COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

Office of Housing

DATE:

6/3/2004

BOARD MEETING DATE:

6/8/2004

TO:

Honorable Board of Supervisors

FROM:

Maureen Borland, Director, Human Services Agency

Steve Cervantes, Director, Office of Housing

SUBJECT:

First Amendment to the Agreement between the County of San Mateo and the Mental Health Association of San Mateo County (MHA), to provide additional funds to assist with the development of Affordable Housing

Recommendation

Adopt a Resolution Authorizing the Execution of an Amendment to the Agreement with MHA, to provide additional funds to assist with the development of affordable housing.

Background

On October 22, 2002, the County entered into an Agreement to provide $700,000 of CDBG and HOME funding to the MHA, to assist with the development of a 24 unit apartment complex located on El Camino Real near the San Carlos/Belmont border. When completed, the complex will provide permanent independent living for adults with mental illness. MHA will provide on-site supportive services including occupational therapy assessment and training, independent living skills training and group activities.

Discussion

This Amendment provides an additional $313,750 of HOME funds, which was included in the current CDBG, HOME and ESG Annual Action Plan, approved by the Board on May 6, 2003. It also includes $297,000 of Housing Opportunities for People With AIDS (HOPWA) funds from the County Health Services AIDS Program. The Health Services Department has requested that the Office of Housing administer these funds based on prior experience and expertise in working with affordable housing development and HUD regulated programs. To that effect, HOPWA funds will be transferred by Journal Entry to Housing and Community Development. All of the units will be restricted to Very Low income individuals with 11 units restricted to individuals whose income is below 15% of Area Median Income. Two of the 24 units to be developed will be reserved for people with aids meeting the program requirements.

Vision Alignment

This action keeps the commitment of: 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 Agreement contributes to this commitment and goal by assisting with the development of 24 units for extremely low-income individuals with special needs.

Fiscal Impact

The total obligation under this Agreement is $1,310,750. The additional funds in the amount of $610,750 are $313,750 from HOME and $297,000 from the HOPWA program. This project is included in the Office of Housing budget for FY 2003-04. There is no Net County Cost.