COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

Office of Housing

DATE:

October 21, 2003

BOARD MEETING DATE:

December 2, 2003

TO:

Honorable Board of Supervisors

FROM:

Maureen Borland, Human Services Agency

Steve Cervantes, Director, Office of Housing

SUBJECT:

Amendments to two Agreements with the City of Daly City for the Daly City HOME Program

Recommendation

Adopt a Resolution Authorizing:

1. The execution of an Amendment to two separate Agreements with the City of Daly City for the Daly City HOME Program; and

2. The Director of the Human Services Agency to execute subsequent Amendments and minor modifications not to exceed $25,000 per funding source to each Agreement.

Background

Created in 1990 and administered by the U.S. Department of Housing and Urban Development (HUD), the HOME Investment Partnerships (HOME) Program provides annual allocations to qualified local jurisdictions to advance local affordable housing opportunities. As encouraged by HUD, the County of San Mateo formed the San Mateo County HOME Consortium, inviting Community Development Block Grant (CDBG) entitlement cities to join, thereby facilitating access to HOME funds to County jurisdictions. Initially, all four entitlement cities (Daly City, South San Francisco, San Mateo, and Redwood City) had participated in the County HOME Consortium. By the mid-90s, San Mateo and Redwood City dropped out, opting to obtain HOME funds directly from HUD rather than through the Consortium.

Discussion

Daly City left the Consortium effective June 30, 2003. Therefore, Daly City is no longer able to access new HOME funds through the Consortium, but may continue to draw down and expend funds previously committed for housing projects allocated from previous fiscal years.

As of June 30, 2003, Daly City had a total unexpended HOME balance of $546,587, committed to specific projects. This balance resulted from allocations from two different fiscal years, awarded under two different funding Agreements that were executed between the County and the City. One Agreement was dated April 4, 2000, under Resolution # 63518, and the second was dated October 22, 2002, under Resolution No. 65632.

The two funding Agreements provided two different end terms, both of which need to be extended to coincide with the closeout dates of the HOME funding in compliance with HOME rules and regulations. The City and the County are both agreeable to defining a more definitive closeout date because the HOME close-out dates are not precise and therefore may cause confusion in bringing closure to the Daly City's association with the Consortium. The date agreeable to both parties is five years from the date of the Daly City's separation from the Consortium. This date is in accordance with HUD rules and regulations.

Vision Alignment

The Amendments to the Agreements with Daly City keep the commitment of: Responsive, effective and collaborative government; and goal number 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County. The Amendments contribute to this commitment and goal by clarifying amorphous or open-ended legal provisions, which have the potential of causing confusion regarding each other's performance expectations.

Fiscal Impact

There is no Net County Cost because these Amendments do not affect the funding of the original Agreements. This activity is included in the current Office of Housing Budget.