HomeMy WebLinkAboutMINUTES - 01151985 - 1.46 THE BOARD OF COMMISSIONERS, HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
Adopted this Order on January 15 , 1985 by the following vote:
AYES: Commissioners Powers , .Fanden, McPeak, Schroder, Torlakson.
NOES: None.
ABSENT: None.
ABSTAIN: None.
SUBJECT: Approve participation in the gap-financing program by providing 50%
of the needed funds from Housing Authority reserves, not to exceed
$300,000
The Board of Commissioners, having received and reviewed a report
from the Executive Director of the Housing Authority of the County of Contra
Costa, indicating its desire to co-sponsor with Contra Costa County the gap-
financing program for new rental housing development projects being planned for
construction in Contra Costa County, and which are eligible for the County's
tax-exempt bond program.
Gap financing loans are to be provided from Housing. Authority
reserves on a 50%/50% basis with Community Development Block Grant funds on the
terms and conditions as outlined for each development:
1. Rivera Apartments - Loan not to exceed $150,000
- Interest rate of 10%
- Principal and interest payments
to begin when cash flow permits
which will be approximately one
year from completion of development;
interest accrues during deferrment
period
- Amortized at 30 years with balloon
payment in 12 years; may be extended
for up to 8 years if World loan is
extended
- Term: Loan due and payable upon sale
and transfer of property
- Security: Second deed of trust
- Additional requirement: If project
development costs are less than the
projected $2,976,838, the County and
owner shall equally share (one to one
basis) in said cost savings, with a
maximum amount of $50,000 being subject
to prepayment.
2. Grillo Apartments - Loan not to exceed $35,000
- Interest rate of 10%
- Principal and interest payments to
begin when cash flow permits which is
estimated to be shortly (within six
months') after completion of the
development
- Amortized at 12 years
- Term: Loan due and payable upon sale
and transfer of property
- Security: Second deed of trust
3. Del Norte West Apartments - Loan not to exceed $25,000
- Interest rate of 10%
- Principal and interest payments to
begin when cash flow permits which
! will be approximately one year from
completion of development; interest
accrues during deferrment period.
i ' o
av
- Amortized at 30 years with balloon
payment in 12 years; may be extended
for up to 8 years if World loan is
extended
- Term: Loan due and payable upon sale
and transfer of property
- Security: Second deed of trust
4. Westwood Apartments - It is expected that this transaction
will ultimately involve the State Rental
Housing Construction Program (RHCP);
however, because RHCP is permanent
financing only, the loan package must
initially be written without RHCP.
- A. In the unlikely event that RHCP does
not come into play, the terms of the
County loan would be:
°Amount - $375,000
°Interest Rate - 10%
°Payment - Deferred until cash flow
is sufficient to cover debt (which
would be approximately 3-5 years);
interest accrues during the
deferrment period.
°Term - Amortized at 30 years with
balloon in 12 years; may be extended
for up to 8 years if World loan is
extended; loan due and payable upon
sale and transfer of property
°Security - Second deed of trust
- B. In the likely event that RHCP does
come into play, the terms of the
County loan would be:
' °Amount - $270,000 (estimate)
j °Interest 'Rate - Initial interest
j rate of 34%; if project is sold
for more than the debt owed, the
County will share in appreciation
up to a fixed amount that would
allow the County to realize an
effective 8% interst rate on its
loan
°Payment - Deferred until_ cash flow
is sufficient to cover debt (expected
to be 3-5 years); interest accrues
during deferrment period
°Term - Amortized at 30 years with
balloon in 12 years; may be extended
for the term of the regulatory
agreement (another 18 years); loan
due and payable upon sale and transfer
of property
°Security - Third deed of trust
°Additional Requirements - Developer's
equity must be at least 10%;
developer's return on equity is
limited to 6%; County recaptures
interest payments as outlined above
in interest rate category
IT IS BY THE BOARD ORDERED that the Housing Authority of the County
of Contra Costa participate in the gap-financing program by providing 50% of the
necessary funds from Housing Authority reserves, not to exceed $300,000, for the
four rental housing developments requiring gap financing funds as listed above
under the terms and conditions outlined, as recommended by the Advisory Housing
Commission.
CC : Contra Costa; County
Housing Authority -2-
County Administrator 1
County Counsel `\�
ry
HOUSING AUTHORITY
or WI
COUNTY OF CONTRA COSTA
2122 ESTUOILLO STREET F.O. sox 2296
(415( 229-5220
MARTINEZ, CALIFORNIA 94552
CERTIFICATE
I , Perfecto Villarreal , the duly appointed, qualified and acting
Secretary/Treasurer - Executive Director of the Housing Authority of the
County of Contra Costa, do hereby certify that the attached extract from
the Minutes of the Regular Session of the Board of Commissioners
of said Authority, held on _January 15 , 1985
1
is a true and correct copy of the original Minutes of said meeting on file
and of record insofar as said original Minutes relate to the matters set
forth in said attached extract.
IN WITNESS WHEREOF, I have hereunto set my hand and the seal of
said Authority this 15th.___ day of January 1985
(SEAL)
ear -e- t�lSarreal , Secretary
208-jt-82