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HomeMy WebLinkAboutMINUTES - 05171988 - 1.67 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS DATE: May 17, 1988 FROM: cc: Perfecto Villarreal , Executive Director SUBJECT: REQUEST FOR FUNDING OF LOAN SUBSIDIES - SECOND UNIT PROGRAM (DUO) I. RECOMMENDED ACTION: APPROVE a set aside from Housing Authority Local Management Funds in an amount not to exceed $10,925.00 for use in the funding of two DUO projects: Ava Brindley and Michael Carney; as recommended by the Advisory Housing Commission. II. FINANCIAL IMPACT: The $10,925.00 in project subsidy necessary for these two DUO projects is available through the Local Management Funds of the Housing Authority. III. REASONS FOR RECOMMENDATION/BACKGROUND: On May 14, 1985 the Board of Commissioners authorized the Housing Authority to enter into an agreement with the San Francisco Foundation for the operation and implementation of a Double Unit Opportunity (DUO) program in Contra Costa County. On July 18, 1985 the Board of Supervisors authorized implemention of the Double Unit Opprunity DUO) program as a joint effort between the County, the Housing Authority and the San Francisco Development Foundation. As a result of this joint effort, Contra Costa County adopted its Second Unit Ordinance. At the end of March, the agreement with the San Francisco Development Fund ended and the caseload for the DUO program was turned over to the Housing Authority. During the life of the program, a total of four projects were completed. Three project subsidies, for a total of $36,956, were funded using the San Francisco Foundation Development Fund. Currently, seven unfunded projects are still pending. Two of the projects will not be eligible for Community Development- Block Grant funding because they are essentially new construction. Without additional funding, these two projects can not be funded. San Francisco Foundation is unable to make an additional grant and staff feels that the Housing Authority has an obligation to fund these projects: CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURES) ACTION OF BOARD ON MAYAPPROVED AS RECOMMENDED OTHER VOTE OF COMMISSIONERS X.... UNANIMOUS (ABSENT --- ) I HEREBY CERTIFY THAT THIS A TRUE AND AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. cc: County Administrator-. ATTESTED MAY 17 1988 County Counsel Phil Batchelor, Clerk of the Housing Authority,- Board of Commissioners M 882/7-68 , BY � .: ; DEPUTY Board of Commissioners May 17, 1988 Page -2- Estimated Estimated Project Cost Subsidy Ava Bindley, El Sobrante $25,000.00 $ 6,278.00 Michael Carney, Martinez $38,000.00 $ 9,542.00 Total Estimated Subsidy Required $15,820.00 Less Balance, San Francisco Foundation Grant $ 4,895.00 Estimated Deficit $10,925.00 These applicants have persevered through a long and arduous application process with every expectation that the subsidy required to make their loan would be available and, as the owners of these units will be required to rent the units to low income families at affordable rents for the life of the loan, staff recommended to the Advisory Housing Commission that Local Management Funds in an amount not to exceed $10,925.00 be set aside for use in the DUO program to cover the estimated deficit. At its Regular Meeting on May 16, 1988, the Advisory Housing Commission voted to recommend a set aside from Local Management Funds in an amount not to exceed $10,925.00 for use in the funding of two DUO projects: Ava Brindley and Michael Carney. IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect to not approve the set aside of $10,925.00 from Housing Authority Local Management Funds for the funding of these two DUO projects, an opportunity to develop housing for two low income families would be lost.