COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

January 17, 2008

BOARD MEETING DATE:

January 29, 2008

SPECIAL NOTICE/HEARING

None

VOTE REQUIRED

Majority

TO:

Honorable Board of Supervisors

FROM:

Duane Bay, Director, Department of Housing

SUBJECT:

Executive Summary - Approval of Restructuring of the Funding for the Development of Trestle Glen Apartments

Recommendation

Adopt a Resolution:

1.

Authorizing termination of the existing Section 108 Loan Agreement, Note and Deed of Trust with Northpoint Housing, Inc. for $10,745,000 for Trestle Glen Apartments, and execution of a new Section 108 Loan Agreement with MCB Family Housing, Inc. for $7,145,000 for the development of Trestle Glen at El Camino Village for a term of 55 years; and

Adopt a Resolution:

2.

Authorizing execution of an agreement with MCB Family Housing, Inc. for $621,508 CDBG funds to assist with land acquisition for the development of Trestle Glen Apartments for a term of 55 years; and

Adopt a Resolution:

3.

Authorizing execution of an agreement with Trestle Glen Associates for $1,378,492 HOME funds to assist with the development of Trestle Glen Apartments for a term of 55 years;

Adopt a Resolution:

4.

Authorizing the Director of the Department of Housing to execute an Agreement with Trestle Glen Associates for $1,500,000 HELP funds to assist with the development of Trestle Glen Apartments for the term of March 24, 2006 through March 23, 2016.

With each resolution authorizing the Director of the Department of Housing or the Director's designee to execute contract amendments and other documents as may be appropriate to achieve the intent of the Agreement, so long as said amendments and other documents do not modify the County's maximum fiscal obligations by more than $25,000 (in aggregate for each Agreement).

Background/ Discussion

Trestle Glen Apartments at El Camino Transit Village is a multifamily affordable housing project under development by BRIDGE Housing Corporation. This Project has appeared before the Board six times since November 2005 to request various approvals, primarily related to funding, including authorization for the County to make funding applications to the State and to HUD on behalf of the project. Altogether, the Board has approved the following funding: CDBG $621,508; HOME $1,378,492; HELP $1,500,000 (through the California Housing Finance Agency); and Section 108 Loan Program for up to $10,745,000 million (through HUD), but the County will only borrow $7,145,000 million Section 108 funds for the Project. Because the funding sources impose specific restrictions on their uses, and the Project has proceeded well along in its development phase, it has now become desirable and cost-effective to restructure the existing financing. No new funding is being requested.

Recycling Loan Funds Back To Project

As shown in the table below, the refinancing restructuring calls for the existing loans to be paid back to the County and re-lent to new BRIDGE-affiliates.

Existing Borrower &
Loan Amount

New Borrower &
Loan Amount

Notes

Northpoint Housing Inc.
$7,145,000 (Section 108)

MCB Family Housing, Inc.
$7,145,000 (Section 108)

.
For land acquisition

Northpoint Housing Inc.
$ 2million comprising
$621,508 (CDBG) & $1,378,492 (HOME)

MCB Family Housing Inc.
$621,508 (CDBG)

For land acquisition

Trestle Glen Associates
$1,378,492 (HOME)

For Construction

Northpoint Housing Inc.
$1,500,000 (HELP)

Trestle Glen Associates
$1,500,000 (HELP)

For Construction

$10,645,000

$10,645,000

Total Amts Unchanged

Fiscal Impact

There is no funding change. Previously approved funding totaling $10,645,000 for this project remains the same. No Net County Cost is incurred.