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Home My WebLink AboutMINUTES - 02132007 - C.78 ti, 4 F-'-L ,-` Contra Costa TO: BOARD OF SUPERVISORS County FROM: Dennis M. Barry, AICP Community Development Director DATE: February 13, 2007 SUBJECT: ALLOCATION OF $280,000 IN FY 2006/07 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR THE WEST COUNTY HUMAN DEVELOPMENT CENTER - HOPE HOUSE PROJECT IN RICHMOND SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: (1) AUTHORIZE the Deputy Director- Redevelopment or his designee to execute required legal documents (Loan Agreement, Regulatory Agreement and Declaration of Restrictive Covenants, Promissory Note, and Deed of Trust with Assignment of Rents and Security Agreement) to provide $280,000 in Community Development Block Grant(CDBG)funds to Neighborhood House of North Richmond for the West County Human Development Center – HOPE House project in Richmond, and (2) AUTHORIZE the Deputy Director - Redevelopment or his designee to amend the County's FY 2006/07 CDBG Action Plan and submit it to the U.S. Department of Housing and Urban Development, and (3) FIND, as the Responsible Agency, that the City of Richmond, as the Lead Agency for the project, determined that this project is exempt form the California Environmental Quality Act pursuant to Public Resources Code Section 15301(a), and (4) DIRECT the Community Development Director, or designee, to file a Notice of Exemption for this project with the County Clerk, and CONTINUED ON ATTACHMENT: _X_YES SIGNATURE: / e –X—RECOMMENDATION OF COUNTY ADMINISTRAT RE MENDATIO OF BOARD COMMITTEE --APPROVE OTHER SIGNATURES) ACTION OF BO D N Nmnj % -RC07 APPROVED AS RECOMMENDED OTTER VOTE OF SUPE ISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT S' ) 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. Source: Bob Calkins, CDBG Program Manager (925) 335-7220 ATTESTED a7 Orig. Dept. Community Development - CDBG JOHN CULLEN, CLE OF cc: County Administrator THE BOARD OF SUPERVISORS County Counsel AND COUNTY ADMINISTRATOR Auditor - Controller BY , DEPUTY (5) DIRECT the Community Development Director, or designee, to arrange for payment of the $25 handling fee to the County Clerk for filing such Notice of Exemption FISCAL IMPACT No General Fund impact. CDBG funds are provided to the County on a formula basis through the U.S. Department of Housing and Urban Development. BACKGROUND /REASONS FOR RECOMMENDATIONS Background: In 2001, Neighborhood House determined that a former hospital located at 820 23rd Avenue in Richmond would provide the best opportunity for adding much needed transitional housing and residential substance abuse treatment services for homeless persons or persons at-risk of becoming homeless. Over the next two years, Neighborhood House was successful in raising the necessary funds to finance the purchase of the 33,000 square foot facility and closed escrow on the property on July 15, 2003. The facility has been renamed the West County Human Development Center. The use permit approved by the city of Richmond in March 2002 stipulates the maximum capacity of the facility is "120 live-in participants." In October 2004, after more than a year of repairs and renovations to the facility (partially funded with County CDBG funds), Neighborhood House moved its out patient substance abuse treatment programs and administrative functions into the first floor of the building. In November 2004, the short-term transitional housing/substance abuse treatment program (Project Recovery) opened on the second floor of the building. This Program is divided into two components: a short-term (1-7days) detox program and a short-term (up to 6 months) transitional housing program. A total of 41 beds are dedicated to the Project Recovery program. According to Neighborhood House, since opening in 2004, over 1,500 persons have been provided residential treatment services. It is estimated that approximately half of the persons served have been Urban County residents. Proposal: The current proposal (HOPE House) includes renovating the third floor of the building to provide 20 beds of long-term (up to 30 months) transitional housing and extensive wrap-around services to support a client's journey toward economic self- sufficiency, improved health and general well-being. The third floor is approximately 6,300 square feet and is comprised of two wings. The proposal includes providing a total of 11 "units" to serve a maximum of ten male and ten female residents. The males will be housed in one wing; the women will be housed in the other wing. In addition, two separate units will be occupied by House Managers — one male, one female—in each wing. At a minimum, all of the units will be furnished with a bed and locker. Residents will be allowed to have a small refrigerator but will not be able to cook any meals in their room. Some units will have direct access to a sink and/or semi- private toilet. Residents of each wing will have access to communal restrooms with shower facilities. A community room is also provided. The total cost of this renovation project is estimated to be$565,000. The City of Richmond has approved a CDBG loan in the amount of $285,000. The proposed terms of the County CDBG loan include the following: Total No. of Beds: Twenty (20) Income Limits: 10 beds for persons earning up to 30%of Area Median Income (AMI) and 10 beds for persons earning up to 50% of AMI Proposed Rents: $435 and $580 Loan Amount: $280,000 Term: 20 years with an option to extend for an additional 20 years; loan to be forgiven after 40 years Interest Rate: 0 percent Payment: Deferred for the term of the loan Lien Position(s) The County will be in a subordinate lien position to the private lender, and Richmond's most recent loan Developer Experience: Neighborhood House has 28 years experience in providing emergency residential treatment services and has through the years steadily gained development experience. The renovation of the first and second floors of the Center was completed on-time and did not require additional funds from the County. The development budget for this project includes a project manager to represent Neighborhood House's interests during construction. Affordable Housing Finance Committee Action: On August 24, 2006, the Affordable Housing Finance Committee (AHFC) voted unanimously to recommend that the Board approve$280,000 in FY 2006/07 CDBG funds to Neighborhood House of North Richmond for this project. Loan Documents: The authorization granted above to the Deputy Director - Redevelopment, or his assignee, includes authorization to perform any and all actions and execute any and all documents necessary to implement the activities authorized under the loan documents, including execution of loan amendments or modifications for the purposes of agreeing to reasonable extensions of time deadlines, and estoppel certificates concerning the status of the Loan and the existence of Borrower defaults under the Loan Documents. The following documents related to the proposed action are on file with the Clerk of the Board: • CDBG Loan Agreement • Promissory Note • Deed of Trust with Assignment of Rents and Security Agreement • Regulatory Agreement and Declaration of Restrictive Covenants Attachment Notice of Exemption