Title
Human Services Department requesting the Board consider recommendations regarding the 25 unit affordable for sale housing project located in Diamond Springs, as follows:
1) Approve a Budget Transfer Request establishing appropriations in the amount of $130,000 offset by a corresponding amount from the fund balance within the revolving loan Special Revenue Fund 11-107-001; and
2) Adopt a Resolution approving a loan of said funds at 1% simple interest per annum to El Dorado County Habitat for Humanity, Inc. for predevelopment expenses associated with a 25 unit affordable for sale housing project located in Diamond Springs and authorizing the Director or Assistant Director of Human Services to sign the Loan Agreement and Promissory Note contingent upon approval by County Counsel and Risk Management. (4/5 vote required)
FUNDING: Revolving loan fund within Department of Human Services funds.
Body
BUDGET SUMMARY: |
|
|
Total Estimated Cost |
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$130,000.00 |
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|
|
Funding |
|
|
Budgeted |
$ |
|
New Funding |
$ |
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Savings |
$ |
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Other - Fund Balance |
$130,000.00 |
|
Total Funding Available |
$130,000.00 |
|
Change To Net County Cost |
|
$0.00 |
Fiscal Impact/Change to Net County Cost: No change to Net County Cost. Funds are available from proceeds received from the loan repayment by Mercy Housing California ($154,438) that are now available to provide the loan to El Dorado County Habitat for Humanity, Inc.
Background:
A petition for Writ of Mandate was filed on January 7, 2002 by the Measure Y Committee and others to stop the development of the Valley View Specific Plan in El Dorado Hills, CA. The result of the petition was a settlement agreement that reduced the size of the development and required a $150,000 contribution by the El Dorado Hills Investors (EDHI) to the County's affordable housing efforts. On April 16, 2002 Resolution #101-2002 was adopted approving a loan of $150,000 at 1% simple interest per annum to Mercy Housing California for predevelopment costs associated with the 168-unit affordable workforce rental housing complex known as White Rock Village. Mercy Housing California repaid the loan, including accrued interest of $4,438.44, on July 31, 2005 following completion of White Rock Village. The funds are now available within this designated Special Revenue Fund to be loaned to other developers of affordable housing.
Reason for Recommendation:
In October 2008 El Dorado County Habitat for Humanity, Inc. approached Human Services to request a loan of $130,000 for predevelopment costs in support of a single-family affordable for sale housing project located on Pleasant Valley Road in Diamond Springs, within the unincorporated area of El Dorado County. The project, when completed, will provide twenty-five (25) affordable homeownership units to households earning 50% or below of the area median income based on household size. The predevelopment costs include, but are not limited to, engineering costs, processing of a zoning change and tentative parcel maps. The Loan Agreement and Promissory Note have been submitted to County Counsel and Risk Management for review and approval.
Action to be taken following Board approval:
Board Clerk's Office to:
Process the Budget Transfer Request and provide Human Services, Attn: Housing Program at Spring Street with one copy of the signed Budget Transfer and three (3) Certified Resolutions
Contact: Doug Nowka, 742-7275, Joyce Aldrich, 621-6276
Concurrences: County Counsel and Risk Management (Pending)