HomeMy WebLinkAboutMINUTES - 12092008 - C.108 T(Xi -. BOARD OF SUPERVISORS -`°� Contra
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FROM: Catherine O. Kutsuris Is
Director, Department of Conservation and Develo �� o
DATE: December 9, 2008 STA CooA County
SUBJECT: HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $270,000 LOAN PRE-
PAYMENT AND INTEREST FOREGIVENESS
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1.' APPROVE request from Catholic Charities of the East Bay (CCEB) to sell property located at
1631 Cypress Avenue, Richmond and repay the Housing Opportunities for Persons with AIDs
(HOPWA) principal loan amount of $270,000;
2. APPROVE request from CCEB to forgive approximately $100,000 in accrued interest on the
HOPWA loan;
3. AUTHORIZE the Deputy Director — Redevelopment, or his designee, to execute the appropriate
documents to reconvey the Deed of Trust and HOPWA Loan and Regulatory Agreement; and
4. DETERMINE that this action is not a project under the California Environmental Quality Act
(CEQA) pursuant to Section 15061(b)(3) of the CEQA guidelines;
FISCAL IMPACT
No General Fund impact. All funds are provided to the County on a formula basis through the
U.S. Department of Housing and Urban Development.
Catalog of federal domestic assistance (CFDA) numbers:
Housing for Persons with AIDS (HOPWA) Program — 14.241
CONTINUED ON ATTACHMENT: ® YES SIGNATURE: l 'e/7
RECOMMENDATION OF COUNTY ADMINISTRATOR ❑ RECOM JENNATION OF ARD COMMITTE
APPROVE ❑ OTHER
SIGNATURE(S)-
AC TION
IGNATURE(S):ACTION OF BOARD ON C
APPROVED AS RECOMMENDED ❑ OTHER ❑
VOTE OF SUPERVISORS: 1 HEREBY CERTIFY THAT THIS IS A TRUE AND
CORRECT COPY OF AN ACTION TAKEN AND
)C UNANIMOUS(ABSENT ENTERED ON THE MINUTES OF THE
REDEVELOPMENT AGENCY ON THE DATE
AYES: NOES: SHOWN.
ABSENT: ABSTAIN:
'�
Contact: Kara Douglas, Affordable Housing ATTESTED C l i oLoT
Program Manager(335-7223) DAVID TWA, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
cc: Conservation and Development-CDBG
County Administrator
County Counsel ��5--
,Auditor-Controller By: - Deputy
SUBJECT: Catholic Charities, Amara House
DATE: December 9, 2008
PAGE: 2
BACKGROUND/REASONS FOR RECOMMENDATIONS
On December 15, 1995, the County loaned Catholic Charities of the East Bay (CCEB)
$270,000 in Housing Opportunities for Persons with AIDs (HOPWA) funds for the acquisition
and rehabilitation of a single family home known as Amara House and located at 1631 Cypress
Avenue, Richmond. Amara House provided permanent supportive housing for persons with
HIV/AIDs until August, 2008. Federal regulations require that HOPWA funds used for housing
development serve people with HIV/AIDS for a minimum of 10 years. CCEB has met that
requirement. However, the HOPWA Loan and Regulatory Agreement (the "Agreement')
between the County and CCEB required Amara House to be operated as housing for persons
with HIV/AIDs for 40 years. Should CCEB provide an additional 20 years of housing for persons
with HIV/AIDS, the loan would be forgiven. The loan has a three percent simple interest rate. All
loan payments are deferred until the property is transferred to another use or owner.
CCEB has worked with the County for the past 8 years to find another operator of Amara
House without success. CCEB has contracted local agencies that operate group homes for a
variety of special needs groups. None of these agencies are interested in Amara House.
CCEB has struggled over the last 8 to 10 years to find adequate funds for the operation and
maintenance of Amara House. CCEB can no longer operate Amara House and the building is
in poor physical condition requiring approximately $75,000 in repairs. The County has worked
with CCEB to find an ongoing source of operating subsidy or find another housing provider to
take over the project. Neither has been successful. CCEB has continued to operate Amara
House while these alternatives were fully explored. Amara House is now vacant.
County staff recommends CCEB be allowed to sell Amara House and remit to the County all
sales proceeds with the exception of reasonable and necessary transaction costs. It is
anticipated the sales price may be sufficient to cover the principal loan amount, but little or none
of the accrued interest.
In order to repay principal and all interest, CCEB would have to transfer funds from its other
programs, creating a hardship elsewhere in the organization.
Proceeds from the sale of this property will be retained by the County for use in another
HOPWA eligible project.