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HomeMy WebLinkAboutMINUTES - 12141993 - 1.69 � - Contra Costa TO: BOARD OF SUPERVISORS amu / rA c „ cT County FROM: Harvey E. Bragdon Director of Community Development DATE: December 14 , 1993 SUBJECT: HOME Project Agreement and Loan Documents for the Rumrill Park 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 Project Agreement 93-5 with Lao Family Community Development, Inc . (LFCD) to provide $275,000 in FY 1993 HOME Investment Partnership Act (HOME) funds for the Rumrill Park Affordable Housing Project; and (2) execute required loan documents -with LFCD for this purpose. FISCAL IMPACT No General Funds are involved. Funds 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 $275,.000 in FY 199.3 HOME funds to Lao Family Community Develo ent, CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF B6ARD COMMI EE APPROVE OTHER SIGNATURE(S) : - ACTION OF BOARD ON December 14 , 1993 APPROVED AS RECOMMENDED x OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A x 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. Contact: Kathleen Hamm 646-4208 ATTESTED December 14 , 1993 cc: County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS Auditor-Controller (N. Garnett) A COT ADMINISTRATOR Community Development LFCD BY_( DEPUTY I i Inc. , for the Rumrill Park Affordable Housing Project located on Rumrill Boulevard near Market Avenue in San Pablo. The purpose of this project is to remove a condition of neighborhood blight and improve affordable housing opportunities for the refugee population and other very-low and low-income households in West County. As proposed, the project will consist of 32 units of newly constructed affordable rental housing units, including 16 two-bedroom, 14 three-bedroom, and two four-bedroom units . Due to the large number of three and four bedroom units and the inclusion of a children' s play area and community garden in the site plan, it is anticipated that this project will serve larger families . Fourteen of the total project units will be designated as HOME-assisted and required to comply with HOME Program occupancy and affordability requirements . Additional affordability restrictions will be required as a result of the use of Low Income Housing Tax Credits (LIHTC) in this project. Specifically, 40 percent of the units will be affordable to and occupied by households with incomes at or below 50 percent of the area median income adjusted for household size. All remaining units will be affordable to households with incomes at/below 60 percent of median. The units will remain affordable for a minimum of 55 years . Total costs for this project are presented in the following: Site Acquisition $475,000 On and Offsite Improvements $255,000 Construction $2, 129,708 Permits, Construction Fees/Financing $527,032 Architecture/Engineering/Environmental $129,698 Tax Credit/Permanent Financing Fees $195,987 Other Indirect Costs $443, 176 TOTAL COSTS $4, 155, 601 Permanent funding sources include: Contra Costa County FY 1993 HOME funds $275,000 Approved Contra Costa County FY 1993/94 HDAF $240, 000 Requested City of San Pablo Redevelopment Agency Funds $82,500 Approved Private Lender Financing $1,400,000 Low Income Hsg. Tax Credits $1,782,775 Approved General Partner Loans/Deferred Fees $120,000 Approved SAMCO/Foundation Grants $255,326 TOTAL FUNDING SOURCES $4, 155,601 As currently proposed, the HOME funds will be used for site acquisition, architect fees, onsite improvements, project management and construction, financing fees, marketing, and the provision of an initial operating reserve. HOME funds will be provided to the project in the form of a 40-year low interest residual receipt or deferred loan. The project will be required to remain affordable to and occupied by the target population throughout the loan term. The loan will be forgivable in exchange for a commitment by the project sponsor to an additional 20 years of maintained affordability. kh/k4/lfcd3