Agenda

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C. 64

To:	Board of Supervisors
From:	Catherine Kutsuris, Conservation & Development
Date:	February 26, 2013

Contra

Costa

County

Subject:

Recommendation to allocate $1,125,000 in Summer Lake Affordable Housing funds for Oak Ridge Apt ($250,000), Tabora Gardens ($800,000) and Admin

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/26/2013

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: February 26, 2013
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ALLOCATE $800,000 in Summer Lake Affordable Housing (SLAH) funds to Satellite Affordable Housing Associates (SAHA) for the 85 unit Tabora Gardens affordable senior housing project in Antioch and


ALLOCATE $250,000 in SLAH funds to Corporation for Better Housing (CBH) for the 30 unit Oak Ridge affordable housing development for families in Oakley.

RECOMMENDATION(S): (CONT'D)

ALLOCATE $75,000 in SLAH funds for County staff administration costs associated with the Tabora Gardens and Oak Ridge developments.

FISCAL IMPACT:

No General Fund impact. (100% Summer Lake Affordable Housing funds)

BACKGROUND:

The Summer Lakes Project was approved by the County prior to the annexation by the City of Oakley. As part of the annexation, the County and City agreed that the $3,333 affordable housing fee charged for each new home would be collected and transferred to the County. The agreement requires that the funds be used in East County and that the County consider reserving 20 percent of the fees for affordable housing development East Cypress Corridor Planning Area 6-H. Approximately 25 percent of the anticipated fees have been paid to date. Through this action, the Board is allocating 24 percent of those funds to the Oak Ridge Apartment project in Oakley. The County may consider reserving future receipts for Planning Area 6-H.

In October, 2012, Department of Conservation and Development staff issued a Notice of Funding Availability for federal HOME Investment Partnerships Act and Community Development Block Grant funds. The requests for HOME funds exceeded available resources by 6:1. In order to fund as many good projects as possible, County staff is recommending SLAH funds be used to support two East County projects:

1. Staff recommends the Board allocate $800,000 in SLAH to Satellite Affordable Housing Associates (SAHA, formerly Satellite Housing) for a 85 unit senior housing development, Tabora Gardens, in Antioch. SAHA was awarded $1 million in HOME funds in 2011. This project is slow moving and HOME has short expenditure requirements. Therefore, staff is recommending that the HOME funds be replaced with SLAH and $200,000 in Neighborhood Stabilization Program funds.

2. Staff is also recommending that $250,000 in SLAH funds be allocated to Corporation for Better Housing (CBH) for a 30 unit family apartment project, Oak Ridge, in Oakley. Staff has concurrent recommendations to the Board of Supervisors to allocate $1.3 million in HOME funds and Inducement resolution 2013/111 for a County issuance of tax exempt bonds on the February 26, 2013 agenda.

Tabora Gardens has already undergone State and federal environmental reviews (CEQA and NEPA). Oak Ridge Apartments has undergone CEQA review and the NEPA review is underway.

The County will enter into various legal documents with the developers for each project. These documents may include some or all of the following: Loan Agreement, Promissory Note, Deed of Trust and Security Agreement, Regulatory Agreement, Intercreditor Agreement, Subordination Agreement, Loan Riders and Estoppels. The form of these documents will be submitted for Board of Supervisors approval at a later date, but prior to execution of any legal documents.

Staff also recommends that $75,000 on the SLAH funds be reserved for administration expenses related to the development of the Tabora Gardens and Oak Ridge projects.

Related Board Actions
In addition to the recommendations in this Board Order, the Board of Supervisors will consider the following recommendations on the February 26, 2013 agenda:
1. Recapture $1 million in unspent HOME funds from the Satellite Affordable Housing Associates (SAHA) Tabora Gardens project for use in other projects.
2. Amend the Neighborhood Stabilization Program (NSP) Substantial Amendment to add an activity number 8. This new activity will allow the County to allocate NSP funds to support the development of new construction on vacant land.
3. Budget $1.2 million in NSP for the new activity #8 and allocate allocate $200,000 to SAHA for Tabora Gardens, an 85 unit affordable senior housing project in Antioch.

CONSEQUENCE OF NEGATIVE ACTION:

If the Board does not approve the funding recommendations, the project sponsors seeking funds will not be able to submit applications to the Tax Credit Allocation Committee and the California Debt Limit Advisory Committee on March 6, 2013.

CHILDREN'S IMPACT STATEMENT:

The Oak Ridge Apartments project will provide 30 units of affordable rental housing appropriate for families. This supports outcome #3: Families are Economically Self Sufficient