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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
Department of Housing
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DATE:
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July 28, 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 EPA CANDO
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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 EPA CANDO in the amount of $130,000 for the term of thirty years commencing upon the date of execution to acquire real property at 2376 University Avenue, East Palo Alto; 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 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.
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BACKGROUND:
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East Palo Alto Community Alliance and Neighborhood Development Organization (EPA CANDO) is a certified Community Housing Development Organization (CHDO) under the HOME Investment Partnerships (HOME) Program. The County receives annual allocations of HOME funding, of which a minimum of 15% of each year’s allocation must be set aside for CHDO-sponsored housing developments. EPA CANDO applied for CHDO assistance under the County’s FY 2011-12 annual CDBG/HOME NOFA to acquire another single family home on University Avenue to further its efforts to assemble land for multifamily housing development. EPA CANDO’s vision is to create 32+ units of affordable housing with ground floor commercial space on University Avenue near Weeks Street and Sacramento Avenue.
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DISCUSSION:
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In recent years EPA CANDO has acquired four parcels (two single family and two duplexes) on University Avenue with the help of County HOME CHDO funds. The subject acquisition, a vacant 2-bedroom house at 2376 University Avenue, would constitute the fifth parcel in a land assemblage strategy of acquiring up to eight parcels. The subject house had been used as commercial office space, whose owner fell behind in mortgage payments as the value of the property dropped in recent years. EPA CANDO is purchasing the property in a “short sale” arrangement. As with EPA CANDO’s other recently purchased parcels in this area, the subject dwelling will be rented to a qualified low-income household in accordance with HOME Program requirements pending redevelopment of the University Avenue strip.
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The proposed redevelopment will ultimately involve demolition and relocation, to be undertaken in accordance with federal requirements. This section of University Avenue is appropriately zoned for multifamily housing with a mix of uses. The proposed development will be across the street from Nugent Square, a successful 32-unit multifamily project developed by EPA CANDO and Eden Housing. Nugent Square undertook the same path of parcel assembly for mixed-use development that is being proposed again for the current project. As with Nugent Square, EPA CANDO will engage a larger nonprofit affordable housing developer once the land is assembled.
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County funding for the subject acquisition will be in the form of a 30-year loan at 3% simple interest. HEART, the County’s housing trust fund, will provide the balance of the funds toward the $170,000 acquisition price plus some amount to restore the home to basic habitability standards.
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As with the HOME loan, the term of this agreement is Thirty Years upon execution. The Resolution and Agreement have been reviewed and approved by County Counsel and Risk Management has reviewed and approved the contractor’s insurance. The 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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Approval of this Agreement contributes to the Shared Vision 2025 outcome of a livable community by assisting in land assemblage toward redevelopment for mixed use multifamily housing and commercial space along University Avenue in East Palo Alto.
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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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The total County obligation under this Agreement is $130,000, which is funded by HOME Investment Partnerships Act Program. This contract amount is included in the Department of Housing Budget for FY 2011-12. There is no Net County Cost.
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