Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Ken Cole, Director
Subject: Allocation of CDBG Revolving Loan Funds
RECOMMENDATION:
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Adopt a resolution authorizing:
A) The Department of Housing to allocate revolving loan funds from the Community Development Block Grant (CDBG) program for the Bay Oaks Apartments Rehabilitation, in an amount not to exceed $344,054; and
B) The Director of the Department of Housing, or the Director's designee, to execute a contract, as approved by County Counsel, for funding the Bay Oaks Apartments Rehabilitation.
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BACKGROUND:
MidPen Housing Corporation (MidPen) is proposing to rehabilitate the Bay Oaks Apartments, a 37-unit existing affordable housing development located at 2400 Gloria Way in East Palo Alto. Bay Oaks Apartments consists of large family units ranging from two to four bedrooms, and also includes an on-site community center featuring a large meeting room, a community kitchen, a children's play area, and a computer center. The rehabilitation of Bay Oaks Apartments will preserve housing for extremely low- to very low-income households. This project was constructed in 1996 using a combination of County CDBG/HOME funds, City of East Palo Redevelopment Agency funds, and a bank loan. Given the age of the property, there are significant deferred maintenance issues that need to be addressed.
DISCUSSION:
To support the rehabilitation of the apartment complex, the Department of Housing recently made two separate awards from the Home Investment Partnerships (HOME) program: one award in the amount of $171,567 for FY2016-17, and a second in the amount of $172,487 for FY2017-18, each approved by the Board of Supervisors through the Annual Action Plan in 2016 and 2017, respectively. These HOME funds were set aside to be undertaken by a specific type of nonprofit called a Community Housing Development Organization (CHDO). In order to qualify fo...
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