COUNTY OF SAN MATEO

Inter-Departmental Correspondence

DEPARTMENT OF HOUSING

 

DATE:

June 14, 2005

BOARD MEETING DATE:

July 12, 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:

Approve an Agreement with the City of Menlo Park for the Menlo Park Housing Rehabilitation Loan Program

 

Recommendation

Adopt a Resolution:

 

    1. Authorizing the execution of an Agreement with the City of Menlo Park in the amount of $300,000, for the Menlo Park Housing Rehabilitation Loan Program for the term of July 1, 2005 through June 30, 2006; and

 

    2. Authorizing the Director of the Department of Housing to execute subsequent amendments and to make minor modifications in the types of services and activities provided by the City of Menlo Park under the Agreement, the cumulative cost of which amendments and modifications is not to exceed $25,000.

 

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 offering mid-term housing assistance to low-income individuals highly motivated to achieving an economic level relatively free of dependence on conventional forms of public assistance.

 

Performance Measure(s):

Measure

FY 2004-05
Actual

FY 2005-06
Projected

Number of households rehabilitated through the City of Menlo Park Housing Rehabilitation Loan Program

0 *

(through the 3rd quarter)

8

* Increased environmental reviews and other programmatic changes have led to a delay in the FY 2004-05 projects, but the City of Menlo Park has reported that they have approximately 7 projects underway.

 

Background

This is an ongoing contract with the City of Menlo Park to provide a low interest housing rehabilitation loan program under a Cooperation Agreement initiated and approved on July 13, 1993. Funds for this program are comprised of new Fiscal Year CDBG funds, carry-over funds from the prior fiscal year and actual program income derived from previous loans.

 

The City of Menlo Park applied for CDBG funding, to operate their Housing Rehabilitation Loan Program for Menlo Park residents, in FY 2005-06. This project was approved by the Board of Supervisors for inclusion in the CDBG Action Plan for FY 2005-06 on May 3, 2005.

 

Discussion

The City of Menlo Park projects to fund 8 single family rehabilitation loans for low-income homeowners in FY 2005-06. Increased environmental reviews and other programmatic changes have led to a delay in the FY 2004-05 projects, but the City of Menlo Park has reported that they have approximately 7 projects underway.

 

The demand for home repairs and revitalization continues to increase in the County and regular services from private contractors are too expensive for low-income homeowners, making this program a viable solution.

 

This Agreement has been approved by the County Counsel's Office as to form, and meets HUD regulations. Risk Management has reviewed and approved the contractor’s insurance coverage.

 

Fiscal Impact

The term of this Agreement is 7/1/05 to 6/30/06. This project is included in the Department of Housing Recommended Budget for FY 2005-06. The total County obligation under this Agreement is $300,000, which is being provided by the CDBG Program. There is no Net County Cost.