REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 15, 2022
FROM
GARY HALLEN, Director, Community Development and Housing
SUBJECT
Title
Letter Agreement with AMCAL Las Terrazas Fund, L.P. regarding the HOME Investment Partnerships Act Loan Agreement for the Las Terrazas Affordable Housing Project
End
RECOMMENDATION(S)
Recommendation
Approve Letter Agreement with AMCAL Las Terrazas Fund, L.P. regarding the Las Terrazas Affordable Housing project acknowledging how the HOME Loan Agreement No. 20-1081 is to be interpreted and implemented to conform to a United States Department of Housing and Urban Development review action, effective upon execution.
(Presenter: Gary Hallen, Director, 387-4411)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote the Countywide Vision.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of any Discretionary General Funding (Net County Cost). The Letter Agreement does not commit San Bernardino County (County) to any additional funding on the Project nor does it add any additional conditions on the developer or the County. The Letter Agreement reemphasizes the catchall provisions in the HOME Loan documents and provides AMCAL Las Terrazas Fund, L.P. (Developer) clarity for compliance of HOME requirements to adequately address all applicable concerns raised in the United States Department of Housing and Urban Development’s (HUD) review.
BACKGROUND INFORMATION
The Las Terrazas affordable housing apartment community will consist of 112 affordable units located at 1176 W. Valley Boulevard, in the unincorporated area near the City of Colton (Project). The Las Terrazas apartment community furthers the Board of Supervisors’ (Board) objective of investing and revitalizing the County unincorporated communities and advances the goal of ending homelessness and providing housing for low-income households. The Project will include 12 permanent supportive housing (PSH) units for homeless, special needs clients with mental health conditions for whom the Department of Behavioral Health (DBH) will provide the supportive services.
Construction of the Project is expected to be completed by June 2022. The County invested $9,179,552 of HUD HOME Investment Partnerships Act Funds (HOME Funds) into this Project and HUD occasionally monitors and reviews agreements, processes, and other actions taken for projects using HOME Funds. HUD has reviewed this Project and approval of the recommended Letter Agreement will satisfy HUD’s review and will memorialize the intent of the original HOME Loan documents and the County’s Regulatory Agreement, an exhibit of the Loan Agreement, approved by the Board on November 17, 2020 (Item No. 36). Approval of this item will meet the action required by HUD related to the HOME funding in this Project.
The Letter Agreement does not commit the County to any additional funding on the Project nor does it add any additional conditions on the Developer or the County. The Letter Agreement reemphasizes the catchall provisions in the HOME Loan documents and makes clear that the Developer must comply with all HOME requirements to adequately address all applicable concerns raised in HUD’s review.
PROCUREMENT
No procurement is required for this action at this time.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on March 4, 2022; Finance (Kathleen Gonzalez, Administrative Analyst, 387-5412) on March 7, 2022; and County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on March 7, 2022.