HomeMy WebLinkAboutMINUTES - 10241989 - 1.63 1-063
TO: BOARD OF SUPERVISORS `-"mantra
Co S a
FROM: Harvey E. Bragdon �u
Director of Community Development
fty
DATE: October 2.4 ,, 1989
SUBJECT: County Housing Assistance Plan
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Approve 1989-90 Housing Assistance Plan Annual Housing Assistance
Goals as attached hereto, pursuant to the Community Development
Block Grant Program; and authorize the Director of Community
Development to forward said Plan to the U.S. Department of Housing
and Community Development.
FISCAL IMPACT
Absent an approved HAP the County cannot submit a Statement of Use
for Community Development Block Grant Funds. The County receives
approximately $3 million annually for this program.
BACKGROUND/REASONS FOR RECOMMENDATIONS
The Housing Assistance Plan (HAP) is a required part of the
County' s Community Development Block Grant Statement. Its purpose
is to survey housing conditions, assess the housing assistance
needs of the County' s low and moderate income households, indicate
goals for housing assistance, and indicate general locations of
proposed assisted housing.
In March, 1988, the Board approved and HUD subsequently approved a
three year HAP for the Period 10/1/87 - 9/30/90. An annual goal
statement for the period 10/1/87 - 9/30/88 was included in the
Board' s March, 1988 action. The second annual submission for the
time period 10/1/88 - 9/30/89 was approved by HUD in' November of
1988. The third annual submission for the time period 10/1/89-
9/30/90 is due at this time, and must be submitted prior to October
31, 1989 .
CONTINUED ON ATTACHMENT: YES SIGNATURE: �J
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOM MENDATIO OF BO COMMI C!� E
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON APPROVED AS CO ED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
cc: Community Development ATTESTED D.CT_ 2 4.1989--
. CAO (via Risk Mgmt. ) PHIL BATCHELOR, CLERK OF
. County Counsel THE BOARD OF SUPERVISORS——'
Auditor (c/o Nona) AND COUNTY ADMINISTRATOR
Contractor
BY DEPUTY
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PART IV: ANNUAL GOAL NARRATIVE
The following describes the local accomplishments in meeting the County's Housing
Assistance Plan affordable housing goals over the last year from October 1, 1988
to September 30, 1989, as well as the programs and activities anticipated for
use in addressing the housing goals of the- County for the upcoming- year. This
report covers the Urban County of Contra Costa which includes the unincorporated
areas as well as all Contra Costa cities with the exception of Antioch, Concord,
Richmond, and Walnut Creek. Please note that the affordability levels described
below have been standardized pursuant to HUD definitions of low and moderate
income, which may vary from state and local definitions of affordability. Low
income households are defined here as households with incomes up to 50% of County
areawide median income levels adjusted by household size as determined by HUD,
with moderate income defined as household incomes up to 80% of County median
income.
A) HUD Rental Programs
1) Section 8 Certificates/Vouchers
The County Housing Authority is continuing the implementation of
the Section 8 Existing Housing Program, which assists 3,693 low
income households Countywide. The County received 108 new Section
8 certificates last year and has submitted applications for 250
additional certificates through the Operation Bootstrap Program and
Moderate Rehabilitation Programs. The County also secured 18 new
vouchers last year for the Aftercare Program for the disabled. The
County Housing Authority hopes to receive a total of 350 certificates
next year, depending on availability of certificates and vouchers
through various HUD programs, including the Aftercare, Operation
Bootstrap, Moderate Rehabilitation, and SRO Moderate Rehabilitation
programs. Of the County's certificates and vouchers, 56% are serving
households in the Urban County. The total program serves a
relatively high proportion of large households, since 25% of the
units assisted are 3-4 bedrooms units. Of the new certificates, 40%
provided rental assistance to seniors, 36% to other small households,
and 24% to large families occupying 3-4 bedroom units.
