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Home My WebLink AboutMINUTES - 12092008 - C.105 (2) Contra TO: BOARD.OF SUPERVISORS �, ='•„ Costa FROM: Catherine Kutsuris County Director, Conservation and Development Department DATE: December 9, 2008- SUBJECT: 008SUBJECT: APPROVAL OF LEGAL DOCUMENTS AND CEQA DETERMINATION FOR LAFAYETTE SENIOR APARTMENTS IN LAFAYETTE SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS'- (1) ECOMMENDATIONS-(1) AUTHORIZE the Deputy Director, Redevelopment or his designee to execute required legal documents to provide $1,400,000 in FY 2008/09 Community Development Block Grant (CDBG) Housing Development Assistant Funds (HDAF) to Eden Housing, Inc. (Eden), a California nonprofit public benefit corporation, for the Lafayette senior affordable housing project in Lafayette; and (2) FIND, as the responsible agency, that the Negative Declaration prepared by the City of Lafayette, as the lead agency, is adequate for purposes of compliance with the California Environmental Quality Act; and (3) DIRECT the Conservation and Development Director, or designee, to file a Notice of Determination for this project with the County Clerk; and (4) DIRECT the Conservation and Development Director, or designee, to arrange for payment of the $50 handling fee to the County Clerk for filing such Notice of Determination. CONTINUED ON ATTACHMENT: ® YES ❑ NO SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMM DA ION OF BO RD COMMITTE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON LQ APPROVED AS RECOMMENDED�� OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND k UNANIMOUS (ABSENT Y1( CORRECT COPY OF AN ACTION TAKEN AND AYES: NOES: ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. � Ct Offf Contact: Kara Douglas (925/335-7223) ATTESTED Oc'ri Ynb_o cc: Conservation and Development(DCD) DAVID TWA, CLERK OF THE CDBG/Redevelopment County Counsel BOARD OF SUPERVISORS AND Auditor-Controller COUNTY ADMINISTRATOR Eden via DCD BY � � , DEPUTY 9 SUBJECT: Eden Housing, Lafayette Senior Apartments, Approval of Legal Documents, and CEQA Determination DATE: December 9, 2008 PAGE: 2 FISCAL IMPACT: No General Fund impact. CDBG funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development (HUD). BACKGROUND/REASONS FOR RECOMMENDATIONS: On April 15, 2008, the Board of Supervisors allocated $1,400,000 in Community Development Block Grant (CDBG) funds to Eden Housing, Inc. (Eden) for the Lafayette Senior project. The purpose of the Lafayette Senior project is to increase the supply of multi-family rental housing affordable to and occupied by lower income senior households in Central County through the development of a 45- unit apartment building located at 3436 Mount Diablo Boulevard, Lafayette. CDBG and City of Lafayette funds will be used to acquire a .80 acre vacant parcel. The purchase price is $3.6 million, which is the appraised value. The total cost of this project,is $21 million. The proposed development budget and sources of funds for this project are: Source Amount CDBG funds $1,400,000 HOME funds 1,600,000 City of Lafayette 35000,000 FHLB Affordable Housing Program 345,000 HCD Infill Grant 1,900,000 Low Income Housing Tax Credit Equity 6,389,624 HUD Section 202 6,735,982 Sponsor Equity 400.000 TOTAL $21,870,576 Construction is expected to start in 2010. CDBG funds will be lent at a three percent interest rate for 55 years. San Ramon and County funds would be in a co-equal lien position. The County will be in a subordinate lien position to the private lender in both the construction and permanent financing phases. Due to the high construction costs and limited revenue from the restricted rents, the total amount of the financing provided to the project will likely exceed the value of the completed project. Even though the equity investment is substantial compared to the amount of long term debt, the partnership agreement has numerous safe guards of the investors equity. These safe.guards essentially subordinate the County's debt to the investor's equity. Therefore, the County funds may not be fully secured through the value of the property. The County legal documents for this project will include the following (the "Loan Documents"): • CDBG Project Agreement • CDBG Loan Agreement • PromissoryNote • Deed of Trust with Assignment of Rents and Security Agreement • Regulatory