AgdaPkt 2008-12-15 Clsd and Spec

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project is located within the Redevelopment Plan Area A. 6.2A Page 2 Description of the Supportive Housing Project The site area is approximately 12,875 square feet and the building footprint will be approximately 8,810 sq. ft. The building design will be a two story, wood frame constructed around a courtyard. The project will consist of 14 rental units containing 450 square feet each, and one manager's unit containing 600 square feet for a total of 15 units with six studio units on the ground floor and eight studio units plus the manager's one bedroom unit on the second floor. All ground floor units will be accessible to persons with disabilities. Rents will be approximately $990.00 per month, affordable to Very Low Income individuals earning 50% or less of median income for San Mateo County and will be subsidized by HUD up to $481.00 per month. HUD subsidies will also be provided for some on-site staff from Behavioral Health and Recovery Services. Tenants will pay 30% of their actual income for rent and HUD will provide an operating subsidy making up the difference between tenant rents and operating expenses. There will be eight on-site parking spaces, to be used primarily by staff, occasional visitors and for services required by residents including deliveries of medicine and food, as well as related support services. The intended residents of the supportive housing facility will be disabled adults with very low incomes who, due to the nature of their disabilities, do not own vehicles. Project Financing After the close of the acquisition escrow, MHASMC subsequently applied for and received a HUD 811 grant toward construction of supportive housing at the Cedar Street site in the amount of $1,792,800. Approximately $550,000 was received from San Mateo County Office of Housing for predevelopment activities and engineering necessitated by the shallow water table and the need to stabilize the soil prior to construction. The Seller contributed $250,000 for cleanup of hazardous materials on the site. MHASMC has prepared conceptual drawings, obtained a construction cost estimate for the project, prepared a financial pro forma, and has prepared a preliminary financing plan for the project. The current estimated total development cost, including site acquisition, architectural & engineering fees, other soft costs, permit fees, construction costs, and offsite improvements is $5,233,242. (Refer to Attachment # 3 - Financial Summary Report) MHASMC has funding commitments from HUD, San Mateo County and the City for $3,091,294. The current funding gap is $1,650,000 after accounting for seller cash back and private donations. The majority of this is expected to be provided by a grant from the San Mateo County Behavioral Health and Recovery Services from Mental Health The remaining gap will be filled by Mental Health Services Act funding (MHSA) ($1,400,000) and the Redevelopment Agency ($250,000). To secure the HUD 811 Capital Advance, all funding commitments must be in place before December 2008. The 811 grant from HUD will also provide rental subsidies for the initial three years of operation, then are usually renewed in continuing future years. The HUD regulatory agreement for the 811 funding requires MHASMC to serve mentally disabled very low income adults with on site services for 40 years.