Agenda

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C. 41

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	February 14, 2017

Contra

Costa

County

Subject:

Allocation of Fiscal Year 2016/17 and FY 2017/18 Housing Opportunities for Persons with HIV/AIDS (HOPWA)

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/14/2017

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Kristin Sherk, (925) 674-7887

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 14, 2017
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE the allocation of $75,000 of Housing Opportunities for Persons with HIV/AIDS (HOPWA) funds from Fiscal Years 2016/17 and 2017/18 to Resources for Community Development to assist in the construction of a mixed-use development that will include 45 units of multifamily affordable housing called the St. Paul’s Commons project in the City of Walnut Creek.

FISCAL IMPACT:

No General Fund impact. One hundred percent federal funds. HOPWA funds are provided to the County on a formula basis through the City of Oakland.

BACKGROUND:

The National Affordable Housing Act (Public Law 101-625, approved November 28, 1990) authorizes the Housing Opportunities for Persons with AIDS Program (HOPWA) to provide states and localities with resources to devise long-term comprehensive strategies for meeting the housing needs of persons with HIV/AIDS and related diseases.

BACKGROUND: (CONT'D)

The City of Oakland (City) is the HOPWA grant recipient for Alameda and Contra Costa counties. The City allocates the HOPWA funds between the City and counties on a fair share allocation basis. These funds may be used for site acquisition, rehabilitation and new construction of affordable housing, supportive services, housing information services, rent and utility subsidies, and certain other housing related activities for low-income persons living with HIV/AIDS in both incorporated and unincorporated areas of the County.

The Contra Costa Consortium (County staff and staff from the Cities of Antioch, Concord, Pittsburg, and Walnut Creek) make funding recommendations regarding HOPWA to the Board of Supervisors. The current funding recommendation is the result of a competitive application process initiated in October 2016. A Notice of Funding Availability was sent to over 100 jurisdictions, public agencies, affordable housing developers and interest groups active in the County. The Department of Conservation and Development received one application requesting $75,000 in HOPWA funds.

The Consortium met on December 15, 2016 to consider staff recommendations for the St. Paul’s Commons project. The Consortium recommends that the Board of Supervisors allocate $75,000 in HOPWA funds to Resource for Community Development (RCD) to assist in the new construction of St. Paul’s Commons.

The recommended HOPWA allocation includes $66,376 from FY 2016/17 and $8,624 from FY 2017/18. The FY 2017/18 HOPWA funds are contingent on the County executing an agreement for HOPWA funds with the City of Oakland. In addition to HOPWA, RCD is proposing to use $800,000 in HOME Investment Partnership Act (HOME) funds and $1,000,000 in Community Development Block Grant (CDBG) funds from the County. These funding recommendations are included in a separate action under consideration to the Board today. In addition, RCD is also proposing to use the following funds: City of Walnut Creek funds ($5,000,000), low income housing tax credit equity ($12,172,072), developer equity ($823,764), Affordable Housing Program ($440,000), land donation ($2,250,000) and deferred developer fee ($47,281).

RCD, in partnership with St. Paul’s Episcopal Church, is proposing to develop St. Paul’s Commons, which involves the new construction of a 45-unit affordable housing development on a 0.64 acre site in Walnut Creek. The property is owned by St. Paul’s Episcopal Church and it intends to lease the site to RCD after construction at below market rate. St. Paul’s Commons will target households with incomes ranging from 30 percent to 60 percent of the Area Median Income (AMI). The development will include 30 studios, 14 one-bedroom units and a two-bedroom unit for the resident property manager. A total of 19 units will be designated as HOME units; one of the studio units will also be designated as a HOPWA unit. In accordance with HOPWA regulations, RCD will contract with the County Health Services Department HIV/AIDS Program to be the lead services agency and provider of services to the resident at St. Paul’s Commons. The development will also include community spaces including a property management office, a community center, resident roof deck, services office, shared computer terminals for residents, bike parking, and a laundry room.

The Walnut Creek City Council has endorsed and supported the project with $5 million in funding by providing funding for the construction of the housing as well as predevelopment money.

Legal documents for the project will include a loan agreement, a promissory note, a deed of trust and security agreement, a regulatory agreement, and a subordination agreement. Other documents that may be required include an assignment and assumption agreement and one or more estoppel agreements. The intercreditor agreement will include repayment terms including a share of any excess proceeds of financing at the end of construction. These documents will be submitted for Board of Supervisors approval at a later date prior to the start of construction.

CONSEQUENCE OF NEGATIVE ACTION:

If the Board of Supervisors does not approve this allocation of HOPWA funds, St. Paul's Commons may not be viable at this time.

CHILDREN'S IMPACT STATEMENT:

The construction of affordable housing is consistent with outcome #3 of the Children's Report Card: Families are Economically Self Sufficient.