HomeMy WebLinkAboutMINUTES - 10072014 - C.59RECOMMENDATION(S):
APPROVE the Substantial Amendment to the FY 2014/15 CDBG/HOME Annual Action Plan, including the
allocation of $455,000 in Community Development Block Grant and $99,000 in HOME Investment Partnerships Act
funds to Church Lane - Rubicon Partners, L.P., to preserve and maintain the 22-unit Church Lane affordable housing
development in San Pablo, as recommended by the Affordable Housing Finance Committee.
FISCAL IMPACT:
No General Fund impact. 100% Federal funds, CDBG and HOME funds are provided to the County on a formula
allocation basis through the U.S. Department of Housing and Urban Development.
BACKGROUND:
On May 6, 2014, the Board of Supervisors adopted the FY 2014/15 Annual Action Plan, which includes the
expenditure plan for Community Development Block Grant (CDBG) and HOME Investment Partnerships Act
(HOME) funds. There are currently $543,712 in CDBG and $293,500 in HOME funds that are unallocated. The
Affordable Housing Finance Committee met on September 25, 2014 to consider staff recommendations for the
Church Lane project.
In August 2014, Resources for Community Development (RCD), on behalf of Church Lane - Rubicon, L.P., applied
for $455,018 in CDBG and $99,000 in HOME funds to repair an existing 22-unit affordable housing development at
2555 Church Lane, San Pablo, and to fund a replacement reserve.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 10/07/2014 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
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: October 7, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Chris Heck, Deputy
cc:
C. 59
To:Board of Supervisors
From:John Kopchik, Interim Director, Conservation & Development Department
Date:October 7, 2014
Contra
Costa
County
Subject:Substantial Amendment to the FY 2014/15 CDBG/HOME Annual Action Plan
BACKGROUND: (CONT'D)
Church Lane was developed in 1996 by Rubicon Programs to provide affordable housing to low income families. The
project was originally financed with Contra Costa County HOME ($300,000) and CDBG ($440,000) loans. The
County loans include four percent deferred interest and terms ending in 2050, 2051, and 2052. The additional HOME
and CDBG funds will be provided with an interest rate between one and three percent and for a 55-year term.
Rubicon Programs' mission is to prepare very-low income people to achieve financial independence, and to assist
people with mental illness on their journey of recovery. In the 1990's, Rubicon Programs developed affordable
housing with contract staff. It is now seeking to divest its housing and focus on its core competency as a service
provider. As part of this process, Rubicon Programs reached out to RCD to take over ownership of Church Lane.
RCD has a strong asset management team that will stabilize the property, reduce the vacancy rate, and increase
revenues.
While the property is generally in fair to good condition, there is extensive water damage to the concrete exterior
walkways and supporting columns. In addition, the current revenues are too low to adequately fund the replacement
reserve, and the account is depleted. The requested CDBG and HOME funds will be used for immediate repairs and
to fund a replacement reserve account.
The award of CDBG and HOME funds is contingent on RCD, or an RCD affiliate, becoming the partners in the
current limited partnership. The award of HOME funds is also contingent on approval from the U.S. Department of
Housing and Urban Development allocating additional HOME funds to a development in its original term of
affordability.
The County will enter into various legal documents with the partnership for this funding. The form of these
documents will be submitted for Board of Supervisors approval at a later date.
CONSEQUENCE OF NEGATIVE ACTION:
If the Board does not approve the Substantial Amendment, including an allocation of CDBG and HOME funds, the
Church Lane property will continue to deteriorate and will no longer provide decent housing.
CHILDREN'S IMPACT STATEMENT:
Preserving and maintaining affordable housing is consistent with outcome #3 of the Children's Report Card: Families
are Economically Self Sufficient.