RECOMMENDATION(S): (CONT'D)
2. DIRECT the Director of Conservation and Development to file a Notice of Exemption for the Chesley Mutual Housing Rehabilitation Project with the County Clerk; and
3. DIRECT the Director of Conservation and Development, or designee, to arrange for payment of the $50 handling fee to the County Clerk for filing such Notice of Exemption.
FISCAL IMPACT:
No General Fund impact. Community Development Block Grant funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development (HUD).
BACKGROUND:
On July 18, 2017, the Board of Supervisors allocated $350,000 in Community Development Block Grant (CDBG) funds to Chesley Avenue Limited Partnership, a limited partnership with Community Housing Development Corporation of North Richmond as the managing general partner. The funds were allocated in the form of a loan for the rehabilitation of Chesley Mutual Housing, a 15 year-old 30-unit affordable housing development located at 802 Chesley Avenue in Richmond (the “Project”). The CDBG funds will be used for replacement of hot water heaters, replacement of bathroom fixtures with energy efficient appliances, exterior painting, playground improvements, tree trimming and/or removal, and replacement of interior and exterior lighting.
The loan will have a three percent simple annual interest rate over a term of 45 years. There may be annual loan payments if the project has surplus cash flow. Otherwise, the loan is deferred for the 45 year term. Coterminous with the loan term, the County will enter in to a Regulatory Agreement with Chesley Avenue Limited Partnership to restrict 29 of the units at the following levels of affordability:
| Number of Bedrooms |
Quantity |
Affordability Level |
CDBG assisted units |
| 2 |
1 |
30% |
1 |
| 2 |
2 |
40% |
2 |
| 2 |
5 |
50% |
5 |
| 3 |
1 |
30% |
1 |
| 3 |
5 |
40% |
5 |
| 3 |
15 |
50% |
15 |
| 2 |
1 |
Manager’s Unit |
|
| Total |
30 |
|
29 |
The CDBG Loan Agreement, CDBG Promissory Note, Deed of Trust, and Regulatory Agreement and Declaration of Restrictive Covenants are attached in their substantially final form and will be executed in a form approved by County Counsel. The CDBG loan will be subordinate to the existing debt on the project including bond loan, City loan, City Redevelopment Loan and AHP loan, and the County may be requested to sign estoppel agreements to that effect. This action of the Board includes authorization of the DCD Director to execute estoppel and subordination agreements consistent with the subordination terms included in the Development Loan Agreement.
National Environmental Policy Act (NEPA): CDBG projects are subject to NEPA and 24 CFR Part 58 review. The NEPA review for this project has been completed
CONSEQUENCE OF NEGATIVE ACTION:
Without the approval and execution of the CDBG legal documents, the rehabilitation will not be done and the property will suffer from deferred maintenance.
CHILDREN'S IMPACT STATEMENT:
The recommendation supports one or more of the following children's outcomes:
(1) Children Ready for and Succeeding in School;
(2) Children and Youth Healthy and Preparing for Productive Adulthood;
(3) Families that are Economically Self Sufficient;
(4) Families that are Safe, Stable and Nurturing; and
(5) Communities that are Safe and Provide a High Quality of Life for Children and Families.