The County of Santa Clara
California

Agreement/Amendment
100224

Approve delegation of authority to the County Executive, or designee, to execute and amend all legal documents such as contracts, loan agreements, amendments and estoppels relating to loans with Palo Alto Housing Corporation, or its affiliate, in an amount not to exceed $4,000,000 for the development of Eagle Park located at 1701 El Camino Real, Mountain View, following approval by County Counsel as to form and legality, and approval by the Office of the County Executive. Delegation of authority shall expire on December 31, 2020.

Information

Department:Office of Supportive Housing (Office of the County Executive)Sponsors:
Category:Delegation of Authority

Attachments

  1. Printout

Body

FISCAL IMPLICATIONS

The recommended action would not have a new impact on the County’s General Fund.  On January 24, 2017 (Item No. 58) the Board approved a loan of up to $4,000,000 to Palo Alto Housing (previously Palo Alto Housing Corporation), or its affiliate, for the development of an affordable and supportive housing project known as Eagle Park (formerly 1701 ECR) located at 1701 El Camino Real in Mountain View.  Funding for the Countys loan was drawn from two funding sourcesA total of $1,500,000 was drawn from a one-time donation made by Google to the County to help fund the development of supportive and affordable housing.  An additional, $2,500,000 was drawn from the Office of Supportive Housings Fiscal Year 2016-17 Adopted Budget.   

REASONS FOR RECOMMENDATION

On January 24, 2017 (Item No. 58) the Board approved a delegation of authority, enabling the Administration to work with Palo Alto Housing to develop an affordable and supportive housing development in Mountain View.  Unfortunately, the development experienced a delay in their construction schedule and the previously approved delegation of authority expired on December 31, 2019.  A new delegation of authority is needed to facilitate the conversion from construction financing to permanent financing.  

Reason for request of Delegation of Authority

Although delegations of authority are discouraged except under certain circumstances, this delegation of authority is necessary because the Administration will continue to work with the developer to refine the terms of the subordination request and any other documents necessary for the conversion.  

CHILD IMPACT

The recommended action will have no/neutral impact on children and youth.

SENIOR IMPACT

The recommended action will increase permanent supportive housing for homeless veterans, some of whom may be senior citizens

SUSTAINABILITY IMPLICATIONS

The recommended action balances public policy and program interests, and enhance the Board of Supervisors’ sustainability goal of social equity by improving homeless and low-income person’s access to stable housing. 

BACKGROUND

Eagle Park consists of 66 new apartments in Mountain View in Santa Clara County.  Of the 66 apartments, 30 units are set aside for homeless veterans and 11 are set aside for homeless individuals or families.  As of January 27, 2019, 38 of the 41 supportive housing units are occupied.  Palo Alto Housing is partnering with Abode Services, Inc. (Abode), the County, and the Veterans Administration Palo Alto Health Care System (VAPAHCS) to ensure that supportive housing residents receive appropriate onsite services.

Construction of the project was completed in July 2019 and Palo Alto Housing is now working on the conversion from construction financing to permanent financing.  This step requires the developer to prepare a final underwriting and update financial projectionsFortunately, the payment standards associated with the Section 8 Project Based Vouchers is higher than originally projected and the project now generates more cashflowUnfortunately, this may render the project ineligible for the $4,430,660 Veterans Housing and Homelessness Prevention Program (VHHP) grant awarded through the California Department of Housing and Community Development (HCD).  The VHHP grant was originally intended as the permanent take-out funding to repay a portion of the construction loan.  However, since the project generates more cashflow than the VHHP guidelines allow, HCD may rescind the award

Palo Alto Housing is coordinating with HCD and has also secured a new conventional permanent loan in the event it no longer meets the threshold criteria for the VHHP. 

CONSEQUENCES OF NEGATIVE ACTION

Palo Alto Housing would not be able to take the necessary actions needed to access the permanent funding sources approved for Eagle Park to pay off the construction loan

STEPS FOLLOWING APPROVAL

Upon approval, the Clerk of the Board is requested to notify Ky Le, Consuelo Hernandez and Eloiza Murillo-Garcia in the Office of Supportive Housing

 

 

Meeting History

Feb 11, 2020 9:30 AM Video Board of Supervisors Regular Meeting
RESULT:APPROVED [UNANIMOUS]
MOVER:Mike Wasserman, Vice President
SECONDER:Susan Ellenberg, Supervisor
AYES:Mike Wasserman, Cindy Chavez, Dave Cortese, Susan Ellenberg, S. Joseph Simitian