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u TO: BOARD OF SUPERVISORS r, Contra
FROM: Dennis M. Barry, AICD Costa
Community Development Director County
DATE: June 13, 2000
SUBJECT: Allocation of FY 1999/2000 CDBG Housing Development Assistance Funds and
Amendment to Required Legal Documents for the Grayson Creek Apartment Project
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
(1) APPROVE the allocation of an additional $825,000 in FY 1999/2000 Community Development
Block Grant(CDBG)Housing Development Assistance Funds to BRIDGE Housing Corporation for the
Grayson Creek Apartment Project in Pleasant Hill and (2) AUTHORIZE the Deputy Director,
Redevelopment or his designee to execute amended legal documents for this purpose.Legal documents
to be amended include but may not be limited to CDBG Project Agreement 98-71-HSG, the Loan
Agreement, the Regulatory Agreement and the Intercreditor Agreement previously executed by the
County, BRIDGE and the City of Pleasant Hill.
FISCAL IMPACT
No General Fund impact. Funds for this project will come from the FY 1999/2000 CDBG Housing
Development Assistance Fund. CDBG funds are provided to the County annually on a formula
allocation basis through the U.S. Department of Housing and Urban Development(HUD).
CONTINUED ON ATTACHMENT: X YES SIGNATURE: ,
•G'Y�`�'
COMMENDATION OF COUNTY ADMINISTRATOR COMMS AT'ION OF B ARD
COMMITTEE
L---APPROVE OTHER
SIGNATURE(S):
ACTION OF BO ON June 13, 2000 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 K. Hamm(925) 335-1257 ATTESTED June 13, 2000
Orig/cc: Community Development Dept. PHIL BATCHELOR, CLERK OF
cc: County Administrator THE BOARD OF SUPERVISORS
County Counsel AND OUNTY ADMINISTRATOR
BRIDGE via CDD
BY , DEPUTY
BACKGROUND/REASONS FOR RECOMMENDATIONS
On July 28, 1998,the Board of Supervisors approved the allocation of$1.1 million in CDBG funds and
the transfer of County-owned site valued at$650,000 to BRIDGE Housing Corporation to develop the
Grayson Creek Apartment Project.On June 8,2000,the Affordable Housing Finance Committee voted
to recommend that the Board approve an additional allocation of$825,000 in FY 1999/2000 CDBG
Housing Development Assistance Funds(HDAF)to BRIDGE for this project.The current balance of the
CDBG/HDAF is$1,893,212.Approval of the additional funds for Grayson would result in a remaining
balance of$1,068,212.
The purpose of the Grayson Project is to increase the supply of multifamily rental housing affordable to
and occupied by lower income households in Central County through the new construction of 71
apartments on a currently vacant site located at 100 Chilpancingo Parkway in Pleasant Hill. The
apartments will include one, two and three-bedroom units to serve a variety of household types,
including individuals, senior citizens, households with children, and disabled persons. As currently
proposed, the project will have relatively deep affordability, including eight units for extremely-low
income households (HHs), 27 for HHs with incomes at/below 40 percent of the area median income
(AMI), 12 for very-low income HHs,nine for households with incomes at/below 60 percent AMI,and
14 for low-income households'. All units will be required to remain affordable to the target population
for a minimum of 55 years.
Following approval ofthe County funds in 1998,BRIDGE acquired the project site using a combination
of CDBG and Northern California Community Loan Fund resources.In 1999,the City of Pleasant Hill
approved the project design and a General Plan Amendment and rezoning required to permit the project
to proceed.Construction and engineering plans are almost complete,an existing vacant building onsite
has been demolished, and pending approval of the remaining components of the plan of finance, the
Grayson Project is ready to proceed. As originally proposed, Low-Income Housing Tax Credits
(LIHTCs) represented a major source of financing for this project. LIHTCs are awarded on a
competitive application basis by the California Tax Credit Allocation Committee(CTCAC).BRIDGE
submitted unsuccessful LIHTC proposals for the Grayson Project in 1999 and in the first allocation
cycle for the year 2000.Under current LIHTC criteria,mixed-income projects receive additional points
in the allocation process.In order to make the Grayson Project more competitive for LIHTCs,BRIDGE
proposes to obtain the maximum points available under the mixed-income category by increasing the
maximum qualifying incomes for 28 apartments from 40 percent AMI as originally proposed to 50,60
and 80 percent AMI. While this approach increases the project's chance of obtaining an allocation of
LIHTCs,it also lowers the maximum amount of LIHTCS awarded to a project necessitating an increase
in subsidy from other sources. Additional factors contributing to the current funding gap include the
significant increase in Bay Area construction costs over the past two years,higher than anticipated site
improvement costs associated with soil stability and engineering issues, City design conditions, and
recent increases in interest rates and financing costs. The net impact of these factors caused total
development costs to increase by approximately$2.7 million.BRIDGE proposes to close the resulting
financing gap through an increase in County CDBG/HDAF funds for the project of$825,000 and an
increase of$1.7 million in private lender financing made possible through an increase in the City's
annual contribution to the project from$150,000 in Redevelopment Agency(RDA)funds to$235,000
per year. As currently proposed,permanent financing for this project includes the following.
