To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Substantial Amendment to the County’s FY 2023/24 Community Development Block Grant (CDBG) Annual Action Plan - Riverhouse Hotel Scope Revisions
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE a Substantial Amendment to the County's FY 2023/24 Community Development Block Grant Annual Action Plan to amend and revise the scope of work for the Riverhouse Hotel project located at 700 Alhambra Avenue in the City of Martinez to redirect funds to tasks associated with earlier phases of the project.
FISCAL IMPACT:
No General Fund impact. CDBG funds are federal funds provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development (HUD).
CFDA Number: 14.218
BACKGROUND:
On May 9, 2023, the Board of Supervisors (the “Board”) approved the Contra Costa County Annual Action Plan for FY 2023/24 CDBG funds (the “Action Plan”). Originally, Eden Development, Inc was awarded $2,000,000, in CDBG funds, under the affordable housing category, for the acquisition and rehabilitation of Riverhouse Hotel. The CDBG are not the only funding source. The Riverhouse Hotel is located at 700 Alhambra Avenue in the City of Martinez, and as proposed, 75 affordable rental apartment units would be rehabilitated.
Staff is recommending a change to the project scope to specific items that may be completed on a smaller scale in 2025. This will help the County to remain consistent with federal expenditure guidelines. The revised scope of work, as proposed, is parking lot improvements to address accessibility improvements to come into compliance with the Americans with Disabilities Act, replace the security gate for improved clearance, perimeter fencing replacement and landscape improvements, interior painting and flooring in common areas, brick restoration, cornice reroofing, soft demolition in current first floor commercial spaces, sewer lateral replacement, interior stairwell painting and flooring, and emergency lighting repair and/or replacement.
Recommendations related to funds for affordable housing projects are typically made to the Affordable Housing Finance Committee (AHFC) and forwarded to the Board of Supervisors for approval. The AHFC usually meets once or twice each year, and as needed to review other off-cycle items, including revising any previous awards or recommending additional funding awards. A meeting was unable to be scheduled in late December 2024/early January 2025, due to lack of quorum.
As required by the County’s CDBG Citizen Participation Plan and as required by HUD, a Substantial Amendment to the County’s FY 2023/24 CDBG Annual Action Plan is required to be considered by the Board of Supervisors for approval.
CONSEQUENCE OF NEGATIVE ACTION:
Not approving the Substantial Amendment will delay and/or prevent the revised scope of work items to get completed at Riverhouse Hotel.