HomeMy WebLinkAboutMINUTES - 12031996 - C98 rev
�L Contra
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TO: BOARD OF SUPERVISORS Costa
FROM: Harvey E. Bragdon � Courly
Director of Community Development
DATE: December 3, 1996
SUBJECT: Request for Approval of Sale and Allocation of Repayment of CDBG
Funds to FY 1996/97 CDBG Program Administration
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
( 1) AUTHORIZE the Deputy Director - Redevelopment to take necessary
steps to remove a Deed of Development Rights on property located at
405-411 East Santa Fe Avenue, Pittsburg, as part of sale of said
property by Housing for Independent People, Inc . (2 ) APPROVE sale of
said property; and (3) DIRECT that Community Development Block Grant
(CDBG) funds repaid through this sale be allocated to FY 1996/97 CDBG
Program Administration.
FISCAL IMPACT
No General Fund impact. CDBG funds are provided to the County by the
U. S . Department of Housing and Urban Development.
BACKGROUND/REASONS FOR RECOMMENDATIONS
In 1989, Housing for Independent People, Inc . (HIP) received $34 , 000
in County Community Development Block Grant affordable housing fufids
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND IO OF BO D COMMITTEE
APPROVE OTHER
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 K. Hamm DEC
335-1257 ATTESTED
cc: County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR
Community Development
Housing for Independent People BY , DEPUTY
via Community Developmt.
to acquire a four-plex located at 405-411 East Santa Fe Avenue in
Pittsburg. In exchange for this assistance, the County recorded a
Deed of Development Rights (DDR) against the property which
requires that it be used to provide affordable rental housing for
low-income mentally disabled persons in perpetuity. The DDR also
provides the County with the right to approve any future sale of
the property and, assuming approval, to receive a prorata share of
the net sales proceeds (sales price less closing costs) . The
County' s prorata share is defined as the County's CDBG contribution
divided by the original cost of acquisition and rehabilitation.
Based on a total cost of $190, 798, the County' s prorata share of
net sales proceeds would be 17 . 8 percent.
Although originally successful, in recent years HIP has encountered
substantial financial difficulties as an organization which have
resulted in its inability to continue to operate the East Santa Fe
property as affordable housing. Two units in the property are
currently rented to low-income households and two are vacant. HIP
now desires to sell the East Santa Fe property and has entered into
an option agreement with a private developer. As a condition of
sale, the developer has requested removal of the County DDR. HIP
has therefore requested the County's approval of the sale of the
East Santa Fe property and reconveyance of the County DDR in
exchange for the County's prorata share of net sales proceeds .
Based on a sales price of $95,000 and closing costs estimated at
$6, 109 , this would result in repayment to the County, of $15, 840 in
CDBG funds . As proposed, all CDBG funds repaid would be allocated
to FY 1996/97 CDBG Program Administration to cover housing loan
documentation costs and other program expenditures .
kh/k14/HIP3