HomeMy WebLinkAboutMINUTES - 12141993 - 1.67 Contra
o � Costa
TO: BOARD OF SUPERVISORS County
FROM: Harvey E. Bragdon
Director of Community Development
DATE: December 14, 1993
SUBJECT: HOME Project Agreement and Loan Documents for the Parkway Estates, II
Affordable Housing Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
AUTHORIZE the Deputy Director, 'Redevelopment, or his designee to ( 1)
execute HOME Investment Partnership Act (HOME) Agreement 93-6 with
Community Housing Development Corporation of North Richmond to provide
$300,000 in HOME funds to assist in the development and acquisition
of new homes for lower income households; and (2) execute required
loan documents for this purpose. '
FISCAL IMPACT
No General Funds are involved. Resources for this project will come
from FY 1993 HOME funds provided to the County through the U.S.
Department .of Housing and Urban Development.
BACKGROUND/REASONS FOR RECOMMENDATIONS
On October 12 , 1993, the Board of Supervisors approved the allocation
of $300,000 in FY 1993 HOME funds for the Parkway Estates II Project
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
�(
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND OF BOARD COMMIT E
APPROVE OTHER
i
I
SIGNATURE.(S) :
ACTION OF BOARD ON December 14 , 1993 APPROVED AS RECOMMENDED XX OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS P;
XX UNANIMOUS (ABSENT - - - ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THF
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.'
Contact: Kathleen Hamm
646-4208 ATTESTED December 14 , 1993
cc: County Administrator PHIL BATCHELOR, CLERK
County Counsel THE BOARD OF SUPERVISC
Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRA7
Community Development/file
CHDC BY _`� � , DEPU'
4
to be located on 3 . 7 acres of a 10 .2 acre site at 217 West Gertrude
Avenue in North Richmond. This project is sponsored by Community
Housing Development Corporation of North Richmond (CHDC) . CHDC has
been designated as" a Community Housing Development Corporation for
purposes of participation in the County' s HOME Program.
The Parkway Estates II project involves the new construction of 36
three and four-bedroom single-family homes, 11 of which will be
designated as HOME-assisted units to be occupied by and affordable
to lower income households . In addition, Parkway Estates II will
include seven affordable units assisted with Contra Costa County
Redevelopment Agency funds .
Following construction of the units, the full amount of the HOME
funds will be rolled over into a shared equity loan to assist
qualified lower income households in acquiring 11 of the units . In
order to qualify for purchase of the HOME units, households must be
first-time homebuyers, agree to occupy the units as their principle
place of residence, and have incomes which do not exceed 80 percent
of the area median. Given current interest rates and the magnitude
of available HOME funds, it is expected that assisted households
will have incomes ranging from 60 to 75 percent of median. In
accordance with the County's FY 1993 HOME Program Description, the
HOME loans will be fully deferred with a maximum term of 30 years .
The HOME loans will be subordinate to a first mortgage to be
obtained from a private lender. If an assisted unit is sold within
the loan term, the homebuyer must repay the County the principle
amount of the HOME loan plus a share in the appreciation of the
unit. The County' s share of the appreciation will equal the amount
of the HOME second loan divided by the original acquisition price.
All remaining appreciation accrues to the seller.
Total development costs for this project are currently estimated at
$4 . 9 million, including $376 , 000 for site acquisition, $431,000 for
planning and engineering, $339,000 for site improvements, $2 . 8
million for construction, and $365,000 for administration,
financing, and other costs . Funding sources for Parkway Estates II
include: $300, 000 in Contra Costa County HOME funds; $100,000 in
County Redevelopment Agency funds; $3 . 3 million in private lender
financing; and a $1 . 2 million developer contribution from Parkway
Estates I .
HOME funds will be used for the following expenses directly related
to the development of Parkway Estates II :
Predevelopment Expenditures $ 40,000
Site acquisition - 3 . 7 acres $228,000
Construction Project Manager $ 32,000 .
As proposed, the HOME funds will be provided to CHDC in the form of
a loan. Following completion of the units, all HOME funds will be
rolled over into shared equity loans for lower income households as
indicated above.
Parkway Estates II is the second phase of the Parkway Estates
Project to develop a total of 95 single family homes in North
Richmond. (Parkway Estates I, previously approved by the Board of
Supervisors, will include 59 units and provide homeownership
opportunities for 18 lower income households . ) In addition to
providing homeownership opportunities for a total of 36 lower I
income households, successful completion of these two projects will
contribute significantly to the revitalization of the North i
Richmond area.
kh/k4/CHDC2
File D1.10(h) (2.6)