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HomeMy WebLinkAboutMINUTES - 12022014 - C.126RECOMMENDATION(S): APPROVE and AUTHORIZE the Conservation and Development Interim Director, or designee, to execute an amended loan agreement providing $1,500,000 in HOME Investment Partnership Act (HOME) funds to Habitat for Humanity East Bay/Silicon Valley for the Muir Ridge Homes project in Martinez. 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# 14.239 BACKGROUND: On February 25, 2014, the Board of Supervisors allocated $1,500,000 in HOME funds to Habitat for Humanity East Bay/Silicon Valley (Habitat) for the Muir Ridge development. On August 12, 2014, the Board approved the legal documents, including the HOME Loan Agreement, for this project. Habitat was delayed in closing the loan and beginning construction. Habitat and County staff wish to revise the HOME Loan Agreement to (1) modify the dates by which Habitat must pull permits and commence construction, and (2) clarify that the County will partially reconvey the deed of trust upon the sale of the first home to release the County's lien on the home and the development's common area. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 12/02/2014 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: December 2, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.126 To:Board of Supervisors From:John Kopchik, Interim Director, Conservation & Development Department Date:December 2, 2014 Contra Costa County Subject:APPROVAL OF AMENDMENT TO HOME INVESTMENT PARTNERSHIPS ACT LEGAL DOCUMENTS FOR THE MUIR RIDGE HOMES DEVELOPMENT IN MARTINEZ BACKGROUND: (CONT'D) The requested date changes are as follows: Obtain building permit for Phase I of construction: Change from no later than September 30, 2014 to December 31, 2014. Obtain building permits for Phase II of construction: Change from no later than September 30, 2015 to December 31, 2015. Commence Construction on Phase I: Change from no later than October 31, 2014 to December 31, 2014. Commence Construction of Phase II: Change from no later than October 31, 2015 to January 31, 2016. The purpose of the Muir Ridge project is to improve the supply of ownership housing affordable to and occupied by lower income families in the Martinez area through the construction of a 12 home development in unincorporated Martinez off of Pacheco Boulevard. The twelve homes will be designated as HOME-assisted and sold to lower income families. Approximately $225,000 of the HOME funds will be loaned to the lower income families to assist with the purchase of the homes. The remaining HOME funds ($1,275,000) will be a development subsidy. Affordability and use restrictions are incorporated into the County loan documents. The project is fully entitled and Habitat expects to begin construction by the end of December 2014. County Counsel has approved to form the following documents: • HOME Loan Agreementa • Promissory Notes (Phase 1 and Phase 2) • Deed of Trust with Assignment Of Rents, Security Agreement, And Fixture Filing CONSEQUENCE OF NEGATIVE ACTION: If the requested changes to the document are not made then Habitat will be in default under the loan agreement. CHILDREN'S IMPACT STATEMENT: This project will support indicator number three: Families are Economically Self Sufficient.