|
|
|
|
|
|
|
|
|
|
|
|
|
|
COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Department of Housing
|
|
|
|
DATE:
|
November 17, 2010
|
BOARD MEETING DATE:
|
November 30, 2010
|
SPECIAL NOTICE/HEARING:
|
None Required
|
VOTE REQUIRED:
|
Majority
|
|
|
TO:
|
Honorable Board of Supervisors
|
FROM:
|
Duane Bay, Department of Housing Director
|
SUBJECT:
|
Two Agreements with MP South City, L.P. for the Development of Affordable Housing at 636 El Camino Real, South San Francisco
|
|
|
RECOMMENDATION:
|
Adopt a Resolution authorizing:
|
|
|
1. The President of the Board to execute two Agreements with MP South City, L.P. for the development of affordable housing at 636 El Camino Real, South San Francisco, in the respective amounts of $375,000 and $1,413,843, each for 55-year terms;
|
|
|
2. The Director of the Department of Housing to take all necessary steps to reallocate portions of the funding under the Agreements to two limited partnerships associated with the Project, with no increase in total funding, to facilitate tax credit financing for the Project; and
|
|
|
3. 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.
|
|
|
BACKGROUND:
|
Mid-Peninsula Housing Coalition (MPHC) proposes to develop approximately 108 units of affordable family housing at 636 El Camino Real, South San Francisco (“the Project”). Typical of most large affordable housing projects, the Project will generate tax credit proceeds. As such, MPHC formed the limited partnership, MP South City, L.P., to bring in for-profit investors who receive tax credits in exchange for providing equity financing (tax credit proceeds).
|
|
|
In Spring of 2009 and 2010, by Resolution Numbers 070075, 070107, and 070712, the Board approved a funding structure for the Project that includes both direct funding allocation and a process for allocating funds under the FY 2009-10 and 2010-11 HUD Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and/or CDBG-Recovery (CDBG-R) Programs. These actions resulted in a total of $1,788,843 for the Project. The table below summarizes the funding breakdown:
|
|
|
|
|
FY
|
CDBG
|
HOME
|
CDBG-R
|
TOTAL
|
|
|
|
2009-10
|
0
|
313,843
|
375,000
|
688,843
|
|
|
|
2010-11
|
796,531
|
303,469
|
0
|
1,100,000
|
|
|
|
TOTALS
|
$796,531
|
$617,312
|
$375,000
|
$1,788,843
|
|
|
|
DISCUSSION:
|
Federal Economic Stimulus Money. Regulations governing federal stimulus funds under CDBG-R require that the funding be tracked separately from other HUD funding, including execution of a separate funding agreement, even when the same project is involved. The County allocated $375,000 under CDBG-R for 636 El Camino Real, and the first Agreement pertains to those funds. CDBG-R regulations further require that these funds be spent by September 2012 and that any CDBG-R funds not expended by September 12, 2012 will be recaptured by HUD and returned to the U.S. Treasury. The first Agreement includes this requirement in its terms.
|
|
|
CDBG/HOME. The second Agreement, for $1,413,843, covers a combination of CDBG and HOME funds allocated to the Project.
|
|
|
Two Phases. Tax credit financing constraints require that the project financing be structured as two phases, even though all 108 units will be constructed at the same time. As such, the two subject Agreements will be recast later during the predevelopment period. Funding provided in the two agreements will be restructured into three or four agreements – one to two each for Phase I and Phase II. No additional County funding is anticipated, and the specific authority to restructure the two Agreements accordingly is included in the associated Board Resolution authorizing approval of the two Agreements.
|
|
|
The terms of both Agreements are for 55 years. The Resolution and Agreements have been reviewed and approved by County Counsel and Risk Management.
|
|
|
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.
|
|
|
Approval of the Agreements contribute to the Shared Vision 2025 outcome of a livable community in that the housing, constructed near transit, promotes affordable, livable and connected communities. Project design and amenities coupled with the addition of 108 family households will enliven the pedestrian street life of El Camino Real as it transitions into the lively urban Grand Boulevard envisioned for the County.
|
|
|
|
|
|
|
Performance Measure(s):
|
|
Measure
|
FY 2009-10
Actual
|
FY 2010-11
Projected
|
No. of County-funded housing units developed and occupied
|
119
|
200
|
|
|
FISCAL IMPACT:
|
Total County obligations under the two Agreements are $375,000 and $1,413,843, respectively, for a total of $1,788,843, funded by the following HUD programs: Community Development Block Grant, HOME Investment Partnerships, and Community Development Block Grant - Recovery. The total amounts under the two contracts are included in the Department of Housing Budget for FY 2010-11. There is no Net County Cost.
|