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COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

April 28, 2008

BOARD MEETING DATE:

May 6, 2008

SPECIAL NOTICE/HEARING

10-Day Publication, Public Hearing

VOTE REQUIRED

Majority

TO:

Honorable Board of Supervisors

FROM:

Duane Bay, Director, Department of Housing

SUBJECT:

Approval of the Five-Year Consolidated Plan for the San Mateo County HOME Consortium for FY 2008-09 through 2012-13 and adjunct FY 08-09 Annual Action Plan; and Authorization of the Submittal of the Consolidated Plan and Annual Action Plan to the United States Department of Housing and Urban Development (HUD)

Recommendation

1.

Conduct a public hearing; and

2.

Adopt a Resolution for:

A. Approval of the Five-Year Consolidated Plan for the San Mateo County HOME Consortium covering Fiscal Years 2008-09 through 2012-13;

B. Approval of the adjunct FY 2008-2009 Annual Action Plan; and

C. The submission of the Consolidated Plan and adjunct Annual Action Plan plus required certifications to the U.S. Department of Housing and Urban Development (HUD), and authorizing the Director of the Department of Housing to execute the required certifications.

Vision Alignment

Commitment: Ensure basic health and safety for all.
Goals 8 and 9: Help vulnerable people – the aged, disabled, mentally ill, at-risk youth and others – achieve a better quality of life; and Housing exists for people at all income levels and for all generations of families.

The action contributes to this commitment and goal by providing a rational plan specifying housing and community development outcomes and resources for assisting the County’s vulnerable households. This plan offers them access to quality affordable housing, enhanced community facilities, and meaningful programs that effectively address residents’ issues that impede these residents’ full participation in prosperity-building activities in the County.

Performance Measures:
Specific housing and community development performance are included in each grantees’ contract with the County.

Performance Measures

FY 2005-06
Actual

FY 2006-07
Actual

FY 2007-08
Estimate

FY 2008-09
Target

FY 2009-10
Target

Federal HOME and CDBG grant funding provided for:

• Affordable housing production

$2,851,850

$3,252,664

$2,122,015

$3,200,000

$3,000,000

• Non-Housing Community Development

$552,050

$933,949

$275,150

$650,000

$600,000

Background
As a HUD entitlement jurisdiction, the County receives HUD funding allocations under three programs: Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Shelter Grant (ESG). To receive these funds, the County is required to submit a Consolidated Plan to HUD every five years. This document serves both as an application for funds and a local planning document for housing and community development needs. To further ensure that entitlement jurisdictions meet specified goals and objectives, jurisdictions are required to also submit annual action plans that delineate outcomes for the use of the HUD funding.

National goals are statutory and are three-fold. They call for providing (1) decent housing; (2) a suitable living environment; and (3) expanded economic opportunities. Within this framework, HUD encourages local jurisdictions to tailor objectives and outcomes to local needs and conditions.

CDBG funds are provided to the County on behalf of itself and the 16 small cities. These 17 political jurisdictions comprise the Urban County. (The four largest cities – Daly City, South San Francisco, San Mateo, and Redwood City – each receive a separate CDBG entitlement from HUD.)

HOME funds are received by the County as a HOME Consortium, which consists of the Urban County and the City of South San Francisco. The Cities of Daly City, San Mateo, and Redwood City, each receive their own separate HOME allocations.

In terms of ESG funds, the County is the sole recipient for countywide distribution.

Discussion
Overview
The new Consolidated Plan covers the five-year period, FY 2008-09 through 2012-13. The adjunct Annual Action Plan proposes activities for year one of the Consolidated Plan, FY 08-09. The Consolidated Plan (Attachment A) describes goals and objectives for the San Mateo County HOME Consortium. The County’s Consolidated Plan represents a compilation and summary of existing planning efforts, especially in reference to information relating to housing market conditions, needs and goals. The County has established itself as a leader in various planning initiatives, from its participation in the El Camino as Grand Boulevard initiative, the HOPE Plan to eradicate homelessness, to the Housing Element Sub-Regional Housing Needs Allocation planning effort.