The Pittsburg Housing Authority also provides HUD rental assistance
in the Urban County. It provides approximately 650 Section 8
certificates to low income households and hopes to receive 50 new
Section 8 certificates over the next year.
2) Section 202 Elderly/Handicapped
The Salvation Army obtained land use approvals .for a 50 unit Section
202 senior housing project in El Sobrante and anticipates starting
construction next spring pending final HUD approvals. They have
applied for supplemental funds to pay for .off-site improvements
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through the County CDBG program.
A 15 unit combination apartment/group home proposal to provide
transitional and permanent housing for mentally disabled adults in
the City of Danville just received a Section 202 funding commitment.
The project sponsor is pursuing County Community Development Block
Grant (CDBG) funds and is in the process of obtaining land use
approvals.
While no specific Section 202 proposals have been developed at this
time for the next funding round, there is expected to be interest
in any additional funding as it becomes available.
B) Other Rental Assistance
1) New Construction
The County is continuing to work with private and non-profit
developers to produce new rental housing, with large units for
families as a high priority. The current emphasis will be the
production of affordable rental units through the sale of tax exempt
revenue bonds, the use of available tax increment funds, and the use
of the federal and state Low Income Housing Tax Credits. While the
Tax Reform Act of 1986 substantially diminished the attractiveness
of tax exempt bond financing- in particular, and the investment in
rental real estate in general, the development community has shown
renewed interest in rental development as interest rates have
remained low, as vacancy rates have started to increase, and, in
part, as Low Income Housing Tax Credits have become better
understood. Th"e County has assisted developers in applying for the
federal and state tax credits. .
To date, the County and various participating cities have financed
over 4,000 new rental units, of which over 900 units are affordable
to low and moderate income households. A number of the projects were
made financially feasible by the provision of supplemental financing
from CDBG and other sources.
The County has been very active in assisting rental development
through mortgage revenue bond financing in the past year. Contra
Costa County provided $40 million of tax exempt bond financing for
the first 422 unit phase of a 892 unit rental project in the Pleasant
Hill BART Redevelopment Area, with additional funding to come from
the private developer and the Redevelopment Agency tax increment
funds. The County Redevelopment Agency will be providing $4.5
million (present value) in tax increments to the project over the
35 year life of the affordability restriction. The project will
provide 85 low income and 49 moderate income units, all of which will
be included in the first development phase. A second County bond
financed project in the unincorporated area of Walnut Creek will
provide 187 congregate care units for seniors, 38 of which will be
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affordable to low income households.
The City of E1 Cerrito is working with a private developer on a 150
unit rental project which could have 20% of the units affordable to
low income households and an additional 5% affordable to moderate
income households. Pending state authorization, the affordability
may be achieved through a Contra Costa County multifamily bond
financing in addition to El Cerrito Redevelopment Agency tax
increment funds.
Another 24 unit project in the City of Pittsburg may be assisted
with multifamily bond financing through the County, of which 20% of
the units would be affordable to low income households. A third
project to potentially be financed through bond financing, to
supplement tax increment funds, is the Desco Premiere project in the
Pleasant Hill BART Redevelopment area. This would provide 13 units
of low income and 19 units of below market rate rental housing out
of a total of 211 units. The County Redevelopment Agency is
negotiating the terms of its financial participation at the present
time.
California Housing Finance Agency (CHFA) will also provide bond
financing for the first 120 unit phase of a 162 unit congregate care
facility for seniors in the city of San Ramon, of which 12 units
would be affordable to low income households and 12 to moderate
income households. The project has obtained land use approvals and
is expected to be under construction next spring.
The City of San Pablo and the County are working with a non-profit
developer to develop 54 units of senior rental housing to be
subsidized through Low Income Housing Tax Credits, San Pablo
Redevelopment Agency bond proceeds, and County CDBG funds. Fourteen
units will be affordable to low income seniors and 40 to moderate
income seniors. Construction is expected to begin Fall of 1989..
