HomeMy WebLinkAboutMINUTES - 11031998 - C115 ''I''..''.-..............................................................
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TO: BOARD OF SUPERVISORS
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FROM: Dennis M. Barry, AICD
Community Development Director
DATE: November 3, 1998
SUBJECT: Allocation of FY 1998/99 HOME Housing Development Assistance Funds
and Execution of Required Legal Documents for the Hercules Senior
Housing Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
( 1) APPROVE the allocation of $135,000 in FY 1998/99 HOME Investment
Partnership Act (HOME) funds to BRIDGE Housing Corporation for the
Hercules Senior Housing 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 HOME Housing Development Assistance Fund (HOME/HDAF) . HOME
funds are provided to the County through the U.S. Department of
Housing and Urban Development (HUD) .
BACKGROUNDIREASONS FORRECOMMENDATIONS
On April 28, 1998, the Board of Supervisors approved the allocation
of $813,000 to the FY 1998/99 HOME/HDAF for use in funding affo 1 ble
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTYI ADMINISTRATOR RECOMMENDATI F BOA70MMITTE
APPROVE OTHER
7\1
SIGNATURE(S) ://�2
ACTION OF BO RD ON November 3, 1998 APPROVED AS RECOMMENDED XX OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
,xx. 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 ATTESTED November 3. 1998
cc: County Administrator -PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller AND QOUNTY ADMINISTRATOR
Community Development
BRIDGE via Comm. Developmt. DEPUTY
housing projects as they develop during the program year.
Including prior year carryover and reallocated funds, the current
balance of the HOME/HDAF is $1, 165,046 . On October l8, 1998, the
Affordable Housing Finance Committee (AHFC) voted unanimously to
recommend that the Board of Supervisors approve an allocation of
$135,000 in HOME/HDAF funds to BRIDGE Housing Corporation for the
Hercules Senior Housing Project. Approval of the requested funds
will leave the FY 1998/99 HOME/HDAF with a remaining balance of
$1,030,046 .
The purpose of the Hercules Project is to increase the supply of
rental housing affordable to very-low income seniors in West County
through the new construction of 60 apartments on a currently vacant
site in the Dynamite Redevelopment Area at the end of Civic Drive
in Hercules. All apartments will be affordable to very-low income
senior households ( incomes at or below 50 percent of the area
median income or AMI) . Eleven units will be designated as HOME-
assisted, including four units which must be affordable to
households with incomes at or below 40 percent AMI . All apartments
will be required to remain affordable to the target population for
a minimum of 45 years. The project will be developed by BRIDGE and
owned by Hercules Senior Housing Associates, a limited partnership
with BRIDGE as the initial general partner and Hercules Senior
Housing, Inc. as the limited partner. Hercules Senior Housing,
Inc. is a nonprofit affiliate of BRIDGE.
This project was previously approved by the Board of Supervisors
for $490,000 in HOME funds during the FY 1997/98 funding cycle.
Since that time, BRIDGE has worked to finalize the project design
and construction plans, obtain all required planning approvals and
permits, and obtain the financing required to successfully complete
this project. As originally approved, project development costs
totaled $6.9 million. In the 16 months since that approval,
development costs have increased by $1 .5 million due to a
combination of unforeseen site conditions, design changes required
by the permanent lenders, and the recent general escalation in Bay
Area construction costs . BRIDGE has worked to close the funding
gap through design changes, increased funding from other sources
totaling just under $950,000, and an equity contribution from the
proposed developer fee. The net result of these 'actions is a
remaining financing gap of $135,000. BRIDGE has requested
additional HOME funds to fill the gap and permit the project to
proceed.
As previously stated, the total development cost of this project is
just under $8.2 million or $135, 890 per unit. Permanent financing
sources include.
Requested FY 1998/99 HOME/HDAF $ 135,000
FY 1997/98 HOME funds $ 490,000
City of Hercules Redevelopment Agency (RDA) $1,515,000
California Housing Finance Agency (CHFA) $3,520,000
FHLB Affordable Housing Program $ ' 210,000
Low-Income Housing Tax Credit investment $2,087,644
General Partner Equity Investment (BRIDGE) $ ' 445,441
TOTAL $8, 153,085
All sources of financing are approved with the exception of the
additional requested HOME/HDAF funds. If approved, the funds will
be provided to the project in the form of an addition to the
County's existing residual receipts loan for the FY 1997/98 HOME
funds . The County loan will continue to be subordinate to the CHFA
loan and in coequal lien position with the City RDA loan.
Affordability and use restrictions are incorporated in the County
loan documents.
kkh/k28/H0SHerc