HomeMy WebLinkAboutMINUTES - 10221996 - C41 ^' C, �L/
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TO: BOARD OF SUPERVISORS •/ ` _ - Costa
,...
FROM: Harvey E. Bragdon J� County
Director of Community Development
DATE: October 22, 1996
SUBJECT: Allocation of HOME Funds and Execution of Required Project Agreement
and Loan Documents for the Terrace Glen Apartments Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
( 1) APPROVE the allocation of $615, 000 in FY 1996/97 HOME Investment
Partnership Act (HOME) funds to Resources for Community Development
and Bell Investment Group for the Terrace Glen Apartments Project in
Antioch; and ( 2 ) AUTHORIZE the Deputy Director, Redevelopment, or his
designee to execute a HOME Project Agreement and loan documents for
this purpose.
FISCAL IMPACT
No General Funds are involved. Funds for this project will come from
the FY 1996/97 HOME Housing Development Assistance Fund. HOME funds
are provided to the Contra Costa Consortium through the U.S .
Department of Housing and Urban Development.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:/
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT O F BOAND COMMITTFt
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON LICR 22 1996 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 _
335-1257 ATTESTED2 Jq
cc: County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR
Community Development
RCD/BIG and City of Antioch BY Alli, �, DEPUTY
via Community Developmt.
/v ell
BACKGROUND/REASONS FOR RECOMMENDATIONS
On March 12 , 1996 , the Board of Supervisors approved the allocation
of $568,555 to the FY 1996/97 HOME Housing Development Assistance
Fund (HOME/HDAF) for use in funding affordable housing projects as
they develop during the program year. Including carryovers from
prior year allocations, the current balance of the HOME/HDAF is
$1,261, 385 .
On October 1, 1996, the Affordable Housing Finance Committee (AHFC)
voted to recommend that the Board of Supervisors approve an
allocation of $615, 000 in FY 1996/97 HOME/HDAF funds to Resources
for Community Development and Bell Investment Group (RCD/BIG) for
the Terrace Glen Apartments Project. The purpose of this project
is to increase and maintain the supply of multifamily rental
housing affordable to lower-income households and assist in the
revitalization of the Antioch Redevelopment Area. The project
consists of 32 one, two and three-bedroom apartments in nine four-
plex properties located at 25 to 107 West 20th Street (one four-
plex to be demolished) . As proposed, 16 of the 32 apartments will
be HOME-assisted, including four units to be affordable to and
occupied by extremely low-income households, and 12 units
affordable to/occupied by very-low income households . The HOME-
assisted units will remain affordable for 55 years . All remaining
units ( 16 ) will be affordable to households with incomes at/below
60 percent of the area median income for 15 years in accordance
with City of Antioch requirements . The project will be developed,
owned and operated by a limited partnership formed by RCD/BIG.
The total development cost for this project is $2 ,543,500 or
$79, 484 per unit. If approved, HOME funds will be used for
acquisition, rehabilitation, and related soft costs . The HOME
funds will be provided in the form of a residual receipts loan with
the following terms : 3 percent simple interest; 55-year term. The
HOME loan will be subordinate only to a first mortgage loan from a
private lender.
Proposed funding sources for the Terrace Glen Project include the
following:
Contra Costa Consortium HOME/HDAF funds $ 615, 000
Antioch CDBG funds $ 850,000 approved
Antioch Redevelopment Agency Funds $ 150,000 approved
FHLB Affordable Housing Program $ 144 ,000
Private lender financing $ 784 ,500
TOTAL $2,543,500
The City of Antioch is strongly supportive of this project as
indicated by approval of $1 mil . in City Community Development
Block Grant and Redevelopment Agency funds for this purpose. As
proposed, the required 25 percent match for HOME funds will be
provided through a combination of the FHLB Affordable Housing
Program funds, a property tax waiver, and a below-market interest
rate loan from the City.
The AHFC recommends Board approval of $615, 000 in FY 1996/97
HOME/HDAF funds for this project contingent on the following
requirements :
1 . provision of 16 HOME-assisted units, including a minimum of
four units affordable to/occupied by extremely low-income
households and 12 units affordable to/occupied by very-low
income households for a minimum of 55 years;
2 . creation of a limited partnership to develop, own and manage
the Terrace Glen Apartments (partnership agreement and
structure to be approved in advance by County) ;
3 . provision of minimum required matching funds prior to June 1,
1997 ;
4 . provision of an appraisal which supports the proposed
acquisition price;
5 . approval of all financing required to complete the project;
6 . County loan to be subordinate only to a first mortgage loan
from a private lending institution (bank or savings and loan) .
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