To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Consent
SUBJECT:
title
Pre-development Loan for Murray Apartments Rehabilitation
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Authorize the use of unrestricted repaid housing funds to make a pre-development loan; and
2. Authorize the Planning and Building Director to sign loan documents for a pre-development loan to Redwood Community Action Agency after review and approval from County Counsel and Risk Management.
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SOURCE OF FUNDING:
Pre-1993 Community Development Block Grant (CDBG) Program Income Account, Fund 3590.
DISCUSSION:
Staff is asking your Board to authorize the use of repaid unrestricted loan funds and for the Director of Planning and Building Director sign loan documents for a pre-development loan to Redwood Community Action Agency (RCAA). Loan funds will be used to develop plans, specifications, and bid documents for the rehabilitation of the Murray Apartments. Loan documents will be signed after final review and approval from County Counsel and Risk Management.
In the mid-1980's the county received a CDBG grant to make fix-up loans to low-income property owners. Prior to 1993 regulations allowed jurisdictions to use these repaid funds in any manner deemed appropriate by the jurisdiction. Since 2000 these funds have been used for grant cash match or other small housing related grants. There is currently approximately $48,000 in this account. By providing a pre-development loan for multi-family rehabilitation the spirit of the funds remains intact. In addition, CDBG is making it easier for a jurisdiction to incur pre-development costs and be repaid out of a grant. These funds will likely be repaid and may be used in a similar manner in the future.
The Murray Apartments are located at 1419-1457 Murray Road, McKinleyville. The property consists of ten one-story buildings that contain 19 two-bedroom apartments a...
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