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TO: BOARD OF SUPERVISORS Coin
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FROM: Harvey E. Bragdon
Director of Community Development
DATE: November 7, 1995
SUBJECT: HOME Project Agreement and Loan Documents for the Sierra Garden Apartments
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
AUTHORIZE the Deputy Director-Redevelopment, or his designee, to: (1) execute a HOME Project
Agreement with Affordable Housing Associates (AHA)to provide $488,000 in FY 1995 HOME funds
for the acquisition and maintenance of 24 units of affordable multifamily rental housing in Walnut Creek;
and (2) execute required loan documents for this purpose.
FISCAL IMPACT
No general funds are involved. HOME funds are provided to the County through the U.S. Department
of Housing and Urban Development via formula allocation.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
_RECOMMENDATION OF COUNTY ADMINISTRATOR_RECOM ATION OF ARD COMMITT
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED*Z 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
cc: County Administrator PH BATCHELO , CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller(N. Garnett) AND COUNTY ADMINISTRATOR
Community Development
HOME Consortium Members BY _,DEPUTY
BACKGROUND/REASONS FOR RECOMMENDATIONS
On October 3, 1995, the Board of Supervisors approved an allocation of$488,000 in FY 1995
Consortium HOME funds to Affordable Housing Associates (AHA) for the acquisition and
rehabilitation of 29 multifamily rental housing units in the City of Walnut Creek. These one and two-
bedroom apartments and townhomes are currently occupied by very-low, low, and moderate income
households. HOME funds will be used for acquisition and to maintain the affordability of 10 of the
units at low income levels (the HOME-assisted units). City resources and private lender financing
will be used to rehabilitate the units, including improvements required to bring four units into
conformance with City and federal building code requirements. When complete, the project will
provide 24 affordable rental housing units, including 10 affordable to and occupied by households
with incomes at or below 50 percent AMI and 14 units affordable to and occupied by households with
incomes at or below 60 percent AMI.
The total cost of this project is: $2,335,536. The development budget and sources of funds for this
project are:
Source Amount
Walnut Creek RDA $ 758,342
Conventional Loan $1,074,174
Sponsor investment $ 15,000
FY 95 HOME funds $ 488,000
TOTAL $2,335,536
Use Amount
Acquisition $1,616,055
Construction/Rehab $ 526,176
Permanent Financing $ 27,483
Developer Fee $ 129,322
Indirect ,soft costs) $ 36,832
TOTAL $2,335,536
HOME funds provided to AHA for this project are provided in the form of a low-interest residual
receipts loan with a minimum 55-year term. Affordability and use restrictions will be recorded against
the property and will apply through the loan term. Completion of this project will contribute
substantially to the County's efforts to provide affordable multifamily housing throughout the County.
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