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HomeMy WebLinkAboutMINUTES - 02242004 - C90 F F,. BACKGROUND /REASONS FOR RECOMMENDATIONS In May 2002, the Board of Supervisors approved a $40,000 CDBG grant to CAF to pay for a portion of the soft costs associated with renovating the second floor of their existing building in Richmond (4075 Lakeside give) to accommodate additional classroom space, conference rooms and offices. Several months age CAF informed staff that their structural engineer determined that converting the existing second floor would be cost prohibitive, and that they would begin a search for a building to purchase that met their objective of increasing student enrollment and office space. CAF has entered into a purchase agreement with the owners of a 6,130 square feet industrial condominium building located at 4133 Lakeside give in Richmond (across the street from AF's existing location) and requests the County's CDBG funds be used to help finance the acquisition. The total cost to acquire the subject building, including closing costs, is$600,620, The proposed financing plan includes a favorable loan from Union Bank ($505,600), CDBG funds from the County and the City of Richmond ($40,000 and $33,000 respectively), and funds from CAF($111,730). County CDBG funds will be provided as a 0% interest loan,due al- sale tsale or transfer of property, or if the property is no longer used for a CDBG eligible use during the first 15 years, but then be forgiven after 15 years. The new building will be renovated (the renovation work will be financed with another loan from inion Bank)to include four academic classrooms,four restrooms, one room each for art, music, occupational therapy; counseling, and an office, kitchen and a reception area, TO. BOARD OF SUPERVISORS Contra F .DENNIS M. BARRY, AJCP Costa COMMUNITY DEVELOPMENT DIRECTOR County DATE- FEBRUARY 24, 2004 SUBJECT: AUTHORIZE THE PREPARATION OF AN INCLUSIONARY HOUSING ORDINANCE AND TO APPLY FOR U.S HUD ASSISTANCE PROGRAM TO SUPPORT THIS EFFORT SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS AUTHORIZE staff to develop and prepare an Inclusionary Housing Ordinance for future Board .consideration,and AUTHORIZE staff to apply for assistance through the U.S,Department of, Housing and Urban Development(HUD)to assist in the development of the inclusionary Housing Ordinance. CONTINUED ON ATTACHMENT: X YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMfT—TEE APPROVE OTHER SIGNATUREISL APPROVED AS RECOMMENDED X OTHER ACTION OF BOARD ON February 24, I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND VOTE OF SUPERVISORS ENTERED ON THE MINUTES OF THE BOARD OF X UNANIMOUS(ASSENT_�_) SUPERVISORS ON THE DATE SHOWN j,YES. NOES, ASSENT:— ABST,�[-N— Contact, Patrick Roche,CDD-AP,925-335-1242 ATTESTED Febnmry 24, 2004 cc:CCI -Hcusing JOHN SWEETEN, CLERK OF THE BOARD OF CDD- -00B8 SUPERVISORS AND COUNTY ADMINISTRATOR CAO County Counsel Auditor-Controfler BY "-/x-Q1)EPUTY 7 February 24,2004 Board&Supervisors Authorization To Pre,pure inclusionary dousing Ordinance Page 2 FISCAL IMPACT Direct costs associated with the preparation of an Inclusionary Housing Ordinance are unknown at this time. However, certain costs associated with this effort may be recovered through technical assistance from U.S. HUD. BACKGROUND / REASONS FOR RECOMMENDATION The Board of Supervisors' Ad Hoc Committee on Smart Growth developed an Action Flan that included attainment of affordable housing goals. The Action Flan recommends that neve residential developments include a minimum number of affordable housing units. The most common tocol for obtaining this type of goal is through inclusionary zoning, which would be established by an amendment to the County Ordinance, An inclusionary housing program is one that requires a residential developer to set aside specified percentage of new units for very low, low, and moderate income households in conjunction with the development of Market rate units. The establishment of an inclusionary housing program is gaining widespread acceptance among jurisdictions in California with at lust 108 cities and 13 counties having adopted sorme form of an inclusionary housing program by Year 2000. Several jurisdictions in Contra Costa County have adopted inclusionary housing ordinances. Staff is seeking the Board's authorization to formally Initiate development of an inclusionary housing ordinance for the unincorporated area of the County. Based on the County 's experience in securing affordable units in large residential projects, and the experience of ether jurisdictions that have formally adopted inclusionary dousing programs, the provisions and terms of an ordinance for inclusionary housing should be clearly defined.This includes exceptions; number of affordable units, level of affordability, term of affordability,alternative means of compliance, etc. The City of Napa's inclusionary housing ordinance, adopted in 1999, which was subject to a legal challenge by the Hornebuilders Association of Northern California, provides a model for the County to develop its ordinance. An appellate court upheld the Napa ordinance. Based on the court findings in that case, inclusionary housing ordinances should include the following elements: Demonstration that the ordinance meets a legitimate government interest. This can be shown through the documentation of the need for affordable housing. Demonstration that implementation of the ordinance will address the need Clear definition of terms and requirements Standards and procedures to address hardship claims Provisions of alternatives for compliance, such as an in lieu fee program Provisions of incentives and concessions Through the HOME Investment Partnerships Act (HOME) program, HUD provides technical assistance to jurisdictions seeking effective approaches to utilizing HOME funds. The County HOME program will seek technical assistance from HCVD in the development of an Inclusionary Housing Ordinance. Receipt of this assistance will help defray County costs. GAAdvarce Piannivadv-oar.\6card orders\BOARD ORDER MLU&ONARY HOUSING ORW.Bac