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Home My WebLink AboutMINUTES - 10161990 - 1.51 THE BOARD OF COMMISSIONERS; HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA 3sy9 • RESOLUTION NO. RESOLUTION AMENDING AUTHORIZATION FOR THE EXECUTION OF A LOAN APPLICATION, THE INCURRING OF AN INDEBTEDNESS, THE EXECUTION OF A LOAN AGREEMENT AND ANY AMENDMENTS THERETO, A PROMISSORY NOTE, AND ANY OTHER DOCUMENTS NECESSARY TO SECURE A RENTAL HOUSING CONSTRUCTION PROGRAM LOAN FROM THE STATE OF CALIFORNIA BY THE EXECUTIVE DIRECTOR WHEREAS, The State of California, Department of Housing and Community Development, Division of Community Affairs, has issued a NOTICE OF FUNDING AVAILABILITY UNDER THE RENTAL HOUSING CONSTRUCTION PROGRAM (RHCP) ; and, WHEREAS, the Housing Authority of the County of Contra Costa is a public entity and will apply for an RHCP loan to develop low and very low-income rental housing; and, WHEREAS, the Executive Director, Perfecto Villarreal , will act on behalf of the Housing Authority of the County of Contra Costa and will sign all necessary documents required to complete the application and award process; and, WHEREAS, the Board of Commissioners of the Housing Authority of the County of Contra Costa authorized the Executive Director to apply for and accept an RHCP loan in an amount not to exceed $2,755,687 by Resolution No. 3590 passed by the Board of Commissioners on August 7, 1990; and, WHEREAS, in order to increase the affordability of the proposed project and therefore improve the competitiveness of the RHCP loan application, it was found necessary to increase the amount of this loan from the original amount to an amount not to exceed $3,217,666: NOW, THEREFORE, BE IT RESOLVED THAT THE Board of Commissioners of the" Housing Authority of the County of Contra Costa hereby authorizes the Executive Director, Perfecto Villarreal , to apply for and accept the loan in an amount not to exceed $3,217,666, and to execute a State of California Standard Agreement, other required State documents, and any amendments thereto. PASSED AND ADOPTED THIS 16th day of October 19 90 by the following vote of the Commissioners: AYES: Commissioners Schroder, McPeak, Torlakson, Fanden NOES: None ABSENT: .Qomm'ission`er:-pouiers ABSTAIN: None I hereby certify that this is a true and Correct Copy of an action taken and entered on the minutes of the cc• County Administrator Board of supe'D4sors on t.edate shown. `C,�� Count Counsel ATTESTED: ..•..1—C_... /J Housing Authority PHIL BATCHELOR,Clerk of the Board g y of Supervisors and County Administrator Deputy by "HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS DATE: October 16, 1990 FROM: Perfecto Villarreal , Executive Director cc: SUBJECT: PROPOSED SENIOR HOUSING DEVELOPMENT IN ANTIOCH RENTAL HOUSING CONSTRUCTION PROGRAM LOAN APPLICATION I. RECOMMENDED ACTION: ADOPT Resolution No. 31M amending the authorization for the execution of a loan application, the incurring of an indebtedness, the execution of a loan agreement and any amendments thereto, a promissory note and any other documents necessary to secure a Rental Housing Construction Program Loan from the State of California by the Executive Director, granted in Resolution No. 3590, as recommended by the Advisory Housing Commission. II. FINANCIAL IMPACT: Modification and refinement of financing structure for the 82-unit senior housing complex in Antioch requires an increase of $461,979 in the amount of funding required from the Rental Housing Construction Program loan. However, this increased loan is financially advantageous because the Rental Housing Construction Program ( RCHP) has a lower interest rate than the California Housing Finance Agency loan, and debt service for the RHCP loan is deferred until the project has the ability to pay. I III. REASONS FOR RECOMMENDATI`ON/BACKGROUND: At its Regular Meeting on August 7, 1990 the Board of Commissioners authorized the Executive Director to roceed with an application to the Rental Housing Construction Program (RHCP�, offered through the California Department of Housing and Community Development (HCD) , for a loan not to exceed $2,755,687, for the proposed senior housing development in !the City of Antioch. The Board of Commissioners subsequently passed Resolution 3590, authorizing the Executive Director to submit this application. In the interim period between August 7, 1990 and September 5, 1990, when the application was submitted to HCD, the total development cost, the affordable rent profile, and the financing structure of the development was refined and modified. After these modifications were made, the total amount of funding required from the RHCP loan was increased by $461,979, for a total amount of $3,217,666. This increased loan amount necessitates an amendment to the original resolution authorizing the Executive Director to submit the application. CONTINUED ON ATTACHMENT: YES SIGNATU(tEs RECOMMENDATION OF EXECUTIVE.DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER f .. i SIGNATURE(S) ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF COMMISSIONERS X UNANIMOUS (ABSENT) I HEREBY CERTIFY THAT THIS A TRUE AND AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND ABSENT: ABSTAIN: f ENTERED ON THE MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. CC: ATTESTED OCT 16 1990 Phil Batchelor, Clerk of the Board of Commissioners M382/7-83 BY � � . DEPUTY Board of Commissioners October 16, 1990 Page -2- The RHCP is a competitive loan program in which prospective projects are rated and ranked by criteria developed by HCD. To gain maximum points in this ranking criteria, the Antioch senior housing development was restructured for greater affordability. Fully 100% of tihe units are now scheduled for rents affordable to very low income seniors, whereas the initial proposal scheduled only two-thirds of the units affordable to very low income seniors. This greater affordability will improve the ranking score of the application, although it necessitated a higher loan amount required by the project. The proposed 82-unit senior housing complex in Antioch now has a total projected development cost ofl$5,645,597, which is $114,910 more than the original estimate. In addition, the regulations of the RHCP require relatively high replacement and reserve accounts to be saved from operating income, decreasing the operating income available fob debt service, thus reducing the amount that could be borrowed under the first mortgage of the project. The first mortgage on the project, to be borrowed from the California Housing Finance Agency (CHFA) , was reduced. from $2,775,000 to $2,560,000. At its Regular Meeting on Monday, October 15, 1990 the Advisory Housing Commission voted to recommendlamending Resolution 3590, passed by the Board of Commissioners on August 7, 1990, by adoption of Resolution 3595 authorizing the Executive Director to proceedlwith an application to the Rental Housing Construction Program of the California Department of Housing and Community Development in the amount of $3,217,666, as a source of permanent financing for the proposed affordable senior housing development in Antioch. IV. CONSEQUENCES OF NEGATIVEI ACTION: Should the Board .of Commissioners elect to not adopt Resolution No. 3595 amending the amount of the loan application from the State of California Rental Housing Consturction Program, the Housing Authority would forfeit the opportunity to supply an additional 82 units of low and very low-income senior housing in the City of Antioch. cc; County Administrator County Counsel Housing Authority I