COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

 

DATE:

December 27, 2007

BOARD MEETING DATE:

January 8, 2008

SPECIAL NOTICE/HEARING

None

VOTE REQUIRED

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Duane Bay, Director, Department of Housing

SUBJECT:

Approve an Agreement with MP Mezes, Inc. for development of affordable rental housing in the City of San Mateo.

 

Recommendation

Adopt a Resolution:

 

1.

Authorizing execution of an Agreement with MP Mezes, Inc. in the amount of $1,351,579 to assist with the development of affordable rental housing in the City of San Mateo for the term of December 1, 2007 through November 30, 2010; 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.

 

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 creating an additional 68 family rental units in the County.

 

Performance Measures:

Measure

FY 2006-07
Actual

FY 2007-08
Target

Number of County-supported affordable housing units completed and occupied

321

400

 

Background

MP Mezes, Inc., a subsidiary of Mid-Peninsula Housing Coalition has, with assistance from the City of San Mateo, acquired a site previously occupied by a GoodYear Tire store on El Camino Real near the Hillsdale shopping center. Based on the zoning and a density bonus based on state law, the project will ultimately have 68 units; 8 1-BR units, 36 2-BR units and 24 3-BR units. One unit will be designated for the resident manager and the remaining 67 units will be restricted to various income levels below 60% Area Median Income.

 

Discussion

MP Mezes, Inc. applied for funding from the 2007-08 CDBG/HOME housing allocation. The project cost is currently estimated at almost $39 Million, with the largest piece coming from Tax Credit Investor proceeds. The high cost of the land makes this an extremely expensive project; it is anticipated that it will require eight additional sources of funds to complete the project. Actual construction is expected to start in November, 2008 with completion projected for March, 2010.

The funds will be provided to MP Mezes in the form of a loan with payments to be from a portion of residual receipts generated by the development.


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 complete paper versions are available for review in the Clerk of the Board’s office.

 

Fiscal Impact

This program is included in the Department of Housing Budget for FY 2007-08. The County’s total obligation under this Agreement is $1,351,579, from CDBG and HOME funds. There is no Net County Cost.