HomeMy WebLinkAboutMINUTES - 07242012 - C.49RECOMMENDATION(S):
APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to execute required legal
documents to provide $1,605,000 in HOME Investment Partnership Act (HOME) funds to Lafayette Senior L.P., a
California limited partnership, for the Lafayette Senior Apartment project in Lafayette
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 May 1, 2008, the Board of Supervisors allocated $1.6 million in HOME funds to Eden Housing Development for
the Lafayette Senior Housing Development. On August 2, 2011, the County allocated an additional $5,000 for this
project. The purpose of the Lafayette Senior Apartment project is to improve the supply of multi-family rental
housing affordable to and occupied by lower income senior households in Central County through the construction of
a 46 unit apartment building in Lafayette. Eden Housing, Inc purchased the site in 2008 using Community
Development Block Grant (CDBG) and City of Lafayette Redevelopment Agency (City) funds. The plan of finance
includes the following:
Tax Exempt Bonds, $12,777,000
County CDBG and HOME, $3,005,000
City Redevelopment Agency, $3,500,000
State Multi-family Housing Program, $4,572,660
Low Income Housing Tax Credits, $8,065,075
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 07/24/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:John Gioia, District I
Supervisor
Candace Andersen, District II
Supervisor
Contact: Kara Douglas 674-7880
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: July 24, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Carrie Del Bonta, Deputy
cc:
C. 49
To:Board of Supervisors
From:Catherine Kutsuris, Conservation and Development Director
Date:July 24, 2012
Contra
Costa
County
Subject:APPROVAL OF HOME INVESTMENT PARTNERSHIPS ACT LEGAL DOCUMENTS FOR THE LAFAYETTE
SENIOR APARTMENTS IN LAFAYETTE
FHLB Affordable Housing Program, $450,000
General Partner Equity, $888,303
Deferral of fees paid to Developer, $469,697
Eden Housing, Inc will be conveying the site and assigning the existing legal agreements to Lafayette Senior L.P.
prior to the execution of the HOME loan.
Twenty-four of the units will be designated as HOME-assisted. Twelve units will be affordable and available to
households earning up to 30 percent of the area median income (AMI). The remaining ten units will be affordable and
available to households earning up to 40 percent AMI. HOME funds will be provided to Lafayette Senior L.P. in the
form of a 55-year, residual receipt loan a three percent interest rate. Affordability and use restrictions will be
incorporated into the County loan documents.
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 Federal HOME/CDBG funds provided by the
County may not be fully secured through the value of the property.
County Counsel has approved to form the following attached documents:
BACKGROUND: (CONT'D)
HOME Promissory Note
HOME_CDBG Deed of Trust
HOME Loan Agreement
HOME_CDBG Regulatory Agreement
Omnibus Assignment, Assumption, and Consent Agreement
First Amended and Restated Intercreditor Agreement
CONSEQUENCE OF NEGATIVE ACTION:
Construction will be delayed due to inadequate funds.
ATTACHMENTS
Assign Assumption
CDBG Note
Home Loan Agreement
Home Note
Intercreditor Agreement
Deed of Trust
Regulatory Agreement