COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

Office of Housing

DATE:

BOARD MEETING DATE:

November 2, 2004

TO:

Honorable Board of Supervisors

FROM:

Maureen Borland, Director, Human Services Agency
Steve Cervantes, Director, Office of Housing

SUBJECT:

Approve an Agreement with Millennium Housing to assist in the Upgrading of Common Areas at Pillar Ridge (El Granada) Mobile Home Park

Recommendation

Adopt a Resolution:

1. Authorizing the execution of an Agreement with Millennium Housing in the amount of $350,000.00 to assist in the upgrading of common areas at Pillar Ridge (El Granada) Mobile Home Park for the term of 11/2/2004 through 11/1/2039; 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 Millennium Housing under the Agreement.

Background

Millennium Housing is a nonprofit organization, which acquires mobile home parks and operates them as affordable housing resources for lower income occupants. Based in Newport Beach, Millennium Housing was asked by the homeowners’ association of Pillar Ridge in Moss Beach to assist in retaining the mobile home park as affordable housing.

In January 2004, Millennium Housing applied for CDBG funds to assist in acquisition and rehabilitation of the Pillar Ridge Mobile Home Park, comprising of 227 units located in an area of Moss Beach wedged between the Half Moon Bay Airport and the Pacific Ocean. In the Spring of 2004, with tax exempt bonds, Millennium Housing executed the acquisition without County assistance. CDBG funding of $350,000 was approved by the Board on May 4, 2004 for rehabilitation of the common areas of the mobile home park, as part of the FY 2004-05 Action Plan.

Discussion

As the project had been approved by the Board in May 2004 for inclusion in the FY 2004-05 Action Plan to HUD, approval of the business terms of the funding agreement is now requested of the Board. Funding for $350,000 of CDBG funds will be used to improve the common spaces of the Pillar Ridge Mobile Home Park only. Improvements include such activities as renovating the clubhouse, culvert replacements, perimeter fencing, and electrical upgrades among other work. The units themselves will not be affected. These funds shall be structured as a 30-year loan at 3% simple interest with repayment to be taken from project surplus cash.

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 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 action contributes to this commitment and goal by maintaining the supply and long-term affordability of mobile home units, a precious affordable housing resource in the County.

Fiscal Impact

The term of this Agreement is 11/2/2004 through 11/1/2039. The County’s total obligation under this Agreement is $350,000.00 from CDBG, and is included in the Office of Housing Recommended Budget for FY 2004-05. There is no Net County Cost.