HomeMy WebLinkAboutMINUTES - 03071989 - 1.61 TO, Redevelopment Agency
FROM: Phil Batchelor,
Executive DirectorContra
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DATE: February 23 , 1989. Costa
County
SUBJECT: Application for $69,000 of Community Development Block Grant
Funds for Supplemental Acquisitions Subsidies for seven (7)
single-family homes in the North Richmond Redevelopment Project
Area.
SPECIFIC REQUEST(S) OR RECOMMENDATIONS AND BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Authorize Redevelopment Agency staff to submit an application on
behalf of the County Redevelopment Agency for a $69 ,000 supplemental
Community Development Block Grant to provide Supplemental Acquisition
Subsidies for seven ( 7) single-family homes in the North Richmond
Redevelopment Project Area in order. to make them affordable to lower
income households.
FISCAL IMPACT
None
REASONS FOR RECOMMENDATIONS/BACKGROUND
The Redevelopment Agency, in 1987-88 received a $150 ,000 Community
Development Block Grant to acquire land and subsidize the development
of seven (7 ) single-family homes in the North Richmond Redevelopment
Project , Area. The land acquisition has been completed for a total
cost of $87,387 including staff (Real Property) and title costs
leaving a remaining balance of $62,692.
Redevelopment staff is presently negotiating with a developer to
develop the sites, construct the homes, and sell them to eligible
households.
CONTINUED ON ATTACHMENT: YES SIGNATURE: 01
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF. AG CY C0 EE
_APPROVE OTHER
SIGNATURE(S) :
ACTION OF AGENCY ON March 7, 1989 APPROVED AS RECOMMENDED X OTHER
VOTE OF COMMISSIONERS
X UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A
AYES: NOES: TRUE AND CORRECT COPY OF AN ACTION
ABSENT: ABSTAIN: TAKEN AND ENTERED ON THE MINUTES
OF THE REDEVELOPMENT AGENCY ON THE
DATE SHOWN.
cc: Redevelopment Agency ATTESTED March 7, 1989
Auditor-Controller PHIL BATCHELOR,
AGENCY SECRETARY
i
BY v ,DEPUTY
The North Richmond Redevelopment Plan identifies affordable housing
as a major objective. Additionally, the Agency, in conjunction with
the Project Area Committee, has established a goal of providing home
ownership opportunities to households in the 50-70% of median income
range. ( $20,050 to $28,070). Calculations made by staff show that a
sales price of approximately $65 ,000 would have to be established to
reach this affordability goal.
The developer with whom the Agency is proposing to enter into an
Agreement expects to develop and construct the 7 units at an average
cost of $94,718 including land costs. The average subsidy required
to arrive at affordable sales prices therefore would be $29,429 per
unit.
The amount remaining of the Agency' s current CDBG can only be used to
provide a subsidy of $8956. 00 per unit. Therefore an additional
allocation of Block Grant funds is necessary to provide additional
subsidy to attain the Agency' s affordability goal. Staff upon
authorization by the Agency, is proposing to submit an application
for $69,000 of Community Development Block Grant funds for the
purpose of providing affordable ownership housing in the North
Richmond Redevelopment Project Area. The assistance would be in the
form of degerred loans which would become due and payable should the
Purchaser sell or transfer the unit or cease to be an owner-occupant.
GER:krc
C: 3--7-89 .ra