COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

Office of Housing

 

DATE:

March 11, 2002

BOARD MEETING DATE:

March 19, 2002

 

TO:

Honorable Board of Supervisors

FROM:

Maureen Borland, Director, Human Services Agency

 

Steve Cervantes, Director, Office of Housing

     

SUBJECT:

1.

RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH NATIONAL CHURCH RESIDENCES TO ASSIST WITH THE DEVELOPMENT OF AFFORDABLE HOUSING IN PACIFICA AND AUTHORIZING THE DIRECTOR OF THE HUMAN SERVICES AGENCY TO EXECUTE SUBSEQUENT AMENDMENTS AND MINOR MODIFICATIONS NOT TO EXCEED $25,000; AND

 

2.

AUTHORIZATION FOR THE USE OF FUNDS IN THE AMOUNT OF $648,250 FROM THE CURRENT HOUSING AND COMMUNITY DEVELOPMENT BUDGET

 

Recommendation

1.

Adopt a resolution:

 
 

a.

Authorizing execution of an Agreement with National Church Residences to Assist with the Development of Affordable Housing in Pacifica.

 
 

b.

Authorizing the Director of the Human Services Agency to execute subsequent amendments no to exceed a total of $25,000.

 

2.

Authorizing the use of funds in the amount of $648,250 from the current Housing and Community Development budget.

 

Background

In 1993 the County made an interest free loan in the amount of $328,750 to Peninsula Habitat for Humanity ("Habitat") to acquire a parcel of land in Pacifica for the development of 14 affordable housing units. Part of the development was to be built on a vacated city street. Due to political changes and title problems with the underlying fee ownership of the street area, the project, as envisioned, was not able to be built as a Habitat project. Once Habitat made the determination that they could not develop "for sale" units at a price that would be affordable to their targeted buyers they agreed to work with the County to locate another non-profit housing developer able to develop the property as affordable housing.

 

Discussion

National Church Residences (NCR), the non-profit housing developer which acquired and rehabilitated the Ocean View Senior Housing Development in Pacifica two years ago, is proposing to purchase the property from Habitat and develop 10 two and three bedroom rental units for low income families. The funding for this agreement is coming from the following sources: $418,250 Community Development Block Grant (CDBG) funds from the Housing Development Reserve Funds authorized in the 2001-02 Action Plan; $328,750 CDBG Program Income from the repayment of the loan to Habitat (these funds will pass directly through the purchase escrow); and $230,000 HOME funds to be transferred from the Arroyo San Carlos Project which is unable to proceed at this time. The entire amount of $977,000 will be provided to NCR in the form of a low interest loan to be repaid from the income of the property.

 

This agreement has been approved as to form by the County Counsel's Office and meets HUD regulations. Risk Management has reviewed and approved the contractor's insurance coverage.

 

Vision Alignment

The agreement with NCR keeps the commitment of offering a full range of housing choices and goal number 9: Housing exists for all people at all income levels and for all generations of families. The agreement contributes to this commitment and goal by creating 10 new affordable rental units for lower income families in Pacifica.

 

Fiscal Impact

The total County obligation under this agreement is $977,000 which is being provided by the CDBG and HOME Programs. This project is included in the current Housing & Community Development budget. There are no General Funds used in this project.