Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Department of Housing
Subject: HOME Consortium - Adding Redwood City
RECOMMENDATION:
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Approving and authorizing the President of the Board to execute a second amendment to the Cooperation Agreement to add the City of Redwood City as a member of the San Mateo County HOME Consortium, adjust the program year and make other amendments as specified therein.
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BACKGROUND:
The County receives funding allocations from the United States Department of Housing and Urban Development (“HUD”) under three entitlement programs: Community Development Block Grant (“CDBG”), Home Investments Partnership Program (“HOME”) and the Emergency Solutions Grant program (“ESG”).
The HOME Program provides formula grants to states and localities to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people.
The County is the lead agency for the San Mateo County HOME Consortium (“HOME Consortium”), which manages the combined federal HOME Program funding through the efforts of the San Mateo County Department of Housing. The County receives HOME funds on behalf of the HOME Consortium which includes the County, the City of South San Francisco, and the City of San Mateo, and is subject to an agreement that meets HUD requirements and is approved by the County and the member cities.
Consistent with these requirements, on June 21, 2005, pursuant to Resolution No. 067377, the Board approved the Cooperation Agreement Between the County of San Mateo and the City of South San Francisco (the “Cooperation Agreement”). The County and the City of South San Francisco were the sole members. On July 21, 2015, pursuant to Resolution No. 073948, with this Board’s approval, the Cooperation Agreement was amended to add the City of San Mateo as a member, among other amendments.
DISCUSSION:
The City of Redwood City wishes to join the HOME Consortium which would result in the addition of the City’s direct HOME funding allocation to the HOME Consortium. The combined allocation dedicated to the HOME Consortium would help address critical housing needs within the County.
In order to become a member of the HOME Consortium, current and new members must execute an amendment to the Cooperation Agreement, which amendment must be approved by the governing boards of each current and prospective member.
In addition to amending the Cooperation Agreement to add a new member, additional amendments are necessary to comply with 24 CFR § 91.402(a), which requires that all Consortium members shall be on the same program year for purposes of CBDG, HOME, ESG and HOPWA (Housing Opportunities for Persons with AIDS). To align the program years for the members of the HOME Consortium, the Cooperation Agreement will be amended to provide that the program year shall begin on July 1, 2024 and will now end on June 30, 2026 for the County, the City of South San Francisco and the City of San Mateo, and will begin on July 1, 2026 and end on June 30, 2029 for all Consortium members of the San Mateo County HOME Consortium.
Staff recommends that the County further agree to amend the Cooperation Agreement to allocate six and three tenths of one percent (.063%) of the HOME Consortium’s total annual allocation plus ten dollars and zero cents ($10.00) for each HOME-assisted unit that the Consortium member will continue to manage and monitor to each Consortium member for general administration activities.
In view of the foregoing, staff recommends that the Board authorize the President of the Board to execute a second amendment to the Cooperation Agreement in the form shown in Attachment A to add the City of Redwood City as a member of the San Mateo County HOME Consortium, adjust the program year and make other amendments as specified therein (the “Second Amendment”). The respective city councils of the City of Redwood City, the City of San Mateo and the City of South San Francisco have all approved the Second Amendment, on respectively, February 13, 2025, March 21, 2025, and March 17, 2025. The County will be the final signatory on the Second Amendment.
Attachment A includes the Second Amendment and the executed copies of the Second Amendment by the cities with their respective council approvals.
The County Attorney has reviewed the proposed resolution and Second Amendment as to form.
EQUITY IMPACT:
This resolution includes activities to be provided with HOME funds. This funding source requires income-based restrictions to ensure that those served are extremely low to moderate-income.
FISCAL IMPACT:
There is no net County cost associated with expenditures under the federal entitlement programs that allocate funds under the Cooperation Agreement.
ATTACHMENTS:
Attachment A: The Second Amendment to the Cooperation Agreement of the San Mateo County HOME Consortium under the Cranston-Gonzalez National Affordable Housing Act, signed by the Cities of Redwood City, San Mateo and South San Francisco.