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Home My WebLink AboutMINUTES - 06221993 - 1.112 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA 1 TO: BOARD OF COMMISSIONERS DATE: June 22, 1993 1 FROM: Richard J. Martinez, Executive Director cc: SUBJECT: DEVELOPMENT OF LOW INCOME SENIOR HOUSING ON HOUSING AUTHORITY PROPERTY LOCATED AT THE END OF CHESTER DRIVE IN PITTSBURG, CA. I. RECOMMENDED ACTION AUTHORIZE the Executive Director to work with a joint venture (Joint Venture), formed by Pittsburg Preschool Coordinating Council(PPSCC) and Satellite Senior Housing Development Corporation(Satellite),to develop a very low income senior housing complex on the vacant portion of the Housing Authority-owned property at the end of Chester Drive in Pittsburg; AUTHORIZE the Executive Director to EXECUTE the new CDBG Program Project Agreement and loan documents, for a zero interest, 40 year deferred loan,with the County for its previously awarded 1991-1992 CDBG funds for predevelopment costs for the project and AUTHORIZE the Executive Director to enter into an agreement with the Joint Venture to use the CDBG predevelopment funds awarded to the Housing Authority for the project; and AUTHORIZE the Executive Director to negotiate an appropriate land transfer agreement with the Joint Venture for the vacant portion of this Housing Authority-owned property. II. FINANCIAL IMPACT: The Housing Authority would be able to increase its Local Management Reserves by the as yet undetermined price charged for the transfer of the vacant portion of its property to the Joint Venture. No other fiscal impact is expected. III. REASONS FOR RECOMMENDATION/BACKGROUND The Housing Authority originally leased the 5.5 acre site at the end of Chester Drive to Pittsburg Preschool Coordinating Council (PPSCC) for a day-care facility. The day-care facility only uses about 2.5 acres. Over the last three years, the Housing Authority and PPSCC have been working to develop a senior,housing project on the vacant portion of the site. HUD recently issued a NOFA, due July S, 1993,for its Section 202 program. This is one of the few funding programs still available for the construction of low income senior housing developments. Because the Housing Authority is prohibited by regulations from applying for the Section 202 funding, it was recommended that the Joint Venture be the developer and apply for this funding. With Satellite's considerable senior housing development and management experience and PPSCC's social services management expertise, the Joint Venture would be a very competitive applicant for this funding program,as well as an excellent development/management term for the complex. In 1992, the County:awarded the Housing Authority $30,000 for predevelopment expenses for the project. Because the original agreement has expired, the Executive Director must execute a new CDBG Program Project Agreement and loan documents, for a zero interest, 40 year deferred loan, with the County in order to access these CONIINUED ON ATIACI-Ilv - SIGNATURE_1;PA,_X ' rn� RECOIvII&ONDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITT!EL /APPROVE n TI TER SIGNAl'URE(S) /� ACTION OF BOARD ON 9_3 APPROVED AS RECOMMENDED OTHER VO"IR OF COMMISSIONERS v1 UNANIMOUS(ABSENT 1 I HEREBY CERTIFY'THAT"T1BS IS.A TRUE AND CORRECT - AYES: NOES: COPY OF AN ACTION'TAKEN AND ENTERED ON THE ABSENT: ABS FAIN: MINLrM OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. 464�ATTESTED 3 Phil Batch ,Cl.&of the B..dof Commissioners BY ,DEPUTY funds at this time. The Housing Authority wishes to enter into an agreement which would enable the Joint Venture to use the CDBG funds for preparation of the Section 202 application and for other necessary predevelopment work. In order to have a more competitive application,the developer/sponsor should have some form of site control. In this case, control of the vacant land would need to be separate from the day-care facility.site and an appropriate land transfer agreement allowing the necessary site control would need to be determined and approved by all parties. At its regular meeting on June 21, 1993,the Advisory Housing Commission recommended that the Executive Director be authorized to work with the Joint Venture; to execute the new CDBG predevelopment funding agreement; to enter into an agreement with the Joint Venture for use of the CDBG funds; and to negotiate the appropriate land transfer agreements for the vacant portion of the Housing Authority-owned site so that the Joint Venture may proceed with the funding application'for the development of a very low income senior housing complex on that site. IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect to not authorize the recommended actions, the County would lose a viable opportunity for the development of low income senior housing in the Pittsburg community. mlg:bo-202ap.psh . Cofls ider WCjk �• Z Satellite Senior Homes Management"o oration, Inc. 360 - 22nd Street, Suite 700 ♦ Oakland, CA 94612 Telephone: (510) 451-8622 ♦ FAX.