REPORT/RECOMMENDATION TO THE BOARD OF GOVERNORS
OF THE HOUSING AUTHORITY OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
December 10, 2019
FROM
MARIA RAZO, Executive Director, Housing Authority of the County of San Bernardino
SUBJECT
Title
Commitment of Nine Project-Based Vouchers to Support the Las Terrazas Affordable Housing Development in the City of Colton
End
RECOMMENDATION(S)
Recommendation
1. Approve the commitment of nine Project-Based Vouchers to AMCAL Las Terrazas Fund, L.P., a limited partnership developing the Las Terrazas affordable housing development, for a term of 20 years, subject to federal government appropriations.
2. Authorize the Chairman of the Board of Governors or Executive Director of the Housing Authority of the County of San Bernardino, upon consultation with Legal Counsel, to accept and sign ancillary documents or exhibits necessary or appropriate to carry out the commitment and to satisfy program rules and regulations pursuant to federal requirements.
3. Direct the Executive Director of the Housing Authority of the County of San Bernardino to transmit all documents to the Secretary within 30 days of execution.
(Presenter: Maria Razo, Executive Director, 332-6305)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Funding for Project-Based Vouchers (PBVs) is derived from the Housing Authority of the County of San Bernardino’s (HACSB) regular annual allocation of subsidies under the Housing Choice Voucher Program administered by HACSB on behalf of the United States Department of Housing and Urban Development (HUD).
BACKGROUND INFORMATION
Approval of this item commits rental subsidies for nine PBVs for a 20 year term to support the development of Las Terrazas apartment community, consisting of 112 affordable housing units (Project) to be developed on 5.92 acres at 1176 W. Valley Boulevard, in the unincorporated area of the County, adjacent to the city of Colton. The Las Terrazas affordable housing development is being developed by AMCAL in partnership with Housing Partners I, Inc. (HPI), HACSB’s nonprofit affiliate, and the County of San Bernardino (County). Las Terrazas will be restricted to households with income levels ranging from 30% to 60% of Area Median Income (AMI) of which 100% of the units will be restricted to low and moderate income families through the use Low Income Housing Tax Credits, Federal and County funding, permanent financing and PBVs. In addition to developing 112 quality and affordable housing units, the development will include 30 No Place Like Home units for homeless individuals who are eligible to receive services from the Department of Behavior Health (DBH). The Project will also include outdoor space, tot lots, a computer room, a community center and a community building.
The Las Terrazas development will apply for non-competitive 4% Low Income Housing Tax credits in January 2020. An item was on today’s County of San Bernardino agenda for the Board of Supervisors to consider the County’s Community Development and Housing Department recommendation for an additional commitment of County housing resources and Non-Competitive No Place Like Home (NPLH) funds to the Project.
On February 14, 2017 (Item No. 80), the Board of Governors (Board) approved a commitment of PBVs towards the development to support the developer’s application for tax credits in March 2017, as required for the tax credit application process. The developer’s application, however, was not successful in winning an allocation. HACSB subsequently shifted the PBV commitment to other projects that were funded and ready to proceed. HACSB is currently at the limit of PBVs that can be made available to be project-based vouchers. However, there remain nine PBVs available that were approved by the San Bernardino County Housing Commission on December 9, 2014 (Item No. 17), specifically for use in a project in which services are being provided to the tenants by DBH. With the County’s commitment of NPLH funding, the Project is now eligible for those nine PBVs. This voucher commitment will close the remaining financing gap and allow the project to proceed with the application for non-competitive 4% tax credits. Once the project receives a tax credit allocation, construction is projected to commence in Fall 2020. Should the Developer not secure sufficient funding, pursuant to the Disposition, Development and Loan Agreement the County will analyze other possible financial options for the Project.
The commitment of nine PBVs is conditioned on the inclusion of HPI within the partnership owner entity.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by Legal Counsel (Julie J. Surber, Principal Assistant County Counsel, 387-5455) on November 18, 2019; Finance (Kathleen Gonzalez, Administrative Analyst, 387-5412) on November 19, 2019 and Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-4523) on November 21, 2019.