PDF Return
C.107
To: Board of Supervisors
From: John Kopchik, Director, Conservation & Development Department
Date: June  11, 2019
The Seal of Contra Costa County, CA
Contra
Costa
County
Subject: Allocation of Fiscal Year 2018/19 and 2019/20 Housing Opportunities for Persons with HIV/AIDS (HOPWA) Funds

APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE

Action of Board On:   06/11/2019
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:     June  11, 2019
David Twa,
 
BY: , Deputy

 

RECOMMENDATION(S):

APPROVE the allocation of $210,000 from Fiscal Year 2018/19 Housing Opportunities for Persons with HIV/AIDS (HOPWA) funds to Resources for Community Development for the new construction and development of the 1313 Galindo Apartments project in the City of Concord, as recommended by the Conservation and Development Director.  
  

APPROVE the allocation of $844,665 from Fiscal Years 2018/19 and 2019/20 Housing Opportunities for Persons with HIV/AIDS (HOPWA) funds to Community Housing Development Corporation of North Richmond and Eden Housing, Inc., for the new construction and development of the Legacy Court project in the City of Richmond, as recommended by the Conservation and Development Director.

FISCAL IMPACT:

100% Federal Funds. U.S. Department of Housing and Urban Development's 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 HIV/AIDS (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 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 in both the incorporated and unincorporated areas of the County.   
  
The Contra Costa Consortium (Consortium), which is comprised of County staff and staff from the Cities of Antioch, Concord, Pittsburg, and Walnut Creek, makes HOPWA funding recommendations to the Board of Supervisors. The Consortium met on May 16, 2019 and recommend the following allocations.  
  
1313 Galindo Apartments Project  
The Consortium recommends that the Board of Supervisors allocate $210,000 in 2018/19 HOPWA funds to Resources for Community Development (RCD) for the new construction and development of 62 affordable rental units including 39 one-bedroom units, 19 two-bedroom units (including one manager's unit), and 4 three-bedroom units. Thirty six of the units will be affordable to households at or below 50% area median income (AMI) and twenty-five of the units will be affordable to households at or below 30% AMI. Twelve of the units are proposed to be reserved for homeless veterans and one unit will be a HOPWA unit. In accordance with HOPWA regulations, RCD will work with different HIV/AIDS service providers including the County Health Services Department HIV/AIDS Program.   
  
The recommended HOPWA allocation is contingent on the following:

  1. Close of construction financing, including an executed loan between RCD and the County, by December 31, 2020.
  2. Execution of a HOPWA services agreement between the County and RCD (and their property manager) by December 31, 2020.
  3. Funds expended by June 30, 2021.
If these contingencies are not met, the HOPWA funds will be recaptured.   
  
As proposed, $200,000 in HOPWA funds will be expended at construction close. The remaining $10,000 will cover project specific delivery costs incurred by the County, including legal fees. Additional sources of financing include the following:
City of Concord $7,800,000
Veterans Housing and Homeless Prevention 2,630,484
Affordable Housing Sustainable Communities 5,364,623
Federal Home Loan Bank Affordable Housing Program 915,000
Low Income Housing Tax Credits 15,693,572
Private Permanent Loan 303,247
Recontributed Developer Fee 3,189,257
Deferred Developer Fee 278,803
Gap (Funding to be determined) 4,564,520
Total Sources (including HOPWA) $40,939,506
  
The Concord City Council endorsed and supported the project with $7.8 million in funding for the project.  
  
Legal documents for the project will include a loan agreement, a promissory note, a deed of trust and security agreement, a regulatory agreement, an intercreditor agreement, and a subordination agreement. These documents will be submitted for Board of Supervisor approval at a later date.  
  
Legacy Court Project  
The Consortium recommends that the Board of Supervisors allocate $844,665 in HOPWA funds to Community Housing Development Corporation of North Richmond (CHDC) and Eden Housing Inc. (Eden) for the new construction and development of 43 affordable rental units including 21 one-bedroom units, 11 two-bedroom units (including one manager's unit), and 11 three-bedroom units. The one-bedroom units will be designed to accommodate special needs populations including five HOPWA units. In accordance with HOPWA regulations, CHDC and Eden will work with different HIV/AIDS services providers including the County Health Services Department HIV/AIDS Program.   
  
The recommended FY 2018/19 HOPWA allocation of $224,665 is contingent on the following:
  1. Close of the construction financing, including an executed loan between CHDC/Eden and the County, by December 31, 2020.
  2. Execution of a HOPWA services agreement between the County and CHDC/Eden by December 31, 2020.
  3. Funds expended by June 30, 2021.
If these contingencies are not met, the HOPWA funds will be recaptured.  
  
The recommended FY 2019/20 HOPWA allocation of $620,000 is contingent on the following;
  1. County executing an agreement for HOPWA funds with the City of Oakland.
  2. Close of the construction financing, including an executed loan between CHDC/Eden and the County, by December 31, 2021.
  3. Execution of a HOPWA services agreement between the County and CHDC/Eden by December 31, 2021.
  4. Funds expended by June 30, 2022.
As proposed, $834,665 in HOPWA funds will be expended at construction close. The remaining $10,000 will cover project specific delivery costs incurred by the County, including legal fees. Additional sources of financing include the following:
City of Richmond $1,036,013
Permanent Loan/Multifamily Housing Revenue Bonds 6,533,000
Richmond CalHelp 78,803
Federal Home Loan Bank Affordable Housing Program 420,000
State Water Resources Board/Orphan Site Cleanup Account Grant 1,653,667
Environmental Protection Agency Grant 200,000
Veterans Housing and Homeless Prevention 3,051,962
Multifamily Housing Program 4,077,227
Deferred Developer Fee 1,111,770
General Partner Equity 766,448
Low Income Housing Tax Credits 10,256,680
Gap (Funding to be determined) 1,465,335
Total Sources (including HOPWA) $31,485,570
  
The Richmond City Council endorsed and supported the project with over $1 million in funding for the project.  
  
Legal documents for the project will include a loan agreement, a promissory note, a deed of trust and security agreement, a regulatory agreement, an intercreditor agreement, and a subordination agreement. These documents will be submitted for Board of Supervisor approval at a later date.  
 

CONSEQUENCE OF NEGATIVE ACTION:

If the Board does not approve these allocations of HOPWA funds, 1313 Galindo Apartments and Legacy Court affordable housing projects may not be viable.

CHILDREN'S IMPACT STATEMENT:

The recommendation supports one or more of the following children's outcomes:  
(1) Children Ready for and Succeeding in School;   
(2) Children and Youth Healthy and Preparing for Productive Adulthood;   
(3) Families that are Economically Self Sufficient;   
(4) Families that are Safe, Stable and Nurturing; and   
(5) Communities that are Safe and Provide a High Quality of Life for Children and Families.

AgendaQuick©2005 - 2024 Destiny Software Inc., All Rights Reserved