HomeMy WebLinkAboutMINUTES - 12172002 - C.134 TO BOARD OF SUPERVISORS �. :' Contra
Costa
FROM: Dennis M. Barry, AICP County
Director of Community Development
DATE: December 17, 2002
SUBJECT: Allocation of FY 2002/03 CDBG Housing Development Assistance Funds and Execution of
Required Legal Documents for the Emerson Arras Apartment project.
SPECIFIC REQUEST(S)OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
(1) APPROVE the allocation of$1,365,622 in construction financing and $818,512 in permanent financing in
FY 2002/03 Community Development Black Grant(CDBG)Housing Development Assistance Funds (HDAF)
to Contra Costa Housing Corp. for the Emerson Arms project in Martinez 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. CDBG funds are provided to the County on an annual allocation basis through the
U.S. Department of Housing and Urban Development(HUD).
BACKGROUND/REASONS FOR RECOMMENDATIONS
On December 3, 2002, the Affordable Housing Finance Committee (AHFC) voted to recommend the Board
approve the allocation of$1,365,6122 in construction financing and$818,512 in permanent financing in FY
2002/03 CDBG/HDAF Contra Costa Housing Corp. (CCHC) for the Emerson Arms project ' Martinez.
CONTINUED ON ATTACHMENT: X YES SIGNATURE: 1
,,,-RECOMMENDATION OF COUNTY ADMINISTRATOR__ 6: MMEND ION OF BOA
COMMITTEE
APPROVE OTHER j
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SIGNATURE(s): -,
ACTION
OF BOARD ON 17 2oQ2 APPROVED AS RECOMMENDED OTHER
V
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
x UNANIMOUS (ABSENT Nm ) 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 DECHCM 17, 2002
Orig: Community Development JOHN SWEETEN, CLERK
cc: County Administrator OF THE BOARD OF SUPERVISORS
County Counsel AND CQUNTY ADiVIINJSTRATOR
Auditor-Controller BYDEPUTY
The current balance of the CDBG/HDAF is $3,252,386. The AHFC also recommended. $680,400 in FY 2002/03
CDBG/HDAF funds be allocated to the Bay View Community Project in Bay Point. This project is under
consideration as a separate item on the December 17, 2042 consent calendar. Assuming approval of both
projects, the FY 2402/03 CDBGIHDAF will have a remaining balance of$1,206,764.
The purpose of the Emerson Arms project is to Preserve and improve the supply of multi-family rental housing
affordable to and occupied by extremely-low,very-low, and low income families at 326 Ward Street in
Martinez/Central County. Emerson Arms is currently owned.by CCHC (a subsidiary of Eden Housing, Inc.). it
was acquired.in 1995 to prevent its probable conversion from affordable to market rate housing. Emerson Arms
is now in need of substantial rehabilitation. The rehabilitation will include site accessibility improvements and
the conversion of two units to fully accessible units. Thirty-one units will be designated as County-assisted,
including two units affordable to and occupied by extremely-low income households.
In addition, CCHC will refinance the current project debt in order to repay a portion of the CDBG construction
loan and to achieve a better mortgage interest rate. The anticipated amount of permanent CDBG funds is
$818,512. CCHC intends to refinance the mortgage through a loan with the California Housing Finance Agency
(CaIHFA). In the event the CaIHFA financing is not the best financing alternative, CCHC will seek financing
through a County tax-exempt bond issue.
CDBG funds will be provided as a three percent interest, 55-year, residual receipts loan, subordinate to the
CaiHFA financing. Occupancy and affordability restrictions will be incorporated into the County loan
documents. Required legal documents for this project include,but may not be limited to, a loan and regulatory
agreement.
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