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HomeMy WebLinkAboutMINUTES - 08022011 - C.38RECOMMENDATION(S): 1. ALLOCATE $5,000 in HOME Investment Partnership Act (HOME) funds as a grant to Eden Housing Inc. for the Lafayette Senior Housing project in Lafayette. 2. AUTHORIZE the Conservation and Development Director, or designee, to execute a grant agreement for $5,000. 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 BACKGROUND: On April 15, 2008, the Board of Supervisors allocated $1.4 million in Community Development Block Grant (CDBG) and $1.6 million in HOME funds to Eden Housing, Inc. (Eden) for the Lafayette Senior project. The purpose of the project is to increase the supply of multi-family rental housing affordable to and occupied by lower APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/02/2011 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 Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Kara Douglas, 335-7224 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: August 2, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.38 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:August 2, 2011 Contra Costa County Subject:APPROVAL OF FIVE THOUSAND DOLLARS IN HOME INVESTMENT PARTNERSHIP ACT FUNDS FOR LAFAYETTE SENIOR APARTMENTS IN LAFAYETTE BACKGROUND: (CONT'D) income senior households in Central County through the development of a 45-unit apartment building located at 3436 Mount Diablo Boulevard, Lafayette. CDBG and Lafayette Redevelopment Agency (RDA) funds were used to acquire a 0.80 acre vacant parcel in December 2008. Eden is applying for HUD Section 202 funds as well as State Multi-family Housing Program (MHP) funds. An award of either source should allow this project to move forward. The County will not enter into legal documents for the HOME funds until all of the project financing has been awarded and Eden is ready to begin construction. This small allocation of HOME funds will be provided as a grant to Eden and will allow it to make minor modifications to the project design. A two bedroom unit is being reconfigured as a one bedroom unit with the remaining space used for a small exercise room. The plans and specifications are being modified to include additional green building features. These enhancements will make the project more competitive for State funds. Eden has received all entitlements from the City and these changes will not require any additional planning review. The State has issued a Notice of Funding Availability for the MHP funds. Applications are due on August 31, 2011. The Lafayette RDA has entered into all of the required legal documents for this project. This project should not be impacted by the potential elimination of redevelopment agencies. The total cost of this project is $21 million. The proposed development budget and sources of funds for this project are: Source Amount CDBG loan funds $1,400,000 HOME loan funds 1,600,000 Lafayette RDA 3,825,000 FHLB Affordable Housing Program 450,000 State HCD MHP 4,158,920 Low Income Housing Tax Credit Equity 6,533,627 Bank loan 2,735,209 Sponsor Equity 200,000 Deferred Developer Fee 197,562 TOTAL $21,100,318 Construction is expected to start in August 2012 and be complete by December 2013. CONSEQUENCE OF NEGATIVE ACTION: Without the design revisions, the project will be less competitive for State MHP funds. CHILDREN'S IMPACT STATEMENT: No impact.