A for-profit developer received Low Income Housing Tax Credits for
an 88 unit rental project to be developed in West Pittsburg. Without
any additional subsidies, this project will provide all of the units
at a level affordable to households with incomes up to 60% of the
County median income, due to low market rent levels in this area.
Twelve other affordable housing proposals in Contra Costa County did
not receive tax credit allocations from the state due to the intense
competition for a limited amount of tax credits available for low
income rentals.
Other preliminary proposals include a project proposed by a non-
profit developer in the City of Brentwood. This owner-builder project
may include a rental component for farmworkers providing 12 low
income and 18 moderate income units, depending on land use approvals
from City of Brentwood.
The City of San Pablo is also working with a developer on a 50 unit
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single family project which may include an affordability component
with financial assistance from the City Redevelopment Agency. The
Town of Danville is continuing to explore the feasibility of a 60
unit senior project which could receive. Danville Redevelopment
Agency tax increment funds. A senior citizen development in the City
of Pleasant Hill involving a partnership of the County and a private
developer will be initiated in early 1990.
A 102 unit senior project, 50% affordable to low/moderate
income,funded in previous years, is under construction and expected
to be ready for occupancy in October of 1989. The project was
assisted through a density bonus from the City of El Cerrito;
financed with tax exempt mortgage revenue bonds, CDBG funds, and
redevelopment funds from the County; and land donation and
accommodating long term ground lease from the El Cerrito
Redevelopment Agency and the local Catholic Church.
2) Rehabilitation
The County Housing Authority administers a rental housing
rehabilitation program with County CDBG funds, HUD's Rental
Rehabilitation funds, and private funds. Over $1,010,000 in funds
have been devoted to the program at this time. With 2.5:1 financial
leverage expected, an effective $2:7 million has been made available.
In the last year, this program provided assistance for 43 units and
expects to assist 40 units next year. The Housing Authority
determines the income of the occupying renter household, of which
91% have been low and moderate income in the last year, and provides
Section 8 certificates to each low income household to prevent any
potential displacement from increased rents.
The City of Pittsburg has a separate rehabilitation program which
provided loans to low income households to rehabilitate 32 rental
units in the last year and expects to assist 22 more next year.
All of the resident households have been low income, for which
Section 8 certificates have beon available to prevent any potential
displacement.
The County Housing Authority secured Comprehensive Improvement
Assistance Program (CIAP) funds to improve public housing projects
representing 590 units last year: the, 52 unit Alhambra Terrace
project in Martinez, 86 unitslin West Pittsburg, the 176 unit El
Pueblo project in Pittsburg, 7.6 units in North Richmond, 50 senior
units in Martinez, 50 senior units in West Pittsburg, and 100 senior
units in Antioch. The Housing Authority is applying for CIAP funds
for 362 additional units in West Pittsburg, Antioch,. Brentwood, and
North Richmond.
A number of service agencies have undertaken initiatives to acquire
single family residences to provide group home facilities with
services for special need populations, such as the mentally disabled,
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developmentally disabled, and recovering substance/alcohol abusers.
The County provided 1989 CDBG funds for a group home for six
developmentally disabled persons in Walnut Creek, which will serve
residents of the Urban County. Another site has been secured in
Concord for a mentally disabled group home funded through past County
CDBG funds and Special User Housing Rehabilitation Program and
Permanent Housing for Handicapped Homeless Program funds. The same
non-profit development corporation has also acquired and is
rehabilitating a 7 unit apartment building in Pittsburg to house
mentally disabled persons. This project received funding from County
CDBG in previous years, along with Special User Housing Program, and
Permanent Housing for Handicapped Homeless funds.
Another non-profit organization is proposing to purchase several
single family homes to expand their existing facility in Richmond
which provides permanent housing for mentally disabled adults. They
have closed escrow on a 4 unit building for which they are pursuing
County and City of Richmond CDBG funds, as well as California Housing
Rehabilitation Program funds.
