HomeMy WebLinkAboutMINUTES - 10221996 - C65 Contra
TO: REDEVELOPMENT AGENCY Costa
FROM: Phil Batchelor J ""u' "y
Executive Director
DATE: October 22, 1996
SUBJECT: First Amended and Restated Development Loan Agreement - Parkway Estates Housing Project,
North Richmond
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE and AUTHORIZE the Deputy Director-Redevelopment to execute a First Amended and
Restated Development Loan Agreement with the Community Housing Development Corporation of
North Richmond and Oakland Community Housing Inc. for an affordable housing project in the North
Richmond Redevelopment Project Area.
FISCAL IMPACT
No impact on the General Fund. The total new loan amount is $733,000, of which $415,000 has been
previously approved and allocated. The remaining $318,000 would be made from the housing set-aside
portion of bond proceeds and tax increments. This appropriation will be provided for in the Agency's
1996-97 adopted budget.
BACKGROUND/REASONS FOR RECOMMENDATIONS
A major goal of the North Richmond Redevelopment Plan is to improve and expand the supply of
affordable housing in the Project Area. The Parkway Estates project is a first crucial step in achieving
this goal and revitalizing the residential area of the community. The North Richmond Municipal
Advisory Council has been a strong supporter of and has allocated redevelopment tax increment funds
CONTINUED ON ATTACHMENT: _YES SIGNATURE:
RECOMMENDATION OF EXECUTIVE DIRECTOR COM DATION OF GENCY
COMMITTEE
APPROVE OTHER
SIGNATURE(S): t.
ACTION OF
AGENCY ON OCT 2 2 1999 APPROVED AS RECOMMENDED OTHER_
VOTE OF COMMISSIONERS
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 REDEVELOPMENT
AGENCY ON THE DATE SHOWN.
Contact: Beth Lee OCT 2 �99�
335-1256 ATTESTED
orig: Redevelopment Agency PHIL BATCHELOR,
cc: Community Development AGENCY SECRETARY
Redevelopment Agency
Auditor-Controller
via Redevelopment
OCHI
CHDC BY , DEPUTY
to this project for the past four years. The North Richmond Municipal Advisory Council has reviewed
and voted to increase financial support to this project.
Community Housing Development Corporation (CHDC) of North Richmond and Oakland
Community Housing Inc. (OCHI) are nonprofit housing development corporations interested in
constructing quality for-sale single family homes in the North Richmond Redevelopment Project
Area. They have identified a parcel at 217 W. Gertrude Avenue as an appropriate site. They will
construct 87 for-sale single family homes on the approximate 10 acre site.
CHDC and OCHI are leveraging the Redevelopment allocation with funds from a variety of sources.
They have applied for, and received, funding from the Community Development Block Grant
(CDBG) and HOME Investment Partnership programs. They have identified a financial institution
for the construction financing. They are working with several lenders to provide favorable permanent .
financing under their Community Reinvestment Act programs.
CHDC and OCHI are finalizing the site plans and map for the development. Cost estimates show that
construction, material and development fee costs have risen and an approximate $775,000 is needed
to complete the project. CHDC and OCHI have applied for, and received, additional funds from the
HOME Investment Partnership program. They have also requested, and received, funds from the City
of Richmond to pay for project-related improvements (i.e., the sound wall and Gertrude Avenue)
located within the City's boundaries. In addition, CHDC and OCHI have requested that the
Redevelopment Agency provide an additional $318,000 necessary to complete the predevelopment
work and begin construction of the project. Without Agency assistance the project would be
significantly delayed which could result in higher costs and jeopardize other funding needed to
maintain project affordability.
The redevelopment funds will be structured as a loan, secured by a promissory note and deed of trust
against the land and planned improvements. A majority of the loan will be forgiven upon the sale of
the lower income units to qualified lower income homebuyers.
Staff analyses indicate that the potential benefits to the Project Area from the project are significant:
1. The construction of new affordable housing will assist the Agency/County in meeting
its affordable housing requirements;
2. Providing affordable for-sale single family homes will further stabilize the North
Richmond community; and
3. CHDC and OCHI will also enter into an agreement to hire North Richmond residents
for new jobs created during construction.
C:b117park\dalamend.bos