Agreement and Declaration of Restrictive Covenants • Intercreditor Agreement among the County, Eden and the City of Lafayette Redevelopment Agency The authority granted hereunder to the Deputy Director-Redevelopment, or designee, includes authorization to execute any and all documents and to take any and all actions 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. Attachments: City of Lafayette Notice of Determination County Notice of Determination On file with 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 Intercreditor Agreement CITY OF LAFAYETTE NOTICE OF DETERMINATION To: County Clerk From: :. City of Lafayette.. Contra Costa County 3675 1VIt. Diablo Boulevard, Ste:210 822 MainStreet Lafayette; CA 94549 1Vlartinez' CA 94553. Subject: Filing of Notice of Determination_in compliance:with_Section 21108 or 21152 of the Public Resources Code Project Title,-Lafayette.Senior Housing Development. . State Clearinghouse Number,(if applicable):NA Lead Agency°Contact Person: Glenda Warmoth,Assistant Planner Phone: (925.)299-3257 Project Location The project is located on—.0 8.acres at 3426 Mt:Diablo'Blvd on the north side of Mt. Diablo'Boulevard. Assessor'sTarcel Number: 233.-040=038 Project.Description;. .Eden Housing:. c,has received approval from the.City of Lafayette Planning Commission to construct a new three-story affordable senior housing residence that will contain 46:dwelling.units and.parking for 30 vehicle`s The building wilLhave.a structure height.of 42':feet and a gross floor:area of 52, 324 square feet: This is to certify that-the City of Lafayette has approved the.above described project on November 20, 2008 and has made the following determinations:regardingthe above project: 1 The project[ 1].[will riot]have a significanfeffect on the environment: :042. : [ ] [A Mitigated Negative Declaration] was prepared for:this project pursuant to the�provisions of CE 3.. Mitigation measures [were] [ ]made a.condition`of the approval of the:project. 4. A:Statement of Overridin Considerations was not adopted for this.: ro ect: 5. Findings were made pursuant;to Section 15091 of the CEQA.Guidelines. This is to'certify'that the environmental:documents.and;record:of project approval are available to.the general public at City Offices,3675 Mt.Diablo Blvd, Suite 210,Lafayette.: n a e f ant AssisPlanner Signature for CityofLafayette Title Date received,for:filing.arid;posting'at OPR: r CALIFORNIA ENVIRONMENTAL QUALITY ACT NOTICE OF DETERMINATION CONTRA COSTA COUNTY DEPARTMENT OF CONSERVATION AND DEVELOPMENT 651 PINE STREET 4T" FLOOR NORTH WING MARTINEZ, CALIFORNIA 94553-0095 Telephone: (925) 335-7223 Contact Person: Kara Douglas J Project Description, Commori Name(if any)and Location: Lafayette Senior Housing, 3426 Mt. Diablo Blvd., Lafayette, CA The project is the construction of 46 affordable senior apartments for lower income households in Lafayette on a 0.8 acre in-fill site. The City of Lafayette approved its NOD on November 20, 2008. Pursuant to the provisions of the California Environmental Quality Act: 0 An Environmental Impact Report was prepared and certified (SCH# ). The project was encompassed by an Environmental Impact Report previously prepared for (SCH# ). 0 A Negative Declaration was issued indicating that preparation of an Environmental Impact Report was not required. Copies of the record of project approval and the Negative Declaration or the final EIR maybe examined at the office of the Contra Costa County Community Development Department. 0 The project will not have a significant environmental effect. 0 The project will have a significant environmental effect. X Mitigation measures were made a condition of approval of the project. A statement of overriding considerations was adopted. Findings were adopted pursuant to Section 15091 of the State CEQA Guidelines. Date: By: Conservation and Development Representative AFFIDAVIT OF FILING AND POSTING I declare that on I received and posted this notice as required by California Public Resources Code Section 21152(c). Said notice will remain posted for 30 days from the filing date. Signature Title Department of Fish and Game Fees Due: Applicant's Contra Costa County Name: . Conservation and EIR-$2,606.75 Total Due: $ Development dress: 2530 Arnold Drive, Suite 190 Neg.Dec.-$1,876.75 Total Paid: $ Martinez,Ca 94553 X County Clerk-$50 Receipt#