Agenda

Return

D.5

To:	Contra Costa County Housing Authority Board of Commissioners
From:	Joseph Villarreal, Housing Authority
Date:	May 18, 2021

Contra

Costa

County

Subject:

DISPOSITION OF FORMER PUBLIC HOUSING UNITS AT LAS DELTAS

Action of Board On: 05/18/2021

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, Commissioner
Candace Andersen, Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner

Contact:

9259578028

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: May 18, 2021
,

BY:	, Deputy

RECOMMENDATIONS

Accept report on the disposition of the Las Deltas Development public housing units and land in North Richmond.

BACKGROUND

The Housing Authority of the County of Contra Costa (HACCC) is nearing the end of the disposition process for HACCC’s Las Deltas Development in North Richmond (Las Deltas). The disposition process is defined by the U.S. Department of Housing and Urban Development (HUD)as: the removal of units from the public housing program; the conversion of public housing subsidies to other forms of rental assistance; and the subsequent sale or transfer of public housing property.

BACKGROUND (CONT'D)

The Las Deltas main campus previously contained 214 family housing units, an office and maintenance building, and a building that housed Project Pride (Boys and Girls Club-type programming) and the Young Adult Empowerment Center (workforce development programs). All of these buildings have been demolished. The 11.38-acre main campus currently sits vacant except for one building that is still used by the Head Start program.

Staff recommends selling or leasing the main campus to an affordable housing developer(s) to create some mix of affordable and market-rate housing. HACCC will have the developer incorporate a new space for Head Start in their design. If that is not feasible, HACCC will seek HUD’s permission to transfer the existing building to Head Start.

In addition to the main campus, the Las Deltas Development contains 38 duplexes and 4 single-family buildings scattered throughout North Richmond. Staff recommends selling 26 of the 38 duplexes at fair market-value in order to recoup some of the money that HACCC spent on the Las Deltas disposition. As staff mentioned at the March 9, 2021 HACCC Board of Commissioner’s meeting regarding the budget, the cost of the disposition has placed HACCC in a near-troubled financial status with HUD. In an effort to avoid falling into this classification, staff proposes transferring the remaining 12 duplexes and 4 single-family buildings to local organizations who are prepared to rehabilitate/develop the units and sell them to low-income homebuyers. A preference in the homebuyer program will be given to former residents of the Las Deltas Development, followed by persons who live or work in North Richmond.

Any unit that is sold or transferred for less than fair-market value will be required to house low-income persons (≤ 80% of area median income) for the next twenty years (or longer depending on other funding). Any unit that is sold at fair-market value or above, HACCC will be required to use those funds for HUD-approved affordable housing purposes.

Attached is a presentation that was given to the community about the proposed process.

FISCAL IMPACT

None. Information item only.

CONSEQUENCE OF NEGATIVE ACTION

Should the Board of Commissioners choose not to approve the proposed plan to dispose of the former public housing units and land at Las Deltas in North Richmond, or an alternative approach, then this project will be delayed until such time as a course of action is approved. This will both delay the community’s wish to move the project forward and HACCC’s need to sell/transfer the property in order to improve our financial position.