Inter-Departmental Correspondence

Department of Housing



April 14, 2010


April 27, 2010


10 Day Publication, Public Hearing





Honorable Board of Supervisors


Duane Bay, Department of Housing Director


Approval of the FY 2010-2011 Annual Action Plan for the use of Federal Funds



Adopt a Resolution:



Approving the FY 2010-2011 Annual Action Plan for the use of Federal Funds provided under three entitlement programs: Community Development Block Grant (CDBG), Emergency Shelter Grant (ESG), and HOME Investment Partnerships (HOME): and the Director of the Department of Housing to submit the Annual Action Plan and required certifications to the U.S. Department of Housing and Urban Development (HUD); and



Authorizing the Director of the Department of Housing or the Director’s designee to execute contract amendments that modify the contract term and/or services so long as the modified term or services do not exceed the total annual HUD funding allocations.



HUD provides annual funding allocations to the County under programs including Community Development Block Grant (CDBG); HOME Investment Partnerships (HOME); and Emergency Shelter Grant (ESG). With regard to CDBG, the funds are provided to the County in its definition as an Urban County representing 16 small “non-entitlement” cities and all unincorporated areas of San Mateo County. The four largest cities in San Mateo County (Daly City, South San Francisco, San Mateo, and Redwood City) meet HUD’s definition of being “entitlement” cities, and each receive their own separate CDBG grant 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, which is an entitlement city and could receive its own HOME allocation but has chosen to remain with the Urban County in the HOME Consortium.  The other three entitlement cities opted out of the HOME Consortium several years ago and each receive their own separate HOME allocation.


The County is the sole recipient from HUD for countywide distribution of ESG funds.


The three HUD programs require a locally-defined public participation process for the distribution of funds. The County’s public process starts with an annual priorities-setting community meeting in the Fall, followed by the issuance of a Notice of Funding Availability (NOFA), and a formal application process. The NOFA budget follows the previous fiscal year’s funding allocation until HUD confirms the allocation to the County, which may result in a marginal increase/decrease for the upcoming year. The County’s public process is facilitated by the Housing and Community Development Committee (HCDC). Preliminary staff recommendations are made to the HCDC at the Application Study Session. The HCDC then presides over a public hearing with the funding applicants. The HCDC may choose to concur with staff recommendations or may choose to revise with their own recommendations to the Board of Supervisors. The final piece of the public process is the public hearing held by the Board, after which the Action Plan is finalized for submission to HUD, due no later than May 15 of each year.



Throughout the years HUD funding to the County has been diminishing gradually even though project costs and needs continues to rise. For FY 2010-2011 CDBG funding is not expected to decrease from the previous year’s allocation. Similarly, ESG funding has generally stayed constant within the last 7 years, and will do so for FY 2010-11, at about $125,000.


However, HOME funds will decrease. By way of comparison, seven years ago, in FY 2003-04, when the City of Daly City dropped out of the HOME Consortium to receive its own separate allocation of HOME funds, the County received $1.9 million. For fiscal year 2010-11 the County will receive approximately $1.8 million. While this may seem to be a minimal deduction, housing development costs such as land, construction, and financing continue to rise in the current weakened economy, so the funding received does not go as far as in years past.


Approval of the FY 2010-2011 Annual Action Plan contributes to the Shared Vision 2025 outcome of a livable community by addressing health and safety hazards including, but not limited to, improving handicap accessibility, addressing housing code deficiencies and rehabilitating existing housing stock in San Mateo County.


Program Budget
The total FY 2010-2011 Action Plan budget, including repayment and reprogrammed funds, is approximately $6.4 million. The table below summarizes HUD funding under CDBG, HOME and ESG.




CDBG Grant

$ 3,070,424


HOME Grant

$ 1,806,777


ESG Grant

$ 124,645


CDBG Reprogrammed

$ 639,475


HOME Reprogrammed

$ 425,460


CDBG Program Income (Loan Repayments)

$ 339,478


HOME Program Income (Loan Repayments)

$ 38,555



$ 6,444,814




Housing Development – CDBG

$ 796,531


Housing Development – HOME

$ 787,040


Section 108 Trestle Glen Loan Payment

$ 343,769


Section 108 Gateway EPA Loan Payment

$ 17,000


Community Housing Development (CHDO)

$ 244,110


Non-Profit Minor Home Rehab Programs

$ 381,500


Public Services/Emergency Shelter

$ 542,602


Fair Housing

$ 40,000


Micro-Enterprise/Economic Development

$ 24,000


Public Facilities Rehabilitation

$ 16,000


PAHALI – Preserving Affordable Housing

$ 160,000


Half Moon Bay Campus Project

$ 300,000


County Housing Rehab Program

$ 350,000


HOME allocation to reserves



CHDO allocation to reserves



CDBG allocation to reserves

$ 600,239


Project Delivery Costs

$ 487,720


Program Management

$ 900,995



$ 6,444,814



Funding Recommendations

As noted earlier, the public participation process involves staff making preliminary recommendations to the HCDC, which in turn, they may either reaffirm or modify the recommendation for Board consideration. On March 18, 2010, after the HCDC held and closed the public hearing, the HCDC convened to review and ratify the funding recommendations for Board of Supervisors’ approval. Attachment A shows the proposed Action Plan, highlighted below.


The Department of Housing has established a working goal of recommending a minimum allocation of $15,000. Contract amounts smaller than $15,000 tend not to result in a measurable service impact and do not justify staff contract administration costs.


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 Annual Action Plan, the Board is, therefore, asked to approve the aforementioned certifications as well.


County Counsel Review

County Counsel has reviewed and approved the Resolution.


Fiscal Impact

The Annual Action Plan projects are included in the Department of Housing Budget for FY 2010-11. There is no Net County Cost.