HomeMy WebLinkAboutMINUTES - 04071992 - 1.127 07
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TO: BOARD OF SUPERVISORS
FROM: Harvey E. Bragdon J� County
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Director of Community Development
DATE: April 7, 1992
SUBJECT: 1992-93 Community Development Block Grant Allocation
SPECIFIC REQUEST (S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Approve an allocation of $250, 000 in FY 1992-93 Community Development
Block Grant (CDBG) funds to Pacific Community Services, Inc. (PCSI)
for the Leland Village Housing Project, with conditions, as
recommended by the Housing and Community Development Advisory
Committee.
FISCAL IMPACT
No General Funds are involved. Loan funds for this project will be
provided from the FY 1992-93 Community Development Block Grant
allocation to the Housing Development Assistance Fund. The County
will be repaid by homebuyers receiving mortgage assistance.
CONTINUED ON ATTACHMENT: X YES SIGNATURE: JQ
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RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF OARD COMM TEE
APPROVE OTHER
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SIGNATURE(S) :
ACTION OF BOARD ON / APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
X 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.
cc: Community Development
Auditor Controller (N. Garnett) ATTESTED
County Administrator PHIL BATCHELOR, CLERK OF
Pacific Community Services, Inc. THE BOARD OF SUPERVISORS
AND COUNTY ADMINISTRATOR
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BY ��P DEPUTY
BACKGROUND/REASONS FOR RECOMMENDATIONS
PCSI has requested a loan of $250, 000 in FY 1992-93 CDBG Housing
Development Assistance Funds (HDAF) for a project to build 108
three-bedroom townhomes located in Pittsburg and ranging in price
from $130, 000 to $140, 600 over the life of the project. HDAF funds
and seller financing will be used for site acquisition. Of the 108
units, 38 will be subsidized for acquisition by moderate-income
households earning 80 percent or less of area median income.
Homebuyer subsidies will be provided in the form of silent seconds
financed through a $646, 000 Moderate Income Homebuyer Assistance
Fund. Sources of subsidy funds include PCSI developer fees
($396, 000) and HDAF funds ($250, 000 initially used for site
acquisition to be rolled over at time of purchase) .
Project acquisition and construction costs are estimated at $14. 6
million. In addition to the HDAF funds, PCSI is currently
negotiating for the following financing: an $11.7 mil.
construction loan to be obtained from Wells Fargo; and land
subordination valued at $1. 5 mil. to be obtained from property
owner. PCSI will contribute $1. 2 million in developer fees and
other equity to the project. Take-out financing will be provided
through a combination of: $16 mil. in low-interest mortgages
financed with City of Pittsburg Tax-exempt Mortgage Revenue Bonds;
the proposed Homebuyer Assistance Fund ($646, 000) ; and buyer
downpayments ($736, 000) . The commitment period for the tax-exempt
mortgage funds expires in November 1993 . Since project
construction will not be complete until 1995, PCSI must identify an
additional source of low-interest take-out financing to ensure
successful completion of this project.
The Leland Village project is eligible for CDBG Housing Development
Assistance Funds and serves an identified need for moderate-income
housing in East County. Therefore, the Housing and Community
Development Advisory Committee recommends approval of $250, 000 in
FY 1992-93 CDBG Housing Development Assistance Funds for this
project. Funds will be provided in the form of a loan and will be
contingent on the following conditions: PCSI must provide
documentation that the required equity and construction loan
commitments (with reasonable conditions) are secured; PCSI must
identify a feasible source of take-out financing for all phases of
the project; and a minimum of 38 townhomes will be subsidized for
purchase by moderate-income households at affordable prices.