COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

November 28, 2005

BOARD MEETING DATE:

December 6, 2005

SPECIAL NOTICE/HEARING

None

VOTE REQUIRED

Majority

TO:

Honorable Board of Supervisors

FROM:

Duane Bay, Director, Department of Housing

SUBJECT:

Approve an Agreement with BRIDGE Regional Partners, Inc. to Assist with the Development of Colma Transit Village Apartments

Recommendation

Adopt a Resolution:

1.

Authorizing execution of an Agreement with BRIDGE Regional Partners, Inc. in the amount of $500,000 to assist with the development of Colma Transit Village Apartments for a term of 55 years; and

2.

Authorizing the Director of the Department of Housing 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 financially supporting the production of 170 new family units in an area designated by the Colma BART Area Specific Plan for more intensive housing development than currently exists.

Performance Measures:

Measure

FY 2004-05
Actual

FY 2005-06
Projected

Percent Change

Number of County-assisted affordable housing units in active predevelopment or construction

667

960 *

44%

Number of County-assisted affordable housing units developed and occupied

53

252

375%

* Subject project of 170 units is included in this figure.

Background

The County receives annual funding allocations of Community Development Block Grant (CDBG) funds from the U.S. Dept. of Housing and Urban Development (HUD). Commitment of these funds for various activities is achieved through the County’s annual Notice of Funding Availability (NOFA) process. In responding to the FY 05-06 NOFA, the regional nonprofit affordable housing developer, BRIDGE Housing Corporation, requested funds to assist in the development of Colma Transit Village, 170 units of family housing on property currently the site of Meadowbrook Mobilehome Park. Located on El Camino Real on unincorporated land near the Town of Colma just south of the Colma BART Station, this site has been designated for more intensive housing development by the Colma BART Area Specific Plan.

To limit liability, BRIDGE Housing uses its affiliate nonprofit, BRIDGE Regional Partners, to own and develop many of its projects, including the Colma Transit Village Apartments. The purpose of this action is for the Board to approve the business terms of the Agreement for this Project. This activity was initially approved by the Board on May 3, 2005 as part of a larger Action Plan which enumerated projects for federal CDBG, HOME and Emergency Shelter Grant dollars.

Discussion

In its request for County funds, BRIDGE Housing Corporation indicated that the Project would need $2.2 million from the County over a period of two or so years. The current total development cost is currently estimated at $58 million. This estimate includes an allowance for relocation of some 46 mobilehome households subject to the federal Uniform Relocation Act (URA).

BRIDGE has retained the relocation firm, Overland, Pacific & Cutler (OPC), to provide professional guidance. A kick-off meeting with the residents was held in June 2005 at which was discussed BRIDGE’s intentions to purchase the property and the need to relocate all the occupants. The presentation also included an overview of the relocation process, which involves individual meetings with all the occupants, undertaking a resource study to determine potential replacement home/site availability, and developing a formal relocation plan and conversion impact report. Specific notices to the occupants at key points will also need to be delivered as part of the process. Low income occupants would be given priority for the new housing proposed for the site. Occupants will be provided with payment to cover reasonable moving expenses and financial assistance in obtaining replacement housing, as well as other help in re-establishing their household. The goal is to move all the occupants out by the end of 2006, the anticipated date for closing of the acquisition.

For this first allocation, County Housing staff and the Housing and Community Development Committee, the public advisory body on CDBG, HOME, and ESG matters, decided on $500,000 to seed the Project. These funds may be used for predevelopment activities to move the Project into the entitlement phase.

BRIDGE Regional Partners expects to close on the purchase of the property and successfully relocate the occupants by December 2006, but will need to expend funds in the interim. County funding will therefore be initially unsecured as the deed of trust will not be recorded on the property until BRIDGE acquires title. The Agreement provides for establishing performance benchmarks for incremental funding expenditures and limits County expenditures to $250,000 until the deed of trust is recorded. The Agreement also requires that BRIDGE draw from its own or other resources to match County expenditures.

The documents for this Board action have been reviewed by County Counsel. Risk Management has approved the insurance requirements.

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 $500,000, from HUD Community Development Block Grant funds. There is no Net County Cost.