COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

Office of Housing

 

DATE:

September 24, 2003

BOARD MEETING DATE:

October 21, 2003

 
 

TO:

Honorable Board of Supervisors

   

FROM:

Maureen Borland, Director, Human Services Agency

 

Steve Cervantes, Director, Office of Housing

   

SUBJECT:

Agreement with the Rotary Floritas Associates, L.P.

 

Recommendation

Adopt a Resolution:

    1. Authorizing the execution of an Agreement with the San Mateo Rotary Floritas Associates, L.P., to assist in Property Acquisition for the Construction of Rotary Floritas Senior Housing, for the term of upon execution through August 31, 2058; and

 

    2. Authorizing the Director of the Human Services Agency to execute subsequent amendments and minor modifications not to exceed $25,000 per funding source.

Background

The Rotary Club, a service provider, and Mid-Peninsula Housing Coalition (MPHC), an affordable housing developer, each formed nonprofits, respectively known as Rotary Haciendas, Inc., and Mid-Peninsula Coastside, Inc. In turn, these nonprofits have joined together in forming a limited partnership, San Mateo Rotary Floritas Associates, L.P., to develop Rotary Floritas Senior Housing.

 

The partnership is under contract to purchase the site occupied by the First Christian Church at the corner of Flores Street and 27th Avenue in San Mateo. Fifty units of affordable senior housing are proposed for the site. This project is the Rotary Club's second senior housing development. The first was the 82 unit development named Rotary Haciendas, located two blocks from the proposed project. MPHC's role in the partnership is to lend development expertise and project coordination, including the securing of project financing.

 

Discussion

County HOME dollars in the amount of $400,000 will be used towards the acquisition of the site, which has a purchase price of $2,436,044. Funds from the City of San Mateo will make up the difference. The total project development cost is currently estimated at $11.9 million.

MPHC has been successful in garnering City of San Mateo Redevelopment housing set-aside funds of up to $3 million, plus low income housing tax credits, expected to attract equity financing of approximately $6 million. Other financing will include a first loan of $1.9 million, and $300,000 Affordable Housing Program (AHP) funds through the Federal Home Loan Bank (FHLB).

 

County funds, at only 3% of total development costs, are well leveraged. County HOME funds of $400,000 translate into a County investment of only $8,000 per unit. MPHC hopes to begin construction in the Fall 2004, with completion slated for late 2005.

 

On May 6, 2003, the Board of Supervisors approved the CDBG, ESG, and HOME Action Plan for FY 2003-04, which included $400,000 of HOME funds for this activity.

 
 

Vision Alignment

The Agreement with Rotary Floritas Associates, L.P., keeps the commitment of: Offer a full range of housing choices; and goal number 9: Housing exists for people of all income levels and for all generations of families. The Agreement contributes to this commitment and goal by providing affordable housing to a spectrum of population in their twilight years and who are still independent enough to reside on their own.

 

Fiscal Impact

This project is included in the current Office of Housing Budget. The total County obligation under this Agreement is $400,000, provided by the HOME Program. There is no Net County Cost.