To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Subordination Agreement of Density Bonus and Inclusionary Agreement - DeAnza Gardens
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to execute a subordination agreement with PNC Bank, which will subordinate the Density and Redevelopment Inclusionary Housing Agreement dated June 1, 2003, to a loan being made by PNC Bank, to permit the refinancing of the senior debt associated with an affordable housing development located at 205 Pueblo Avenue, Bay Point.
FISCAL IMPACT:
No fiscal impact.
BACKGROUND:
DeAnza Gardens (Project), a 180-unit multifamily affordable housing development located at 205 Pueblo Avenue (the Property) in the unincorporated community of Bay Point, was developed in 2003-2004. The current owner of the Project is DeAnza Gardens L.P. (Partnership), a California limited partnership with the Housing Authority of Contra Costa County (HACCC) as Limited Partner and DeAnza Housing Corporation, a California Public Benefit Corporation as the General Partner (Corporation). The Project is constructed on property owned by the HACCC and leased to the Partnership pursuant to a Ground Lease.
As part of the development, a Density Bonus and Redevelopment Inclusionary Housing Agreement (Inclusionary Agreement) between Contra Costa County, the HACCC, and the Partnership, was entered on June 1, 2003 and recorded against the Property. The Inclusionary Agreement required the Project to be affordable to and occupied by households earning 30 percent to 60 percent of the median income for 55 years. There were no County funds provided to the Project.
The development of DeAnza Gardens was initially funded with a loan provided to the Partnership by the California Community Reinvestment Corporation (CCRC) that came with a balloon payment of approximately $6.5 million becoming due on October 1, 2023. In addition, two loans w...
Click here for full text