COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

September 12, 2005

BOARD MEETING DATE:

September 27, 2005

SPECIAL NOTICE/HEARING

None

VOTE REQUIRED

majority

TO:

Honorable Board of Supervisors

FROM:

John Maltbie, County Manager

SUBJECT:

Agreement with EPA CAN DO in the amount of $366,250 to assist with the development of affordable housing for the term of
September 1, 2005 through June 30, 2006.

Recommendation

Adopt a Resolution:

1.

Authorizing execution of an Agreement with EPA CAN DO in the amount of $366,250 to assist with the development of affordable housing for the term of September 1, 2005 through June 30, 2006; and

2.

Authorizing the County Manager to execute subsequent amendments to the Agreement, and to make minor modifications in the types of services and activities provided under the Agreement, the cumulative cost of which amendments and modifications is not to exceed $25,000.

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 purchasing and improving four units of affordable housing.

Performance Measures:

Measure

FY 2004-05
Actual

FY 2005-06
Projected

Number of County-supported units under development during the Fiscal Year

667

960

Number of County-supported affordable housing units developed and occupied

53

252

Background

EPA CAN DO is certified as a CHDO (Community Housing Development Organization) qualifying them to access the CHDO Set-aside funds from the County’s HOME allocation. Working in partnership with larger more experienced non-profit housing developers, they have been involved in numerous housing development projects in the community. These include new developments such as Bay Oaks Apartments at Bay Road & Gloria Way, Peninsula Park Apartments adjacent to the new Ravenswood 101 retail center, and Nugent Square immediately across the street on University Avenue. They have also, working independently, handled a number of acquisition/rehabilitation projects such as the 15 unit Clarke Street Apartments and the University Avenue Triplex which has since been demolished to make way for the Nugent Square Project.

During the normal funding cycle, no applications were submitted from either of the County’s two CHDO organizations. The required CHDO set-aside for FY05-06 plus carryover of unallocated CHDO funds from FY 04-05 were combined in a special CHDO Housing Development Reserve fund in the FY 05-06 HOME/CDBG Action Plan adopted by the Board of Supervisors on May 3, 2005.

Discussion

This proposed project involves the acquisition of two adjacent properties on University Avenue in East Palo Alto, each of which contains two existing housing units. These properties are immediately across the street from the recently completed Nugent Square. EPA CAN DO has requested $366,250 to assist with the acquisition of the two properties which, with a minor amount of rehabilitation will become part of the permanent affordable housing stock. The long term plan for these properties is to acquire more adjoining parcels as they become available to redevelop into another larger affordable housing development similar to the 32 unit Nugent Square project.

This item is being presented by the County Manager's Office rather than the Department of Housing in order to avoid any potential issues or concerns arising from the fact that the Director of Housing's spouse is a non-compensated member of the Board of EPA CAN DO. County Counsel has reviewed this agreement and approved as to form.

Fiscal Impact

This program is included in the Department of Housing Budget for FY 2005-06. The County’s total obligation under this Agreement is $366,250, from CDBG/HOME/ESG funds. There is no Net County Cost associated with this action.