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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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September 7, 2006
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BOARD MEETING DATE:
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September 19, 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 Hillcrest Senior Housing Corporation for Development of Affordable Senior Rental Housing in the City of Daly City
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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 Hillcrest Senior Housing Corporation in the amount of $395,351 for the development of affordable senior rental housing in the City of Daly City for the term of July 1, 2006 through June 30, 2008; 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: Offer a full range of housing choices.
Goal 9: Housing exists for people at all income levels and for all generations of families.
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The action contributes to this commitment and goal by assisting with the creation of 40 new affordable rental units for lower income seniors in Daly City.
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Performance Measures:
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Measure
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FY 2005-06
Actual
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FY 2006-07
Projected
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Number of County-supported affordable housing units developed and occupied
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158
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200
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Background
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American Baptist Homes of the West has been working with the City of Daly City to develop an under utilized parking lot in the "Top of the Hill" area of Daly City for affordable rental housing for seniors. The City of Daly City has contributed significant resources to this project. In addition, this was the first project approved for funding by HEART (Housing Endowment and Regional Trust). The primary funding for this project is from the HUD 202 program which provides, in addition to development funds, operating subsidy to guarantee that the tenants pay no more than 30% of their income for housing. The development will be owned and operated by Hillcrest Senior Housing Corporation, a single purpose affiliate of American Baptist Homes of the West.
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Discussion
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When the cost estimates for this project were recently updated in anticipation of closing the HUD 202 loan, it was discovered that, due to dramatic increases in material costs and insurance as a result of the Katrina natural disaster, there was a funding shortfall of over $750,000. The funds provided under this Agreement will fill a portion of that gap with the City of Daly City stepping forward to fill the balance. The County funds are coming from the Housing Development Reserve approved for this type of project in the FY 2006-07 Action Plan adopted by the Board on May 2, 2006..
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.
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Fiscal Impact
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This program is included in the Department of Housing Budget for FY 2006-07. The County’s total obligation under this Agreement is $395,351, from HOME funds. There is no Net County Cost.
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