Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director of Housing
Subject: Authorization to Adjust Funding Sources and Commit Calendar Year 2022 and 2023 Permanent Local Housing Allocation funds
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing and directing the Director of the Department of Housing, or designee, to exchange an amount not to exceed $824,271.75 in calendar year 2022 and 2023 Permanent Local Housing Allocation (“PLHA”) funds previously awarded to Habitat for Humanity’s Laurel Landing / Pierce Road project, with an amount not to exceed $824,271.75 in Measure K funds previously awarded to the Beacon Development Group / Rotary Plaza’s Rotary Gardens project, in accordance with all applicable PLHA rules and guidelines; and
B) Authorizing and directing the Director of the Department of Housing, or designee, to commit an amount not to exceed $518,469.00 in 2022 PLHA and $397,388.50 in 2023 PLHA funds to assist persons experiencing or at risk of homelessness in accordance with PLHA Activity 6 for projects that have or will be selected from the Winter FY26-27 NOFA and/or an over-the-counter process, subject to applicable PLHA expenditure deadlines; and
C) Authorizing the Director of the Department of Housing, or designee, acting in consultation with the County Attorney, to negotiate and enter into such agreements and/or amendments to the County’s existing agreements, and to execute and deliver such documents, as necessary and advisable, to provide the PLHA and/or Measure K funding, as applicable, for the projects outlined in Attachment A and for such additional PLHA projects to be funded by the PLHA funds and other funds authorized hereunder.
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BACKGROUND:
The PLHA Program, which is currently administered by the California Department of Housing and Community Development (“CA HCD"), provides financial assistance to local governments for eligible housing-related projects and programs to assist in addressing the unmet housing needs of their communities. The CA HCD is authorized to provide up to $195 million to cities and counties for assistance under the SB 2 Permanent Local Housing Allocation Program Entitlement Jurisdiction Component from the Building Homes and Jobs Trust Fund (as described in the California Health and Safety Code section 50470, et seq. (Chapter 364, Statutes of 2017 (SB 2)). San Mateo County qualifies as an entitlement jurisdiction under the PLHA Program.
In July 2026, the County’s Department of Housing (“DOH”) was awarded a total of $1,831,715 in 2022 and 2023 PLHA grant funding. On May 19, 2020, this Board adopted Resolution No. 081537 authorizing and supporting the DOH’s grant application on behalf of the County and authorizing the Director of DOH, acting in consultation with the County Attorney, to negotiate and execute associated agreements. Among other purposes, the PLHA funds may be used to assist persons experiencing or at risk of homelessness and to support the development of affordable, multifamily rental housing.
Pursuant to the Board’s authority (Resolution No. 081443), a total of $824,271.75 in PLHA funding was allocated to the Habitat for Humanity’s Laurel Landing / Pierce Road project under AHF 13. Due to unforeseen delays in this project’s timeline and with PLHA expenditure deadlines approaching, DOH recommends allocating the $824,271.75 in PLHA funding to the Rotary Gardens project instead, which was also awarded Measure K funding via AHF 13 and is closing its construction financing this fall. Concurrently, with this Board’s approval, DOH would reallocate the $824,271.75 in Measure K funding awarded to the Rotary Gardens project to the Habitat for Humanity’s Laurel Landing / Pierce Road project.
PLHA funds were included in, but not awarded during, the Winter FY26-27 NOFA. However, the Board’s authorization under Resolution No. 081786, DOH has conducted a preliminary over-the-counter process and recommends allocating PLHA funding to the organizations listed in Attachment A. DOH will conduct additional over-the-counter processes to allocate the remaining 2022 and 2023 PLHA funds.
DISCUSSION:
The requested Board actions will authorize the exchange of funding sources for two development projects to ensure compliance with funding expenditure deadlines and commit PLHA funds to eligible activities. Staff recommend that the Board authorize the Director of DOH, or their designee, to execute agreements and/or amendments and other documents necessary to award PLHA funds within the scope of funding received, as set forth in the resolution accompanying this memorandum.
Authorizing these actions now will allow DOH to expend these PLHA funds on eligible projects in a timely manner to meet PLHA expenditure deadlines without further Board authorization.
The calendar year 2022 and 2023 PLHA funds to be committed in connection with these actions will be deployed in accordance with the County’s previously amended five-year PLHA Plan which identifies housing, community development, and economic development needs throughout the County.
The County Attorney has reviewed and approved the resolution as to form.
COMMUNITY IMPACT:
These funds are designed to improve the quality of services provided for persons experiencing homelessness and to support the construction of new affordable housing units for lower-income residents of San Mateo County, one of the most expensive housing markets in the State.
FISCAL IMPACT:
PLHA funds are provided through a state program. The exchange of PLHA funds for Measure K funds will be for identical, previously authorized amounts. There is no Net County Cost.