No General Fund impact. HOME Investment Partnerships Act, Community Development Block Grant, and Neighborhood Stabilization Program funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development.
The Affordable Housing Finance Committee (AHFC) is a Board-appointed committee tasked to develop funding recommendations for the Board concerning the allocation of federal funds for affordable housing development. The current funding recommendations are the result of a competitive application process initiated in October of 2013. A Notice of Funding Availability was sent to over 100 jurisdictions, public agencies, affordable housing developers and interest groups active in the Urban County and Consortium area. The Department of Conservation and Development received 7 applications requesting approximately $8.5 million ($1 million in Community Development Block Grant funds and $7.5 million in HOME Investment Partnerships Act funds).
The Affordable Housing Finance Committee met on February 7, 2014 to consider staff funding recommendations for Community Development Block Grant-housing, Neighborhood Stabilization Program, and HOME Investment Partnership Act projects. Members of the public, including project sponsors, were invited to attend and provide input into the allocation process. Following discussion and comment on each project, the Affordable Housing Finance Committee developed recommendations for the allocation of CDBG, NSP, and HOME funds. A summary of the applications and the Affordable Housing Finance Committee actions is attached. The funding recommendations for the housing projects are coming to the Board ahead of the rest of the CDBG projects so that project sponsors can submit applications for low income housing tax credits to the California Tax Credit Allocation Committee on March 5, 2014.
The recommendation includes the recapture of $500,000 in HOME funds, which were awarded to BRIDGE Housing (BRIDGE) in May 2010 for the Woods Grove project in Pittsburg. BRIDGE was unable to secure additional financing to complete the project. This project has not met HOME requirements for timely expenditure of funds. Therefore, these funds are being allocated to projects that will move forward.
National Environmental Policy Act (NEPA): All Community Development Block Grant, HOME Investment Partnerships Act, Housing Opportunities for Persons with HIV/AIDS, and Emergency Solutions Grant projects are subject to National Environmental Policy Act and 24 CFR Part 58 review. The NEPA review for each project will be completed prior to entering into project agreements or other legal documents for the project.
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.
Related Board Actions
The anticipated HOME grant for FY 2014/15 is only $1.9 million. In order to support as many viable projects as possible, staff recommends HOME funds be combined with or replaced by other resources. In addition to the recommendations in this Board Order, the Board of Supervisors will consider the following recommendations on the February 25, 2014 agenda:
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As recommended by the HOME consortium, allocate $650,000 in Housing Opportunities for Persons with HIV/AIDS (HOPWA) to Satellite Affordable Housing for its Tabora Gardens development.
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Allocate $300,000 from the Summer Lake trust fund to Satellite Affordable Housing Associates for Tabora Gardens.
FY 2014/15 Community Development Block Grant, HOME Investment Partnerships Act, Neighborhood Stabilization Program, Emergency Solutions Grant and Housing Opportunities for Persons with HIV/AIDS Annual Action Plan (Action Plan): The projects allocated CDBG, NSP and HOME funds through this Board action will be incorporated into the Action Plan. The Action Plan will be submitted to the Board of Supervisors for approval on May 6, 2013.
The Action Plan describes the activities the County will undertake during the program year to address priority needs identified in the Contra Costa County FY 2010-15 Consolidated Plan. The Action Plan identifies the use of grant funds and program income received during the program year by activity, and proposed accomplishments. The Action Plan also includes actions the County proposes to undertake during the year to address obstacles in meeting under-served persons, foster and maintain affordable housing, reduce the number of households living under the poverty level, and enhance coordination between public and private housing and social service agencies.
In order to begin the program year on time, the FY 2014/15 Action Plan must be approved by the Board and submitted to HUD by May 15, 2014.
If the Board does not approve the Affordable Housing Finance Committee funding recommendations, the project sponsors seeking HOME Investment Partnerships Act funds will not be able to submit applications to the Tax Credit Allocation Committee and the California Debt Limit Advisory Committee on March 5, 2014.