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COUNTY OF SAN MATEO Inter-Departmental Correspondence | ||
Human Services Agency Office of Housing | ||
DATE: |
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BOARD MEETING DATE: |
September 28, 2004 | |
TO: |
Honorable Board of Supervisors | |
FROM: |
Maureen Borland, Director, Human Services Agency Steve Cervantes, Director, Office of Housing | |
SUBJECT: |
Approve an Agreement with Family Housing & Adult Resources (FHAR) for the Operation and Management of a Group Home for the Developmentally Disabled at 2101 Oakley Ave. Menlo Park, CA | |
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Recommendation | ||
Adopt a Resolution: | ||
1. Authorizing the execution of an Agreement with Family Housing & Adult Resources (FHAR) for the Operation and Management of a Group Home for the Developmentally Disabled at 2101 Oakley Ave. Menlo Park, CA, (“the property”) for the term of 9/1/2004 through 8/31/2014; and | ||
2. Authorizing the Director of the Human Services Agency to execute subsequent amendments and minor modifications in the types of services and activities provided by FHAR under the Agreement. | ||
Background | ||
The property was surplus County property originally acquired by the Public Works Department for road improvements. The property was then sold to Housing & Community Development (now Office of Housing) for a payment of $90,000 from its CDBG funds. In 1982, the Board of Supervisors authorized the County of San Mateo to enter into a Development Agreement with the Community Association for Retarded, Inc. (“CAR”). Under this Agreement the County transferred the property to CAR, for the development and operation of new rental housing for low and moderate-income developmentally disabled adults. The transfer was made by a Grant Deed that contained a condition providing for reversion of the property to the County if CAR failed to continue the use of the property for the purpose specified in the Development Agreement. After the transfer, CAR and the County also entered into an Agreement with the State of California, which provided a $124,290 loan secured by a deed of trust on the property to pay for the construction of a single family house on the property, as well as an annual operating subsidy to help cover the real property costs associated with the operation of a group home for the developmentally disabled. | ||
In 2003, CAR notified the County that they were discontinuing the required use of the property and transferred the property back to the County under the provisions of the reversion clause. The property is encumbered by the State of California Note and Deed of Trust, as well as a Regulatory Agreement recorded against the property requiring its continued use for rental housing for the developmentally disabled. The State has informed us that they would expect this use to continue and would work with us in the selection of a new provider. | ||
At the time of the reversion, the Office of Housing anticipated that the property would be sold to a new service provider with a similar reversion clause in the deed for the remaining term of the State Regulatory Agreement. The sale would be at full market value. The Office of Housing would underwrite this cost by providing a low interest deferred payment loan to cover the purchase price except for the State loan in the amount of $124,290, which is deferred with no interest, not due until August 2014, and to be assumed by the provider. A part of the operating costs of the property would be to provide a sinking fund to repay the State loan when it comes due. After the property reverted to the Office of Housing it was not sold as originally planned, instead, as discussed below, the state agreed not to call the loan if a new operator was brought in and assumed the loan. This agreement is the first step in that process. The proposed Agreement is an alternative, which provides the use of the property to the service provider, at no cost, with the stipulation that the service provider assumes full responsibility for all of the maintenance. The Office of Housing would then make the service provider a loan from our Housing Rehabilitation Loan Program to enable them to take care of a number of deferred maintenance issues along with normal wear and tear. | ||
In February 2004, the Office of Housing issued a Request for Qualifications and Proposals to identify a suitable provider of residential services to the developmentally disabled to operate the home in accordance with the State Regulatory Agreement. The selection under this RFQ was subject to approval by State HCD. Two very similar proposals were received from reputable service providers that have worked with the Office of Housing in the past. Since both proposals were equal in merit, the deciding factor was the amount of rehabilitation work that the provider requested for the property. Parca proposed to create a separate living unit within the footprint of the building. This proposal would have necessitated the construction of a mini-kitchenette, which would have warranted going through the use permit process. FHAR requested only normal rehabilitation and as a result was selected as the provider. The State has concurred with the selection and is working on the preparation of an assumption agreement for FHAR to assume the obligation of CAR. | ||
Discussion | ||
The Regulatory Agreement executed in 1982 when the property was first developed required that the designated use continues for the full term of the Original Agreement. This Agreement provides for the continued operation and management of a group home for the developmentally disabled in the property for the remaining of the term. | ||
Under this Agreement FHAR will assume full responsibility for maintenance of the property during the term of the Agreement, including general rehabilitation of the property to take care of a number of deferred maintenance issues along with normal wear and tear that has occurred over the past 20 years. FHAR is eligible to receive a low interest loan through the Housing Rehabilitation Program operated by the Office of Housing. | ||
This Agreement has been approved by the County Counsel's Office, and meets U.S. Department of Housing and Urban Development (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 housing assistance to physically disabled, low-income individuals who are unable to care for themselves. | ||
Fiscal Impact | ||
There is no fiscal impact. The term of this Agreement is 9/1/2004 through 8/31/2014. The County’s only obligation under this Agreement is the provision of the property. Use of the property is at no cost to FHAR. It is anticipated that FHAR will apply for a County low interest Housing Rehab loan. | ||
