HomeMy WebLinkAboutMINUTES - 02272001 - C.93 �, �• 99
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TO: BOARD OF SUPERVISORS
Contra
AICP Costa
FROM: Dennis M. Barry,
�, p County
Community Development Director ^�;:;:. �.�;J
IUVN
DATE: February 27, 2001
SUBJECT: Execution of Required Legal Documents for the Tice Oaks Affordable Housing Project in
Walnut Creek
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
AUTHORIZE the Deputy Director,Redevelopment or his designee to(1)enter into HOME Investment
Partnership Act (HOME) Program Agreement HM 00-03 with Mid-Peninsula Housing Coalition to
provide$600,000 in HOME funds for the Tice Oaks Affordable Housing Project in Walnut Creek and
(2)execute required legal documents with MP Tice Oaks Associates to acquire and develop the project.
FISCAL IMPACT
No General Fund impact.HOME funds are provided to the County on an annual allocation basis through
the U.S. Department of Housing and Urban Development.
BACKGROUND/REASONS FOR RECOMMENDATIONS
On April 25,2000,the Board of Supervisors approved the allocation of$600,000 in FY 2000/01 HOME
Funds to Mid-Peninsula Housing Coalition(MPHC) for the Tice Oaks Apartment Project.The purpose
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
_ ECOMMENDATION OF COUNTY ADMINISTRATOR_ ECO ENDATION OF 11600ARD
COMMITTEE
,/APPROVE OTHER
SIGNATURE(S):
ACTION OF BO ON _/� ,-77 ,1ae/ APPROVED AS RECOMMENDED OTHER—
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT 2i 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 (925) 335-1257 ATTESTED '
Orig/cc: Community Development Dept. PHIL BAT LOW, CLERK OF
cc: County Administrator THE BOARD OF SUPERVISORS
County Counsel A_ND ADMINISTRATOR
MPHC via CDD BY �r c/ , DEPUTY
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of this project is to improve and maintain the supply of rental housing affordable to and occupied by
lower-income senior households through the acquisition and rehabilitation of an existing 91-unit
apartment complex located at 2150 Tice Valley Boulevard in Walnut Creek. The project will be owned
and operated by MP Tice Oaks Associates, a California limited partnership formed for purposes of the
project financing. The partnership will be composed of MP Preservation, Inc. (a non-profit affiliate of
MPHC) as the general partner and MPHC as the initial limited partner. The MPHC Board will serve as
the Board of the affiliate.Following syndication of Low-Income Housing Tax Credits(LIHTCs)needed
to partially finance the project, the tax-credit investor will replace MPHC as the limited partner.
Originally developed under the project-based component of the Section 8 Program, Tice Oaks is a
candidate for conversion to market rate apartments when its current Section 8 contract expires in 2011.
In addition to the potential for conversion by the current project owner,federal policy with respect to the
long-term preservation of housing funded through Section 8 and other programs is uncertain.
Acquisition by MPHC will ensure that the Tice Oaks Apartments remain in the County's affordable
housing stock over the long term.
As proposed, MPHC is committed to maintaining a relatively deep level of affordability at Tice Oaks.
At a minimum:
0 32 apartments will be required to be affordable to and occupied by extremely-low income
households (incomes at/below 30 percent of the area median income or AMI);
• 36 apartments will be required to be affordable to/occupied by very-low income households
(incomes at/below 50 percent AMI); and
• 22 apartments will be affordable to/occupied by households with incomes at or below 60 percent
of the AMI.
In addition to the above,one apartment will be reserved for the onsite manager. Eleven of the extremely-
.low income units will be designated as County-assisted and required to remain affordable in accordance
with federal regulations for the HOME Program for a minimum of 55 years. All remaining units will be
required to be affordable at the specified levels in accordance with the requirements of other funding
sources for a minimum of 55 years as well.
The total development cost of this project is$9.9 million or$108,358 per unit. All funding sources have
been approved and include the following:
$ 600,000 Contra Costa HOME funds
$ 604,000 City of Walnut Creek
$2,595,000 CHFA Tax-Exempt Bond Loan A
$2,540,000 CHFA Tax-Exempt Bond Loan B
$2,042,134 Low-Income Housing Tax Credits (4%)
$1,027,500 Accumulated Replacement Reserves
$ 451,914 General Partner Equity
$9,860,548 TOTAL COST
County HOME funds will be used to assist in the acquisition of the project and provided in the form of a
residual receipts loan in co-equal lien position with the City loan and subordinate to the CHFA
financing. Loan terms include a minimum three percent simple interest rate and a 55-year term.
Occupancy and affordability restrictions will be incorporated into the County loan documents.
k kh/w/word/B O S H S-00-03