Human Services Agency
Office of Housing
October 23, 2003
BOARD MEETING DATE:
December 2, 2003
Honorable Board of Supervisors
Maureen Borland, Human Services Agency
Steve Cervantes, Director, Office of Housing
Agreement with the HIP Housing Development Corporation to Assist in the Rehabilitation of the 11 South Delaware Apartments
Adopt a Resolution Authorizing:
1. The approval of an Agreement with the HIP Housing Development Corporation to Assist in the Rehabilitation of the 11 South Delaware Apartments; and
2. The Director of the Human Services Agency to execute subsequent amendments and minor modifications not to exceed $25,000 per funding Agreement.
HIP Housing Development Corporation (HHDC) is a nonprofit-affiliate of HIP Housing, also a nonprofit housing developer as well as a housing services provider. The distinction is that the former is specifically organized as a Community Housing Development Organization (CHDO), under the HOME Investment Partnerships Program (HOME) to enable it to receive CHDO set-aside funds under HOME. HOME requires that HOME jurisdictions set aside at least 15% of its annual grant for CHDO-sponsored housing projects.
County funding of $300,000 will be used towards the rehabilitation of an 11-unit apartment building at 11 South Delaware Street, San Mateo. HHDC recently acquired this building with $660,000 of HOME funds from the City of San Mateo. In fact, repayment on both jurisdictions HOME funds will be made from the project's excess cash flow, and in proportion to the respective HOME amounts invested in the Project. Other funds in the project include a California Housing Finance Agency (CalHFA) loan and tax credit proceeds. Total project costs, including acquisition, are currently estimated at almost $2.4 million.
The Agreement with HIP Housing Development Corporation 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 allowing a nonprofit developer to maintain affordable housing in perpetuity.
This project is included in the current Office of Housing Budget FY 2003-04. The total County obligation under this Agreement is $300,000, provided by the HOME Program. There is no Net County Cost.