• (510) 451-8643 June ].0, 1993 l J Mr Tom Torlakson Contra Costa County Supervisor 651 Pine Street, Room #106 I Martinez, CA 94553 rI D V Dear Tom, I am writing to announce that Satellite Senior Homes, Inc. and the Pittsburg Pre-school Coordinating Council, In,,. are jointly applying for HUD 202 funds to develop an affordable elderly housing complex adjacent to the Pre-school. It is our intent to provide quality housing and services to Pittsburg's low-income elderly in a setting that will offer opportunities for inter-generational and family support programming. Our application for funding would be greatly strengthened by a letter of support from you or your organization. In respect for your time, I have attached a "draft" letter of support for your reference and adaptation. I will phone you on Monday, June 14th to personally answer any of your questions regarding this request for a letter of support for our proposal. By combining our efforts on this project, we will be taking advantage of Satellite Senior Homes' 25 years of experience in developing affordable housing for low-income elderly in the East Bay, and the Pittsburg Pre-school Council's 20 years of experience in providing quality services to a low-income population in the City of Pittsburg. Attached is a copy of Satellite Senior Homes' Annual Report for your reference. Thank you very much for your support of our communities's low-income elderly. I look forward to speaking with you about this very exciting new elderly housing project with inter- generational programming in Pittsburg. Sincerely, RECEIVED FJm I 1 1993 Carol Severin President CLERK BOARD OF SUPERVISORS CONTRA COSTA CO. bLOUSIAC ax," Beth Asher♦ Casa Montego ♦ Doh On Yuen ♦ Glen Brook Terrace ♦ Lawrence Moore Manor♦ Linda Glen Newark Gardens♦ Otterbein Manor♦ Park Boulevard Manor ♦ St. Andrew's Manor♦ St. Patrick's Terrace Satellite Central ♦ Stuart Pratt Manor♦ Valdez Plaza Affordable Housing for Elderly and Disabled - , Please Mail Your Letter Of Support BY: June 21., 1993 TO: Satellite Senior Homes 360 22nd Street, Suite 700 Oakland, CA 94530 Attn: Severin IF YOU HAVE QUESTIONS, PLEASE CALL: Carol Severin 510-524-6171 x 1; or Frances Greene 510-439-2061 THANK YOU FOR YOUR SUPPORT! DRAFT SUPPORT LETTER ON YOUR LETTERHEAD Date Ms. Jayne Humphrey, Director of Development Department of Housing and Urban Development, Region IX 450 Golden Gate Avenue San Francisco, CA 94102-3448 Reference: Support of the HUD 202 Application by Satellite Senior Homes and the Pittsburg Preschool Coordinating Council I am writing (on behalf of 1 to support the HUD 202 funding application by Satellite Senior Homes and the Pittsburg Pre-school Coordinating Council for the development of a low-income elderly housing project in Pittsburg, California. Affordable elderly housing is desperately needed in the County of Contra Costa, the City of Pittsburg, and especially in the low-income neighborhood surrounding the proposed site. (Add anything you wish about your experience or understanding of the plight of low-income seniors and need for affordable elderly housing in the community.) Satellite Senior Homes has over 25 years of experience in the development and management of HUD assisted elderly housing in the San Francisco East Bay. The Pittsburg Pre-school Coordinating Council has over 20 years of experience in providing a variety of community services to the low-income, and predominantly minority community in Pittsburg. In partnership, the two organizations plan to develop a low-income elderly housing project, adjacent to the Pre-school, to provide housing and inter- generational programming to meet the full spectrum of housing and support service needs of the low- income community. I am (Our organization is) familiar with the track record of Satellite Senior Homes and the Preschool in providing housing and services to the community, and I am (we are) in full support of their proposal to HUD for funding of this very innovative and much needed project. (Add whatever you wish about your experience with Satellite or the Pre-school or what a success you believe the project will be.) Sincerely, Nance, Title, Organization