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HomeMy WebLinkAboutMINUTES - 04202004 - C92 TO: BOARD OF SUPERVISORS Contra FROM: DENNIS M. BARRY, AICP ' Costa COMMUNITY DEVELOPMENT DIRECTOR. ` GATE: April 20, 2004 s' - o u n `y SUBJECT: Allocation of FY 2003/04 HOME Housing Development Assistance Funds for the Brentwood Senior 11 (Sycamore Place 11) project. SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: (1) APPROVE the allocation of up to $400,000 in FY 2003/04 HOME Investment Partnerships Program (HOME)/Housing Development Assistance Funds (HDAF) to Christian Church Homes for the Brentwood Senior 11 (Sycamore Place 11) project in Brentwood and (2) AUTHORIZE the Deputy Director — Redevelopment, or his designee to execute all legal documents required to complete this project. FINANCIAL IMPACT: No General Fund impact. Funds for this project will come from FY 2003104 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). BACKGROUND: On May 8, 2001 and December 17, 2002, the Board of Supervisors approved the allocation of $585,421 in HOME funds to Christian Church Homes (CCH) to develop the Brentwood Senior 11 (Sycamore Place 11) project. On March 25, 2004, the Affordable Housing Finance Committee voted to recommend that the Board approve an additional $400,000_ in FY 2003/04 HOME/HDAF to Christian Church Homes for this project. If this request is approved, the total amount of HOME funds allocated to this project will be $885,421. The current balance of the HOME/HDAF is $558,310. Assuming approval of this project, the FY 2003/04 HOME/HDAF will have a remaining balance of$158,310. 9 CONTINUED ON ATTACHMENT: x YES SIGNATURE: i COMMENDATION OF COUNTY ADMINISTRATOR El RECM ENDATIO F BOARD COMMI EjIUS-PROVE [ OTHER I SIGNATURE(S): ACTION OF B�ON __ April 2Q-t,,2004 APPROVED AS RECOMMENDED ® OTHER [l VOTE OF SUPERVISORS: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND X UNANIMOUS{ABSENT NOM ENTERED ON THE MINUTES OF THE BOARD OF AYES: NOES: SUPERVISORS ON THE DATE SHOWN, ABSENT: ABSTAIN: ATTESTED Ary 1 20 7 - Contact: Sara Welch,335-1264 JOHN SWEETEN,CLERIC OF THE BOARD OF cc: CAO SUPERVISORS AND COUNTY ADMINISTRATOR County Counsel Community Development ? ; i By: u ty The purpose of this project is to provide 40 units of multifamily rental housing affordable to and occupied by very-low income seniors in Brentwood and East County. The project consists of 39 one-bedroom units and 1 two-bedroom manager's unit on a vacant site in Brentwood. The site is immediately adjacent to Sycamore Place, a 40 unit senior development managed by CCH, and close to shopping and services. The 39 one-bedroom units will be affordable to and occupied by extremely low and very-low income seniors. Through its experience with other senior projects funded with HUD Section 202 Housing for the Elderly funds, CCH anticipates the majority of tenants will be extremely low income. All units will remain affordable through recorded regulatory agreements for at least 55 years. HOME funds were first provided to this project in May of 2001 and awarded again in Fall 2002. Since then, project costs have continued to increase, resulting in a financing gap of $1,082,301. Assuming approval of the additional required funds, construction will be initiated in May of 2004. The total cost of this project is $6,420,642, or $160,516 per unit. FY 2004/05 HOME funds requested: $400,000* City of Brentwood $400,000 HUD Section 202 $750,000* FY 2002/03 HOME/HDAF funds $130,722 FY 2001/2002 HOME funds $454,699 City of Brentwood $585,421 HUD Section 202 $4,167,500 Sponsor Eguity/AHP $282,300 TOTAL COST $6,420,642 *Project has applied for additional funds from HUD. If these funds are received, the HOME funds requested will be reduced to $100,000. Required legal documents for this transaction include, but may not be limited to a loan agreement, regulatory agreement, promissory note, and deed of trust and security agreement.