Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Justin W. Mates, Assistant County Executive
Raymond Hodges, Director, Department of Housing
Subject: Mobile Home Loan Program and Agreement with The Housing Endowment and Regional Trust of San Mateo County (HEART) to Disburse and Administer Loan Funds
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing and directing the Director of the Department of Housing, or designee(s), to execute an agreement with The Housing Endowment and Regional Trust of San Mateo County (HEART) in a total amount not to exceed $2,400,000 to disburse up to $2,300,000 in loans to qualified low-income residents residing in the seven mobilehome parks located in unincorporated San Mateo County for the purchase of approved new mobilehome units and for an administrative fee not to exceed $100,000, for a term of July 1, 2026 through June 30, 2028; and
B) Granting a waiver of competitive bidding pursuant to County Administrative Memo B-1.
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BACKGROUND:
Mobilehome parks serve as a form of naturally occurring affordable housing, and more than 700 county residents live in one of the seven mobilehome parks located within unincorporated San Mateo County. In recent years, the County has implemented programs to address health and safety concerns associated with the significant aging and degradation that characterize many housing units located within these parks. These efforts have included outreach and education, subsidized repair programs for low-income residents, and inspection and enforcement efforts focused on high-priority safety issues identified by County compliance staff.
Many low-income mobilehome park residents face significant barriers to accessing traditional lending markets, making the replacement of dilapidated or otherwise unsafe units financially infeasible. Accordingly, in 2024, the Board approved a grant of $2 million to The Housing Endowment and Regional Trust of San Mateo (HEART) to pilot the Mobile Home Loan Program (MHLP), an affordable financing program for low-income residents living in the County’s seven unincorporated mobilehome parks. The pilot supported 20 low-interest loans of up to $100,000 to assist with the purchase of new replacement mobilehome units. As of April 2026, HEART distributed all loans at interest rates of 0.5 -1.0 percent, assisting 20 households to replace their aging units with new, modern manufactured units with greater space, safety, and an expected useful life of up to 55 years. In one instance, the loan was used to replace a 1982 RV that served as the borrower’s residence. To date, no borrowers have defaulted and all repayments to HEART have been made timely.
DISCUSSION:
The MHLP pilot demonstrated a cost-effective and impactful method of improving housing conditions for vulnerable families living in San Mateo County’s mobilehome parks. Given this success, HEART seeks to continue and expand the MHLP, eventually building it into a sustainable revolving loan fund.
Under the terms of a new agreement with HEART to continue implementation of the MHLP (“Agreement”), the County would provide HEART with $2,400,000 to fund an additional 20 low-interest loans to low-income residents residing in one of the seven mobilehome parks located in unincorporated San Mateo County to use towards the purchase of approved new units. (A list of the mobilehome parks is included as Attachment A.) Subject to the new Agreement, the maximum individual loan amount under the MHLP would be $115,000, up from $100,000 under the pilot. The higher maximum amount allows new borrowers to better cover current purchase costs, as well as the costs of closing, removal of the old unit, and any critical safety improvements needed during installation, such as asphalt work to address site flooding issues.
Additional key terms of the MHLP include:
• Borrowers must be current residents whose primary residence is located within one of the seven unincorporated mobilehome parks. Eligible households must have incomes at or below 80 percent of the Area Median Income and demonstrate sufficient income to cover loan payments, space lease payments, and other household expenses.
• No downpayment is required, and interest will be fixed at rates not to exceed four (4) percent per annum, or less, based on lower income levels, over a 30-year term.
• If a borrower sells or transfers a unit without proper notice before the loan matures, or otherwise defaults on material loan terms, the remaining principal balance and accrued interest would become immediately due and payable. However, with prior notice to and approval from HEART and the park owner, borrowers can transfer ownership to an immediate family member, subject to applicable occupancy and income eligibility requirements.
The Agreement also includes up to $100,000 to support HEART’s costs and administrative expenses, including staff costs and expenses on activities including loan servicing, marketing, and outreach. The proposed term of the Agreement is from July 1, 2026, through June 30, 2028.
HEART will seek to leverage the County’s additional investment and commitment to raising an additional estimated $3,500,000 from philanthropic and city partners within the next two years. With that additional capital, HEART would be able not only to issue a further 30 loans at additional mobilehome parks, but also to achieve a self-sustaining loan fund that would have the capacity to issue up to three new loans on an annual basis based on repayments to HEART.
As a nonprofit joint powers authority whose mission is to create and preserve affordable housing for low- and moderate-income families throughout San Mateo County, HEART is uniquely qualified to assist the County in administering the MHLP. In addition to implementing the pilot, HEART has extensive experience providing financing for affordable housing development, preservation, acquisition, and rehabilitation projects. HEART’s experience and capacity will allow it to efficiently administer MHLP loans to those in need. The County’s Agreement with HEART, as a joint powers entity is also subject to a waiver of competitive bidding pursuant to County Administrative Memo B-1, § IV(D)(2), and staff recommend that the Board waive such requirements.
PERFORMANCE MEASURE:
|
Measure |
FY2026-28 Target |
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Number of loans administered to qualified low-income residents living in a Mobile Home Park located in unincorporated San Mateo County. |
At least 20 loans |
After the loans funded by the MHLP have been administered, HEART will continue the program as a revolving loan fund providing affordable financing for mobilehome residents in unincorporated San Mateo County or otherwise use the funds for purposes consistent with its mission to create and preserve affordable housing for low- and moderate-income families throughout San Mateo County.
The County Attorney has approved as to form the resolution and proposed agreement presented to this Board.
COMMUNITY IMPACT:
The Mobilehome Loan Program is an effective and impactful initiative that improves housing conditions and expands access to affordable financing for low-income families living in aging mobile homes and RVs. By assisting vulnerable residents and increasing the availability of safe, quality affordable housing, the program serves a vital purpose and provides significant public benefits to low-income residents throughout the County.
FISCAL IMPACT:
The County’s maximum fiscal obligation under the proposed agreement with HEART is $2,400,000 and is included within the Department of Housing’s Fiscal Year 2026-27 Recommended Budget. This agreement will be fully funded by the General Fund.