HomeMy WebLinkAboutMINUTES - 10121993 - 1.4 (3) Contra
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TO: BOARD OF SUPERVISORS " a
County
FROM: Harvey E. Bragdon r" C
Director of Community Development
DATE: October 12 , 1993
SUBJECT: CDBG and HOME Project Agreement and Loan Documents for the Alves Lane
Affordable Rental Housing Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
AUTHORIZE the Deputy Director, Redevelopment, or his designee to 1)
execute CDBG Project Agreement 19-02 with Resources for Community
Development, Inc. (RCD) to provide $70,000 in CDBG funds for a project
to develop affordable rental housing at 112 Alves Lane in Bay Point;
(2 ) execute HOME Project Agreement 92-6 with RCD to provide $440,000
in HOME funds for this same project; and ( 3) execute required loan
documents with RCD for this purpose.
FISCAL IMPACT
No General Funds are involved. Resources for this project will come
from FY 1993 Community Development Block Grant (CDBG) funds and FY
1992 HOME Investment Partnership Act (HOME) funds provided to the
County through the U.S. Department of Housing and Urban Development
CONTINUED ON ATTACHMENT: X YES SIGNATURE: ]
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF B6 RD COMMITTEE
APPROVE OTHER
. I
SIGNATURE(S) :
ACTION OF BOARD ON OCT APPROVED AS RECOMMENDED OTHER
VOTE - OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
VI'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 OCT 12 1993
cc : County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR
Community Development
BY DEPUTY
BACKGROUND/REASONS FOR RECOMMENDATIONS
On February 23, 1993, the Board of Supervisors approved the
allocation of $70,000 in FY 1993 CDBG funds and $440, 000 in HOME
funds to Resources for Community Development, Inc. , to develop 14
units of newly constructed rental housing at 112 Alves Lane in Bay
Point. A nonprofit housing development corporation, RCD will
develop, own and manage the Alves Lane Project. Construction is
anticipated to begin in the spring of 1994 and be completed in 12
months . All units in the project will be affordable to and
occupied by lower income households with incomes at or below 60
percent of area median income (AMI ) , including a minimum of 3 units
affordable to households at or below 50 percent AMI . Six units
will be designated as HOME-assisted units and will be required to
be consistent with federal and County HOME requirements concerning
occupancy and rent. The project includes two and three bedroom
units and, therefore, will help to alleviate the need for
affordable rental housing for families in East County. In addition
to developing much needed affordable housing, this project will
eliminate an existing condition of neighborhood blight by removing
12 existing structures which are in a severely dilapidated
condition, including four which are boarded up and scheduled for
demolition. Current residents will be temporarily relocated and
provided with an opportunity to return when the new units are
completed.
The Alves Lane Project will receive financing from the following
sources :
FY 1992 HOME $440,000
FY 1993 CDBG $ 70, 000
Contra Costa County Redevelopment
Agency $440, 000
First Nationwide Affordable
Housing Program $ 91,000.
First Nationwide Permanent Loan $305,000
Developer Loan $102 ,000
Low Income Housing Tax Credits $793,791
TOTAL Resources/Cost $2,241, 791
The County CDBG funds will be used to cover a portion of the site
acquisition costs, while HOME funds will be used for development
and construction. The County funds will be provided to RCD in the
form of a 55-year deferred loan with interest equal to the
applicable federal funds rate. Assuming project affordability is
maintained throughout the loan period, the loan will be forgivable
at the end of 55 years .
File D1.,10(h) (1.6)
D1.11(e) (19.2)
kh/k5/BDRCDI