COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

 

DATE:

March 19, 2007

BOARD MEETING DATE:

March 27, 2007

SPECIAL NOTICE/HEARING

None

VOTE REQUIRED

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Duane Bay, Director, Department of Housing

SUBJECT:

Amendment to the Agreement with Hillcrest Senior Housing Corporation to provide additional funding in the amount of $457,915 to assist with the development of affordable senior rental housing in Daly City. The County’s total obligation under this Agreement becomes $853,266 from HOME funds.

 

Recommendation

Adopt a Resolution authorizing execution of an amendment to the agreement between the County of San Mateo and Hillcrest Senior Housing Corporation to provide additional funding in the amount of $457,915 to assist with the development of affordable senior rental housing in Daly City.

 

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 creation of 40 new affordable rental units for lower income seniors in Daly City.

 

Performance Measures:

Measure

FY 2005-06
Actual

FY 2006-07
Target

Number of County-supported affordable housing units completed and occupied

158

200

 

Background

Hillcrest Senior Housing Corporation, a subsidiary of American Baptist Homes of the West, was awarded $395,351 of HOME funding in 2006 to assist with the development of 40 units of affordable rental housing for seniors in Daly City. The project is being developed on a site owned by the City of Daly City which is transferring the site to the developer for approximately 1/3 of its appraised value. At the time of the application the cost of construction was estimated based on previously developed projects. Due to the significant increase in construction costs over the past year, when actual bids were received there was a substantial shortfall in overall funding.

 

Discussion

This amendment adds $457,915 to assist with funding the shortfall. The City of Daly City which previously provided almost $3.5 Million has contributed an additional $200,000; The HUD 202 program which is the primary funding source for this project is providing an additional $400,000 - $500,000. American Baptist Homes of the West which is the parent corporation of Hillcrest Senior Housing Corporation has agreed to provide any additional funds needed.

Real Property Services has reviewed the amendment and County Counsel has reviewed and approved the Resolution and Amendment 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 2006-07. The County’s total obligation under this Agreement is $853,266 from HOME funds. There is no Net County Cost.