HomeMy WebLinkAboutMINUTES - 12172002 - C.135 TO: BOARD OF SUPERVISORS ` " ,Y,. Centra
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FROM: Dennis M. Barry, AICP Gr,. Count
Director of Community Development
DATE: December 17, 2002
SUBJECT: Allocation of FY 2002/03 HOME Housing Development Assistance Funds and Execution of
Required Legal Documents for the Bay View Community Partnership project.
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
(1) APPROVE the allocation of$680,000 FY 2002/03 Community Development Block Grant (CDBG) Housing
Development Assistance Funds (HDAF) and up to $698,000 in FY 2002/03 HOME Investment Partnership Act
(HOME) HDAF funds to Resources for Community Development (RCD) for the Bay View Community
Partnership project in Bay Point, 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. HOME and 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$680,000 in FY 2402/03 CDBG/HDAF and up to $698,0000 0002/03
'3
CONTINUED ON ATTACHMENT: X YES SIGNATURE: Jf �
RECOMMENDATION OF COUNTY ADMINISTRATOR R OMMEND ION OF BOARD
COMMITTEE
_,.,,:::-APPROVE OTHER
SIGNATURE(S): ,
ACTION
OF BOARD ONAPPROVED AS RECOMMENDED x OTHER
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 DEMeM 17, 2002
Orig: Community Development JOHN SWEETEN, CLERK
cc: County Administrator OF THE BOARD OF SUPERVISORS
County Counsel AND WUNTY ADMINISTRATOR
Auditor-Controller BY - �"' � f ,DEPUTY
HOME/HDAF to the Bay View Community Partnership project in Bay Point/East County. CDBG funds are
contingent on an executed agreement with the redevelopment agency. HOME funds are contingent on County
review and approval of a final development budget and identification of all financing sources required to
successfully complete the project.
The current balance of the CDBG/HDAF is $3,252,386. The AHFC also recommended $1,365,622 in FY
2002/03 CDBG/HDAF funds be allocated to the Emerson Arms project 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 CDBG/HDAF will have a remaining balance of$1,206,764.
The current balance of the HOME/HDAF is $1,448,856. The AHFC also recommended $130,700 in FY
2002/03 HOME/HDAF funds be allocated to the Brentwood Senior 11 project in Brentwood. This project is also
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 Bay View project is to increase the supply of multifamily rental housing affordable to and
occupied by extremely-low, very-low and low income families in Bay Point/East County. The County
Redevelopment Agency selected RCD as the developer of this project. RCD will construct 49 multi-family
apartments, which will include one, two, and three bedroom apartments. RCD will provide 24 County-assisted
units, including units affordable to extremely-low and very-low income households. The project will also
include a small commercial space and a child care center. As part of the larger development, the O'Brien Group
will construct 69 single-family homes on an adjacent site.
The total cost of the RCD project is $14,398,452. The proposed sources of funds are as follows:
Source Amount
FY 2002/03 CDBG/HDAF $680,000
FY 2002/03 HOME/HDAF 698,000
HOPWA funds 350,000
County Redevelopment Agency 2,068,421
LIHTC/Investor Equity 8,113,631
Private Lender Loan 1,817,900
Child Care Grant 50,000
Sponsor Equity Contribution 400,000
Federal Home Loan Bank/AHP 220,_500
$14,398,452
In the event RCD is able to reduce the development budget, or identify additional funding sources, the AHFC
recommends the County negotiate a reduction of its funding contribution. If approved, the CDBG and HOME
funds will be provided to RCD in the form of a residual receipts loan with the following terms: three percent
simple interest, 55 year loan term, and loan to be in co-equal lien position with the Redevelopment Agency.
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.
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