HomeMy WebLinkAboutMINUTES - 04052005 - C.118 C0000
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TO: BOARD OF SUPERVISORS ContrrC
r ` Costa
FROM: Dennis M. Barry, AICP
Court�
Director of Community Development
DATE: April 5, 2005
SUBJECT: FY 2006/07 HOME Program Mini Action Plan
SPECIFIC REQUEST(S)OR RECOMMENDATIONS(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
(1)RESERVE an estimated$2.7 million in FY 2006/07 HOME Investment Partnerships Act(HOME)finds for the
Giant Road/San Pablo and Villa Amador/Brentwood projects;(2)DIRECT staff to consider pending applications for
HOME funds from the FY 2005/06 application round should there be any remaining FY 2006/07 funds; and (3)
SUBMIT a FY 2006/07 Mini Action Plan to the U.S. Department of Housing and Urban Development(HUD).
FISCAL IMPACT
No General Fund are involved. Funds for the recommended actions project will come from FY 2006/07
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/REASONS FOR RECOMMENDATIONS
On March 16, 2005,the Affordable Housing Finance Committee recommended that the Board of Supervisors
submit a Mini Action Plan to for FY 2006/07 HOME funds. Through the Mini Action Plan,the County can pre-
allocate FY 2006/07 HOME finds to the Giant Road/San Pablo and Villa Amador/Brentwood projects if these
funds are needed. The County has allocated HOME to five projects that were also selected for participation in
the Project-Based Section 8 vouchers (PBV)program by the Contra Costa County Housing Authority. This
selection allowed the project developers to leverage additional private debt based on the difference between
HOME rents and the PBV rent.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
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L000�COMMENDATION OF COUNTY ADMINISTRATOR OM ENION OF BO
COMMITTEE
, APPROVE OTHER
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SIGNATURE(S):
oe ACTION
OF BOARD ON
APPROVED AS RECOMMENDED V"01HEIR
IV
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
V/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: Kara Douglas, 335-1253 ATTESTED
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Orig: Community Development/CDBG J HN SWEEtEN, CLERK
cc: County Administrator OF THE BOARD OF SUPERVISORS
County Counsel AND C U TV AD#AINISTRATOR
Auditor-Controller BY DEPUTY
Due to recent unforeseen and significant federal budget cuts,the Housing Authority has implemented numerous
actions to decrease the overall Section 8 voucher budget, including the termination of commitments to enter into
PBV contracts. The financing of five HOME funded projects has been jeopardized by the rescission of PBVs.
Three projects (Hercules Sr./Hercules, Lakeside Apartments/Concord, and Trinity Avenue Apartments/Walnut
Creek)required immediate attention because they were already in construction or had to start construction
immediately. On February 15, 2005,the Board of Supervisors acted on the AHFC recommendation to suspend
review of new projects for FY 2005/06 funds, and re-direct those funds to two of the three projects (Hercules
Senior and Lakeside Apartments). Trinity received funds that were transferred from another Satellite Housing,
Inc. project in Walnut Creek, Casa Montego 11.
The remaining two projects,Giant Road and Villa Amador,may still require additional HOME funds to be
viable. There are not enough FY 2005/06 HOME funds to provide to these projects. Therefore, staff is
recommending pre-awarding FY 2006/07 HOME funds for these projects.
A. PROJECTS REQUIRING FY 2006/07 HOME FUNDS
1. Giant Road/San Pablo: East Bay Asian Local Development Corporation (EBALDC) is the
developer of the Giant Road project,which involves the new construction of 86 units of family
housing on a 3.14 acre site in San Pablo.The project was awarded$600,000 in HOME funds and
$600,000 in Community Development Block Grant(CDBG)funds.EBALDC has drawn down
the CDBG funds to acquire the site.The County,on behalf of EBALDC,intends to apply to the
State Treasurer's Office for the necessary authority to issue multi-family bonds for the project.
Assuming the plan of finance can be modified to address the lack of PBVs the project could start
construction in July 2005. However,EBALDC will have to identify an interim form of finance
until the HOME funds are available in August of 2006.EBALDC has requested$1.6 million in
additional funds from the San Pablo Redevelopment Agency.
2. Villa Amador/Brentwood: Mercy Housing California is the developer of the Villa Amador
project, which involves the new construction of 98 units of family housing on an 8-acre site in
Brentwood. This project has secured a complex layering of funding including commitments for
r0i
tax-exempt bonds, LIHTC, farm worker housing grant funds, State Multifamily Housing
Program (MHP) funds, local funds, and $2 million in County HOME program funds. Project-
based Section 8 vouchers have leveraged $1.8 million in tax-exempt debt, the loss of which
would make the project infeasible. Several of the financing commitments for this development
will expire this spring. Mercy Housing intends to seek additional MHP funds to fill the gap
created by the loss of PBV. Should those funds not be awarded, Mercy will request up to
$900,000 in additional funds from both the City of Brentwood and the HOME program.
I.
B. RECOMMENDED FINANCING STRATEGY
Every effort will be made to minimize the amount of additional HOME funds required. To receive an
additional allocation of HOME funds,the County required all project sponsors to pursue additional funding
from other sources, including the host city for the project. Developers will also be required to contribute
additional developer fee as a permanent source of financing for the project. The developers and staff will
continue discussions with the County Housing Authority to determine if PBVs may be available to their
projects sometime in the future,which may allow some of the additional HOME funds to be returned. The
project sponsors have also begun discussions with Congressional members local staff to seek a legislative
solution to this crisis.
Should there be FY 2006/07 HOME funds not required for the above projects, staff will consider
applications which have all ready been submitted for FY 2005/06 funds.
C. FY 2006/07 MINI ACTION PLAN
Pursuant to HOME regulations (24 CFR 92.212) staff has prepared a Mini Action Plan for FY 2006/07
HOME funds (attached). Any award of FY 2006/07 HOME funds will be subject to a future allocation of
HOME funds to the Contra Costa Consortium. The Plan was prepared in accordance with 91.220(c)and is
consistent with the Citizen Participation Plan(91.105).The County published a notice in the Contra Costa
Times(in a non-legal section)providing 15 days notice of the first public meeting and an additional 15 days
notice of a second public meeting.The Mini Action Plan will have been available for a minimum of 30 days
for public review prior to Board of Supervisor action to adopt the Plan.
No public comments have been received on the Mini Action Plan.
KD H:\kdoug1as\New\Board Orders\2005\Mini Action Plan.doc
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