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HomeMy WebLinkAboutMINUTES - 06242003 - C.95 TO: BOARD OF SUPERVISORS _° Contrce.IS FROM: Dennis M. Berry, AICP, 1.4 Costa Director of Community Development �- CountyDATE: June 24, 2003 SUBJECT: Gentrytown Apartments, Antioch SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: APPROVE an allocation of $500,000 in FY 2002/03 HOME Investment Partnership Act (HOME) Housing Development Assistance Funds (HDAF) to D&F Pacific American Properties for the acquisition/renovation of the Gentrytown Apartments in Antioch and AUTHORIZE the Deputy Director — Redevelopment to execute required loan documents. FINANCIAL. IMPACT: No General Fund impact. HOME funds are provided to the County on a formula basis through the U.S. Department of Housing and Urban Development. BACKGROUND: On June 5, 2003, the Affordable Housing Finance Committee voted to recommend that the Board approve $500,000 in FY 2002/03 HOME/HDAF to Pacific American Properties for this project. The current balance of the HOME/HDAF is $1,029,173. Approval of funds for this project would leave a remaining balance of $529,173. Pending project applications and statements of interest indicate a demand for these funds of over $4.9 million. CONTINUED ON ATTACHMENT: ® YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR [] RECOM END�TION OF }ARD COMMITTEE ['"APPROVE OTHER # if SIGNATURE(S):' 1 ACTION OF B �AON Jum 24, 2003 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS: I HERESY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND X UNANIMOUS{ABSENT ) ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. AYES: NOES: ABSENT: ABSTAIN: ATTESTED *District III Seat VACANT'k ime 24.2003 Contact: Kara Douglas,335-1253 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR cc: County Administrator County Counsel ° Auditor-Controller {{ Community DevelopmentBy: sputy Pacific American Properties via CDD The. purpose of the Gentrytown Apartments project is to increase the supply of mufti-family rental housing affordable to and occupied by lower income households in East County through the acquisition and rehabilitation of an 85-unit apartment building located at 2800 Gentrytown Drive. The development includes one, two, and three-bedroom apartments. The project will have 9 units affordable to and occupied by households with incomes at or below 35 percent of the area median income (AMI); 16 units will be affordable to/occupied by households with incomes at/below 50 percent AMI; 50 units will be affordable to/occupied by households with incomes at/below 60 percent AMC; and 8 units will be rented at market rates. One unit will remain available for an on-site manager. Eleven units will be 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 $10,239,845. The proposed development budget and sources of funds for this project are: Source Amount FY 2002/03 HOME/HDAF $ 500,000 Antioch Development Agency 100,000 Tax Credit Equity Investor 2,029,719 Tax-exempt bond allocation 6,269,393 Bridge loan 435,911 Interest earned 10,386 Deferred Developer Fee 894.436 $10,239,845 As proposed, the HOME funds will be used for acquisition costs. If approved, HOME funds will be provided to Pacific American in the form of an amortizing loan with the following terms: four percent interest, 30 year repayment term, 55 year affordability term, loan to be in a co-equal lien position with the City of Antioch. Affordability and use restrictions will be incorporated into the County loan documents. Required legal documents for this project include, but may not be limited to a loan, regulatory, and intercreditor agreements. CONSEQUENCE OF NEGATIVE ACTION: The project would not be able to secure all required funding to proceed. CHILDREN'S IMPACT STATEMENT: (if applicable)