COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

November 7, 2006

BOARD MEETING DATE:

November 14, 2006

SPECIAL NOTICE/HEARING

None

VOTE REQUIRED

Majority

TO:

Honorable Board of Supervisors

FROM:

Duane Bay, Director, Department of Housing

SUBJECT:

Executive Summary – Approve an Assignment of and Amendment to the Agreement with BRIDGE Regional Partners, Regarding Trestle Glen Apartments (formerly known as Colma Transit Village) and confirm the HELP Loan Agreement

Recommendation

Adopt a Resolution:

1.

Authorizing execution of an Assignment of and Amendment to, the Agreement with BRIDGE Regional Partners, regarding Trestle Glen Apartments (formerly known as Colma Transit Village), to add up to $1.5 million to $500,000 for a total obligation of $2 million, for the original term of 55 years; and

2.

Authorizing the Director of the Department of Housing or the Director's designee to execute contract amendments which modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.

3.

Confirming and authorizing the $1.5 million Loan Agreement between the County, as borrower, and CalHFA as lender, under the HELP Program: and the July 10, 2006, $1.5 million Loan Agreement between the County, as lender and BRIDGE Regional Partners, as borrower, regarding the HELP Program Funds.

Background

BRIDGE is in contract to purchase a 2.7 acre site next to the Colma BART Station. The site is currently the locale of the Meadowbrook Mobilehome Park. After acquisition of the site by BRIDGE or a qualified assignee, it is intended that the land be split into two separate parcels. A 1.7-acre parcel is to be used for the development of 123 affordable housing units (“Trestle Glen Apartments”), and a 1.0-acre parcel is to be sold to another developer for the construction of 32 market rate townhouse condominiums. The entire 155-unit plan is now known as Colma Transit Village, and will eventually house families with a spectrum of incomes.

Discussion

The subject Assignment and Amendment to the Original Agreement (the “Amendment”) adds up to $1.5 million of CDBG/HOME funds to the existing $500,000 Agreement. The additional funds will be used toward site acquisition, relocation of the mobilehome occupants on the project site, and other eligible costs.

The Amendment includes BRIDGE’S assignment of the Original Agreement, which assignment to Northpoint Housing Inc., a non-profit corporation that is a wholly-owned subsidiary of BRIDGE (“Northpoint”), is required in order to take advantage of low income housing tax credits. Trestle Glen will be serving households with incomes ranging from 30% to 48% of area median income.

As a result of the Board’s November 8, 2005, authorization of the submission of an application to the California Housing Finance Agency (CalHFA) for a HELP loan of $1.5 million, the following actions were taken: the application was approved; a March 24, 2006, $1.5 million Loan Agreement between the County, as borrower, and CalHFA as lender, under the HELP Program was executed by the Director of Housing; and a July 10, 2006, $1.5 million Loan Agreement between the County, as lender, and BRIDGE Regional Partners, as borrower, regarding the HELP Program Funds, was executed by the Director of Housing. In this action, the Board is also being asked to approve and confirm these HELP program loan transactions.

Fiscal Impact

This project is included in the Department of Housing Budget for FY 2006-07. The County’s total additional obligation added by the Amendment is $1.5 million from FY 06-07 CDBG/HOME funds. The HELP Program Loan represents another $1.5 million to assist the Project. There is no Net County Cost.