To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Approval of modifications to contingencies related to an award of Measure X, LHTF, and PLHA Funds for the Choice in Aging Senior Housing Project in Pleasant Hill
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE modifications to contingencies related to an award of FY 2022/23 Permanent Local Housing Allocation (PLHA) funds, FY 2024/25 Measure X Housing Funds, and FY 2024/25 State of California Local Housing Trust Funds awarded to Satellite Affordable Housing Associates for the Choice in Aging Senior Housing Project located at 490 Golf Club Road in Pleasant Hill, as recommended by the Conservation and Development Director.
FISCAL IMPACT:
PLHA funds are provided to the County as a grant on a formula application basis through the State’s Department of Housing and Community Development. Measure X Housing funds are part of the County General fund and derive from a countywide, 20-year, ½ cent sales tax approved by Contra Costa County voters on November 3, 2020. Local Housing Trust Fund (LHTF) is a State funding program administered by the State’s Department of Housing and Community Development.
BACKGROUND:
On June 7, 2022, the Board of Supervisors (Board) awarded Satellite Affordable Housing Associates (SAHA) $1,000,000 in Fiscal Year 2022/2023 Permanent Local Housing Allocation (PLHA) funds for the Choice in Aging Senior Housing project located at 490 Golf Club Road in Pleasant Hill, CA. The project is for the new construction of 82 units, including one manager’s unit of permanent supportive housing for seniors 62 years of age and over. The project will include set-aside units for homeless veterans and chronically homeless veterans
and will provide onsite supportive services for tenants.
State of California (State) regulations require timely commitment and expenditure of PLHA funds and project occupancy by 2030. Project milestones will be required to be included within the executed development loan agreement. Typical milestones include but are not limited to building permit approval, bid package advertising, commencement of construction, completion of construction, and occupancy of the units.
On June 25, 2024, the Board awarded SAHA $4,968,158 in Fiscal Year 2024/2025 Measure X Housing Funds and $2,963,384 in State of California Local Housing Trust Funds (LHTF), for a combined award of $7,931,542, for the Choice In Aging Senior Housing project. The Measure X Housing Funds are identified as the County’s matching funds for the LHTF monies in accordance with the State’s LHTF program requirements. SAHA applied for tax credit financing for the project in August 2024 but was unsuccessful in obtaining an award.
LHTF is a State of California program administered by the State’s Department of Housing and Community Development that provides matching funds to local housing trust funds dedicated to the creation, rehabilitation, or preservation of affordable housing, transitional housing, and emergency shelters. State regulations require a timely commitment and expenditure of LHTF monies by 2028. The LHTF was matched with the County’s Measure X Housing Fund to meet the State’s requirements for funding. Project milestones similar to what was previously indicated above will be included in the development loan agreement.
The awards the Board approved on June 7, 2022, and on June 25, 2024, came with contingencies to keep the project moving to meet milestones or deadlines tied to the PLHA and LHTF funding programs. Those original contingencies were amended by the Board on April 1, 2025, to assist SAHA in their competitive application for the State’s SuperNOFA funds by showing the County’s funds as remaining committed to the project. The State’s SuperNOFA application had an application deadline of April 15, 2025. The SuperNOFA application was intended to fill the remaining financing gap so the project could be eligible for an award of tax credits in 2025. The amended contingencies approved by the Board on April 1, 2025, for the PLHA and Measure X/LHTF funds were the following:
1. All other financing commitments are secured by December 31, 2025.
2. Measure X and PLHA funds committed, as evidenced by an executed loan, by August 31, 2026. Measure X and PLHA funds will be recaptured by September 1, 2026, if significant progress is not being made to meet the August 31, 2026, commitment deadline.
3. Confirmation that the project's financials are in compliance with the County's Affordable Housing Program Guidelines.
SAHA notified County staff that it was unsuccessful in their application for State SuperNOFA funding submitted in April 2025. SAHA has continued to be diligent in seeking funding from various sources including various State funding sources. They were successful in obtaining funding awards from the State Housing and Community Development’s Veterans Housing and Homelessness Program (VHHP) and the City of Pleasant Hill. They were also awarded 51 HUD project-based vouchers.
Recommendation for Newly Revised Contingencies
SAHA intends to apply for Homekey+ funding from the State in February 2026. They will be requesting approximately 20 million dollars to fill their current gap. The County’s Department of Conservation and Development staff recommends the following revised contingencies to give the developer one final chance to seek the additional funding for their project:
1. All other financing commitments are secured by December 31, 2026.
2. Measure X and PLHA funds committed, as evidenced by an executed loan, by August 31, 2027. Measure X/LHTF and PLHA funds will be recaptured by September 1, 2027, if unable to meet the August 31, 2027, commitment deadline.
3. Confirmation that the project's financials are in compliance with the County's Affordable Housing Program Guidelines.
Affordable Housing Finance Committee
Recommendations related to the Measure X Housing fund and PLHA funds are typically made by the Affordable Housing Finance Committee (AHFC) with a recommendation to the Board for approval. The AHFC usually meets once or twice each year or as needed to review other off-cycle items. For the prior extension request, the AHFC was unable to make a quorum to schedule a meeting. For the current extension request, there are currently not enough AHFC committee members to make a quorum so a meeting could not be scheduled prior to a meeting of the Board of Supervisors. Due to the timing needs of the proposed project as well as the developer’s schedule to apply for Homekey+ funds, DCD staff is bringing this recommendation directly to the Board.
CONSEQUENCE OF NEGATIVE ACTION:
If the modifications to the contingencies are not approved, it would jeopardize the award of Measure X Housing/LHTF and PLHA funds to the Choice in Aging project and delay or prevent the development of the project if they are unable to successfully apply for additional State funds and tax credits in 2026. The extension of the contingencies to obtain all funding for the project by the end of 2026 will allow the developer an additional year. Furthermore, if the developer is unable to meet the revised contingencies, it would give County staff sufficient time to find an additional viable affordable housing project to award the Measure X Housing/LHTF, and PLHA funds to expend the funds and to meet the PLHA and LHTF program’s expenditure and unit occupancy timeline.