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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Department of Housing
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DATE:
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July28, 2011
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BOARD MEETING DATE:
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August 9, 2011
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Duane Bay, Department of Housing Director
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SUBJECT:
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Agreement with Coastside Senior Housing LLP for Development of Senior Housing at the Half Moon Bay Senior Campus
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RECOMMENDATION:
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Adopt a Resolution authorizing:
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1.
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The President of the Board to execute an Agreement with Coastside Senior Housing LP in the amount of $3 Million for development of affordable senior housing, for the term of four years commencing upon the date of execution; and
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2.
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The Director of the Department of Housing or the Director’s designee to execute contract amendments modifying the County’s maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modifying the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.
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BACKGROUND:
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As part of a collaborative effort to develop a cluster of senior services and affordable housing units in Half Moon Bay, the Coastside Senior Housing project, located at 925 Main Street, Half Moon Bay, California, (“Project”) will be a mixed-use development consisting of 40 units of affordable senior housing and ground floor program spaces for senior services and a senior center.
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The present co-owners of this currently vacant site, Senior Coastsiders and Coastside Adult Day Health Center, purchased the land in 2001 with CDBG funds provided by the County Department of Housing (“DOH”). The co-owners subsequently approached Mercy Housing California, a nonprofit housing developer, and Lesley Senior Communities, a nonprofit housing organization, to assist them in realizing the Project. A limited partnership has been formed by Mercy Housing California and Lesley Senior Communities, Coastside Senior Housing Limited Partners (“LP”), to develop and own the improvements to the property. Senior Coastsiders and Coastside Adult Day Health Center have executed an option with the LP to ground lease the land under a long-term lease, build the complex, and sub-lease the program spaces back to Senior Coastsiders and Coastside Adult Day Health Center, which will provide an array of senior services on the ground floor level of the Project. As part of this transaction, the right to exercise that option is being assigned by the LP to the County.
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Over three fiscal years, the County has committed a total of $3 million of CDBG and HOME funds to assist the housing component of the Project. The Project is estimated to cost upwards of $18 million in total. County’s allocation of CDBG and HOME funding will be structured as a loan to develop the housing and the shell of the program spaces. Separate, non-County funding to build out the program spaces has been secured by Senior Coastsiders and Coastside Adult Day Health Center.
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DISCUSSION:
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This Agreement is with the LP, which will serve as the contractor (“Contractor”) for purposes of the Project. The Project is well aligned with the Housing Department funding priorities. It will provide key services for seniors and housing for Extremely Low- and Very Low-Income seniors. The initial term of this Agreement is four years upon execution and will be extended to coincide with the loan term upon contractor meeting the performance requirement: construction of the improvements.
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The Resolution and Agreement have been reviewed and approved by County Counsel, and Risk Management has reviewed and approved Contractor’s insurance. 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.
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VISION ALIGNMENT
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Approval of this Agreement contributes to the Shared Vision 2025 outcome of a livable community through the creation of 40 new units of affordable senior housing, which charts the first implementation phase of the Half Moon Bay Senior Campus plan, a planned senior community that allows for aging in place.
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Performance Measure(s):
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Measure
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FY 2010-11
Actual
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FY 2011-12
Projected
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No. of County-funded housing units developed and occupied
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69
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122
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FISCAL IMPACT:
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There is no Net County Cost. The total funding obligation under this Agreement is $3 million, of which $ 664,170 is from federal Community Development Block Grant (CDBG) and $2,335,830 from the HOME Investment Partnerships Act Programs. This contract amount is included in the Department of Housing Budgets for FY 2009-10, FY 2010-11. And FY2011-12.
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