HomeMy WebLinkAboutMINUTES - 06231998 - C125 ..f Contra
TO: BOARD OF SUPERVISORS Costa
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FROM: Dennis M. Barry, AICP
N L,1(ily
Community Development Director
DATE: June 23 , 1998
SUBJECT: Allocation of FY 1997/98 HOME Housing Development Assistance Funds
and Execution of Required Legal Documents for the Terrace Glen
Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
( 1 ) APPROVE the allocation of $241,000 in FY 1997/98 HOME Investment
Partnership Act Housing Development Assistance Funds (HOME/HDAF) to
Terrace Glen Partners for the Terrace Glen Apartment Project in
Antioch and (2) AUTHORIZE the Deputy Director, Redevelopment, or his
designee to execute required legal documents for this purpose.
FISCAL IMPACT
No General Fund impact . Funds for this project will come from the
FT 1997/98 HOME/HDAF. HOME funds are provided to the County on a
formula allocation basis through the U. S . Departmentof Housing and
Urban Development (HUD) .
' r
CONTINUED ON ATTACHMENT: ' X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAOF BOA MMITTEt
X APPROVE OTHER
i7
SIGNATURE(S) :
ACTION OF BOARD ON 2Iq
'J 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 K. Hamm
335-1257 ATTESTED .JUN 2 3 9998
cc: County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller AND COUNTY ADMINISTRATOR
Community Development
Terrace Glen Partners via BY , �,�� E , DEPUTY
Community Development
U
^ BACKGROUND/REASONS FOR RECOMMENDATIONS
On April 8, 1997 , the Board of Supervisors approved the allocation
of $875,500 to the FY 1997/98 HOME/HDAF for use in funding
affordable housing projects as they develop during the program
year. Including prior year carryover and reallocated funds, the
current balance of the HOME/HDAF is $1,451 , 751 .
The purpose of the Terrace Glen Project is to increase and maintain
the supply of multifamily rental housing affordable to and occupied
by lower income households in East County and to assist in the
revitalization of the Antioch Redevelopment Area. On October 22 ,
1996 , the Board of Supervisors approved an allocation of $615, 000
in FY 1996/97 HOME/HDAF funds to Bell Investment Group (Bell) and
Resources for Community Development (RCD) for this project. The
project was to be implemented by Terrace Glen Partners, a limited
partnership composed of Bell as the Managing General Partner and
RCD as the limited partner. In combination with City of Antioch
Redevelopment Agency (City RDA) funds of $1 million and private
lender financing, County HOME funds were to be used to acquire nine
four-plexes located at 25 to 107 West 20th Street in Antioch with
the intent of demolishing one building and rehabilitating the
others to provide 32 units of affordable rental housing.
In November of 1996 , Terrace Glen Partners acquired the project
site with the objective of completing the rehabilitation by
December of 1997 . Following acquisition, a number of problems
surfaced which resulted in delays in project implementation,
created a substantial funding gap, and ultimately rendered the
project infeasible within the existing budget. To a significant
degree, the difficulties resulted from experience and capacity
issues associated with the original Managing General Partner
(Bell) . Following lengthy negotiations and in order to move the
project ahead, RCD acquired Bell's interest in Terrace Glen
Partners and replaced Bell as the Managing General Partner. RCD is
a nonprofit organization with substantial, successful ',experience in
affordable housing development in Contra Costa and the East Bay.
Since becoming the General Partner, RCD has obtained required
planning approvals, redesigned the project to reduce costs,
selected a qualified contractor, and obtained additional financing
from the City of Antioch and private lenders . In order to fill the
remaining funding gap and allow this project to move forward to
completion, RCD/Terrace Glen Partners requested additional
HOME/HDAF resources from the County. This request was reviewed by
the Affordable Housing Finance Committee and, on June 4 , 1998, the
Committee voted to recommend that the Board of Supervisors approve
an additional $241, 000 in FY 1997/98 HOME/HDAF funds for the
Terrace Glen Apartment Project contingent on the following: HOME
funds to be provided in the form of a residual receipts loan with
3 percent simple interest subordinate only to private lender
financing; and any unexpended contingency funds remaining after
project completion to be retained by the City and County. If the
additional funds are approved, the HOME/HDAF will have a remaining
balance of $1,210,751 .
The total cost of the Terrace Glen Project is $3 , 335,',240. Sources
of financing include:
FY 1997/98 Contra Costa HOME/HDAF $ 241, 000
FY 1995/97 Contra Costa HOME $ 615, 000 approved
City of Antioch RDA $1,247 , 625 approved
City of Antioch CDBG $ 150, 000 approved
California Federal Bank $ 883, 215 approved
FHLB Affordable Housing Program $ 198,400 approved
The Terrace Glen Project includes 16 Contra Costa HOME-assisted
units, including four units required to be affordable to and
occupied by extremely low-income households ( incomes at/below 30
percent of the area median income or AMI ) , and 12 units affordable
to very-low income households (50 percent AMI) . All remaining
units must be affordable to households with incomes at/below 60
percent AMI in accordance with requirements of the City of Antioch.
The project will remain affordable for 55 years .
kh/k17JH0S97-5