Agenda

Return

C. 51

To:	Board of Supervisors
From:	John Gioia, District I Supervisor
Date:	June 14, 2016

Contra

Costa

County

Subject:

Allocation Funds from the Livable Communities Trust to the Heritage Point Affordable Housing Project

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/14/2016

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:	Robert Rogers 510-231-8688
cc:	Robert Campbell, County Auditor-Controller John Kopchik, DCD Director

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: June 14, 2016
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ALLOCATE $1,432,830 from the Livable Communities Trust (District 1 Portion) to the Heritage Point Affordable Housing Project in North Richmond and DIRECT the Director of the Department of Conservation and Development to incorporate the terms and conditions of the funds into a Disposition and Development Agreement between the County and Community Housing and Development Corporation of North Richmond for the project.

FISCAL IMPACT:

Funding in the amount of $1,432,830 from the District I allocation of deposits into the Livable Communities Trust Fund will be used to leverage approximately $12 million towards 43 multiple-family affordable apartments (Heritage Point). No General Funds would be used.

BACKGROUND:

In 2011, the former Contra Costa County Redevelopment Agency (Agency) entered into a Predevelopment Loan Agreement with Community Housing Development Corporation of North Richmond (CHDC) for Phase II of the North Richmond Town Center Project, known as Heritage Point. Heritage Point is on the eastern side of Fred Jackson Way, directly across the street from Phase I of the project. The site encompasses six parcels acquired between 2009 and 2012 by the former Redevelopment Agency. As a result of the dissolution of the Agency in February 2012, the County became the Housing Successor and the owner of the property, and the lender under the Predevelopment Loan Agreement.

The project is fully entitled for 43 multiple-family affordable apartments. In March 2016, the CHDC, with the County as a co-applicant, submitted a concept application for funding under the Affordable Housing and Sustainable Communities Program for approximately $12 million in funding. On April 28, 2016, the Strategic Growth Council and the Department of Housing and Community Development invited CHDC to submit a full application for funding based on the evaluation of the submitted concept proposal. The full application is due June 20, 2016. The County’s Sustainable Communities Trust funds will leverage the requested AHSC funds, resulting in a more competitive application.

The County has already approved housing bonds in the amount of $526,493 and Community Development Block Grant funds in the amount of $48,000 have been used for predevelopment. Additional Housing Successor funds, as well as funds from the Livable Communities Trust Fund and the value of the land will result in a competitive application. The Livable Communities Trust Fund balance is $7,164,150, of which one-fifth is $1,432,830. This request is consistent with Board of Supervisors direction provided on December 3, 2013 (see Attachment), that "the goal shall be to spend the money equally among supervisorial districts." At build-out of the revenue source, the deposits will total $8,448,000. The interest bearing trust account has earned over $300,000 in interest to date.

CONSEQUENCE OF NEGATIVE ACTION:

Without the allocation of funds, the project will have fewer funds to leverage for the Affordable Housing and Sustainable Communities grant and is not likely to score as well on a funding application.