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Home My WebLink AboutMINUTES - 12172002 - C.133 TO BOARD OF SUPERVISORS ° Centra Costa FROM: Dennis M. Barry, AICD 7L` County Community Development Director . 133 DATE: December 17, 2002 SUBJECT: Allocation of FY 2002/03 HOME Housing Development Assistance Funds and Execution of Required Legal Documents for the Brentwood Senior II (Sycamore Place II) Project. SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS (1) Approve the allocation of$130,700 in FY 2002/03 HOME Investment Partnerships Program (HOME)/Housing Development Assistance Funds (HDAF)to Christian Church Homes for the Brentwood Senior 11 (Sycamore Place I1)project in Brentwood and (2) AUTHORIZE the Deputy Director, Redevelopment or his designee to enter into the required legal documents for this purpose. FISCAL IMPACT No General Fund impact. Funds for this project will come from FY 2002/03 HOME funds. HOME funds are provided to the County on a formula allocation basis, through the U.S. Department of Housing and Urban Development (HUD). CONTINUED ON ATTACHMENT: X YES SIGNATURE: .,-RECOMMENDATION OF COUNTY ADMINISTRATOR_KE00MMENI)ZATITI N OF BOAR COMMITTEE f --APPROVE OTHER SIGNATURE(S)., . _ 1. ACTION OF BOARD O'N, 17, 2002 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X 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: Kara Douglas, 335-1253 ATTESTED DBMM 17, 2002 Orig: Community Development JOHN SWEETEN, CLERK cc: County Administrator OF THE BOARD OF SUPERVISORS County Counsel AND COUNTY ADMINISTRATOR Auditor-Controller BY s� _ y t, , DEPUTY BACKGROUND/REASONS FOR RECOMMENDATIONS On May 8,2001,the Board of Supervisors approved the allocation of$454,699 in HOME funds to Christian Church Homes (CCH) to develop the Brentwood Senior H (Sycamore Place 11) Project. On December 3, 2002, the Affordable Housing Finance Committee voted to recommend that the Board approve an additional$130,700 in FY 2002/03 HOME/HDAF to Christian Church Homes for this project. If this request is approved,the total amount of HOME funds allocated to this project will be $585,399. The current balance of the HOME/HDAF is $1,448,856. The Affordable Housing Finance Committee also recommended up to$648,000 in HOME/HDAF funds for the Bay View Community in Bay Point. This project is under consideration as a separate item on the December 17, 2002 consent calendar.Assuming approval of both projects,the FY 2002/03 HOME/HDAF will have a remaining balance of$620,156. The purpose of the Brentwood Senior II(Sycamore Place 11) project is to provide 40 units of multifamily rental housing affordable to and occupied by very-low income seniors in Brentwood and East County. The project consists of 39 one-bedroom units and I two-bedroom manager's unit on a soon to be vacant site in Brentwood. The site is immediately adjacent to Sycamore Place, a 40-unit senior development managed by CCH, and close to shopping and services. The 39 one-bedroom units will be affordable to and occupied by extremely low and very-low income seniors. Through its experience with other senior projects funded with HUD Section 202 Housing for the Elderly(Section 202) funds, CCH anticipates the majority of tenants will be extremely low- income tenants. All units will remain affordable through recorded regulatory agreements for at least 55 years, however, CCH has as its mission to keep the units affordable in perpetuity. Due to a financing gap of$625,960 resulting from a substantial increase in construction costs, higher land acquisition costs, and a smaller reduction in total cost of local permits and fees, the project has been delayed. CCH has been able to substantially reduce the overall gap by securing firm local permit and fee reductions totaling $113,322, which partially offsets the reduction in the originally anticipated amount of$400,000. Moreover, CCH has secured an increase of$130,722 in City of Brentwood Redevelopment Agency Low/Moderate Housing Funds from $454,699 to $585,421 to cover the exact different between the estimated and appraised cost of the land. CCH has also been able to reduce the cost of numerous budget line items, either based on negotiated bids lower than estimated costs, or on careful analysis of budgeted costs, for a total savings of$381,917. The final gap and amount of additional funds requested is $130,722. Assuming approval of the additional required funds, construction will be initiated in May of 2003 with completion by June of 2004. The total cost of this project is $5,338,019. The proposed development budget and sources of funds for this project are: Source Amount FY 02/03 HOME/HDAF $130,700 FY 01/02 HOME 454,699 City of Brentwood 585,421 HUD Section 202 4,167,199 $5,338,019 As proposed, HOME funds will be used for acquisition and development costs. If approved, HOME funds will be provided to CCH if the form of a residual receipts loan with the following terms: three percent simple interest, 55 year loan term. The County intends to negotiate a co-equal lien position with the City of Brentwood. Affordability and use restrictions will be incorporated into the County loan documents. Required legal documents for this project include, but may not be limited to a loan, regulatory, and intercreditor agreements. KD\\fs-cd\users$\sfermatz\Sara\Applications 02-03\HDAF\sycamre2 board order.doe