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C. 28

To:	Board of Supervisors
From:	John Kopchik, Interim Director, Conservation & Development Department
Date:	January 20, 2015

Contra

Costa

County

Subject:

Approval of First Amendment to Regulatory Agreement for Berrellesa Palms Apartments in Martinez

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 01/20/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Kara Douglas 674-7880

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 20, 2015
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Conservation and Development Department Interim Director, or designee, to execute a First Amendment to Regulatory Agreement and Declaration of Restrictive Covenants between Berrellesa Palms L.P. and Contra Costa County for the Berrellesa Palms apartment project in Martinez.

FISCAL IMPACT:

FISCAL IMPACT: (CONT'D)

No General Fund impact; 100 percent federal funds were used. HOME, and CDBG funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development. HOPWA funds are provided to the County through an agreement with the City of Oakland.

BACKGROUND:

On December 1, 2012, the County loaned Berrellesa Palms L.P. a total of $4,775,000 in HOME Investment Partnerships Act (HOME), Community Development Block Grant (CDBG), and Housing Opportunities for Persons with HIV/AIDs (HOPWA) funds to support the development of 49 units of affordable senior housing in Martinez. As a loan requirement, Berrellesa Palms L.P. entered into a regulatory agreement through which it agreed to designate 24 units as County-assisted. Three of these units are reserved for persons with an HIV/AIDs diagnosis (the "HOPWA Units"). The original regulatory agreement required that the HOPWA Units be restricted to persons with incomes at or below 20 percent of the area median income (AMI). Berrellesa Palms L.P. was not able to find eligible tenants for these units. However, they were able to find tenants at this income level without an HIV/AIDs diagnosis. They were

also able to find tenants with a HIV/AIDs diagnosis with slightly higher incomes (35 percent AMI). Therefore, they are requesting this First Amendment to Regulatory Agreement and Declaration of Restrictive Covenants to remove the HOPWA requirement from the three units affordable at 20 percent AMI and transfer the HOPWA requirement to three of the four units affordable at 35 percent AMI.

This amendment only affects which units are identified as HOPWA units. The overall number of County-assisted units, and the affordability remains unchanged. With the recommended amendment, the County-assisted units would include the following:

Three units affordable to households with incomes at or below 20 percent AMI.
Four units affordable to households with incomes at or below 35 percent AMI (including the three HOPWA Units).
Five units affordable to households with incomes at or below 40 percent AMI.
Nine units affordable to households with incomes at or below 50 percent AMI.

CONSEQUENCE OF NEGATIVE ACTION:

If the amendment to the regulatory agreement is not approved, the Berrellesa Palms management company will leave scarce affordable housing units vacant while it continues to search for tenants who meet the narrow parameters for these units.

CHILDREN'S IMPACT STATEMENT:

Not applicable.