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