COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

July 20, 2006

BOARD MEETING DATE:

August 1, 2006

SPECIAL NOTICE/HEARING

None

VOTE REQUIRED

Majority

TO:

Honorable Board of Supervisors

FROM:

Duane Bay, Director, Department of Housing

SUBJECT:

Approve a Loan Agreement with Peninsula Habitat for Humanity to assist with the development of affordable ownership housing in the City of South San Francisco.

Recommendation

Adopt a Resolution:

1.

Authorizing execution of a Loan Agreement with Peninsula Habitat for Humanity in the amount of $250,000 to assist with the development of affordable housing in the City of South San Francisco for the term of July 1, 2006 through December 31, 2008; and

2.

Authorizing the Director of the Department of Housing to execute subsequent amendments to the Loan 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 four (4) new housing units affordable to lower income families.

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

Peninsula Habitat for Humanity has been working with the County to develop sweat-equity ownership housing, affordable to very low and extremely low households in San Mateo County since the early 1980’s. They have developed over 50 units mixed between single family detached dwellings and townhouse style homes throughout the County. The units are made affordable by having the buyers provide a minimum of 500 hours of sweat-equity on the home and then providing interest free financing to cover the actual cost of the home with variable terms to assure affordability.

Discussion

The current project involves development of 4 units on a site donated by the City of South San Francisco. The County funding will be in the form of an interest free loan to Peninsula Habitat which will be converted into four loans of $62,500 to each individual homebuyer. These loans will be repaid on a monthly basis with Habitat providing the collection services for the County.

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. The County’s total obligation under this Agreement is $250,000, from HOME funds. There is no Net County Cost.