HomeMy WebLinkAboutMINUTES - 12131994 - 1.82 r Contra
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TO: BOARD OF SUPERVISORS County
J ��JJ
FROM: Harvey E. Bragdon
Director of Community Development
DATE: December 13, 1994
SUBJECT: CDBG Project Agreement and Loan Documents for the Emerson Arms
Apartment Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
( 1) APPROVE the allocation of $65,000 in FY 1994/95 Community
Development Block Grant (CDBG) Housing Development Assistance Funds
for the Emerson Arms Apartment Project sponsored by Eden Housing,
Inc. , in Martinez; and (2) AUTHORIZE the Deputy Director,
Redevelopment or his designee to execute a CDBG Project Agreement and
required loan documents for this purpose.
FISCAL IMPACT
No General Funds are involved. Funds for this project will come from
the FY 1994/95 CDBG Housing Development Assistance Fund. CDBG funds
are provided to the County through the U.S.- Department of Housing and
Urban Development (HUD) .
CONTINUED ON ATTACHMENT: X YES SIGNATURE: �? Y
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND IdN OF BO RD COMMIT E
APPROVE OTHER
i
SIGNATURE(S) :
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
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 0 E C 13 1994
cc: County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR
Community Development
Eden Housing via Community BY � . 0 DEPUTY
Development
BACKGROUND/REASONS FOR RECOMMENDATIONS
On February 15, 1994 , the Board of Supervisors approved the
allocation of $455, 100 in FY 1994/95 CDBG funds to the Housing
Development Assistance Fund (HDAF) for use in funding affordable
housing projects as they develop throughout the program year. The
current unobligated balance in the HDAF is $269 ,574 .
On November 2 , 1994, the Housing and Community Development Advisory
Committee voted to recommend that the Board of Supervisors approve
an allocation of $65, 000 from the HDAF to Eden Housing, Inc. , for
the Emerson Arms Apartment Project. The purpose of this project is
to preserve 32 units of multifamily rental housing affordable to
and occupied by very-low and low-income households in Central
County. The project is located at 317 Green Street in Martinez .
Construction of the Emerson Arms Apartments was originally financed
with federal loans in exchange for 20-year affordability
restrictions . The affordability restrictions are due to expire,
permitting the owner to pay off the mortgage and convert the units
to market rate. In order to prevent the loss of these affordable
units, Eden Housing proposes to acquire and rehabilitate the
Emerson Arms Apartments using Low-Income Housing Preservation and
Resident Homeownership Act (LIHPRHA) funds provided through HUD.
HUD has approved a Technical Assistance Grant under the LIHPHRA
Program to permit Eden to develop the required applications and
plan of action. Final approval of Eden' s application by HUD is
anticipated in February 1995 . In order to receive final approval,
Eden must have local matching funds currently estimated at $65,000
and has requested CDBG for this purpose. Assuming approval, Eden
will acquire the apartments in March of 1995 and complete the
rehabilitation in July. Successful completion of this project will
result in the preservation of 32 units of one and two-bedroom
apartments affordable to and occupied by very-low and low-income
households for a minimum of 50 additional years . Current occupants
are all very-low and low-income and will, therefore, qualify for
continued residence.
Resources required for this project include the following:
HUD Section 236 Mortgage $ 474 , 956
HUD LIHPRHA Funds $1, 395,000
HUD Technical Assistance Grant $ 120, 673
County CDBG/HDAF $ 65,000
TOTAL COST $2 , 041,834
A maximum allocation of $65,000 in CDBG/HDAF funds is recommended
contingent on final approval of the HUD LIHPRHA funds and
determination of the total match required. If approved, the
CDBG/HDAF funds will be used for acquisition and provided in the
form of a loan with affordability restrictions .
Approval of funds for this project will leave a balance of $204,574
in the FY 1994/95 CDBG/HDAF.
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