Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors (Sitting as the Board of Commissioners of the Housing Authority of the County of San Mateo)
From: Debbie McIntyre, Executive Director, Housing Authority
Subject: Use of Housing Authority Reserve Funds
RECOMMENDATION:
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Acting as the Governing Board of Commissioners for the Housing Authority of the County of San Mateo, adopt a resolution:
A) Amending Resolution No. 080585, dated August 27, 2024, to permit the utilization of any Housing Authority of the County of San Mateo (“HACSM”) reserve funds, including Moving To Work (“MTW”) reserve funds, in an amount not to exceed $14,000,000 for the construction and permanent financing of Phase 2 of the Midway Village Redevelopment Project (“Project”); and
B) Authorizing the Executive Director of HACSM and the Director of the Department of Housing or designee(s), acting in consultation with County Attorney, to execute any and all agreements, documents, certificates and amendments as may be necessary and advisable to provide the authorized funding to the Project to effectuate the purposes of Resolution No. 080585, as amended by this Resolution.
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BACKGROUND:
Moving To Work (“MTW”) is a demonstration program that offers participating housing authorities the opportunity to design and test innovative, locally designed housing and self-sufficiency strategies for low-income households by allowing exceptions from certain housing regulations. The MTW program is funded through the U.S. Department of Housing and Urban Development (“HUD”) with the goals of increasing administrative efficiencies, encouraging self-sufficiency, and increasing housing choice.
As an MTW agency, HACSM has created an affordable housing fund to assist in the development activities of affordable housing projects throughout San Mateo County; the affordable housing fund consists of reserves from the MTW program. Such reserves may be utilized for eligible MTW activities in connection with affordable housing projects. Funding levels and plans are approved by this Board in connection with the FY 2024-25 MTW Annual Plan.
On August 27, 2024, this Board approved Resolution Number 080585, which authorized HACSM to provide a loan in an amount not to exceed $14,000,000 from “Midway Village reserve funds” for the construction and permanent financing of Phase 2 of the Midway Village Redevelopment Project (the “Project”). The Project, overseen by MidPen Housing, is a multi-phase project. Phase I construction was completed in May 2024 and all units are fully occupied. Phase 2 construction is scheduled to begin in Spring 2025. The Project details are more fully described in the Board materials provided in connection with Resolution No. 080585.
DISCUSSION:
The Project would be best served and financed by authorizing utilization of any HACSM reserve funds, including MTW funds, for the authorized loan, rather than “Midway Village reserve funds” as provided in Resolution No. 080585. Accordingly, staff recommends that the Board amend Resolution No. 080585 to authorize the utilization of any HASCM reserve funds, including MTW reserve funds for the Project, which is consistent with the approved FY 2024-2025 MTW Annual Plan.
The County Attorney has reviewed and approved the Resolution as to form.
EQUITY IMPACT:
The Midway Village Redevelopment Project will positively impact very low-income individuals and families by meeting their vital need of safe, decent and affordable housing.
FISCAL IMPACT:
There is no net County cost associated with this action. All funds required to operate the MTW program are provided by HUD.