COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

6/9/2005

BOARD MEETING DATE:

6/21/2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Maureen Borland, Interim, Acting Director, Department of Housing

Steve Cervantes, Director, Office of Housing

SUBJECT:

Cooperation Agreement Between The County Of San Mateo and the City of South San Francisco

Recommendation

Adopt a Resolution authorizing execution of a Cooperation Agreement between the City of South San Francisco (the City) and the County of San Mateo, for the purpose of receiving HOME Investment Partnership (HOME) Program funds under the National Affordable Housing Act of 1990 for federal FY’s 2006, 2007 and 2008 with provision for automatic renewal every three years thereafter.

Vision Alignment

Commitment: Offer a full range of housing choices.

Goal # 9: Housing exists for people at all income levels and for all generations of families. The action contributes to this commitment and goal by providing the mechanism to provide funding for affordable housing development throughout the County.

Performance Measure(s):

Measure

FY 2004-05
Actual

FY 2005-06
Projected

Number of County affordable housing units developed and occupied each FY and cumulative number of County funded affordable housing units developed and occupied.

53/836

559/1,395

Background

In November, 1990, major housing legislation known as the National Affordable Housing Act was signed into law. Title II of the law created the HOME Program, which provides funds to states and local governments for acquisition, rehabilitation and new construction of affordable housing and tenant based rental assistance.

In 1996, San Mateo County entered into a Cooperation Agreement with 16 non-entitlement cities (“the cities”), whereby public entities not eligible to receive Community Development Block Grant (CDBG) funds on its own, could cooperate and participate in the San Mateo County Urban County Program in order to access CDBG funding. This CDBG Cooperation Agreement provided for automatic renewals every three years.

The CDBG Cooperation Agreement between the County of San Mateo and the cities was renewed in 1999, 2002, and will renew again on July 30, 2005, unless action is taken by any of the cities to terminate.

In addition to being eligible to apply for CDBG funds through the Urban County=s annual CDBG funding cycle, the cities are also eligible to participate in the County=s HOME funding cycle since the Urban County is a member of the San Mateo County HOME Consortium.

Under the current appropriation levels for the HOME Program, the Urban County, through its CDBG Grant Cooperation Agreement qualifies for an allocation of funds under the HOME Program.

While the HOME Consortium has been in existence since 1990, agreements have been written every three years. As specified by HUD, these agreements can be self- renewing “until a participating entity leaves the Consortium”. The City of South San Francisco is the only entitlement city participating in our HOME Consortium.

At this time it is desirable to establish a self-renewing Agreement, as it is unlikely that the HOME Consortium will experience any growth or shrinkage in the near future.

Discussion

The County, in its role as the Lead Entity/Urban County, has advised HUD of its intention to continue the HOME Consortium in San Mateo County. This proposed Cooperation Agreement provides for subsequent and indefinite automatic renewal for three-year periods, unless the City declines to participate and makes its intent known in writing after being notified of this option.

The County’s HOME Consortium has received certification from the State that its activities will be directed toward alleviation of the lack of housing problems within the State.

The Agreement and Resolution have been approved by the County Counsel's Office, and meet HUD regulations.

Fiscal Impact

The term of this Agreement is for federal fiscal years 2006, 2007 and 2008 with provision for automatic renewal every three years. Submission of the Cooperation Agreement to HUD will qualify San Mateo County and its member jurisdictions as a HOME Consortium for the purposes of receiving HOME Program funds for federal Fiscal Years 2006, 2007 and 2008.

The City of South San Francisco, a member of the San Mateo County HOME Consortium since the program inception, will receive up to 1% of the HOME grant amount to cover their administrative functions related to HOME.  This year it amounts to about $17,800.  The total for three years (assuming no changes in the HOME grant amount) would be about $53,400. 

There is no Net County Cost.