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Home My WebLink AboutMINUTES - 10131998 - C63 cm TO: REDEVELOPMENT AGENCY FROM: Phil Batchelor Executive Director DATE: October 13, 1998 SUBJECT: Area 4, Pleasant Hill BART Station Area SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION REQQMMENDATIONS APPROVE and AUTHORIZE the Deputy Director - Redevelopment to execute an amended Redevelopment Agency commitment letter to BRIDGE Housing Corporation for future annual financial assistance payments related to affordable housing development (Coggins Square) at the Pleasant Hill BART Station Area. FISCAL IMPACT No General fund revenues are involved. The Redevelopment Agency will be providing for these additional revenues in FY 2025 to FY 2030. BACKGROUND/REASONS FQR RECOMMENDATIONS On February 24, 1998 the Redevelopment Agency approved execution of a commitment letter to BRIDGE Housing Corporation for future annual financial assistance payments (copy attached). The commitment was for 24 years, through the life of the Redevelopment project. To optimize the first deed of trust financing for this project BRIDGE has requested that the pledge be approved for an additional six years. Agency staff has analyzed its present and projected housing set-aside revenues. Given existing commitments, the Agency will have sufficient revenues to honor the commitment for the additional six years. Funds would come from the FY 2024 housing set-aside funds. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMM'ENDAT`ION OF EXECUTIVE DIRECTOR kECOMNf NDATION OF GENCY COMMITTEE X APPROVE OTHER SIGNATURES): ACTION OF AGENCY ON tom- t � APPROVED AS RECOMMENDED X VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT t } 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: Jim Kennedy 335-1255 ATTESTED 'Cd-G� �t� oriig: Redevelopment Agency cc: County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS Auditor-Controller AND COUNTY ADMINISTRATOR via Redevelopment BRIDGE Housing Corp. BY� � DEPUTY JK/dc wp6larea4.bos TTGG''t°'� / Contra TO: 0c1u Costa TO: BOARD OF SUPERVISORS/RED8914APl?h11:# � NCY r-+, ua FROM: Dennis M. Barry,AICD Community Development Director DATE: February 24, 1998 SUBJECT: Area 4, Pleasant Hill BART Station Area SPECIFIC REQUEST(S)OR RECOMMENDATIONS(S)S BACKGROUND AND JUSTIFICATION RECOMMENDATIQNS APPROVE and AUTHORIZE the Deputy Director - Redevelopment to execute a Redevelopment Agency commitment letter to BRIDGE Housing Corporation for future annual financial assistance payments related to affordable housing development(Coggins Square) at the Pleasant Hill BART Station Area;and As the Board of Supervisors, AUTHORIZE a contingent loan commitment to the Redevelopment Agency of up to $600,000 from Affordable Housing Trust Fund # 1576- 111300 as a back-up source of annual revenue should currently anticipated Redevelopment Agency set-aside revenues be insufficient; and AUTHORIZE the Director of Community Development or his designee to execute a Loan Agreement with the Contra Costa County Redevelopment Agency; and As the Governing Board of the Redevelopment Agency, APPROVE and AUTHORIZE the Deputy Director-Redevelopment to execute a Loan Agreement with the County of Contra Costa. CONTINUED ON ATTACHMENT: XXX YES SIGNATURE: _RECOMMENDATION OF COUNTY ADMINISTRATOR R C MMENDA ON OF BOARD/ COMMITTEE —APPROVE —OTHER j SIGNATURE(S): ACTION OF BOARD ON OA-P-4 -1428 APPROVER AS RECOMMENDED_6THER_ VOTE OF SUPERVISORS 1 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. Source:Jim Kennedy 335-1255 orifi: Redevelopment Agency ATTESTED 4 A4. 1219 cc: County Administrator PHIL BATCHELOR,CLOK OF County Counsel THE BOARD OF SUPERVISORS Auditor-Controller AND COUNTY ADMINISTRATOR via Redevelopment BRIDGE Housing Corp. r BY DEPUTY J10h waWares4bos FISCAL IMPACTNo General Fund revenues are involved. The Redevelopment Agency has sufficient revenues to cover the obligation in most circumstances. Contingent access to a loan of up to $600,000 of County Affordable Housing Trust funds provides the Agency with sufficient revenues under even the most stressful of conditions. The County loan funds are not General Fund revenue. C!C ROUND1RFA50NS FQR R COP;1kMENDATI NS In 1996 the Redevelopment Agency entered into a Disposition and Development Agreement with BRIDGE Housing Corporation, The Martin Group, and Holliday Development for the construction of a 140 unit residential complex on Area 4 in the Pleasant Hili BART Station Area. Area 4 is owned by the Redevelopment Agency. The project is to consist of 86 units of affordable rental housing-the BRIDGE portion-and 54 units of market rate townhouses. The preferred method for financing the BRIDGE portion of the development is to use a variety of public and private financing sources anchored by use of the federal Low Income Housing Tax Credits(9%). Other sources include County HOME and CDBG funds,federal Home Loan Bank funds,developer equity,development Agency land write-down,and a private bank loan. Securement of the 9%Tax Credits has proven to be problematic,as demand far exceeds supply. It is still the intent to fully pursue the 9%Tax Credits but, in the event they fail to materialize for this project,an alternative Plan of Finance has been developed that utilizes the issuance of tax exempt multi family mortgage revenue bonds by the County. Such bonds automatically include an allocation of Tax Credits,albeit at a reduced level of 4%(rather than 9%). An additional source of annual revenue is necessary in order to secure the mortgage. An assessment of the project's financial pro-forma indicates an annual pledge of Redevelopment Agency housing set-aside of$100,000/year for 24 years will achieve the desired results. Agency staff has analyzed its present and projected housing set-aside revenues. Given existing commitments and projections of new development(some of which is already under construction),the Agency will have sufficient revenues to honor the commitment. Under a scenario where some of the currently expected projects do not start construction, the Agency would not have sufficient housing set-aside for payment for a period of 5 years. At the and of this 5 year period,an existing obligation of the Agency terminates, permitting the Agency to easily mane the annual financial assistance payment to BRIDGE and to repay the County's Affordable Housing Trust Fund loan.