FY 08-09 Action Plan Development
In accordance with the HUD public participation requirement, the Housing and Community Development Committee (HCDC), a citizens advisory body appointed by the Board, meets publicly each fall to determine funding priorities for the three federal funding programs. In November 2007, the County Housing Department convened a public session involving both the HCDC and community stakeholders to review and re-define both five-year and annual housing and community development goals and objectives. Various categories of funding were re-affirmed. They included housing development, housing rehabilitation programs, community facilities, public service programs, and micro-enterprise assistance.

In January 2008, the County solicited applications from nonprofits, City and County agencies. In February - March, the proposals were reviewed via a public process presided by the HCDC toward the development of an Annual Action Plan, which enumerates specific projects and funding recommendations for the use of the federal funds. The final piece of the public process is a public hearing before the Board of Supervisors, after which the Consolidated Plan and adjunct Annual Action Plan will be finalized for submission to HUD, due no later than May 15 of each year.

Again HUD funding has been reduced, this time by 3.5% from last year. The impact can best be understood within the historical context that CDBG funding to the County was almost $1 million greater 13 years ago than it will be in FY 08-09 ($3.8 million versus $2.8 million). Ever increasing escalating costs and needs have forced County nonprofits to be both creative and resourceful in doing more with less.

The total FY 2008-09 year one Annual Action Plan budget, including loan repayments and reprogrammed funds, is $6.6 million. The table below summarizes HUD funding under CDBG, HOME, and ESG, including a HOME set-aside of $12,359 for the American Dream Downpayment Initiative.

TOTAL SOURCES

CDBG Grant

$ 2,808,770

HOME Grant

$ 1,617,603

ESG Grant

$ 125,522

HOME-ADDI

$ 12,359

CDBG Reprogrammed

$ 461,698

HOME Reprogrammed

$ -

CDBG Program Income (Loan Repayments)

$ 1,586,010

HOME Program Income (Loan Repayments)

$ 41,692

Total

$ 6,550,010

TOTAL USES

%

Housing Development/ADDI

$ 2,682,414

39.4%

Housing Rehab Program(San Mateo County)

$ 1,000,000

15.3%

Minor Home Repair Programs (Non-Profits)

$ 272,558

4.2%

Public Services/Emergency Shelter Operations

$ 540,761

8.3%

Public Facilities

$ 336,150

5.1%

Micro-Enterprise Asst.

$ 58,000

0.9%

Fair Housing

$ 39,323

0.6%

Section 108 Loan Repayments (East Palo Alto & Trestle Glen)

$ 673,286

10.3%

Program Mgmt & Adm.

$ 1,051,162

16.0%

Total

$ 6,550,010

100.0%

Attachment B shows the proposed Annual Action Plan projects in detail:

For the second year, the housing development portion of the CDBG and HOME funding has been put in the Housing Reserve Fund, to be accessed on a quarterly basis as projects come forward.

The category of Public Services, which includes Emergency Shelter Operations, makes up only 8% ($540,761) of the budget.

In this category, three Core Agencies will each receive $15,000. Two new applicants, the Fair Oaks Community Center Early Entry Program and Community Legal Services of East Palo Alto, will also receive $15,000 each. $15,000 is the minimum funding amount set by the HCDC for all contracts.

HUD Certifications
In order to receive CDBG, HOME, and ESG funds, the County must submit pro-forma certifications to HUD assuring that the County: (1) will not discriminate in providing services; (2) is following a citizens participation process delineated in a public input plan; (3) is providing a drug-free workplace for staff; and (4) has adopted and is enforcing a policy prohibiting the excessive use of force against any individuals engaged in non-violent civil rights demonstrations. In approving the Consolidated Plan and adjunct Annual Action Plan. Therefore, the Board is asked to authorize these certifications.

County Counsel Review
County Counsel has reviewed and approved the Resolution.

Electronic Copy
A complete electronic copy of this report is available online and a complete paper version is available for review in the Clerk of the Board’s office.

Fiscal Impact

The Annual Action Plan projects are included in the Department of Housing Budget for FY 2008-09. There is no Net County Cost.