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CHC 01-14-99CALL TO ORDER Meeting was called to order at 3:30 p.m. Members Present: Dick Schuster, Sylvia Machamer, Cecilia Fu Members Absent: Joseph Coddington Staff Present: Vera Gil Others Present: Mary Ellen Chell, Lydia Tan, Bridge Housing Approval of Minutes: Dick Schuster moved for approval of minutes as submitted, Cecilia Fu seconded VOTE: 3-0 Written Communications: None Oral Communications: None NEW BUSINESS: Vera Gil conunented on a meeting today with the Housing Bond Advisory Committee meeting. She reported that this committee oversees the Mortgage Credit Certificate (MCC) program countywide and they have accumulated a housing trust fund through the MCC program. This money has been used in the past to fund projects such as CHD and other projects throughout thc county at approximately $100,000 each. This committee would like to take $300,000 from this fund and use it towards a silent second program. The City Council has discussed this issue during a December council meeting and asked staff to explore the possibility of initiating a program to serve young families starting out in Cupertino. This is an opportunity to piggyback with the County program. Ms. Gil suggested funding CCS its request of 1.6 million dollars, but utilize as much of the CDBG funds as possible with the remainder coming from the BMR in-lieu fees. This would allow us the flexibility of not only funding CCS's request but also considering the silent second mortgage program. 1. Request from Cupertino Community Services for funding to purchase Property from County Fire: Mary Ellen Cheil spoke to the committee outlining their plans to purchase property at Vista and Stevens Creek. She explained that CCS is waiting for the County to surplus the property, which is a little over an acre. The plans call for a 6,000 square foot office, which CCS will bc responsible for and put 24 one and two bedroom apartments for low and very Iow income families. Mary Ellen stated that they have contracted with BRIDGE Housing to develop thc property and "turn-key" it when the construction is completed. Mary Ellen mentioned that CCS chose BRIDGE Housing because of other affordable projects they have built throughout thc County and their willingness to build in Cupertino. Other agencies were not as enthusiastic or did not have the reputation that BRIDGE has. Mary Ellen Chell stated that Council is in favor of this project as it stands with thc prospect of contracting with Bridge Housing. Vera Gil informed the committee that Kathy Robinson had left a message stating she would bc unable to attend the meeting today due to an unforeseen problem. Vera stated she had hoped that Kathy could look at the information from her memo of November 2na to the Committee and explain changes that have occurred in the pro-forma. Vera circulated copies of the memo so that the committee could discuss. Dick Schuster asked if CCS's intention was to break out the costs of the office space from thc - residential. Mary Ellen replied that that was correct. Dick also asked about a bank loan, is financing from a bank part of this proposal? Lydia Tan stated that financing is still in flux and part of the reason is because negotiations are still in the process with the County regarding acquisition of the site. The County has stated they would like a "ground lease" instead of having BRIDGE acquire it from them. Mary Ellen also stated that the City Manager suggested looking into acquiring a short-term loan from the City and repaying with the money the city will acquire after it becomes an entitlement city in 2000. Mary Ellen expects that $500,000 annually is expected from CDBG funding after entitlement status. Dick Schuster strongly suggested that CCS and BRIDGE try to secure financing through a bank and not rely on borrowing money from the city reserves. Mary Ellen stated that she had spoken with Don Allen at Cupertino Nationa~ Bank. Lydia Tan reiterated that they are looking at all alternatives for funding, but needed to approach this committee for approval of the 1.6 million dollars to be set aside in preparation of the site being put on the market and the ability to purchase. Dick Schuster asked about the $50,000 demolition price. Lydia Tan stated this fee is Ibr lire station demolition. Ms. Tan also stated that this is in negotiation. The committee went through the costs and figures for the project and Lydia Tan explained each cost. Dick Schuster asked if staff could provide the committee with repayment figures of current loans i.e., Community Housing Developers loan for the Tantau project. Dick Schuster made a motion to commit $1.6 million to CCS with up to $500,000 Ibr pre- development in acquiring the site at Vista and Stevens Creek. Cecilia Fu seconded VOTE: 3-0 2. Election of Chair and Vice Chair: Dick Schuster nominated Kathy Robinson Ibr Chair, Sylvia Machamer seconded, Cecilia Fu for Vice Chair, Sylvia Machamer seconded. VOTE: 3-0 3. Update on new CDBG Review Schedule: Vera Gil stated that the applications have bccn distributed and are due February 19m. Vera Gil stated that Mary Ellen Chell intbrmed her that CCS would be submitting reduced public grant requests this year staying within the CDBG limits. Vera stated that a special sub-committee meeting might not be necessary if requests arc reduced. Vera Gil also mentioned that Mary Ellen Cheil would like to agendize a discussion on BMR procedures/guidelines for the March meeting. Adjourned to February 11, 1999 SUBMITTED BY: APPROVED BY: e Kelley Sylgt~ Machamer,/2hair ATTEST: Kimberly Smitl~ City Clerk c/windows/housing~alh 11499.doc