HomeMy WebLinkAboutMINUTES - 07172001 - C.149 Contra
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FROM: Dennis M. Barry, AICP County
Community Development Director
DATE: July 17, 2001
SUBJECT: Execution of Legal Documents for the Danville Senior Apartments Project in South-Central
County
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
AUTHORIZE the Deputy Director, Redevelopment or his designee to enter into the required legal documents to
provide $1,800,000 in FY 2001/02 Community Development Block Grant (CDBG) and $400,000 in HOME
Investment Partnership Act (HOME) funds to the Danville Senior Apartments project in South-Central County.
FISCAL IMPACT
No General Fund impact. Funds for this project will come from FY 2001/02 CDBG and HOME funds. CDBG
and HOME finds are provided to-the County on a formula allocation basis through the U.S. Department of
Housing and Urban Development (HUD).
BACKGROUND/REASONS FOR RECOMMENDATIONS
On May 8, 2001, the Board of Supervisors allocated $1,800,000 in CDBG and $400,000 in HOME funds to
BRIDGE Housing Corporation (BRIDGE) for the Danville Senior Apartments project. The purpose of this
project is to increase the supply of affordable senior housing through the development of 75 apartments on a 2.9
acre site at the corner of Laurel Drive and Hartz Drive in the Town of Danville. Eleven uni s will be designated
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
✓RECOMMENDATION OF COUNTY ADMINISTRATOR_ EC MMEN TION OF BOA
COMMITTEE
--`APPROVE OTHER
SIGNATURE(S): ,
,o,eg ACTION
OF BOARD ON cY>✓APPROVED AS RECOMMENDEDJC OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT /i2.lJ`n�'� ) 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: Kara Douglas, 335-1253 ATTESTED SDG
Orig: Community Development JOHN SWEETEN, ERI
cc: County Administrator OF THE BOARD OF SUPERVISORS
County Counsel A/.NDC NTY ADMINISTRATOR
Auditor-Controller
.BY UTY
,as HQME-assisted units and an additional 25 units will be designated as CDBG-assisted units. Six units will be
affordable to and occupied by extremely-low income households (incomes at or below 30 percent of the Contra
Costa area median income [AMI]) and the remaining units will be affordable to/occupied by very-low income
(incomes at/below 50 percent AMI) households. All units will remain affordable for a minimum of 55 years.
In addition to the CDBG and HOME funds, project financing includes Town of Danville resources, low-income
housing tax credits (proposed), and private lender financing. Legal documents between the County and
BRIDGE include, but may not be limited to, CDBG and HOME Project Agreements, loan and regulatory
agreements, intercreditor agreement, subordination agreement and escrow instructions.
Funds were provided contingent on the following: negotiation of an operating budget including partnership fees
and reserve account balances acceptable to the County, and negotiation of a final development budget including
consideration of savings in the development budget. BRIDGE is working with the County to meet these
contingencies. Loan documents will be entered into when they have been met.
The total cost of this project is $15,950,331. The development budget and sources of funds are as follows:
Source Amount
FY 2001/02 CDBG funds $1,800,000
FY 2001/02 HOME funds 400,000
Town of Danville 5,300,000
Private Lender Loan 1,561,510
Equity Investor 6,288,821
General Partner Contribution 600,000
TOTAL $15,950,331
Use
Acquisition $3,000,000
Construction 8,367,320
Soft Costs 1,973,620
Financing 590,335
Contingencies 682,821
Developer fee 1,200,000
Syndication 136,235
TOTAL $15,950,331
CDBG and HOME funds will be provided in the form of a residual receipts loan with affordability restrictions
recorded against the property.
1 BRIDGE has applied for low-income housing tax credits.Allocations are expected in August or September.
WAkdouglas\New\Board Ordcrs\2001\Danville Sr..doc