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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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August 30, 2007
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BOARD MEETING DATE:
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Sept. 11, 2007
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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 Mental Health Association of San Mateo County to assist with the development of affordable rental housing in Redwood 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 Mental Health Association of San Mateo County (MHA) in the amount of $527,000 to assist with the development of affordable rental housing in Redwood City for the term of July 1, 2007 through June 30, 2010; and
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2.
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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.
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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 development of 15 affordable rental units for individuals with mental illness.
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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
Target
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Number of County-supported affordable housing units completed and occupied
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158
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200
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Background
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In April, 2006, the County of San Mateo authorized a short term (3 years) loan to MHA in the amount of $550,000 to assist with the acquisition of a parcel of land at 112 Cedar Street in Redwood City for the development of affordable supportive housing for mentally ill individuals. These funds came from the State of California through their HELP program specifically created for this purpose. The City of Redwood City contributed additional funds to this project.. Escrow closed on the parcel in May, 2006.
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Discussion
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The current agreement provides a combination of HOME and CDBG funding in the amount of $527,000 to assist with predevelopment work including environmental studies and site clean up, architecture and engineering, traffic studies and other work required before permits can be issued. The projected completion date for the project is early 2010.
The funds are provided to MHA in the form of a loan secured by a Deed of Trust against the property; interest will be 3%. In order to insure the continuing viability of the development, payments are required only from surplus cash generated by the project; if insufficient cash is generated, payments and interest are deferred until maturity of the note term which is 55 years.
The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.
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.
A complete electronic copy of this report and all referenced resolutions and agreements are available online and a complete paper version is available for review in the Clerk of the Board’s office.
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Fiscal Impact
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This program is included in the tentatively adopted Department of Housing Budget for FY 2007-08. The County’s total obligation under this Agreement is $527,000, from CDBG/HOME/ESG funds. There is no Net County Cost.
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