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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Department of Housing
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DATE:
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March 2, 2006
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BOARD MEETING DATE:
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March 14, 2006
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SPECIAL NOTICE/HEARING
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None
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VOTE REQUIRED
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Duane Bay, Director, Department of Housing
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SUBJECT:
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Approve an Agreement with Coach of San Diego, Inc. to Assist in the Common Area Renovation of Pillar Ridge Mobilehome Park
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Recommendation
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Adopt a Resolution:
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1.
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Authorizing execution of an Agreement with COACH of San Diego, Inc. in the amount of $300,000 for the common area renovation of Pillar Ridge Mobile Home Park for a term of March 14, 2006 through June 30, 2007; and
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2.
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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.
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Vision Alignment
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Commitment: Ensure basic health and safety for all.
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Goal 8: Help vulnerable people – the aged, disabled, mentally ill, at-risk youth and others – achieve a better quality of life.
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The action contributes to this commitment and goal by improving and hence extending the useful life of a mobile home park, a precious affordable housing resource for all household types in the County.
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Performance Measures:
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Measure
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FY 2004-05
Actual
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FY 2005-06
Projected
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Number of residential units rehabilitated with County assistance.
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188*
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250
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* Excludes minor home repairs for 95 homes.
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Background
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Pillar Ridge Mobile Home Park, a 227-space facility, is wedged in a remote pocket on the Coastside adjacent to the Half Moon Bay Airport. In 2004, when applying for FY 04-05 CDBG funds to assist in renovation of the Park, the sponsors explained the breadth of their physical needs and indicated that their funding request would most likely extend beyond one year. In October 2004, the Board approved business terms of the $350,000 CDBG funding for the renovation of the Park’s common areas.
In early 2005, the sponsors applied for additional CDBG funding to continue the renovation work. In May 2005, as part of the larger CDBG Action Plan, the Board approved $300,000 to supplement the initial funding previously committed for Pillar Ridge.
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Discussion
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The agreement for the additional funds of $300,000 delineates the business terms of the CDBG funding, structured as a loan secured by the real property with 3% simple interest to begin accruing in 2009 and repayments to be made out of project surplus cash beginning in year 2015. This is when the Park’s rental reserve fund will expire. The rental reserve was a condition of the tax exempt bond financing obtained by the owners, COACH of San Diego, to acquire the mobile home park in 2004.
The term of the loan will be for no longer than 55 years and shall coincide with the term of the original loan made earlier by the County for the initial $350,000 CDBG funding, also provided as a loan. The additional funds will be used for such work as rehabilitation of the electrical system, the well field, the water supply line, water storage tank cleaning and inspection, water plant sewer connection and culvert repair, and the club house remodel.
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Fiscal Impact
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This program is included in the Department of Housing Budget for FY 2005-06. The County’s total obligation under this Agreement is $300,000, from CDBG/HOME/ESG funds. There is no Net County Cost.
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