FY 1999/2000 CDBG/HDAF $ 825,000
FY 1998/99 CDBG funds $ 1,100,000 approved
County land donation/CDBG $ 650,000 approved
Pleasant Hill Redevelopment Agency $ 770,000 approved
Private lender loan $ 4,470,509
LIHTC/Investor equity $ 7,655,562
FHLB Affordable Housing Program $ 284,000 approved
Proposition 1A School Rebate Program $ 134,868
Deferred County/RDA loan interest $ 91,000
Developer Equity $ 725,000 approved
TOTAL COST $16,705,939
In addition to the above resources, the City of Pleasant Hill has approved an annual payment of
$235,000 in RDA tax increment funds to support project operating costs and debt service payments for
the next 26 years.
The FY 1998/99 County CDBG funds were used by BRIDGE to acquire the site. If approved, the
additional funds will be used for architecture and engineering,permits and fees,and other costs eligible
1 Extremely-low income HHs have incomes at/below 30 percent AMI,very-low income HHs have incomes at/below 50 percent
AMI;and low-income HHs have incomes at/below 80 percent AMI.
in accordance with CDBG program regulations. Existing County loan documents will be amended to
incorporate the additional funds through an increase in the County loan. The County loan is a residual
receipts loan with the following terms:three percent simple interest; 55 year term;coequal lien position
with the City of Pleasant Dill. Affordability and use restrictions are incorporated into the County loan
documents.
kk1Vw/bos99-06
LA
Conga
Costa
TO: BOARD OF SUPERVISORS ti Coin
FROM: Dennis M. Barry,AICP
Director of Community Development
DATE: June 13, 2000
SUBJECT: Allocation of FY 1999-2000 HOME Housing Development Assistance Funds and Execution of
Required Legal Documents for the West Rivertown Apartments Project.
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
(1) APPROVE the allocation of $467,500 in FY 1999/2000 HOME Investment Partnerships
Program (HOME)/Housing Development Assistance Funds (HDAF) to Eden Rivertown Limited
Partnership for the West Rivertown Apartments project in Antioch and(2)AUTHORIZE the Deputy
Director,Redevelopment or his designee to enter into the required legal documents for this purpose.
This includes,but may not be limited to a loan and regulatory agreement.
FISCAL IMPACT
No General Fund impact. Funds for this project will come from FY 1999/2000 HOME funds.
HOME funds are provided to the County on a formula allocation basis,through the U.S.Department
of Housing and Urban Development(HUD).
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
,RECOMMENDATION OF COUNTY ADMINISTRATOR_RE C ENDATIO OF BOARD
COMMITTEE
APPROVE OTHER t
SIGNATURE(S):
ACTION OF
BOARD ON June 13, 2000 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT none } AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE
. ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE
SHOWN.
Contact: Kara Douglas, 335-1253
cc: County Administrator ATTESTED June 13, 2000
County Counsel PHIL BATCHELOR,CLERK OF
Auditor/Controller THE BOARD OF SUPERVISORS
Community Development OUNTY ADMINISTRATOR
Eden via CDD
BY ' DEPUTY
BACKGROUND/REASONS FOR RECOMMENDATIONS
On April 27, 1999, the Board of Supervisors approved the allocation of$1,553,700 to the
FY 1999/2000 HOME/HDAF for use in funding affordable housing programs as they
develop during the program year. The current balance of the HOME/HDAF is $467,503.
On June 8,2000,the Affordable Housing Finance Committee(AHFC)voted to recommend
that the Board of Supervisors approve an allocation of$467,500 in HOME/HDAF funds to
Eden Rivertown Limited Partnership(Eden)for the West Rivertown Apartments affordable
housing project. Assuming approval of this project,the FY 1999/2000 HOME/HDAF will
have a remaining balance of$3.00.
The purpose of the West Rivertown Apartments project is to increase the supply of multi-
family rental housing affordable to and occupied by lower income households in East
County through the new construction of 57 apartments on a currently vacant site located at
4'b and J Streets in Antioch.The development will include 6 one-bedroom,28 two-bedroom,
21 three-bedroom and 2 four-bedroom apartments.Three units will be fully accessible to the
physically disabled and an additional two units will be accessible to persons with vision and
hearing impairments.The project will have deep affordability with 6 units affordable to and
occupied by households with incomes at or below 30 percent of the area median income
(AMI); 10 units will be affordable to/occupied by households with incomes at/below 40
percent AMI;21 units will be affordable to/occupied by households with incomes at/below
50 percent AMI; and 13 units will be affordable to/occupied by households with incomes
at/below 55 percent AML Six units will not be designated affordable and will be rented at
market rate rents. One unit will remain available for an on-site manager. Eleven units will
designated as HOME-assisted units.All units designated as affordable will remain affordable
to lower income households for a minimum of 55 years.
