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TO: REDEVELOPMENT AGENCY County
`•'T C Vh J
FROM: Phil Batchelor
Executive Director
DATE: June 22, 1993
SUBJECT: Senior Housing in Oakley
SPECIFIC REQUEST(S)OR RECOMMENDATIONS(S)& BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Commit up to $338,347 to Ecumenical Association for Housing to support the development of affordable senior housing in
Oakley. Approve a prc-development loan not to exceed$50,000 out of the total $338,000. Authorize the Deputy Director of
Redevelopment to execute a Pre-development Loan Agreement with Ecumenical Association for Housing.
FISCAL IMPACT
No impact on the General Fund. Funds will be provided out Oakley Redevelopment Project Area low-and moderate-income
housing set-aside. A total of$232,675 will be provided out of FY 92/93 tax increment. The additional $105,672 will be provided
out of the FY 93/94 budget.
BACKGROUND/REASONS FOR RECOMMENDATIONS
In October 1991, Supervisor Torlakson requested that the County begin the process which would result in the provision of senior_
housing in the Oakley area (Board Order. dated October 15, 1991). In response to this request the Oakley Municipal Advisory
Council created a subcommittee know as Citizens for Affordable Senior Housing(CASH)and in August, 1992 issued a formal
report which examined in more detail, the need for senior housing in the Oakley area. This report generally finds that there is a
very high demand for senior housing in the Oakley area,yet none is being crea ed by the private housin arket to fill this need.
CONTINUED ON ATTACHMENT: X YES SIGNATURE: if
lir A e
—RECOMMENDATION OF EXECUTIVE DIRECTOR— RECOMMENDATION OF AGENCY COMMIT' E
APPROVE OTHER
SIGNATURE(S):
ACTION OF AGENCY ON
June 2 2 , 19 9 3 APPROVED AS RECOMMENDED x OTHER_
VOTE OF COMMISSIONERS
1 HEREBY CERTIFY THAT THIS IS A
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 June 22 , 1993
cc: Community Development PHIL BATCHELOR,
Redevelopment Agency AGENCY SECRETARY
Auditor-Controller
Via Redevelopment
Ecumenical Association for Housing
OMAC
BY ,DEPUTY
1n early 1993, the OMAC began working with the County Redevelopment Agency staff to begin the process for development of an
actual senior housing project. Ecumenical Association for Housing(EAH),a non-profit housing development organization was
contacted to act as the developer of such a project.
After an extensive site search, EAH negotiated an agreement to purchase a property on the north side of Oakley Road,just east of
Live Oak Road. The Redevelopment Agency and nonprofit developer are now seeking a general plan amendment to allow the
creation of 50 clustered senior housing units. At its meeting on June 7, 1993, the East County Planning Commission did not
support the general plan amendment with a 3-1 vote. The general plan amendment will be heard by the Board at its July 13, 1993
meeting.
The Oakley Municipal Advisor` Council, at its June 14, 1993 meeting, voted to recommend that the Board of Supervisors commit
$338,347 from the Low- and Moderate- Income set-aside for this project. it also recommended that up to $50,000 of the total
commitment be approved for pre-development costs.
The pre-development loan will cover the costs of an appraisal and environmental analysis, survey work, initial architecture and
engineering services, costs associated with applying for additional funds for the project, consulting time and EAH staff time. These
funds will be used to not only show the County's commitment to this project,but also will allow the non-profit developer to compete
for additional funding in the form of a Federal Housing & Urban Development Section 202 elderly housing grant or a low-income
housing tar credit application. The project is also expected to apply for fiords from the County's HOME program. The pre-
development loan will be unsecured and forgiven if the project does not prove feasible. It will be folded into the total loan
commitment for the project if the project is feasible and moves forward to development.
The total commitment will be provided in the form of a loan with interest and secured by the land and improvements. It would be
contingent upon the following:
1. A General Plan Amendment for the chosen site be approved by the Board of Supervisors.
2. Negotiation of loan terms acceptable to the Agency..
3. EAR successfully competes and receives an allocation of funds from either Section 202 financing or Low-Income Housing Tax
Credits.
4. Other funds necessary from the HOME program, Community Development Block Grant Program or from a private lender are
received.
5. Ager financial and site feasibility analyses are complete, the project appears feasible.
The development of senior housing in Oakley is consistent and reflects the County's Housing Element, CHAS,and assists the
Redevelopment Agency in meeting its affordable housing requirements under California Redevelopment Law.