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HomeMy WebLinkAboutMINUTES - 03301993 - 1.32 1 -32 Contra TO: REDEVELOPMENT AGENCY o'.. .•� Costa FROM: Phil Batchelor ° �r.,-co��� County Executive Director DATE: March 30, 1993 SUBJECT: Affordable Housing in the West Pittsburg Redevelopment Project Area SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS APPROVE Development Loan Agreement with Resources for Community Development for affordable housing construction costs, and AUTHORIZE the Executive Director or his Designee to execute said Development Loan Agreement with RCD to reflect this loan. FISCAL IMPACT No impact on the General Fund. The total amount of Redevelopment funding would be $250, 000 by this action. The loan would be made out of capital reserves to be replaced out of future years' low- and moderate-income housing set-aside. BACKGROUND/REASONS FOR RECOMMENDATIONS Resources for Community Development is a non-profit housing development corporation interested in constructing quality rental housing in the West Pittsburg Redevelopment Project Area. It has identified a parcel at 112 Alves Lane as an appropriate site, and has successfully negotiated a purchase contract with the owners, Avon Refinery Credit Union. CONTINUED ON ATTACHMENT: X YES SIGNATURE: 1 (�J RECOMMENDATION OF COUNTY ADMINISTRATOR REC ENDATION F BOARD CO ITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON March 30 ; 1993 APPROVED AS RECOMMENDED X 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 REDEVELOPMENT AGENCY ON THE DATE SHOWN. Contact: Carole Norris 646-4076 ATTESTED March 30 , 1993 cc: Community Development PHIL BATCHELOR, Redevelopment Agency AG NCY SECRETARY Auditor-Controller CAO County Counsel BY J , DEPUTY via Redevelopment Resources for Community Development CN/jb/wphsg.bos On February 23 , 1993 , the Board of Supervisors approved a loan of $150, 000 from West Pittsburg Redevelopment funds toward the acquisition of the site and pre-development costs of the project. This amendment will raise the total amount of Redevelopment committed funding to $250, 000. RCD is anticipating leveraging the Redevelopment allocation with funds from a variety of other sources. It has applied for, and received approvals of funding through the County's Community Development Block Grant (CDBG) and HOME programs. It is currently preparing to submit an application to the State of California's Tax Credit Allocation Committee (TCAC) for an allocation of Low Income Housing Tax Credits (LIHTC) . It is also preparing an application to SAMCO (the consortium of Savings and Loan Associations) for funds under its Affordable Housing Program. As a threshold for applying for LIHTC, RCD must show that it has 50% of the funds necessary to construct the project committed. It is therefore requesting that the Redevelopment Agency commit an additional $100,000 prior to the application being submitted on April 7 , 1993 . The funds will be structured as a loan, secured by a promissory note and deed of trust against the land and planned improvements, with interest. The term of the loan will be 40 years. It may be forgiven at the sole discretion of the Agency Board at any time if necessary to maintain the affordability of the units. As indicated . in our February 23 , 1993 report to the Board (attached) there are significant benefits to the project area from this project. The West Pittsburg Redevelopment Project Area Committee (PAC) has reviewed this. request and recommended the funding. A c� ti /4 PI � - Contra TO: REDEVELOPMENT AGENCY Costa FROM: Phil Batchelor "`-'ur Executive Director J ty .. cour DATE: February 23 , 1993 `: - ✓�' SUBJECT: Affordable Housing in the West Pittsburg Redevelopment Project Area SPECIFIC REQUEST (S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS APPROVE loan of $150, 000 from West Pittsburg Redevelopment funds to Resources for Community Development for affordable housing land acquisition and pre-development costs, and AUTHORIZE the Executive Director or his Designee to execute a Development Loan Agreement in substantially the form on file with the Clerk, and documents related thereto. FISCAL IMPACT No impact on the General Fund. A loan of $150, 000 will be made from the West Pittsburg Redevelopment Project Area Budget. The loan would be made out of unobligated capital reserves to be replaced out of future years' low- and moderate-income housing set-aside. BACKGROUND/REASONS FOR RECOMMENDATIONS Resources for Community Development (RCD) is a nonprofit housing development corporation interested in constructing quality rental housing in the West Pittsburg Redevelopment Project Area. It has identified a parcel at 112 Alves Lane as an appropriate site. The site has 12 dilapidated structures on it. It has been cited by the County Building Inspection Department, and four of the structures have been boarded up and scheduled for demolition. The other seven structures currently have tenants residing in them. RCD would CONTINUED ON ATTACHMENT: XX YES SIGNATURE: t RECOMMENDATION OF EXECUTIVE DIRECTOR REcommgubATION OF 'AGENCY COMMITTEE APPROVE OTHER r 0 i SIGNATURE(S) : ACTION OF AGENCY ON February 23 , 1993 APPROVED AS RECOMMENDED x OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A x UNANIMOUS (ABSENT 1 ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. Contact: Carole Norris 646-4076 ATTESTED February 23 , 1993 cc: Community Development PHIL BATCHELOR, County Administrator AGENCY SECRETARY County Counsel Auditor-Controller Redevelopment Agency via Redevelopment Agency BY ° , DEPUTY West Pittsburg PAC West Pittsburg MAC' Resources for Community Development Goldfarb & Lipman JK:CN:th sraWwpins.hos AF cc4 t4 relocate the tenants, demolish the blighted conditions and construct 15 units of townhouse style apartments. The site is owned by the Avon Refinery Credit Union. RCD has successfully negotiated a contract with the Credit Union to purchase contingent upon its ability to secure funding. The West Pittsburg Project Area Committee (PAC) has reviewed this project and voted unanimously to support it by recommending this allocation of up to $150, 000 in Redevelopment funds for acquisition and pre-development costs. The West Pittsburg Municipal Advisory Council (MAC) also. unanimously supported the project. RCD is anticipating leveraging the Redevelopment allocation with funds from a variety of other sources. It has applied for, and received preliminary support for funding from the Community Development Block Grant (CDBG) and HOME programs. It plans to submit an application to the State of California's Tax Credit Allocation Committee for an allocation of Low Income Housing Tax Credits. It is also preparing an application to SAMCO (the consortium of Savings and Loan Associations) for funds under its Affordable Housing Program. The funds will be structured as a loan, secured by a promissory note and deed of trust against the land and planned improvements, with an interest rate determined by the Local Area Investment Fund (LAIF) . The term of the loan will be 40 years. It may be forgiven at the sole discretion of the Agency Board if necessary to maintain the affordability of the units. Resources for Community Development will own and manage the property following construction. Staff analyses indicate that the potential benefits to the Project Area from the project are significant: (1) The construction of new affordable :housing will assist the Agency/County in meeting its affordable housing requirements; (2) A blighted condition will be removed from the community; (3) Residents currently residing on the property will be temporarily relocated subject to the: Uniform Relocation Act, and will have an opportunity to return when the new units are completed; and (4) RCD will also sign an agreement to hire West Pittsburg residents for new jobs during construction.