HomeMy WebLinkAboutMINUTES - 05141996 - SD1 - Contra
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TO: BOARD OF SUPERVISORS
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FROM: Harvey E . Bragdon
Director of Community Development
DATE: May 7 , 1996
SUBJECT: Construction Financing - Coggins Square Affordable Housing Project,
Pleasant Hill BART Station Area
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE the allocation of up to $3 million in County Community
Development Block Grant (CDBG) and $2 million in Affordable Housing
Trust funds (Acct. No. 111300) and Housing Bond Trust Funds ( 810900
Sub-Account #018-108-010) to provide a short-term construction loan
to BRIDGE Housing Corporation for the Coggins Square Affordable
Housing Project subject to conditions specified in this Board Order;
and AUTHORIZE the Deputy Director - Redevelopment to execute
agreements necessary to implement the construction loan. '
FISCAL IMPACT .
No General .Fund impact. The proposed construction loan will be from
unexpended balances in the County' s Affordable Housing Trust Fund
(AHTF) and CDBG line of credit with the federal government. The loan
will be repaid from the project's permanent financing. No previously
programmed use for CDBG/AHTF funds will be impaired. a
CONTINUED ON ATTACHMENT: Y YES SIGNATURE: 7,
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT O SOF BO /D COMMIT E
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON / APPROVED AS RECOMMENDED OTHER _
VOTE OF SUPERVISORS
I 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 BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Kathleen Hamm
335-1257 ATTESTED
cc: County Administrator PHIL BA 'HEL , CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller (N. Garnett) AND COUNTY ADMINISTRATOR
Community. Development
BRIDGE Hsg. Corp. BY , DEPUTY
5D - l
BACKGROUND/REASONS FOR RECOMMENDATIONS
On October 23, 1995, the Redevelopment Agency selected BRIDGE
Housing Corporation and Martin Group/Holliday Development as the
prospective master developer for Area 4 (South) at the Pleasant
Hill BART Station. The development group has proposed a 140 unit
development for this site, of which 86 units are to be an
affordable housing project built by BRIDGE. On March 5, 1996, the
Board of Supervisors approved the allocation of $1,950,000 in funds
to BRIDGE Housing Corporation for the Coggins Square Apartment
Project, including FY 1996/97 CDBG funds and FY 1995/96 and 1996/97
HOME funds .
The Redevelopment Agency and Community Development Department have
been working with BRIDGE to complete the financing required to
successfully complete this project in a manner which minimizes
permanent public subsidy requirements . With this objective in
mind, BRIDGE has requested that the County provide a zero-interest
construction loan to the project in the amount of $5 million,
resulting in a cost savings of approximately $430,000 . The
construction loan will be from unexpended balances in the County' s
Affordable Housing Trust Funds and Housing Bond Trust Funds ($2
million, account numbers 111300 and 810900 Sub-Account 018-108-010)
and the County' s CDBG line of credit with the federal government
(up to $3 million) . The requested amounts are achievable based on
current fund availability and historic balances maintained in the
CDBG line of credit and Affordable Housing Trust Fund. The loan
will be fully consistent with all relevant federal regulations and
County requirements, and will have a maximum loan term of 18
months . The loan will be secured by a lien against the property
and repaid with syndication proceeds from the sale of Low-Income
Housing Tax Credits) and a permanent loan for the project provided
by a financial institution. In order to further guarantee
repayment of the loan in a timely manner, BRIDGE will be required
to obtain an irrevocable letter of credit from a private lender
guaranteeing the County repayment of the full amount of the loan.
BRIDGE will apply for an allocation of Low-Income Housing Tax
Credits (LIHTCs) ' in late May of 1996 . Success in obtaining LIHTCs
is necessary in order for the Coggins Square Project to proceed.
In order to submit a competitive application, BRIDGE must be able
to demonstrate the financial feasibility of the project within the
specified budget.
The above recommendation is subject to the following conditions :
1 . Approval of all construction and permanent financing required
to successfully complete the Coggins Square Project, including
but not limited to the required allocation of LIHTCs .
2 . Compliance with all relevant federal regulations for the
Community Development Block Grant and HOME Investment
Partnership Act Programs .
3 . The provision of an irrevocable letter of credit from an
accredited financial institution in a form approved by the
County for the full amount of the construction loan.
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