COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Housing

DATE:

July 31, 2008

BOARD MEETING DATE:

August 12, 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 the Redevelopment Agency of the City of San Mateo for rehabilitation of a single room occupancy (SRO) hotel for use as affordable housing for the homeless

Recommendation

Adopt a Resolution:

1.

Authorizing execution of an Agreement with the Redevelopment Agency of the City of San Mateo in the amount of $500,000 for the rehabilitation of an SRO hotel for use as affordable housing for the homeless for the term of July 1, 2008 through June 30, 2009; 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 16 additional units of affordable housing.

Performance Measures:

Measure

FY 2007-08
Actual

FY 2008-09
Target

Number of County –supported affordable housing units completed and occupied

335

400

Background

As a key strategy in the San Mateo County HOPE 10-Year Plan to End Homelessness, the Housing Outreach Team (HOT) was a pilot program implemented to provide permanent supportive housing to chronically homeless individuals in downtown San Mateo. HOT is a unique partnership between the City of San Mateo, the County of San Mateo and community non-profits, consisting of social workers, law enforcement, housing specialists and other diverse stakeholders intended to address homelessness in the area. As a first step, the Redevelopment Agency of the City of San Mateo purchased the Vendome Hotel in March, 2007. Shelter Network has been awarded HUD McKinney-Vento funds through the Continuum of Care for supportive services. The Redevelopment Agency of the City of San Mateo has entered into an operating agreement with Shelter Network providing the property at no cost. Shelter Network will provide management and supportive services to clients transitioning from homeless shelters to permanent housing.

Discussion

Shelter Network applied for funds from the 2008-09 CDBG/HOME funds to rehabilitate the Vendome Hotel to make it suitable for their program. The funding agreement presented is with the Redevelopment Agency rather than Shelter Network because the Agency is the owner of the property. The scope of work will include general rehabilitation, fire and building code required improvements, accessibility improvements, landscaping and parking lot improvements.

The funds will be provided to the Agency in the form of a long-term deferred payment loan. The term of the loan will be 55 years, matching the Redevelopment Agency requirement for affordability.

The Agency has assured compliance with all contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits, and the County's Contractor Employee Jury Service Ordinance.

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 2008-09. The County’s total obligation under this Agreement is $500,000 from CDBG funds. There is no Net County Cost.