Title
a. Support authorizing the Auditor-Controller to increase revenue and appropriations in Economic Development Department's Boronda Housing Set-Aside Unit, 176-8202-DEO013 by $300,000.
b. Support authorizing the Auditor-Controller to incorporate the modifications in the FY 2014-15 Adopted Budget.
Report
It is recommended that the Budget Committee:
a. Support authorizing the Auditor-Controller to increase revenue and appropriations in Economic Development Department's Boronda Housing Set-Aside Unit, 176-8202-DEO013 by $300,000.
b. Support authorizing the Auditor-Controller to incorporate the modifications in the FY 2014-15 Adopted Budget.
SUMMARY
This action was originally approved by the Board of Supervisors on March 11, 2014, for Fiscal year 2013/2014 in conjunction with approval of a $300,000 Housing Successor Agency loan to South County Housing Corporation (SCH) to provide the necessary gap financing for redevelopment of the Camphora Labor Camp. The funds were not distributed in FY13/14 but will now be distributed in late 2014. The recommended action will re-appropriate funding in the FY14/15 budget in the amount of $300,000.
DISCUSSION:
The Camphora Labor Camp is located in an unincorporated area near Soledad. The property is currently improved with 44-dilapidated market rate rental units that are used primarily by farmworkers.
SCH purchased the property in October of 2010 with the long term plan of razing the buildings and redeveloping the site with safe, affordable, and appropriately sized housing for the current residents as well as other farmworkers. Since acquisition of the site, SCH has managed the property and addressed immediate health and safety issues.
The proposed project is consistent with the County's priorities to develop rental housing for extremely low, very low, and low income households including farm workers who are specifically designated as a special needs population by the County.
In October of 2010, the Redevelopment Agency approved a short term loan of $300,000 from the Boronda Redevelopment Housing Set-Aside Fund. The loan is due in October of 2015. In November of 2013, SCH repaid $100,000 of the loan, leaving a balance of $200,000. On March 11, 2014, the Board of Supervisors approved a $300,000 long term loan from Monterey County Housing Successor Agency funds. SCH will repay the existing short term note in the amount of $200,000 concurrently with the funding of the new note in the amount of $300,000.
OTHER AGENCY INVOLVEMENT:
An Over-the-Counter grant from the Housing and Redevelopment Office of $25,000 was given to SCH in 2009 to assist with the feasibility of the project. The RDA short term loan of $300,000 was approved by the Board of Supervisors on June 8, 2010. A $300,000 long term loan from Monterey County Housing Successor Agency funds was approved by the Board of Supervisors on March 11, 2014.
FINANCING:
There is no impact on the General Fund. Funding for the loan shall be included in the Boronda Housing Set-Aside (Fund 176, Organizational Unit 8202, Appropriations Unit DEO 013). Payments on the loan will be deposited back into the Boronda Housing Set-Aside fund to finance future projects.
Prepared by:
______________________________
Sandra Henderson
Management Analyst II, Ext 6651
Approved by:
____________________________
David L. Spaur, CEcD, EDFP
Economic Development Director
Attachments:
Original Board Order Approved 3/11/2014