Agenda

Return

C. 50

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	June 12, 2018

Contra

Costa

County

Subject:

First Amendment to the Disposition Development and Loan Agreement - Heritage Point

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/12/2018

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
Federal D. Glover, District V Supervisor

ABSENT:

Karen Mitchoff, District IV Supervisor

Contact:

Maureen Toms (925) 674-7878

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 12, 2018
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE amended loan documents between the County and Community Housing Development Corporation of North Richmond (CHDC) in connection with a change in the permitted use of $1,350,000 of Affordable Housing Funds that have been loaned to CHDC in connection with the Heritage Point affordable housing development at 1504 Fred Jackson Way in North Richmond.

FISCAL IMPACT:

None to the General Fund. The costs are covered by Housing Successor funds.

BACKGROUND:

On December 12, 2017, the Board of Supervisors approved a Disposition, Development, and Loan Agreement (DDLA) between the County and Heritage Point A/G L.P., a California Limited Partnership. The DDLA relates to the construction of Heritage Point Apartments at 1504 Fred Jackson Way in North Richmond, which will include 42 apartments that will be affordable to and occupied by low-income families. Community Development Corporation of North Richmond (CHDC) is the general partner of the partnership and is the project sponsor.

BACKGROUND: (CONT'D)

Also on December 12, 2017, the Board of Supervisors approved $1,350,000 of Housing Successor Agency funds ("Affordable Housing Funds") to supplement funds the County had previously allocated to the project. Use of the Affordable Housing Funds was restricted to covering funding gaps that CHDC and staff believed could result from the then-proposed federal tax law changes. Fortunately, the anticipated tax-driven funding gaps did not materialize. However, since December 2017, the project has experienced unanticipated increases in construction costs. The increased costs are the result of the newly identified need for additional off-site improvements, revised concrete decks, walls and footings and additional underground power and gas work. The estimated increase in construction costs is $1,350,047. On May 8, 2018, the Board of Supervisors approved authorizing $1,350,000 of Housing Successor funds previously approved for the Heritage Point Apartment project in North Richmond to be used for a different component of the project cost. As stated in the May 8 authorization, the next step was for County staff to draft amendments to the DDLA and other documents to implement this change and submit to the Board of Supervisors for approval. The action recommended in this board order is to approve these documents.

CONSEQUENCE OF NEGATIVE ACTION:

If the legal documents for the revised use of the Housing Successor funds is not approved, the development will have a significant funding gap and may not be able to be constructed.

CHILDREN'S IMPACT STATEMENT:

Heritage Point Apartments supports Goal #3: Families are economically self sufficient.