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HomeMy WebLinkAboutMINUTES - 04161996 - C64 V .4 Contra Costa TO: BOARD OF SUPERVISORS � ���J� FROM: Harvey E . Bragdon County Director of Community Development DATE: April 16 , 1996 SUBJECT: HOME Project Agreement and Loan Documents for the Pittsburg Housing Rehabilitation Project SPECIFIC REQUEST(S) OR RECOMMENDATIONS.(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS AUTHORIZE the Deputy Director, Redevelopment, or his designee to ( 1) execute a HOME Project Agreement with the City of Pittsburg to provide $300, 000 in HOME Investment Partnership Act funds for a project to rehabilitate housing owned and occupied by lower-income households. and (2) execute required loan documents for this purpose. FISCAL IMPACT No General Funds are involved. Funds for this project will come from FY 1994/95 HOME Investment Partnership Act (HOME) funds provided to the County through the U.S . Department of Housing and Urban Development (HUD) . BACKGROUND/REASONS FOR RECOMMENDATIONS On October 3, 1995, the Board of Supervisors approved an allocation of $300, 000 in HOME funds to the City of Pittsburg fo purposep CONTINUED ON ATTACHMENT: X YES SIGNATURE: �oJ f�'f�liLt1' RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT ON OF BOARD OMMITTE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON April 16, 1996 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 BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Kathleen Hamm 646-4208 ATTESTED An_ril 16, 1996 cc: County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR Community Development City of Pittsburg via Comm. Dev. BY DEPUTY maintaining and improving the supply of housing owned and occupied by lower-income households'. In addition, this project is part of a multi-year effort by the City to revitalize the following target area: Railroad Avenue east to Harbor Street bounded by Eighth Street on the north and Tenth Street on the South; and Railroad Avenue west to Beacon Street bounded by Eighth Street on the north and Thirteenth Street on the south. Financing sources for this project include the following: Contra Costa HOME funds $ 300,000 City Redevelopment Agency Funds $ 625,000 State Community Development B1ock' Grant (CDBG) $ 390,500 Pittsburg CDBG $ 340, 000 Private resources $ 112 ,500 Program income (CDBG) $ 25, 000 TOTAL $1, 793, 000 All HOME funds will be used for housing rehabilitation loans for very- low and low-income homeowners . Loan terms include the following: three percent simple interest; 10-year term; renewable for lower- income households . In order to qualify for a loan, households must . have incomes which are less than or .equal to 80 percent of the area median and agree to occupy the unit as their principal place of residence. As required, matching funds in the amount of 25 percent ($75, 000) will be provided from City RDA funds and permit fee waivers . During FY 1995/96, the City anticipates providing loans to rehabilitate an estimated 63 units affordable to and occupied by lower-income households, including 20 HOME-assisted units . The City was previously awarded $180,000 in FY 1993 HOME funds for this project. These funds have been successfully used to provide loans to assist in the rehabilitation of 8 rental and 12 owner- occupied units, all affordable to and occupied by very-low and low- income households . The City anticipates that completion of the full multi-year effort will result in the rehabilitation of an estimated 500 affordable housing units and revitalization of the specified target area. All HOME-assisted units will be subject to County requirements and federal regulations governing the use of HOME funds, including income eligibility, occupancy, and affordability restrictions to be incorporated into loan documents developed by the County for use by the City in implementing this program. As required by federal regulations, all repayments of HOME .and/or RDA matching funds will be deposited into the Contra Costa Consortium HOME Trust Account for use in funding future HOME-eligible activities . kh/kl2/BOS95-02 'The Board action on October 3, 1995, approved the allocation of $2,313,000 in FY 1995 HOME funds and $405,000 in previously unallocated FY 1994 HOME funds. Of the FY 1994 funds allocated in that action, $300,000 will be used to fund the Pittsburg Housing Rehabilitation Project. i