HomeMy WebLinkAboutMINUTES - 03112003 - C54 TO: BOARD OF SUPERVISORS ,,; 1 , Contra
CostaFROM. Dennis M. Barry, AICD �
Community Development Director County
DATE: March 11, 2003 a
SUBJECT: Substantial Amendment to the FY 2002103 Contra Costa County Annual Action Plan
(Community Development Block Grant Program)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND,JUSTIFICATION
RECOMMENDATION: APPROVE the substantial amendment the FY 2002103 Contra Costa County
Annual Action Plan (Community Development Block Grant Program) to create a revolving loan fund
of up to $200,000 for first-time homebuyer programs.
FINANCIAL IMPACT: No General Fund impact. CDBG funds are provided to the County annually
on a formula allocation basis through the U.S. Department of Housing and Urban Development.
BACKGROUND: Through the Community Development Bloch Grant (CDBG)';program, the County
has provided 52 low-income first-time homebuyers with silent second loans. When these loans are
re-paid, the funds are either made available to the next buyer of the affordable unit, or deposited into
the Housing Development Assistance Fund for additional affordable housing development. There are
occasions when the next purchaser of the affordable unit needs a larger loan and it is appropriate to
increase the amount available. There are also occasions when to preserve the unit in the County's
affordable inventory, the County needs to purchase the unit. The revolving loan fund will provide a
mechanism to both provide additional loan funds as necessary and to enable the County to purchase
and resale an affordable unit.
CONSEQUENCE OF NEGATIVE ACTION: The County would lose the opportunity to maintain its
affordable housing inventory for first-time homebuyers and may not be able to provide additional
silent second loans to new first-time homebuyers.
CHILDREN'S IMPACT STATEMENT: (N/A)
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
ECOMMENDATION OF COUNTY ADMINISTRATOR I� E_4, OMMENDA ION OF BOARD OMMITTEE
3_0PROVE ® OTHER
SIGNATURES): :,".:
ACTION OF Bo ON J,
APPROVED AS RECOMMENDED OTHER F-1
VOTE OF SUPERVISORS: I HEREBY CERTIFY THAT THIS IS A TRUE AND
CORRECT COPY OF AN ACTION TAKEN AND
__X_UNANIMOUS(ASSENTNOW ENTERED ON THE MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
AYES: NOES:
ABSENT: ABSTAIN: ATTESTED
DISMCr IIT SEAT VACANT march 11. 2003
Contact: Kara Douglas 335-1253 JOHN SWEETEN,CLERK OF THE BOARD OF
cc;Community Development SUPERVISORS AND COUNTY ADMINISTRATOR
County Administrator
County Counsel �t Lllj=. (_�
Additor-Controller By , epu
f
FSACKGi,Ocont.): The revolving loan fund will be funded from loan repayments from
ex',tiina first-time homebuyer loan repayments and $95,000 in returned funds from the City of
Pinole first-time homebuyer program.
Federal regulations regarding the County's Consolidated Plan and Annual Action Plan [24 CFR
Part 91.105(c)] require that any change in the use of CDBG funds from one activity to another
constitutes a substantial amendment to the Action Plan. The proposed change of use is to
establish a revolving loan fund (RL.F) for an amount of up to $200,000 in CDBG funds. Consistent
with the regulations, the Community Development Department provided a public notice on
February 5, 2003. This notice stated the nature of the change, the reason for tthe change, and
gave the public 30 days to provide written comment. As of February 27, no comments have been
received. The public may also provide comments at the Board of Supervisor's March 11, 2003
meeting.