate in their respective rental rehabilitation program with the goal of rehabbing 10 new units. County - 3 rental rehabilitation loans provided. 5 Operating Support - Community Housing Development Corporation PROJECTED GOAL OUTCOME City and County commit to providing operating support to CHDC on a project- by-project basis to ensure the long term success of both the organization and the housing project. Operating support committed by City [through the community housing development organization (CHDO) contract]: $200,000 Operating support committed by County: $194,000 _____________________________________ Total committed by City/County: $394,000 2010 North Richmond MOU Page 13 of 13 6 Code Enforcement PROJECTED GOAL OUTCOME City and County commit to enforcing building regulations and environmental regulations through an aggressive code enforcement program in the North Richmond area. The City and County have committed $129,000 annually from the HR mitigation committee to fund a dedicated code enforcement officer. B Funding Provisions PROJECTED GOAL OUTCOME LISC, and affiliates, hereby commits (subject to available resources, standard underwriting criteria and approval process), to making available a minimum of $3 million during the term of this MOU for additional development financing in the North Richmond area. The City and County has previously committed approximately $6 million and $1.3 million, respectively, for the components of the revitalization strategy enumerated above. The City and County agrees to work with LISC, and CHDC to solicit future funding to support the revitalization goals for the area. Total committed by LISC: $161,800 in grant funds was provided to CHDC. In addition, CHDC participated in LISC’s capacity building programs such as the Housing Development Training Institute, and Community Development Leadership Institute.