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HomeMy WebLinkAboutMINUTES - 02231993 - 1.114 :1 = Contra TO: REDEVELOPMENT AGENCY ;.�/ Costa FROM: Phil Batchelor > County Executive Director - s r� coii DATE: February 23 , 1993 SUBJECT: Affordable Housing in the West Pittsburg Redevelopment Project Area SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS APPROVE loan of $150, 000 from West Pittsburg Redevelopment funds to Resources for Community Development for affordable housing land acquisition and pre-development costs, and AUTHORIZE the Executive Director or his Designee to execute a Development Loan Agreement in substantially the form on file with the Clerk, and documents related thereto. FISCAL IMPACT No impact on the General Fund. A loan of $150, 000 will be made from the West Pittsburg Redevelopment Project Area Budget. The loan would be made out of unobligated capital reserves to be replaced out of future years' low- and moderate-income housing set-aside. BACKGROUND/REASONS FOR RECOMMENDATIONS Resources for Community Development (RCD) is a nonprofit housing development corporation interested in constructing quality rental housing in the West Pittsburg Redevelopment Project Area. It has identified a parcel at 112 Alves Lane as an appropriate site. The site has 12 dilapidated structures on it. It has been cited by the County Building Inspection Department, and four of the structures have been boarded up and scheduled for demolition. The other seven structures currently have tenants residing in them. RCD would CONTINUED ON ATTACHMENT. XX YES SIGNATURE: RECOMMENDATION OF EXECUTIVE DIRECTOR RECO • CATION OF %AGENCY COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF AGENCY ON February 23 , 1993 APPROVED AS RECOMMENDED .x OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A x UNANIMOUS (ABSENT 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: Carole Norris 646-4076 ATTESTED February 23 , 1993 cc: Community Development PHIL BATCHELOR, County Administrator AGENCY SECRETARY County Counsel Auditor-Controller Redevelopment Agency a via Redevelopment Agency BY 1JA,1 DEPUTY West Pittsburg PAC West Pittsburg MAC Resources for Community Development Goldfarb & Lipman MCNA sraTwpius.bos relocate the tenants, demolish the blighted conditions and construct 15 units of townhouse style apartments. The site is owned by the Avon Refinery Credit Union. RCD has successfully negotiated a contract with the Credit Union to purchase contingent upon its ability to secure funding. The West Pittsburg Project Area Committee (PAC) has reviewed this project and voted unanimously to support it by recommending this allocation of up to $150, 000 in Redevelopment funds for acquisition and pre-development costs. The West Pittsburg Municipal Advisory Council (MAC) also unanimously supported the project. RCD is anticipating leveraging the Redevelopment allocation with funds from a variety of other sources. It has applied for, and received preliminary support for funding from the Community Development Block Grant (CDBG) and HOME programs. It plans to submit an application to the State of California's Tax Credit Allocation Committee for an allocation of Low Income Housing Tax Credits. It is also preparing an application to SAMCO (the consortium of Savings and Loan Associations) for funds under its Affordable Housing Program. The funds will be structured as a loan, secured by a promissory note and deed of trust against the land and planned improvements, with an interest rate determined by the Local Area Investment Fund (LAIF) . The term of the loan will be 40 years. It may be forgiven at the sole discretion of the Agency Board if necessary to maintain the affordability of the units. Resources for Community Development will own and manage the property following construction. Staff analyses indicate that the potential benefits to the Project Area from the project are significant: (1) The construction of new affordable housing will assist the Agency/County in meeting its affordable housing requirements; (2) A blighted condition will be removed from the community; (3) Residents currently residing on the property will be temporarily relocated subject to the Uniform Relocation Act, and will have an opportunity to return when the new units are completed; and (4) RCD will also sign an agreement to hire West Pittsburg residents for new jobs during construction.