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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.
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