HomeMy WebLinkAboutMINUTES - 10201998 - C63 �L Contra
To: . ,
Costa
BOARD OF SUPERVISORS
K
FROM: Dennis M. Barry, AICP i ty
Director of Community Development
DATE: October 20, 1998
SUBJECT: Pinole First Time Homebuyer Program
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S)& BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
(1) AUTHORIZE the Deputy Director, Redevelopment or his designee to enter into a Community
Development Black Grant(CDBG)Project Agreement with the City of Pinole for a project to provide
affordable homeownership opportunities for very-low and low-income households in the City of Pinole;
(2) AUTHORIZE the Deputy Director, Redevelopment or his designee to enter into required loan
documents for this purpose;(3)reduce the project allocation from$300,000 to$200,000; and (4)transfer
the $100,000 no longer allocated to this project to the FY 1998/99 CDBG Dousing Development
Assistance Fund.
FISCAL IMPACT
No General Funds are involved. Funds for this project were approved from Contra Costa County's FY
1998/99 Community Development Block Grant allocation provided through the U.S. Department of
Housing and Urban Development(HUD).
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR REC NDATIONOF O"D COMMIT E
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON October 20 1998 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
.AYES: NOES: AND ENTERED ON THE MINUTES OF THE
ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE SHOWN.
Contact: Kara Douglas, 335-1253
cc: County Administrator ATTESTED October 20 1998
County Counsel PHIL BATCHELOR, CLERK OF THE BOARD
Auditor--Controller OF SUPERVISORS&COUNTY ADMINISTRA,TO
Community Development
BY ,DEPUTY
BACKGROUND/REASONS FOR.RECONIN ENDATIONS
On April 28, 1998 the Board of Supervisors approved an initial CDBG allocation($300,000)to
the City of Pinole for homeownership assistance to individuals acquiring homes in the City of
Pinole.
The purpose of the Pinole First Time Homebuyer Program is to provide affordable
homeownership opportunities for very-low and low-income households in the City of Pinole. The
City of Pinole will use CDBG funds to augment its existing first-time homebuyer program in order
to expand the total number of loans provided and increase program affordablility.
Participating households must be low and very-low income first time homebuyers and agree to
occupy the unit acquired as their principle place of residence. Very-low income households are
defined as households with income at or below 50 percent of the area median income(AMI); low-
income households have an income at/below 80 percent AMI. Participating homebuyers will be
required to obtain the maximum feasible first mortgage based on their income in order to
minimize the amount of CDBG and City RDA assistance required per household. Each loan will
consist of 50 percent City RDA funds and 50 percent County CDBG funds up to a maximum loan
amount of$30,000. Assistance will be provided in the form of a City and a County deferred
equity share loan due on sale or transfer of the property. The private lender firstmortgage will be
in first lien position, the County loan in second, and the RDA loan in third. All CDBG funds will
be used for loans; program administration/implementation costs will be paid by the City.
The initial CDBG allocation of$300,000 was recommended by the Affordable Housing Finance
Committee and approved by the Board of Supervisors contingent on the provision of an equal
amount of matching funds from the City of Pinole. The City RDA is contributing$200,000 in
funds matching$200,000 in County CDBG funds which will provide homebuyer assistance to
very-low and low income households. CDD staff recommends that the remaining $100,000 in
CDBG funds originally reserved for this project be reallocated to the FY 1998/99 CDBG Dousing
Development Assistance Fund for use in funding additional affordable housing projects during the
current program year.
KD C:\DATA\wP6i3\CDBG\1998\BD PNOLE.wPD