The total cost of this project is $12,607,112. The proposed development budget and sources of
funds for this project are:
Source Amount
FY 1999/2000 HOME/HDAF $ 467,500
Antioch Development Agency 1,579,941
Antioch Land Loan 2,021,745
Tax Credit Equity Investor 6,216,786
FHLB Affordable Housing Program 208,000
Deferred Developer Fee 93,783
General Partner Equity 6,217
Private Lender Loan 2,013,140
$12,607,112
As proposed, the HOME funds will be used for permits and fees. If approved, HOME funds will
be provided to Eden in the form of a residual receipts loan with the following terms: three
percent simple interest, 55 year loan term, loan to be in a co-equal lien position with the City of
Antioch; and loan repayments from residual receipts to be split between the City and County on
a pro rata basis dependent on the relative investment of the City and County. Affordability and
use restrictions will be incorporated into the County loan documents.
KD WAKDOUGLASNEWIBOARD ORDERM2000MMVERTOWN.DOC
1 `
Contra
TO: BOARD OF SUPERVISORS/ REDEVELOPMENT AGENCY `. Costa
FROM: Phil Batchelor
urILY
Executive Director
DATE: June 13, 2000
SUBJECT: Oakley Redevelopment Tolling Agreement
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
As the Board of Supervisors and the Governing Board of the Redevelopment Agency
APPROVE and AUTHORIZE the Deputy Director Redevelopment or his designee to enter into
a Tolling Agreement with the City of Oakley, and the Oakley Redevelopment Agency regarding
the transfer of the Oakley Redevelopment Project to the City.
FISCAL IMPACT
No general fund impact is anticipated. A purpose of the tolling agreement is to provide
additional time to address general fund obligations.
CONTINUED ON ATTACHMENT YES SIGNATURE: `
RECOMMENDATION OF EXCUTIVE DIRECTOR RECOMM DATION OF ENCY
COMMITTEE APPROVE OTHER
i
SIGNATURE(S):
ACTION OF BOARD OF SUPERVISORS/REDEVELOPMENT AGENCY ON_June 13, 2000
APPROVED AS RECOMMENDED 'x OTHER
VOTE OF SUPERVISORS/COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT_none TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS/REDEVELOPMENT AGENCY
ON THE DATE SHOWN.
Contact: Jim Kennedy
335-1255
cc: County Administrator ATTESTED June 13, 2000
County Counsel PHIL BATCHELOR,CLERK OF THE BOARD/
Auditor/Controller ADEN ECRET RY
Via Redevelopment
City-of Oakley ,.
Goldfarb & Lipmann BY �� DEPUTY
Myers Nave
w:\Personal\data\wp6\012000\Bo-TollAgreemnt.doc
BACKGROUND/REASONS FOR RECOMMENDATIONS
With the incorporation of the City of Oakley on July 1, 1999 it has been anticipated that the
Oakley Redevelopment Project would transfer to the City beginning in fiscal year 2000-
2001. A mechanism for accomplishing this transfer would be the execution of a Transfer
Agreement between the County, the County Redevelopment Agency, the City of Oakley,
and the Oakley Redevelopment Agency. This Transfer Agreement would provide for the
transfer of jurisdiction, the assumption of existing Agency debt, the use and disposition of
existing Redevelopment funds, the transfer of Redevelopment Agency owned properties,
the transfer of records, and for the payment to County Agencies. All of this would be
accomplished under the provisions of California Redevelopment Law and the LAFCO
Resolution authorizing the incorporation of the City of Oakley.
Addressing the myriad of complications associated with the aforementioned transfer
provisions has taken more time than anticipated. Both the City and the County interests
would be served by entering into a Tolling Agreement that would provide the following:
1. Oakley would assume jurisdiction over the Redevelopment Project Area as of
July 1, 2000;
2. The County Agency would retain control of previously issued Redevelopment
Bond proceeds, however the County Agency would not expend those proceeds
without agreement from the City (these funds would transfer when a Transfer
Agreement is approved);
3. The County Agency would retain the two owned properties, howeverthe County
Agency would not sell or transfer those properties without the consent of the City
(these properties would transfer when a Transfer Agreement is approved);
4. The County Agency would retain tax increment revenue received prior to July 1,
2000, however those funds would not be expended without the consent of the
City except as specified;
5. Authorizes the County Auditor to distribute revenue from the Oakley
Redevelopment project to the County's Public Financing Authority to the extent
necessary to pay debt service on Redevelopment bonds;
6. The term of the Tolling Agreement will be thru October 31, 2000, during which
time the parties will negotiate in good faith a jurisdictional transfer agreement.
The aforementioned actions will provide an opportunity for a smooth transition of the
Oakley Redevelopment project from the County to the City.
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