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HomeMy WebLinkAboutMINUTES - 10121993 - 1.38 38 - � Contra Y Costa TO: BOARD OF SUPERVISORS County FROM: Harvey E. Bragdon Director of Community Development DATE: October 12, 1993 SUBJECT: CDBG Project Agreement and Loan Documents for the Pinole Senior Housing Project SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ( 1) APPROVE the allocation of $200,000 in FY 1993/94 Community Development Block Grant (CDBG) Housing Development Assistance funds for the Pinole Senior Housing Project and (2 ) AUTHORIZE the Deputy Director, Redevelopment, or his designee to execute a CDBG Project Agreement and required loan documents with BRIDGE Housing Corporation . for this purpose. FISCAL IMPACT No General Funds are involved. Funds for this project will come from the FY 1993 CDBG Housing Development Assistance Fund approved by the Board of Supervisors on February 23, 1993 . CDBG funds are provided to the County through the U.S. Department of Housing and Urban Development. CONTINUED ON ATTACHMENT: X YES SIGNATURE: i RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT O OF BO RD CO MMI EE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON OCT 12 1993 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: Z�� NOES: ACTION TAKEN AND ENTERED ON THE ABSENV AABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Kathleen Hamm 646-4208 ATTESTEDOCT 1212 19933 cc : County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS Auditor-Controller (N. Garnett) AN COUNTY ADMINISTRATOR Community Development/File City of Pinole B , DEPUTY BRIDGE Hsg. Corp. BACKGROUND/REASONS FOR RECOMMENDATIONS On February 23, 1993, the Board of Supervisors approved the allocation of $644, 700 in FY 1993 CDBG funds to the Housing Development Assistance Fund (HDAF) for use in funding affordable housing projects as they develop throughout the program year. In March of 1993, the Housing and Community Development Advisory Committee voted unanimously to recommend that the Board of Supervisors approve an allocation of $200, 000 from this fund to BRIDGE Housing Corporation for the Pinole Grove Senior Housing Project. As proposed, this project will provide 70 units of newly constructed multifamily rental housing affordable to lower income seniors in East County, including 36 units which will be affordable to households with incomes at/below 50 percent of area median income (AMI ) and 34 units which will be affordable from 50 to 60 percent AMI . The requested CDBG/HDAF funds will be used for site acquisition. If approved, the funds will be provided in the form of a residual receipts loan which will be forgivable in 31 years in exchange for an additional 19 years of maintained affordability. As indicated by the following financing sources, this project represents an opportunity for a partnership effort between the County and the City of Pinole, the nonprofit community, and the private sector: Permanent Loan/Private Source $1,670,000 City of Pinole Redevelopment Agency $ 900, 000 Low Income Housing Tax Credits $3,500, 000 Developer Equity/Loan (BRIDGE) $ 611, 000 Deferred Interest $ 33, 000 County CDBG/HDAF $ 200, 000 County HOME .Funds $ 200,000 Total Resources/Project Cost $7 , 114,000 On February 23, 1993, the Board of Supervisors approved an allocation of $150, 000 in FY 1992 HOME funds for the Pinole Grove Project. A recommendation for an additional allocation of $50,000 out of FY 1993 HOME funds is also before the Board of Supervisors on this Agenda. In addition, this project has also been approved for funding by the City of Pinole and the California Tax Credit Allocation Committee. BRIDGE is currently negotiating with two lenders for permanent financing. Following successful completion of the financing package, BRIDGE plans to acquire the site and initiate construction on this project in 1993, with completion and occupancy by June of 1995 . File: D1.11(e) (19.10) KH/k5/BRDG1