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HomeMy WebLinkAboutMINUTES - 09081992 - 1.14 (2) HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA 4 ADV TO: BOARD OF COMMISSIONERS DATE: September 8, 1992 FROM: Richard J. Martinez, Acting Interim Executive Director SUBJECT: CASA DEL RIO SENIOR HOUSING DEVELOPMENT RESOLUTION AUTHORIZING FUNDING TO COVER THE REMAINING GAP IN CONSTRUCTION FINANCING I. RECOMMENDED ACTION: ADOPT Resolution No. 3651 authorizing: 1. A commitment by the Housing Authority of $150,000 for Owner's Equity in Casa Del Rio Senior Housing Development in the City of Antioch to cover some of the funds already expended for predevelopment costs for the project; and, 2. Provision by the Housing Authority of an interest free .loan of $115,000 during the construction period with repayment by the Antioch Development Agency in FY 1994/95 based on the terms of the Disiosition and Development Agreement between the Housing Authority, the City of Antioch and the Antioch Development Agency, as recommended by the Advisory Housing Commission. h II. FINANCIAL IMPACT: The Housing Authority would provide $150,000 in Owner's Equity for the project to cover some of the funds already expended for predevelopment costs. Additionally, the Housing Authority would provide from its Local Management: F=und an interest free loan of $115,000 during the course of construction. This interest free loan would be repaid by the Antioch Development Agency during FY 1994-95 based on the terms of the Disposition and Development Agreement between the Housing Authority, City of Antioch and the Antioch Development Agency. III. REASONS FOR RECOMMENDATION/BACKGROUND: The Housing Authority has been working to complete the 82 unit Casa Del Rio Senior Housing Development in Antioch. Because of policy changes at the California Housing Finance Agency (CHFA) , one of the primary funding sources for this low-income project, approximately $400,000 of CHFA funds will no longer be available. The project income can not support any additional amortized loans and a funding gap now exists. In an effort to fill the funding gap, the Housing Authority has proposed that it provide $150,000 in Owner's Equity for the project to cover some of the funds already expended for predevelopment costs and that it provide an interest free loan CONTINUED ON ATTACHMENTt YES SIGNATUr2Et RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION F BOAR COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON Z 0Z APPROVED AS RECOMMENDED OTHER VOTE OF COMMISSIONERS r, UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS A TRUE AND AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. CC: / County Administrator ATTESTED a, County Counsel Phfl Batchelor, Clerk of the Housing Authority Board of Commissioners M3e2/7-63 BY , DEPUTY Board of Commissioners September 8, 1992 Page -2- of $115,000 during the course of construction, which would be repaid by the Antioch Development Agency during FY 1994/95. Repayment of this loan would be covered under the Disposition and Development Agreement between the Housing Authority, the City of Antioch and the Antioch Development Agency. Approval of the aforementioned gap funding measures will enable the Housing Authority to proceed with the development of Casa Del Rio Senior Housing Development and consturction will begin in October 1992. At its Regular Meeting on Monday, August 17, 1992 the Advisory Housing Commission voted to recommend approval of Resolution No. 3651 authorizing the commitment of $150,000 for Owner's Equity in the project; and the loan of $115,000 during the construction period with the recommendation being forwarded to the Board of Commissioners for review and approval . IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect to not adopt Resolution No. 3652, the Housing Authority would be unable to proceed with the 82 unit Casa Del Rio Senior Housing Development in the City of Antioch. THE BOARD OF COMMISSIONERS HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA RESOLUTION 3651 RESOLUTION 3651 AUTHORIZING THE COMMITMENT OF $150, 000 FOR OWNER' S EQUITY IN THE PROJECT AND THE LOAN OF $115 , 000 DURING THE CONSTRUCTION PERIOD FOR THE CASA DEL RIO SENIOR HOUSING DEVELOPMENT WHEREAS, the Housing Authority has been working to complete the funding for the Casa del Rio Senior Housing Development in Antioch; and WHEREAS, the project still has a funding gap and cannot support any additional amortized loans ; and WHEREAS, in order to address the funding gap, the Housing Authority can provide $150, 000 in Owner's Equity for the project to cover some of the funds already expended for predevelopment costs ; and WHEREAS, to further address the gap, the Housing Authority can provide an interest free loan of $115 , 000 during the construction period which would be repaid by the Antioch Development Agency in Fiscal Year 1994-95 based on the terms of the Disposition and Development Agreement, dated August 28, 1990, between the Housing Authority, the City of Antioch and the Antioch Development Agency; and WHEREAS, these gap financing measures will enable the Housing Authority to proceed with the development of Casa del Rio Senior Housing Development: NOW, THEREFORE, BE IT RESOLVED, as follows : 1 . That the Board of Commissioners of the Housing Authority of the County of Contra Costa authorizes the commitment of $150, 000 for Owner' s Equity in the Casa del Rio Senior Housing Development. 2 . That the Board of Commissioners of the Housing Authority of the County of Contra Costa further authorizes the loan of $115, 000 during the construction period which will be repaid in Fiscal Year 1994-95 based on the terms of the Disposition and Development Agreement between the Housing Authority, the City of Antioch, and the Antioch Development Agency. 3 . That this resolution shall take effect immediately. PASSED AND ADOPTED THIS 8th day of September 1992 by the following vote of the Commissioners : AYES : Commissioners Powers, Fanden, Schroder, Torlakson, McPeak NOES : None ABSENT: None I hereby certify that this is a true and correct copy of ABSTAIN: None an action taken and entered on the minutes of the Board of Supervis on tb date a wn. �, / ATTESTED: '�'� '�P�� a' ang PHIL BATCHELOR,Clerk of the Board cc: County Administrator of Supervisom and County Administrator County Counsel Housing Authority By, ,Deputy