A non-profit development corporation is currently attempting to
acquire a 75 unit Single Room Occupancy (SRO) hotel in Central County
to provide housing for low income senior individuals. Another effort
to purchase an SRO in Crockett ultimately was unsuccessful because
of inability to gain site control. The County has plans to survey
additional SRO hotels which could be acquired and rehabilitated to
provide very low cost housing for seniors, special user populations,
or others who can benefit from a housing type which combines
independent units with common facilities.
The County Department of Social Services and Department of Community
Services is exploring the feasibility of utilizing vacant properties
that come into the public domain through abandonment and through
legal proceedings resulting from taxes owed to the local government,
known as "in rem" properties, for the development of transitional
housing for some homeless populations.
C. Homeowner Assistance
1) Mortgage Assistance
The County, with the cooperation of all Contra Costa County cities,
is providing below-market rate mortgages to first-time home buyers
through tax exempt mortgage revenue bond issues. Of the 364
households assisted in the last year, approximately 350 of these
loans were made to qualifying low and moderate income households,
of whom 38 purchased existing units and 108 purchased units in new
developments. A relatively high percentage of households assisted
through this program could be large households since over 880 of the
units in the 1989 issue were 3-4 bedroom units. Typically, few
households assisted through these programs are seniors due to the
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first-time homebuyer requirement. This mortgage assistance was
provided out of 1987 and 1988 bond issues as well as a new $45
million bond issue in 1989.
The County's continued ability to provide such financing is dependent
on pending federal legislation to extend the current sunset on tax
exempt bond authority. In the most recent bond issue, the County
secured a $3 million allocation of funds intended to be used in
conjunction with various efforts which will achieve CDBG-defined low
and moderate income benefit. The County . expects to assist 633
households with bond financing next year, 35% of which, or. 116, would
be low to moderate income households per CDBG definitions. This does
not include any additional mortgage assistance assuming that the
County and participating cities obtain authorization from the state
for a new single family bond issue or mortgage credit certificate
program in 1990. Similiar programs may be implemented by cities and
local redevelopment agencies.
The City of Pinole also applied for an allocation of Mortgage Credit
Certificates for a pilot program in Pinole to be administered by the
County and expanded countywide. However, due to intense competition
for limited state bond authority, for which mortgage revenue bonds
and mortgage credit certificates compete, the program did not receive
an allocation this year but may be successful in 1990 if additional
financing authority is available through the state next year.
Hercules Redevelopment Agency operates a second mortgage program
funded out of tax increment funds but has not made any loans in the
last year. The Agency expects to assist several households next
year.
The County has continued to fund a counseling program which assists
low and moderate income seniors in weighing the advantages and
pitfalls of reverse annuity mortgages. In 1989, $18,000 of CDBG funds
have been allocated to ECHO.
2) Rehabilitation
County CDBG funds are used to address housing rehabilitation needs
in low income areas through zero to low interest loans. The County-
administered program, which provides coverage for most of the Urban
County assisted 54 low and moderate income households in the past
year and expects to assist 60 more next year. The County
successfully obtained a commitment of FmHA Section 533 Rural Housing
Preservation Grant funds which will assist 25 low income households
to rehabilitate their homes in rural areas.
The City of San Pablo operates a separate program with County CDBG
funds for low and moderate income households. Last year, a total of
13 units underwent rehabilitation through the San Pablo program, in
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addition to 23 units improved through paint rebates. The City of
San Pablo anticipates that 25 units will be assisted next year, with
an increase to 150 paint rebates due to the success of past programs.
The City of Pittsburg operates a housing rehabilitation program
serving exclusively low income households using County CDBG funds
and redevelopment funds. It has assisted 8 homeowner households
last year, and anticipates assisting 10 households next year.
