COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

Office of Housing

DATE:

July 15, 2002

BOARD MEETING DATE:

July 30, 2002

TO:

Honorable Board of Supervisors

FROM:

Maureen Borland, Director, Human Services Agency
Steve Cervantes, Director, Office of Housing

SUBJECT:

AGREEMENT WITH COMMUNITY WORKING GROUP WHICH PROVIDES $450,000 TO ASSIST IN THE DEVELOPMENT OF THE OPPORTUNITY CENTER AND AUTHORIZES THE DIRECTOR OF THE HUMAN SERVICES AGENCY TO EXECUTE SUBSEQUENT AMENDMENTS AND MINOR MODIFICATIONS NOT TO EXCEED $25,000 PER FUNDING SOURCE

Recommendation

Adopt a resolution authorizing execution of an Agreement with Community Working Group to:

1)

Provide $450,000 of CDBG/HOME funds for the development of the Opportunity Center; and

2)

Authorize the Director of the Human Services Agency to execute subsequent amendments not to exceed $25,000 per funding source

Background

The Opportunity Center of the Peninsula is a unique project involving the collaboration of multiple jurisdictions and nonprofits. The project continues the cooperation on a regional level to combat homelessness, started with the Clara-Mateo Alliance Shelter in Menlo Park, in which the City of Palo Alto, the Santa Clara Housing Bond Trust and the City of San Jose participated in the funding along with San Mateo County.

The Opportunity Center will be owned by the Community Working Group (CWG), a nonprofit established in 1999 solely to raise funds in support of the development and its on-going operations. Thirty percent of the project's clientele are anticipated to come from San Mateo County.

Located outside the County in the City of Palo Alto, the project is proposed as a 95-unit facility that will offer a continuum of housing opportunities for homeless singles and small families, including female-headed households. Configured as single room occupancy units (SROs) and small apartments, the units will be a combination of transitional and permanent housing, enhanced by a homeless service center on the ground floor.

The project has been successful in garnering both financial and technical assistance from the City of Palo Alto, the County of Santa Clara, as well as the County of San Mateo. The Santa Clara Housing Authority has been contracted to be the "turn-key" developer of the project. (After project completion, the Housing Authority will "turn the key" of the development over to CWG to own and operate.) InnVision, a homeless service provider based in San Jose, has been contracted to operate the service center and will work with Clara Mateo Alliance to ensure a balance of services.

San Mateo County meets regularly with the City of Palo Alto, Santa Clara County, the Santa Clara Housing Authority, and other key players to discuss the progress of the project and to anticipate and resolve development issues and any neighborhood concerns. The project has received political support from the Cities of East Palo Alto and Menlo Park.

Discussion

The Agreement provides a total of $450,000 comprising the following: San Mateo County CDBG funds of $100,000 (FY 2001-02) and $50,000 (FY 2002-03); and County HOME funds of $300,000 (FY 2002-03). These funds will be used to support the Opportunity Center development, estimated to cost $21 million. CWG is still in the process of securing additional funding, therefore, the Agreement is written to allow flexibility regarding funds allocation for project development uses, so long as the uses are within the scope of CDBG and HOME program rules. Eligible project uses may include predevelopment, site preparation, construction and acquisition.

Other project funding committed to date include almost $3.3 million from the following: $1,030,000 City of Palo Alto CDBG; $500,000 County of Santa Clara HOME; $1 million Packard Foundation; $250,000 Peninsula Community Foundation; $400,000 McKinney Supportive Housing Program; and $100,000 miscellaneous sources. The project anticipates other major funding to include low-income housing tax credits, State of California HOME funds, and additional private fundraising to complete the project financing.

Consistent with County policy, the Agreement further authorizes the Director of the Human Services Agency to execute subsequent amendments and minor modifications not to exceed $25,000 per funding source. The Agreement has been approved as to form by the County Counsel's Office and meets HUD regulations. Risk Management has reviewed and approved CWG's insurance coverage.

Vision Alignment

The agreement with Community Working Group keeps three commitments: (1) Offer a full range of housing choices; goal number 9: Housing exists for people at all income levels and for all generations of families; (2) Responsive, effective and collaborative government; goal number 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County; and (3) Leaders work together across boundaries to preserve and enhance our quality of life; goal number 23: Leaders throughout the County provide the impetus for broader regional solutions in land use, housing, childcare, education, health and transportation. The Agreement contributes to these commitments and goals by supporting a South County regional effort that crosses jurisdictional boundaries and which offers a continuum of housing opportunities and a palette of supportive services to improve the lives of homeless and at-risk individuals and families.

Fiscal Impact

The total County obligation under the Agreement is $450,000, provided under the CDBG ($150,000) and HOME ($300,000) Programs. This project is included in the current Housing and Community Development budget. No general funds are involved.