HomeMy WebLinkAboutMINUTES - 11091993 - 1.7 (2) =- Contra
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TO: REDEVELOPMENT AGENCY County
Executive
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FROM: Phil Batchelor, COW VlJ![(!
Executive Director
DATE: November 9. 1993
SUBJECT: Development Loan Agreement-Parkway Estates Housing Project,North Richmond Redevelopment Project
Area
s.PECIFIC REQUEST(S)OR RECOMMENDATIONS(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Approve and authorize the Deputy Director of Redevelopment to execute the Development Loan Agreement and
loan agreements related thereto between the Agency and Community Housing Development Corporation of North
Richmond.
Approve loan of $250,000 from North Richmond Redevelopment funds to Community Housing Development
Corporation of North Richmond for affordable housing land acquisition, silent second mortgage, and
downpaymeni assistance costs.
FISCAL IMPACT
None to the General Fund. This Development Loan Agreement provides$250,000 in the housing set-aside portion
Bond Proceeds to the Community Housing Development Corporation of North Richmond. This project is included
in the Agency's 1992-93 and 1993-94 adopted budgets,and the budget adopted for the use of Bond Proceeds.
BACKGROUND/REASONS FOR RECOMMENDATIONS
Community Housing Development Corporation (CHDC) of North Richmond is a nonprofit housing development
corporation interested in constructing quality for-sale single family homes in the North Richmond Redevelopment
Project Area. It has identified a parcel at 217 W. Gertrude Avenue as an appropriate site. The site is
approximately 10 acres and is currently undeveloped. CHDC will construct 95 units of single family style for-sale
homes. CI1DC has successfully negotiated a contract with Port Development to purchase contingent on its ability
to secure finding.
CONTINUED ON ATTACHMENT: _YES SIGNATURE: Ci�jp.P, 21le
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-.—RECOMMENDATION OF EXECUTIVE DIRECTOR—RECOMME D TION OF AGEN Y COMMITTE
APPROVE, OTHER
SIGNATURE(S):
ACTION OF AGENCY
ON 11/9/93 APPROVED AS RECOMMENDED X OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
.X_ UNANIMOUS (ABSENT I I ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT
AGENCY ON THE DATE SHOWN.
Contact: Beth Lee
646-4076 ATTESTED November 9 , 1993
cc: Conununity Development PHIL BATCHELOR,
Redevelopment Agency AGENCY SECRETARY
Auditor-Controller
Via Redevelopment
BY
,DEPUTY
The former North Richmond Redevelopment Project Area Committee and current North Richmond Municipal
Advisory Council have reviewed this project and voted unanimously to support it be recommending this allocation
of up to$250.000.
CHDC is leveraging the Redevelopment allocation with funds from a variety of sources. It has applied for, and
received. support for funding from the Community Development,Block Grant (CDBG) and HOME programs as
well as from the Local Initiatives Support Corporation. CHDC is currently working with several lenders to provide
favorable constniction and permanent financing under their Community Reinvestment Act programs.
The funds will be structured as a loan. secured by a promissory note and deed of trust against the land and planned
improvements. with a 3%interest rate. The term of the loan will be two years,with provisions to utilize the funds
as silent second mortgages and downpayment assistance for qualified lower-income households. The loans may be
forgiven at the sole discretion of the Agency Board if necessary to maintain the affordability of the units.
Slaff analyses indicate that the potential benefits to the Project Area from the project are significant:
I. The construction of new affordable housing will assist the Agency/County in meeting its affordable
housing requirements:
2. Providing affordable for-sale single family homes will further stabilize the North Richmond
community: and
3. CHDC will also sign an agreement to hire North Richmond residents for new jobs during
construction.