The National Affordable Housing Act (Public Law 101-625), approved November 28, 1990) authorizes the HOPWA program 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. The City of Oakland (City) is the HOPWA grant recipient for Alameda and Contra Costa Counties. The City allocates the HOPWA funds between the counties based on the number of HIV/AIDS cases. 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 countywide. The County is the project sponsor with the City and is responsible for the administration and management of the HOPWA Program for Contra Costa County.
On November 3, 2022, the County staff hosted an annual "Kick-Off" Meeting to announce the County's CDBG, HOME, HOME-ARP, ESG, and HOPWA Notice of Funding Availability (NOFA) and to meet with various private and public, nonprofit organizations and agencies. The application portal opened that same day, with applications due December 19, 2022. County staff received one application for HOPWA funds by the December 19, 2022 deadline from Resources for Community Development (RCD), a non-profit affordable housing developer, to assist in the rehabilitation of Alvarez Court Apartments in the City of Pinole.
Alvarez Court Apartments Project: RCD proposes to rehabilitate Alvarez Court Apartments, a 19-unit 100 percent special needs rental property that is 20 years old and in need of repair. The project was initially financed as a small U.S. Department of Housing and Urban Development-811 (HUD-811) project. The HUD-811 program, a retired federal housing subsidy program, funded special needs housing construction. HUD-811 sites were funded as an interest-free capital advance with operating subsidies to nonprofit developers of affordable housing for persons with disabilities. Tenants' rents are capped at 30 percent of their monthly income with the HUD Project Rental Assistance Contract (PRAC) program to provide operating funds equal to the difference between annual operating costs and project revenues. The PRAC assistance ensures project feasibility while enabling the project to achieve a deep level of affordability in housing extremely low-income households. Annual rent increases approved by HUD have been insufficient to keep up with the physical needs of the property.
The scope of work of the approved rehabilitation is limited to the following:
• Repairs to the exterior walkways, balconies, and decks
• Dry rot repair and water resurfacing
• Roof replacement
• Exterior painting
• Security camera upgrades
• Accessibility upgrades to ensure places of public accommodation are accessible
• Unit upgrades to the kitchen cabinets, counters, appliances, flooring/carpet, and bathroom vanities
Affordable Housing Finance Committee: The Affordable Housing Finance Committee (AHFC) is a Board of Supervisors-appointed advisory committee that makes funding recommendations for the Board of Supervisor to consider for financing of affordable housing development, including the allocation of HOPWA funds. The AHFC held a public, hybrid meeting in-person and via Zoom on April 21, 2023, to consider staff funding recommendations for HOPWA funds. Following discussion and comment on the sole HOPWA application, the AHFC approved staff's recommendation of $567,411 in HOPWA funds to RCD for the rehabilitation of Alvarez Court Apartments in Pinole.
The AHFC also recommended the following contingencies for approval of the HOPWA allocation:
1. Approval of rent increases from HUD through the HUD-811 program by September 1, 2023, which may be waived at the discretion of the DCD Assistant Deputy Director.
2. Execution of HOPWA legal documents by December 31, 2023.
3. Confirm that the project's financials comply with the County's Affordable Housing Program Guidelines.
As proposed, the $542,411 in HOPWA funds will be expended during the rehabilitation. The remaining $25,000 will cover project-specific delivery costs incurred by the County, including legal fees. 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. These documents will be submitted to the Board of Supervisors at a later date.
The AHFC also made recommendations on County funds and other non-HOPWA federal funds related to affordable housing and these are addressed in two separate Board orders for May 9.
Negative Action will prevent RCD from moving forward with the Alvarez Court rehabilitation project, delaying much-needed repairs and upgrades to the property.