2006 Section 108 Housing Projects - California

Miraflores Housing Development at Sakai/Oishi Nursery
Richmond, CA
Section 108 Guaranteed Loan - $1,000,000

The City of Richmond, the Richmond Community Redevelopment Agency (RCRA), Eden Housing, Inc, and Community Housing Development Corporation of North Richmond (CHDCNR) will develop mixed income housing consisting of 99 for sale, single family units and 71 units of rental housing for lower income persons on the 13.9-acre Miraflores plot. The site was formerly a garden and tree nursery for over 100 years but has become blighted and contaminated with chemicals, gasoline and oil. The City designated the site as blighted under a special California redevelopment law. The RCRA will acquire and cleanup the site and then Eden Housing, Inc and Community Housing Development Corporation of North Richmond will develop the site. The housing will be in close proximity to a retail development which is currently under construction. The retail development will create 450 new jobs which will provide employment opportunities to this residential development.

The City will use the Section 108 Guaranteed Loan proceeds in conjunction with $1,000,000 in Brownfields Economic Development Initiative (BEDI) grant funds to acquire and prepare the Miraflores site. The total project costs for the Miraflores development is $63,713,518 of which $26,880,000 will be home buyer loans and $18,200,000 will be equity from the sale of Low Income Housing Tax Credits.

The Community Development Block Grant (CDBG) national objective for the City's use of its guaranteed loan is to address slums or blights on an area basis.

The City will repay the Section 108 Guaranteed Loan over a twenty-year period, paying interest only for the first six years. The repayment will come from the City's CDBG funds and tax increment payments. To secure repayment, the City pledges its annual tax increment funds and its CDBG funds.

Globe Mills Project
Sacramento, CA
Section 108 Guaranteed Loan- $5,500,000

The Sacramento Housing and Redevelopment Agency (SHRA) and GMA Investors, Limited Partnership (LP), will redevelop the 1.2-acre Global Mills factory site and its historic mill buildings into a mixed income, rental residence of market-rate and affordable senior housing units. Fires in 1994 and in 1995 have destroyed the site, as well as vandalism. The redevelopment plan is to rehabilitate and convert two mill buildings into 31 loft-style apartments and to build two new buildings which will contain 112 units of affordable senior housing. The new housing will be owned and operated by GMA Investors LP after completion. This project is a part of the Alkali Flat Redevelopment Project which will redevelop 79 acres of the City's historic Alkali Flat district to create opportunities for job growth through commercial development and housing for the District's residents.

The SHRA will use the $5,500,000 Section 108 Guaranteed Loan, under a contract agreement with the City, to refinance a portion of GMA's private construction loan which will finance the rehabilitation of the two mill buildings. GMA will utilize other public/private resources to construct the senior affordable housing. The City of Sacramento will give the SHRA $2,000,000 in Brownfields Economic Development Initiative (BEDI) grants to pay off a portion of the construction loan that GMA will use to finance costs related to the housing rehabilitation. The total cost of the project is $28,421,000.

The Community Development Block Grant (CDGB) national objective of the City's use of its guaranteed loan proceeds is to benefit low-moderate income persons through the provision of affordable housing.

The City plans to repay back the Section 108 Guaranteed Loan over a twenty-year period utilizing tax increment revenues from the City's Aggregated Housing Set-Aside Fund. To ensure the repayment, the City will assign to HUD its interest in its conditional loan to GMA, which will be secured by a second-lien position on the Site. The City will also secure repayment by pledging its CDGB funds.