HomeMy WebLinkAboutMINUTES - 04091991 - 1.49 ev 9
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TO: BOARD OF SUPERVISORS ;.�
FROM: Jim Kennedy �T CQulty
Deputy Director - Redevelopment
DATE: April 2, 1991
SUBJECT: CDBG Allocations
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Approve recommendations of Housing and Community Development Advisory
Committee regarding the allocation of County Community Development
Block Grant (CDBG) funds and amend "Housing and Community Development
Program Final Statement of Community Development Objectives and
Projected Use of Funds - 1991-1992" to provide for:
1. a loan of $200, 000 to the El Cerrito Redevelopment Agency to
assist in the development of the Del Norte Courts Apartments;
2 . a loan of $250, 000 to Housing for Independent People to assist
in the acquisition/renovating of the River House Hotel,
Martinez; and
3 . a $171, 000 grant to Pre-School Coordinating Council for the E1
Pueblo Child Care Center.
FISCAL IMPACT
None. No General Funds involved.
BACKGROUND/REASONS FOR RECOMMENDATIONS
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
P�
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATI OF 77
COMMIT E
APPROVE OTHER
.
SIGNATURE(S) :
ACTION OF BOARD ON Apr i 1 9. 1991 APPROVED AS RECOMMENDED X OTHER X
/ Supervisor Powers expressed concern with recommendation No. 1 relative to the
fiscal solvency of the project .and of the need to carefully review projects of
this type in the future. Staff was requested to prepare a letter to the City of
El Cerrito expressing the Board's concerns.
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
XX UNANIMOUS (ABSENT ) 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.
orig. Community Development
cc: County Administrator ATTESTED April 9, 1991
Auditor-Controller PHIL BATCHELOR, CLERK OF
via Community Development THE BOARD OF SUPERVISORS
- E1 Cerrito Redevelopment AND COUNTY ADMINISTRATOR
- Housing for Independent People
- Pre-School Coordinating Council BY > , DEPUTY
SRA13/cdbgalct.bos
r.
1 Y
I. Del Norte Courts Apartments - E1 Cerrito
Del Norte Courts is a mixed-use project including 136
apartment units project being developed by the IBEX Group in
the City of E1 Cerrito. The E1 Cerrito Redevelopment Agency
and the IBEX Group have an agreement that requires 20% of the
units to be affordable to very low income for 33 years. The
E1 Cerrito Redevelopment Agency is already assisting this
project in the Amount of $3 .5 million for property acquisition
and relocation expenses. Contra Costa County sold $11 million
in multi-family bonds to provide below market rate first
mortgage money for the development. The developer has over $4
million in equity into the project. The additional $200, 000 .
in CDBG assistance is in the form of a loan to the E1 Cerrito
Redevelopment Agency. The low interest loan is deferred for
ten years. The E1 Cerrito Redevelopment Agency will repay the
loan from future tax increments or from its financial
participation in the project.
II. River House Hotel - Martinez
Project consists of acquisition and rehabilitation of 75 units
at the River House Hotel, a single room occupancy hotel in
downtown Martinez. The owner, is Housing for Independent
People (HIP) , a non-profit housing corporation. After
rehabilitation, 38 of the units will be available to very low
income persons (income below 50% of the median) , and 37 units
will be available to low income persons (income, below 80% of
the median) .
The proposed source of funds for the project and uses are
shown below:
State Loan (CHRP) $2 , 968, 093 Acquisition
(secured)
Tax Credit syndication $1, 050, 000 Rehabilitation
City of Martinez $ 450, 000 Rehabilitation
CDBG $ 250, 000 Rehabilitation
The CDBG assistance is in the form of a low interest deferred
loan that would begin paying back in 10 years, or upon
refinancing or sale of the project. The City of Martinez and
HIP have agreed to assume all responsibility and expense for
any relocation required.
III. El Pueblo Child Care Center - Pittsburg
Two years ago this project was granted $169, 000 for Phase II
construction of the child care center. $125, 000 in matching
funds were subsequently secured from the Housing Authority and
Cowell Foundation for a total budget of $294, 000.
The roof virtually collapsed in one section last month and has
been completely redone to resolve this problem. This took
$90, 000 from the $169, 000 grant. In addition, the estimate
for construction of a reduced phase II has gone up $81, 000.
An Additional allocation of $171, 000 for completion of phase
II is now required. It should be noted that this only
finishes the shell of the building, some interior walls,
fixtures and amenities will have to come later from other
sources of funds.