HomeMy WebLinkAboutMINUTES - 11042014 - HA C.02RECOMMENDATIONS
APPROVE and AUTHORIZE the Housing Authority's Executive Director, or designee, to execute an Omnibus
Assignment and First Amendment to the HOME Loan Agreement for The Landings (935 East Street) apartment
project in Pittsburg.
BACKGROUND
Shelter, Inc. of Contra Costa County (Shelter, Inc.) owns an eight-unit apartment building located at 935 East Street
in Pittsburg. On September 12, 1994, the County of Contra Costa's (County) Department of Conservation and
Development (DCD) loaned Shelter, Inc. $200,000 in Housing Opportunities for Persons with HIV/AIDs (HOPWA)
funds to acquire and rehabilitate the property. On December 21, 1994, the County, through a program administered
by the Housing Authority (HACCC), loaned Shelter, Inc. $125,030 in HOME Investment Partnerships Act (HOME)
funds to rehabilitate the same property.
DCD sub-granted HOME funds to HACCC in the early 1990's to fund small rehabilitation loans to rental projects.
This loan to Shelter, Inc. is the only remaining HOME loan made by HACCC. Apart from making the loan, HACCC
monitored the rehabilitation and initial lease-up of the eight units at 935 East Street in Pittsburg. HACCC's
monitoring services on this project ended on June 1st, 1997.
The HOPWA loan has a 40 year term with payment due in 2034. The HOME loan has a 20 year term with payment
due in December, 2014. Shelter, Inc. has requested an extension of the HOME loan term to match the HOPWA term.
This request is consistent with current County policy in which loans to affordable housing developers are
Action of Board On: 11/04/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, Commissioner
Candace Andersen,
Commissioner
Mary N. Piepho,
Commissioner
Karen Mitchoff,
Commissioner
Federal D. Glover,
Commissioner
Aqueela Bowie,
Commissioner
ABSENT:Fay Nathaniel,
Commissioner
Contact: 925-957-8028
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: November 4, 2014
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C. 2
To:Board of Supervisors
From:Joseph Villarreal, Housing Authority
Date:November 4, 2014
Contra
Costa
County
Subject:Omnibus Assignment and First Amendment for the Landings (935 East Street) Apartment Project in Pittsburg
BACKGROUND (CONT'D)
deferred for up to 55 years.
In order to preserve this project as affordable housing, staff recommends that the HOME Loan Agreement be
assigned from HACCC to the County since HACCC's obligations have ended and repayment of the loan is to the
County. The County has agreed to extend the term of the HOME loan to match the term of the HOPWA loan.
FISCAL IMPACT
None. This program was funded through a program administered by the Housing Authority using a HOME
Investment Partnerships Act grant provided by the federal government to the County of Contra Costa. Repayment
of this loan is to be made to the County, not the Housing Authority.
CONSEQUENCE OF NEGATIVE ACTION
If the term of the HOME loan is not extended, Shelter Inc. will be in default and would have to sell the property to
repay the loan. To avoid this, the County has agreed to extend the loan term. The Omnibus Agreement removes
HACCC from the loan agreement since HACCC's involvement in the rehabilitation project at 935 East Street in
Pittsburg ceased on June 1st, 1997.
CLERK'S ADDENDUM
ATTACHMENTS
Omnibus Agreement