HomeMy WebLinkAboutMINUTES - 11031998 - C114 •. Contra
TO: BOARD OF SUPERVISORS Costa
FROM: Dennis M. Barry, AICP CouriLy
Community Development Director
DATE: November 3, 1998
SUBJECT: Allocation of FY 1998/99 CDBG Housing Development Assistance Funds
and Execution. of Required Legal Documents for the Hookston Manor
Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
( 1) APPROVE the allocation of $500,000 in FY 1998/99 Community
Development Block Grant (CDBG) funds to Affordable Housing Associates
for the Hookston Manor Project and (2) AUTHORIZE the Deputy Director,
Redevelopment or his designee to enter into required 'legal documents
for this purpose.
FISCAL IMPACT
No General Fund impact. Funds for this project will come from the FY
1998/99 CDBG Housing Development Assistance Fund (CDBG/HDAF) . CDBG
funds are provided to the County through the U.S. Departmen of
Housing and Urban Development (HUD) . 1
CONTINUED ON ATTACHMENT: X YES SIGNATURE: it
XRECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND ICS OF BOX D COMMITT E
T_ APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON November 3,,_1998 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
JULUNANIMOUS (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 ATTESTED N v�mbe 3, 1998
cc: County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE B ARD OF SUPERVISORS
Auditor-Controller AND TY ADMINISTRATOR
Community Development WA
AHA via Comm. Developmt, BY , DEPUTY
BACKGROUND/REASONS FOR RECOMMENDATIONS
On April 28, 1998, the Board of Supervisors approved the allocation
of $660,500 to the FY 1998/99 CDBG/HDAF for use in funding
affordable housing projects as they develop during; the program
year. Including prior year carryover and reallocated funds, the
current balance of the CDBG/HDAF is $1,342,874. On October 8,
1998, the Affordable Housing Finance Committee (AHFC) voted to
recommend that the Board of Supervisors approve an allocation of
$500,000 in CDBG/'HDAF funds to Affordable Housing Associates (AHA)
for the Hookston Manor Project. The Committee further recommended
that funds be contingent on approval of all remaining financing
required to complete the project and provision of the County funds
in the form of a residual receipts loan. Approval of the requested
funds will leave the FY 1998/99 CDBG/HDAF with a remaining balance
of $842,874 .
The purpose of the Hookston Manor Project is to increase and
maintain the supply of affordable housing for low-income senior
households through the acquisition and rehabilitation of 100 senior
apartments located at 80 West Hookston Road in Pleasant Hill. All
apartments will be affordable for a minimum of 55 years, including
10 units for extremely-low income households ( incomes at or below
30 percent of the area median income or AMI) , 50 for very-low
income households ( incomes at/below 50 percent AMI )'„ and 40 for
households with incomes at/below 60 percent AMI . Previous
affordability restrictions on the apartments have lapsed and the
project is currently suffering from deferred maintenance.
Acquisition and rehabilitation of the apartments by AHA will serve
to maintain existing affordable housing for very-low income seniors
in the Central County area.
The total development cost for this project is $8 .8 million or
$88,820 per unit. Sources of permanent financing include.
Requested FY 1998/99 CDBG/HDAF $ 500,000
Pleasant Hill Redevelopment Agency $ 500,000
Tax-exempt bond financing (California $4,250,000
Housing Finance Agency)
FHLB Affordable Housing Program $ , 450,000
Low-Income Housing Tax Credits $2, 521,644
Deferred Developer Fee $ ' 272,516
Net Operating Income/Cash Contribution $ 326,038
TOTAL $8,820, 198
If funding for the Hookston Manor Project is approved,
affordability and use restrictions will be incorporated into County
loan documents with AHA and recorded against the property.