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Home My WebLink AboutMINUTES - 02262013 - C.63RECOMMENDATION(S): APPROVE the Substantial Amendment to the FY 2012/13 Community Development Block Grant program Annual Action Plan to add a Neighborhood Stabilization Program (NSP1) activity (Activity #8) to support the development of vacant land; and ALLOCATE $1 million to Habitat for Humanity East Bay/Silicon Valley (Habitat) for its proposed 23 unit project in Bay Point (Pacifica Ave Homes), and $200,000 Satellite Affordable Housing Associates for its 85 unit senior housing project in Antioch (Tabora Gardens) FISCAL IMPACT: No General Fund impact. (100% Neighborhood Stabilization Program funds) BACKGROUND: NSP 1 was part of the Federal Housing and Economic Recovery Act of 2008 and was intended to assist communities devastated by foreclosures. Contra Costa County was allocated $6,019,051 in NSP1 funds. NSP1 funds may be used APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 02/26/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V 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: February 26, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C. 63 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Date:February 26, 2013 Contra Costa County Subject:Substantial Amendment to the CDBG Action Plan to add a Neighborhood Stabilization Program Activity and Allocate $1.2 million for affordable housing BACKGROUND: (CONT'D) for activities which include, but are not limited to: • Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties; • Purchase and rehabilitate homes and residential properties abandoned or foreclosed; • Establish land banks for foreclosed homes; • Demolish blighted structures; • Redevelop demolished or vacant properties On November 18, 2008, the Board of Supervisors approved the FY 2008/09 Action Plan NSP Substantial Amendment (the “Substantial Amendment”). The Substantial Amendment identified seven program areas: • Activity #1 Purchase and Rehabilitation Program • Activity #2 Purchase and Self Help Rehabilitation • Activity #3 Down payment Assistance/Shared Appreciation Loan Program • Activity #4 Low Income Rental • Activity #5 Demolition and Land Banking • Activity #6 Homebuyer Pre-purchase Counseling • Activity #7 County Administration Staff recommends adding Activity #8 to support the development of vacant land. The County received multiple applications for HOME Investment Partnerships Act funds and is recommending that two of those projects be allocated NSP1 funds instead of HOME funds: • Habitat for Humanity East Bay/Silicon Valley (Habitat) is seeking $1 million to support the development of up to 23 units on a vacant site on Pacifica Avenue in Bay Point. Concurrently with this request for funds, Habitat is seeking approval for a General Plan Amendment (GPA) study. An allocation of NSP funds does not imply any support for the application to amend the General Plan. As proposed, NSP will be used for pre-development, permits and fees, and construction costs. Other sources of funds include Habitat contributions, construction loan, State CalHOME funds, and Federal Home Loan Bank (FHLB) Affordable Housing Program (AHP) funds. • Satellite Affordable Housing Associates (SAHA, formerly Satellite Housing) was awarded $1 million in HOME funds in 2011. Because this project is slow moving and HOME has short expenditure requirements, staff is recommending that a portion of the HOME funds be replaced with $200,000 NSP funds. Through another Board action, staff is recommending that the remaining $800,000 be replaced with fees from the Summer Lake Affordable Housing (SLAH) trust fund. NSP funds will be used for permits and fees, or construction. Other sources of funds include Antioch NSP, Antioch Development Agency, Low Income Housing Tax Credits, Mental Health Services Act, construction loan, and FHLB AHP. The Habitat project will undergo State and federal environmental reviews (CEQA and NEPA) before the County enters into project agreements and/or loan documents. The SAHA project is fully entitled and all environmental reviews are complete. The County will enter into various legal documents with the developers for each project. These documents may include some or all of the following: Loan Agreement, Promissory Note, Deed of Trust and Security Agreement, Regulatory Agreement, Intercreditor Agreement, Subordination Agreement, Loan Riders and Estoppels. The form of these documents will be submitted for Board of Supervisors approval at a later date, but prior to execution of any legal documents. Related Board Actions In addition to the recommendations in this Board Order, the Board of Supervisor will consider the following recommendations on the February 26, 2013 agenda: 1. Approve the Affordable Housing Finance Committee recommendations for FY 2013/14 HOME and CDBG-housing funds, which includes the recapture $1 million in unspent HOME funds from the (SAHA) Tabora Gardens project. 2. Allocate $800,000 from the SLAH trust fund to SAHA for Tabora Gardens. CONSEQUENCE OF NEGATIVE ACTION: If the Board does not approve the NSP substantial amendment, Habitat and SAHA will not be able to move their projects forward this year. These funds are needed for both applicants to leverage additional private and public funds. CHILDREN'S IMPACT STATEMENT: Habitat for Humanity proposes to construct 23 new homes in Bay Point suitable for families. This supports outcome 3: Families are Economically Self Sufficient. ATTACHMENTS Activity 8 (8) Redevelop Demolished or Vacant Properties (a) Activity Type: NSP eligible use: Redevelop demolished and vacant properties CDBG eligible activity: Acquisition, disposition, housing counseling public services (limited to purchasers or tenants of redeveloped properties), new housing construction (b) National Objective: Low Income (LH25) and Moderate Income (LMMI) housing (c) Projected Start Date: March 2013 (d) Projected End Date: December 2015 (e) Responsible Organization: The County will identify development partners through a request for proposals process that began in October 2012. Kara Douglas: Email: kara.douglas@dcd.cccounty.us Contra Costa County Tele: (925) 674-7880 Department of Conservation and Development Website: www.ccreach.org, or 30 Muir Road www.co.contra-costa.ca.us Martinez, CA 94553 (f) Location Description: High Priority Areas (g) Activity Description: This activity is for the purchase or redevelopment of vacant properties suitable for long term rental or homeownership units. The properties will be developed and managed by experienced affordable housing companies. NSP funds used to support rental projects will be provided as deferred loans with 0 to 3 percent interest rates. Rental units will be required to remain affordable to low income households for a minimum of 20 years. If low income housing tax credits are used, the owner will be required to enter into a 55 year rent restriction agreement. Homeownership units will be affordable for 30 years. NSP funds for down payment assistance are available under Activity #3, Down payment Assistance/Shared Appreciation Loan Program. (h) Total Budget: $1,200,000 (i) Performance Measures: A minimum of $600,000 will be used to support the development of housing affordable to households with incomes at or below fifty percent of the area median income (LH25). All units developed under this activity will be affordable to moderate income households.