COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

Office of Housing

DATE:

June 2, 2004

BOARD MEETING DATE:

June 29, 2004

TO:

Honorable Board of Supervisors

FROM:

Maureen Borland, Director, Human Services Agency

Steve Cervantes, Director, Office of Housing

SUBJECT:

Approve an Agreement with the City of Menlo Park for the Menlo Park Housing Rehabilitation Loan Program

Recommendation

Adopt a Resolution:

1. Authorizing the execution of an Agreement with the City of Menlo Park in the amount of $300,000 for the Menlo Park Housing Rehabilitation Loan Program for the term of July 1, 2004 through June 30, 2005; and

2. Authorizing the Director of the Human Services Agency to execute subsequent amendments and minor modifications not to exceed $25,000 and to make minor changes in the types of services and activities provided by Contractor.

Background

The City of Menlo Park applied for CDBG funding in FY 2004-05. This project was approved by the Board of Supervisors for inclusion in the CDBG Action Plan for FY 2004-05 on May 4, 2004.

This is an ongoing contract with the City of Menlo Park to provide a low interest housing rehabilitation loan program under a Cooperation Agreement initiated and approved on July 13, 1993. Funds for this program are comprised of new Fiscal Year CDBG funds, carry-over funds from the prior fiscal year and actual program income derived from previous loans.

Discussion

The City of Menlo Park projects to fund 10 single family rehabilitation loans for low-income homeowners in FY 2004-05.

The demand for home repairs and revitalization continues to increase in the County and regular services from private contractors are too expensive for low-income homeowners.

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

Vision Alignment

This action keeps the commitment to: Offer a full range of housing choices and goal number 9: Housing exists for people at all income levels and for all generations of families. The action contributes to this commitment and goal by offering mid-term housing assistance to low-income individuals highly motivated to achieving an economic level relatively free of dependence on conventional forms of public assistance.

Fiscal Impact

The term of this Agreement is 7/1/04 to 6/30/05. This project is included in the Office of Housing Recommended Budget for FY 2004-05. The total County obligation under this Agreement is $300,000, which is being provided by the CDBG Program. There is no Net County Cost.