COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

Office of Housing

DATE:

2/19/2004

BOARD MEETING DATE:

2/24/2004

TO:

Honorable Board of Supervisors

FROM:

Maureen Borland, Human Services Agency

Steve Cervantes, Director, Office of Housing

SUBJECT:

Agreement with the City of East Palo Alto Redevelopment Agency for the Comprehensive Homebuyer Assistance Mortgage Program (CHAMP)

Charge to Budget Unit: 7100B/71210-6811

Recommendation

Adopt a Resolution Authorizing the Execution of an Agreement with the City of East Palo Alto Redevelopment Agency for the CHAMP Program.

Background

The (CHAMP) Program provides down payment assistance in the form of low interest long term second and third mortgage loans to eligible first time homebuyers. First time homebuyers are selected from the City's Central Wait List.

The City of East Palo Alto Redevelopment Agency has appropriated $126,300 to assist three or more families in purchasing a home in the City of East Palo Alto. The County of San Mateo has appropriated $126,300 in matching funds to assist three or more additional families in purchasing a home in the City of East Palo Alto. The City applied and was awarded HOME funds in Fiscal Year 2001-02 to supplement their own funds for First-Time Homebuyers purchasing homes in the City of East Palo Alto. However, due to the high turn over within their staff, the City was unable to execute an Agreement with the County to implement the CHAMP program until now.

Discussion

The City committed to match funds as a condition of receiving HOME funds for its CHAMP program. Loans will be disbursed in an alternating fashion in the form of a down payment assistance not to exceed $42,100 or 24% of the purchase price (whichever is less), per family with the City funding the first down payment assistance loan.

The Agreement with the City of East Palo Alto to provide the Comprehensive Homebuyer Assistance Mortgage Program has been approved by the County Counsel's office as to form.

Risk Management has reviewed and approved the contractor's insurance coverage.

Vision Alignment

The Agreement with the City of East Palo Alto Redevelopment Agency 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 the population who would otherwise not be able to afford housing in the immediate vicinity.

Fiscal Impact

The total obligation under this Agreement is $126,300, which is funded 100% by the HOME funds. This project is included in the Housing Budget for FY 2003-04. There is no Net County Cost.