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HomeMy WebLinkAboutMINUTES - 12051995 - C30 17 Contra TO: BOARD OF SUPERVISORS ... ..: Costa Costa .J FROM: Harvey E. Bragdon T� cv�� County Director of Community Development DATE: December 5, 1995 SUBJECT: Allocation of CDBG Funds and Execution of Required Project Agreement and Loan Documents for the Idaho Apartments Project SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ( 1) APPROVE the allocation of up to $470,000 in FY 1995/96 Community Development Block Grant (CDBG) funds for the Idaho Apartments Affordable Housing Project sponsored by Rubicon Programs, Inc., in E1 Cerrito; and (2 ) AUTHORIZE the Deputy Director, Redevelopment, or his designee to execute .a CDBG Project Agreement and loan documents for this purpose. FISCAL IMPACT No General Funds are involved. Funds for this project will come from the FY 1995/96 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: J RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND N OFB RD COMMIT E APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON �¢r a.�.ls )99 S APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A -Z UNANIMOUS (ABSENTy ) 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_�tie.. 191S- cc: County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR Community Development Rubicon Programs via Comm. Dev. BY DEPUTY BACKGROUND/REASONS FOR RECOMMENDATIONS On February 14 , 1995, the Board of Supervisors approved the allocation of $622 ,550 in FY 1995/96 CDBG funds to the Housing Development Assistance Fund (HDAF) for use in funding affordable housing projects as they develop throughout the program year. Including carryover funds from prior year allocations, the current unobligated balance in the HDAF is $1, 051, 624 . On November 30, 1995, the Affordable Housing Finance Committee voted to recommend that the Board of Supervisors approve an allocation of up to $470,000 from the HDAF to Rubicon Programs, Inc . for the Idaho Apartments Affordable Housing Project. The purpose of this project is to improve affordable rental housing opportunities for very-low income households . Rubicon proposes to acquire and rehabilitate the Idaho Motel located in E1 Cerrito as a single-room occupancy (SRO) residence to provide permanent and affordable housing for homeless men and women. When complete, the project will include one two-bedroom manager' s unit and 28 SROs, including 10 reserved for individuals with HIV/AIDs . It is anticipated that all residents will have incomes well below 50 percent of the area median. Rents paid by residents will not exceed 30 percent of gross monthly income. Funds currently approved to support this project include: 29 SRO Moderate Rehabilitation Section 8 Certificates (valued at $1 . 7 mil . over 10 years) allocated by HUD to Rubicon to support project rents; and McKinney Act funds ( 3 years, $893,000) to provide support services to SRO occupants, including case management, job training, and independent living skills classes . In addition, the City of E1 Cerrito has approved a forward commitment of up to $300, 000 in City Redevelopment Agency funds to pay down project debt in year 10 of the project upon expiration of the Section 8 certificates, thus maintaining the feasibility of the project at proposed affordability levels . The total development cost for this project is $1, 978,867 or $68,237 per unit. If approved, CDBG funds will be used for site acquisition' and other eligible costs and provided in the form of a low-interest, 60-year residual receipt or deferred loan with occupancy and rent restrictions . Proposed funding sources include: FY 1995/96 County CDBG/HDAF $ 470,000 Contra Costa Housing Opportunity for People with AIDs Funds $ 130,000 Low-Income Housing Tax Credits (LIHTCs) $ 760,586 Low-Income Housing Fund (LIHF) Loan $ 550,000* Deferred Developer Fee $ 68,281 TOTAL $1,978,867 *$300,000 of this loan to be repaid in year 10 with City of E1 Cerrito RDA funds. Implementation of the Idaho Apartments Project is dependent on Rubicon' s success . in obtaining additional required financing, including a LIHF loan and an allocation of LIHTCs from the State. In order to be competitive for LIHTCs, Rubicon must have approval of local funding prior to the application deadline of December 11, 1995 . The Affordable Housing Finance Committee recommends approval of the requested County CDBG/HDAF funds to meet this requirement contingent on satisfaction of the following conditions : a. No later than January 1, 1996, Rubicon has entered into an option agreement to acquire the Idaho Motel at a price consistent with the appraised property value. b. Rubicon obtains firm rehabilitation budget estimates which do not exceed available project resources by May 1, 1996 . In the event that costs are less than anticipated, the amount of CDBG funds allocated to the project may be decreased. C. Rubicon successfully obtains all required financing, including approval of an allocation of LIHTCs and a loan from the LIHF or other private lender no later than June 1, 1996 . kh/kl2/BOSIdaho