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CITY COUNCIL AGENDA ITEM NO. 5

Meeting Date: November 9, 2004

Subject/Title: A Resolution of the City of Brentwood authorizing the reservation of Housing Trust Funds in an amount not to exceed $1,000,000 to Eden Housing, Inc. a non-profit housing development corporation, for the development of Brentwood Senior Commons, a senior housing project.

Prepared by: Ellen Bonneville, Housing Manager

Submitted by: Howard Sword, Director of Economic Development

RECOMMENDATION
By resolution, authorize the reservation of Housing Trust Funds in an amount not to exceed $1,000,000 to Eden Housing, Inc. a non-profit housing development corporation, for the development of Brentwood Senior Commons, a senior housing project, subject to the preparation and approval by the City Council of an agreement specifying the specific terms and conditions of participation with Eden Housing, Inc. relating to the development of the project.

Staff to commence the preparation of the necessary agreements and documents to support the Brentwood Senior Commons Senior Housing Project and return with any and all documents to the City Council for their review and approval.

The project is located at the northwest corner of Garin Parkway and Oak Street.

PREVIOUS ACTION
Ordinance 756 was adopted by the City Council on September 9, 2003 creating the City of Brentwood Affordable Housing Program. The program was set up to support the availability of housing opportunities for low and moderate income residents within the community. The Ordinance created a “Housing Trust Fund” through the payment of “in-lieu” fees by developers.

The Brentwood Senior Commons project (Terra Nova Development Co.) received a Conditional Use Permit from the City of Brentwood Planning Commission and Design Review approval for the project on February 18, 2003 for an 80 unit senior housing project and in February of 2004, received a one-year extension of the Design Review approval to February 18, 2005.

On October 18, 2004 the Housing Subcommittee recommended that staff request the reservation of Housing Trust Funds in an amount not to exceed $1,000,000 for Eden Housing, Inc. as matching funds for the development of the Brentwood Senior Commons project.

BACKGROUND
The project, owned by Terra Nova Development, was originally approved by the Planning Commission in February of 2003 for the development of an 80-unit senior housing complex on Oak Street across from the Post Office. The project received a density bonus and parking reductions and was, therefore, required to restrict at least 20% of the units as affordable housing for low income seniors and the remaining 80% as affordable housing for moderate income seniors.

Terra Nova has decided to sell the property and received bids from several interested for-profit and non-profit housing developers. They chose Eden Housing, Inc. as the best offer. Eden Housing, Inc. is a non-profit developer located in Hayward, California and has been in business for 36 years. They currently own and operate 4,200 housing units throughout the Bay Area.

Eden Housing, Inc. is requesting funds from the City in an amount not to exceed $1,000,000 from the City’s Housing Trust Fund towards a portion of the construction costs of the project. The Housing Trust Fund currently has approximately $3,600,000 in unencumbered funds.

Eden Housing, Inc. received an approval for $2,800,000 in CDBG funds from the County’s Finance Committee in late October to fund the purchase of the property. They anticipate requesting approximately $11,000,000 in funds from the 9% Tax Credit Allocation Committee from the State of California in April of 2005 for the remainder of construction costs for the project.

Eden Housing intends to increase the affordability component of the project through restricting all of the 80-unit development as rental housing for very-low income seniors.

Ordinance 756 Section 17.725.007 states that the “Funds shall be dispersed at the discretion of the City Council for the purpose of assisting in the construction of low and very-low income dwelling units, or helping with other affordable housing opportunities.” This request for reservation of funds for the Brentwood Senior Commons project complies with the Ordinance for the expenditure of the Housing Trust funds.

If the City Council approves the reservation of funds, staff will commence the preparation of the necessary agreements and documents to support the Brentwood Senior Commons Senior Housing Project and return with any and all documents to the City Council for their review and approval at a later meeting.

The Housing Subcommittee heard a presentation by Eden Housing at its meeting of October 18, 2004. The Subcommittee recommended that staff request the reservation of $1,000,000 from the City Council for Eden Housing, Inc. for the Brentwood Commons Senior project.

FISCAL IMPACT
The reservation of funds commits $1,000,000 from the Housing Trust Fund 265. The Housing Trust Fund currently has $3,600,000 of unencumbered funds as of September 30, 2004.

Attachments
Resolution

RESOLUTION NO.

A RESOLUTION OF THE CITY OF BRENTWOOD AUTHORIZING THE RESERVATION OF HOUSING TRUST FUNDS IN AN AMOUNT NOT TO EXCEED $1,000,000 TO EDEN HOUSING, INC. A NON-PROFIT HOUSING DEVELOPMENT CORPORATION, FOR THE DEVELOPMENT OF BRENTWOOD SENIOR COMMONS, A SENIOR HOUSING PROJECT

WHEREAS, Ordinance 756 (“the Ordinance”), adopted on September 9, 2003 authorizes the City to establish a Housing Trust Fund and deposit a portion the in-lieu fee revenues generated by the requirements of the Ordinance into the Housing Trust Fund for the purpose of increasing, improving and preserving the supply affordable housing in the City of Brentwood; and

WHEREAS, the City of Brentwood (“the City”) desires to support the availability of housing opportunities for low and moderate income residents within the community; and

WHEREAS, Eden Housing, Inc. possesses the qualifications and management resources necessary to insure the development of the Brentwood Senior Commons, a Senior Housing Project in accordance with the purposes and objectives of the City’s Ordinance; and

WHEREAS, the City of Brentwood Planning Commission approved CUP 01-26 and Design Review 03-02 on February 18, 2003 for the Brentwood Senior Commons project; and

WHEREAS, the City of Brentwood Planning Commission approved a on-year extension of Design Review 03-02 for the Brentwood Senior Commons project to February 19, 2005; and

WHEREAS, Terra Nova Development the owner of Brentwood Senior Commons has decided to sell the property; and

WHEREAS, Eden Housing, Inc. has been selected to purchase the property to develop the Brentwood Senior Commons project; and

WHEREAS, Contra Costa County has approved $2,800,000 of CDBG funds for Eden Housing, Inc. for the Brentwood Senior Commons as a matching contribution to the City’s participation; and

WHEREAS, the City has funds available in the Housing Trust Fund to contribute to the construction costs for the Brentwood Senior Commons, Senior Housing Project; and

WHEREAS, Eden Housing, Inc. has requested funding from the City in the amount of $1,000,000 in support of the Brentwood Senior Commons, Senior Housing Project to combine with the CDBG funds from the County and a 9% Tax Credit Allocation from the State of California in the amount of $10,732,742.

NOW, THEREFORE BE IT RESOLVED that the City of Brentwood hereby authorizes:

1. The reservation of Housing Trust Funds in an amount not to exceed $1,000,000 to assist Eden Housing, Inc. in funding the development costs associated with the development of Brentwood Senior Commons, Senior Housing Project, subject to the preparation and approval by the City of an agreement specifying the specific terms and conditions of participation with Eden Housing, Inc. relating to the development of the project.

2. Staff to commence preparation of the necessary agreements and documents to support the Brentwood Senior Commons Senior Housing Project such as, but not limited to an Affordable Housing Contribution Agreement, Affordability Agreement, and Promissory Note. Final agreements and notes shall be returned to the City Council for their review and approval.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 9thday of November, 2004, by the following vote:

AYES: Members
NOES:
ABSENT:

___________________________ Brian Swisher Mayor

ATTEST:

__________________________________
Karen Diaz, CMC, Director of Administrative Services
City Clerk
 

City Administration
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