The 1989-90 County CDBG program. included the following allocations
to housing rehabilitation programs:
Program 1989-90 Budgeted Amount
County $450,000
City of San Pablo $208,000
City of Pittsburg $250,000
Additional home improvement and weatherization assistance is provided
by the County Community Services Department using state and PG&E
funds. The Department anticipates 3,100 participants next year based
on serving 3,000 last year, approximately a third of which are
seniors.
The County had committed CDBG funds in previous years to assist two
non-profit corporations to acquire, rehabilitate, and sell abandoned
homes in the North Richmond, San Pablo, and East Contra Costa County
to low and moderate income first-time homebuyers. Funds from sales
would be recycled for additional home purchases. One property has
been acquired so far in San Pablo. Rapid escalation in land prices
for single family lots have made this model difficult in East County.
The County had also committed CDBG funds, leveraged with state
Farmworker Housing Grant Program funds, to rehabilitate a cooperative
of 7 owner-occupied farmworker housing units in Brentwood.
Rehabilitation is now complete. The residents of a second farmworker
housing project plan to rehabilitate and convert to cooperative home
ownership a 12 unit project in Brentwood, which may be assisted
through the FmHA Section 533 program.
3) New Construction
Last year, 281 mortgages for new units were financed through County
bond financing, 108 of which assisted low and moderate . income
households. The County anticipates that 492 of the projected 633
units financed next year would be new units, 350 of which would be
low income based on previous years' performance.
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A 56 unit owner-builder housing development for low income households
completed 17 units in the last year and currently has the last 16
units in the final phase of the project under construction. A
private developer, in conjunction with a neighborhood based non-
profit organization, has purchased a site in the North Richmond
Redevelopment Area utilizing County CDBG funds for land acquisition
and mortgage writedowns to be developed as 7 low income single family
units. Despite delays due to difficulty in obtaining construction
financing, the project is expected to complete construction in the
next year. A 210 unit for-sale development in Pinole, developed by
a private developer/non-profit partnership on a surplus school site,
will contain 58 affordable units, 19 of which will be affordable to
low income homebuyers. While the project was unsuccessful in
obtaining Mortgage Credit Certificates, it has been financed through
County and CHFA bond financing, a County density bonus, and
significant developer contribution. It is currently under
construction and should complete its final phase in May of 1990.
The County has been working with a developer interested in
developing a 75 unit condominium project in the Martinez area. Eight
of the units could be affordable through the County' s density bonus
program, with the possibility of additional affordability through
County bond financing. A non-profit development corporation has
applied for land use approvals for 104 units of owner-builder housing
in Brentwood and is pursuing County CDBG funds to supplement the
state Farmworker Housing Grant Program and federal Self Help Housing
Technical Assistance Grant funds. Thirty-one units would be
affordable to low income households and forty-seven to moderate
income households. The City of San Pablo is working with a private
developer on a preliminary proposal for 50 units which could include
an affordability component through financial assistance from the
City.
PART III GENERAL LOCATIONS FOR ASSISTED HOUSING
New Construction: Census Tract or Enumeration District Numbers, or other
locational designations
3020, 3031, 3032, 3040, 3050, 3060, 3071, 3072, 3080, 3141, 3142, 3160, 3170,
3180, 3212, 3250, 3440, 3451, 3452, 3461, 3462, 3490, 3521, 3522, 3540, 3551,
3553, 3562, 3570, 3580, 3591, 3592, 3601, 3602, 3630, 3640, 3660, 3672, 3680,
3690, 3860, 3870, 3880, 3891
Explanation of Selection of General Locations
The above census tracts were chosen as suitable for new construction based on
the following criteria:
a) Under 25% non-white in population,
b) Less than 100 publicly assisted units existing within the tract,
C) Near sources of employment and public services,
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d) Furthering community development,
e) An existing need of assisted housing within the area,
f) Conformance with specific plans and goals of individual cities and
the county, and
g) Existence of site which meet HUD . Site and Neighborhood Standards
for New Construction.
hap.89
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