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HomeMy WebLinkAboutMINUTES - 02252014 - C.49RECOMMENDATION(S): APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to execute required legal documents to provide $227,000 in Community Development Block Grant (CDBG) funds to Bella Monte Apartments, L.P., a California limited partnership, for the Bella Monte Apartments Project in the Bay Point area. FISCAL IMPACT: No General Funds impact. CDBG funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development (HUD). CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA NUMBER): Community Development Block Grant – 14.218. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 02/25/2014 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 ABSENT:Federal D. Glover, District V Supervisor Contact: 925-674-7887 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 25, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: Chris Heck, Deputy cc: C. 49 To:Board of Supervisors From:Catherine Kutsuris, Conservation and Development Director Date:February 25, 2014 Contra Costa County Subject:APPROVAL OF CDBG LEGAL DOCUMENTS FOR THE BELLA MONTE APARTMENTS PROJECT IN BAY POINT BACKGROUND: On February 26, 2013, the Board of Supervisors allocated $227,000 in CDBG funds to Resources for Community Development (RCD) for the Bella Monte Apartments project. RCD formed a limited partnership when the project was originally constructed in 2005. Bella Monte Apartments, L.P. currently owns the development, a 52-unit apartment complex called Bella Monte Apartments in the unincorporated area of Bay Point. The development includes a mix of 1-, 2-, and 3-bedroom units to accommodate families of different sizes. The range of affordability levels of the units is 20 percent to 60 percent of the area median income (AMI). RCD built the apartment complex in 2005 with financing from Contra Costa County CDBG, HOME and HOPWA funds, former County Redevelopment Agency funds, and other funds. RCD is proposing to construct perimeter fencing to improve the safety and security of the project, to improve quality of life for existing and future residents, and to reduce on-site criminal activities. The fence will connect each of the four existing buildings, securing the interior portions of the site. Resident vehicle access to two existing parking areas will be accessible by sliding vehicle gates, and up to four secured pedestrian gates would be added for residents accessing the property on foot. The proposed security fencing would prevent pedestrians from using the property as a cut-through between Willow Pass Road and the surrounding residential neighborhood. The CDBG funds will be used to support both the hard and soft costs of the project. The CDBG funds will be provided in the form of a 47-year, residual receipt loan with a one percent interest rate. Affordability and use restrictions are incorporated into the CDBG loan documents. Additional financing for the project is the ten percent CDBG match requirement. RCD proposes to use funds from the projects operating reserve in the amount of $23,000. National Environmental Policy Act (NEPA): CDBG projects are subject to NEPA and 24 CFR Part 58 review. The NEPA review for this project has been completed. Required mitigations are included in the loan agreement. County Counsel has approved to form the following attached documents: Deed of Trust with Assignment of Rents, Security Agreement and Fixture Filing; Promissory Note; and CDBG Loan Agreement CONSEQUENCE OF NEGATIVE ACTION: Without the approval and execution of the CDBG legal documents, the project will not be rehabilitated. CHILDREN'S IMPACT STATEMENT: Bella Monte Apartments supports Children Reports Card Indicator #4: Families are Safe, Stable and Nurturing and #5: Communities are Safe and Provide a High Quality of Life for Children and Families. ATTACHMENTS Bella Monte Loan Agreement Bella Monte Deed Bella Monte Note