RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

* * * * * *

RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH NORTHPOINT HOUSING, INC. TO PROVIDE SECTION 108 LOAN FUNDS OF $10,745,000 FOR THE DEVELOPMENT OF TRESTLE GLEN AT EL CAMINO
TRANSIT VILLAGE FOR THE TERM OF 55 YEARS, AND
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.

RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, the Section 108 Program (“Section 108”) is a loan guarantee provision of the Community Development Block Grant (“CDBG”) Program that augments a local jurisdiction’s CDBG funding for housing and community development activities by allowing the jurisdiction to leverage its annual CDBG allocation via borrowing from the U.S. Department of Housing and Urban Development (“HUD”) ; and

WHEREAS, on May 2, 2006, by Resolution No. 067943, the County Board of Supervisors: amended the FY 05-06 Action Plan to include Section 108 funding for the development of the Colma Transit Village Apartments, now known as Trestle Glen at El Camino Transit Village (“Project” or “Trestle Glen”); authorized submission of an application for Section 108 Loan Guarantee funds to assist the Project; and authorized the Director of the Department of Housing to execute documents in connection with the Section 108 program; and

WHEREAS, the Project, located next to the Colma BART Station, consists of 123 affordable units and an on-site child care facility; and

WHEREAS, while BRIDGE Housing Corporation (“BRIDGE”) is the sponsor of the Project, BRIDGE has set up an ownership structure to take advantage of low income housing tax credits, which provides equity financing for the Project. This structure, typical for tax credit projects, includes Northpoint Housing, Inc., a BRIDGE-owned nonprofit associated with the general partner of Trestle Glen Associates (“Northpoint Housing”), the limited partnership established to develop and own the Project; and

WHEREAS, the County submitted a Section 108 loan application to HUD for $7.145 million in June 2006 to assist in land acquisition and relocation on behalf of the Project; and

WHEREAS, upon HUD review of the County’s application for Section 108 funding, HUD determined that for the Project to maintain financial feasibility, the County should borrow $10.745 million, with $3.6 million to be paid back upon sale of the land acquired in excess of the land needed for the Project, and thereby reduce the principal balance of the Section 108 loan down to the original request of $7.145 million; and

WHEREAS, on November 8, 2006, the County’s Planning Commission approved the El Camino Transit Village project by certifying the mitigated Negative Declaration and approving a minor subdivision creating a larger and smaller parcel of 1.7 and 1.0 acres respectively, an air rights subdivision for the 32-townhome condo development, design review for both the affordable and townhome developments, a use permit for an on-site child care facility, density bonuses, and a grading permit; and

WHEREAS, on January 23, 2007, the County Board of Supervisors denied the Town of Colma’s appeal of the Planning Commission’s approval of the project and approved the Project’s Minor Subdivision, air rights Major Subdivision, Density Bonuses, Grading Permit, Use Permit, and Design Review, and certified the mitigated Negative Declaration; and

WHEREAS, Northpoint Housing, will sell off the 1.0 acre parcel for the townhome development and because such market-rate housing activity does not meet the Section 108 Program eligibility criteria, proceeds from this sale will be paid back to the County as program income which shall be used to reduce the Section 108 loan principal; and

WHEREAS, the land sale for the market-rate housing development is anticipated to occur in late Spring 2007;

WHEREAS, both parties now wish to enter into an Agreement in the amount of
$10,745,000 to assist in the development of Trestle Glen for the term of 55 years;

WHEREAS, there has been presented to this Board of Supervisors for its consideration and acceptance, an Agreement between the County of San Mateo and Northpoint Housing, Inc., reference to which is hereby made for further particulars, and the Board of Supervisors has examined and approved the same as to form and content and desires to enter into the same.

NOW, THEREFORE, IT IS HEREBY RESOLVED that the President of this Board of Supervisors be, and is hereby, authorized and directed to execute said Agreement with Northpoint Housing Inc. for and on behalf of the County of San Mateo, and the Clerk of this Board shall attest the President’s signature thereto.

BE IT FURTHER RESOLVED, that the Director of the Department of Housing or the Director’s designee shall be authorized 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.

* * * * * *