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COUNTY OF SAN MATEOInter-Departmental Correspondence |
Human Services Agency |
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DATE: |
October 15, 2003 |
BOARD MEETING DATE: |
October 28, 2003 |
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TO: |
Honorable Board of Supervisors |
FROM: |
Maureen Borland, Director, Human Services Agency Steve Cervantes, Director, Office of Housing |
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SUBJECT: |
Agreement with Bay Road Housing Limited Partnership |
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Recommendation |
Adopt a Resolution authorizing: |
1. |
The execution of an Agreement with Bay Road Housing Limited Partnership in the amount of $1,000,000 to assist with the development of Courtyard at Bay Road, an affordable rental housing project in East Palo Alto, for the period of November 1, 2003 to December 31, 2005; and |
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2. |
The Director of Human Services Agency or her designee to execute subsequent amendments and minor modifications not to exceed $25,000 per funding source. |
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Background |
The Courtyard at Bay Road is a 74-unit affordable rental housing development, with apartments built on a podium and parking below. There will be a large, open landscaped area with a tot lot on the podium, along with space for community gardens along the back of the property. Residents will have access to a computer learning center, a community multi-purpose room, and central laundry facilities. The 74 units will be divided to create eight (8) one-bedroom apartments, forty four (44) two-bedroom apartments, and twenty two (22) three-bedroom apartments. |
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On May 6, 2003, the Board of Supervisors approved the Community Development Block Grant (CDBG) and The San Mateo County HOME funds, and this project was included in that Action Plan. |
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Discussion |
Community Housing Developers, Inc., is a nonprofit housing developer with a twenty three year development history in the Bay Area. They have developed over 2,000 units of workforce housing. Community Housing Developers, Inc., and Sands Housing, Inc., also a nonprofit developer have created a limited partnership named Bay Road Housing, L.P., for the purposes of developing this project.
This Agreement with Bay Road Housing Limited Partnership will assist with the development of Courtyard at Bay Road. The target population is current East Palo Alto residents and other San Mateo County residents who earn between 30% and 60% of the median income for the County. Ten percent of the apartments will be reserved for individuals or families earning 30% of the median income. |
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HOME and CDBG dollars in the amount of $1 million will be used towards the acquisition of the site, which has a purchase price of $2.1 million. Funds from the City of East Palo Alto will make up the difference of $1.1 million.
The total project development cost is currently estimated at $23.4 million. The City of East Palo Alto has committed funding to the Bay Road Housing Limited Partnership for $2,529,000, plus low income housing tax credits are expected to attract equity financing of approximately $10.7 million. Other financing will include conventional loans. HOME funds, at only 4% of the total development costs are well leveraged and translates into a County investment of $1 million, which is $13,888 per unit. |
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County Counsel has reviewed and approved this Agreement as to form. Risk Management has reviewed and approved the Contractor's insurance coverage. |
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Vision Alignment |
This action keeps the commitment of: Offering a full range of housing choices and goal number 9: Housing exists for people at all income levels and for all generations of families. The action contributes to this commitment and goal by providing emergency, transitional housing and social services for homeless families and individuals. |
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Fiscal Impact |
Funding for this Agreement of $1,000,000 comes from the Community Development Block Grant for $158,419 and $841,581 from HOME funds. There is no Net County Cost. This is included in the Office of Housing Budget for FY 2003-04. |