Agenda

Return

C.48

To:	Board of Supervisors
From:	Catherine Kutsuris
Date:	January 24, 2012

Contra

Costa

County

Subject:

Approval of Neighborhood Stabilization Program Funds and Loan Documents for Robin Lane Apartments in Concord

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 01/24/2012

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

335-7229

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: January 24, 2012
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

1. APPROVE $1,523,046 in Neighborhood Stabilization Program 3 (NSP3) funds to Robin Lane LLC for the Robin Lane Apartments project in Concord.


2. APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to execute required legal documents to provide $1,523,046 in NSP3 funds to Robin Lane, LLC for the Robin Lane apartments; and

RECOMMENDATION(S): (CONT'D)

3. FIND that the project is exempt from the California Environmental Quality Act [Section 15301(a)]; and

4. DIRECT the Department of Conservation and Development (DCD) to file a Notice of Exemption for this project with the County Clerk; and

5. DIRECT DCD to arrange for payment of the $50 handling fee to the County Clerk for filing such Notice of Exemption.

FISCAL IMPACT:

$1,523,046; 100% Federal Department of Housing and Urban Development (HUD) Neighborhood Stabilization Program 3 formula grant funds. CFDA# 14.218

BACKGROUND:

Robin Lane Apartments, located at 1890 Robin Lane and 1149 Meadow Lane in Concord, is a 16-unit multi-family housing development. The property consists of two existing buildings which are currently foreclosed, bank-owned, and vacant of tenants. The development includes 15 units affordable to households with incomes at or below 50% of the area median income, with one unit being a manager’s unit. The final unit mix is six one-bedroom apartments and ten two-bedroom apartments.

The ownership entity will be Robin Lane, LLC, a California limited liability company with AHA Development, Inc. (ADI) serving as the sole member. ADI is wholly owned by Affordable Housing Associates, a local non-profit housing developer that successfully owns and manages several affordable housing projects in the Bay Area.

NSP3 funds will be used for acquisition and rehabilitation of the two existing buildings on the property. The acquisition price is approximately 1.5% below the appraised value. The rehabilitation will include interior upgrades (flooring, cabinetry, and appliances), window replacement, installation of energy efficient upgrades (heating and HVAC, lighting, and water), painting (exterior and interior), fence installation, concrete repavement, and landscaping. The City of Concord supports the project.

The total project budget is $2,233,046. In addition to the County’s NSP3 funds, the other sources of funds to complete the project include $560,000 of CalHFA-Mental Health Service Act funds and $150,000 of Federal Home Loan Bank-Affordable Housing Program funds.

NSP3 funds will be loaned at a three percent interest rate for 55 years. Due to limited revenue from the restricted rents, the total amount of the financing provided to the project may exceed the value of the completed project.

The NSP3 legal documents (Loan Documents) are attached and include the following documents:

• NSP3 Loan Agreement
• Promissory Note
• Regulatory Agreement
• Deed of Trust

This recommended action includes authorization to execute any and all documents and to take any and all actions necessary to implement the activities authorized under the Loan Documents, including execution of loan amendments or modifications for the purposes of agreeing to reasonable extensions of time deadlines.

CEQA Determination:
This activity is exempt from CEQA pursuant to 14 CCR 15301(a) and 15061(b)(3).

CONSEQUENCE OF NEGATIVE ACTION:

Negative action would prevent the acquisition and rehabilitation of Robin Lane Apartments, a 16-unit affordable multi-family housing development, located at 1890 Robin Lane and 1149 Meadow Lane in Concord.

CHILDREN'S IMPACT STATEMENT:

The project will provide affordable multi-family housing, which supports the Children’s Report Card by helping families become economically self-sufficient and enables families to be safe, stable and nurturing.