COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

May 2, 2006

BOARD MEETING DATE:

June 6, 2006

SPECIAL NOTICE/HEARING

None

VOTE REQUIRED

majority

TO:

Honorable Board of Supervisors

FROM:

Duane Bay, Director, Department of Housing

SUBJECT:

Approve an Agreement by and between the County of San Mateo, the City of Redwood City and First Community Housing providing $500,000 of County Home funds to assist with the development of affordable housing for a term starting from the date of this Resolution and continuing through December 31, 2006.

Recommendation

Adopt a Resolution:

1.

Authorizing execution of an Agreement by and between the County of San Mateo, the City of Redwood City and First Community Housing providing $500,000 of County Home funds and an additional $200,000 of Redwood City funds to assist with the development of affordable housing for a term starting from the date of this Resolution and continuing through December 31, 2006; 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

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 assisting with the development of 58 affordable housing units in the City of Redwood City

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

In 2000 the City of Redwood City and the Redwood City Redevelopment Agency jointly acquired property on El Camino Real using RDA Housing set-aside funds and City HOME and CDBG funds. The City and Agency then proceeded with relocation of existing tenants, demolition of buildings and environmental cleanup. In 2004 the City accepted a joint proposal from First Community Housing and Peninsula Habitat for Humanity to develop 58 affordable rental units along with 8 adjacent ownership units.

All entitlements have been issued by the City of Redwood City and site preparation construction has started.

Discussion

Last year First Community Housing and the City of Redwood city put in a joint application for County HOME funds to supplement the City’s RDA, HOME and CDBG funding for this project which has an estimated cost of over $20 million. The City is also adding an additional $200,000 of their FY 2005 CDBG funding through this agreement. This proposed project funding was included in the County’s FY 2005 Action Plan for expenditure of its CDBG and HOME funds.

The development will contain a mix of studio, 1-BR, 2-BR and 3-BR units. Of the 58 units in the development, 20 units are targeted toward households earning less than 20% of Area Median Income (AMI); an additional 8 are targeted at 50% AMI. The development will also contain a computer and homework center, play structure, community room and approximately 1,200 square feet of neighborhood-serving retail space.

The agreement includes all provisions that are required by county ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination, equal benefits and jury service policy. Real Property Services has reviewed the agreement and County Counsel has reviewed and approved the Resolution and Agreement as to form. Risk Management has reviewed and approved the insurance coverage provided by the Contractor.

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 HOME funds. There is no Net County Cost.