Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director, Department of Housing
Subject: Allocation of Measure K funds, County Impact Fees, Permanent Local Housing Allocation funds, and Homeless Housing Assistance and Prevention funds from the Affordable Housing Fund 13.0 to affordable housing projects
RECOMMENDATION:
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Measure K: Adopt a resolution:
A) Approving commitments of Affordable Housing Fund (AHF) 13.0 funds for the construction of the affordable housing projects listed in Attachment A in the total amount of up to $41,146,469.75 consisting of $19,000,000 in Measure K Fiscal Year 2025-26 funds approved by the Board of Supervisors for affordable housing purposes; $18,022,198 in Measure K funds allocated in previous AHF rounds that were returned to the Department of Housing; $824,271.75 in Permanent Local Housing Allocation funds (subject to state approval of the County Housing Element); $100,000 in County Impact Fees (for unincorporated San Mateo County only); $1,200,000 in Mental Health Services Act funds, and up to $2,000,000 in Homeless Housing Assistance and Prevention funds, including all conditions attached to such funding recommendations; and
B) Authorizing the Director of the Department of Housing, or designee, in consultation with the County Attorney, to negotiate and execute all contracts, instruments, and other documents and amendments thereto necessary to provide funding to the affordable housing projects listed in Attachment A.
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BACKGROUND:
On April 8, 2013, this Board approved the allocation of approximately $13,400,000 of unrestricted general funds for affordable housing purposes, thereby establishing the Affordable Housing Fund (AHF). These initial AHF funds were derived from a one-time distribution of Housing Trust Funds held by former redevelopment agencies in San Mateo County.
Since then, after twelve subsequent annual AHF competitive funding rounds, this Board has awarded more than $350 Million for affordable housing from various sources. Specifically, the AHF has been funded by County general funds, Measure K funds, Redevelopment Agency (RDA) Housing Trust Funds, HOME Investment Partnership Funds, Community Development Block Grant (CDBG) funds, and funds allocated to the County from the State of California’s Housing and Community Development department (HCD), including the Permanent Local Housing Allocation (PLHA), the Local Housing Trust Fund (LHTF) and Housing for Healthy California (HHC) funds. In addition, $15,000,000 in Measure K funds have been allocated to priority preservation opportunities, resulting in the acquisition and preservation of four apartment complexes, one of which included households receiving County supportive services. AHF funding has created 4,939 affordable units, including 2,875 completed and occupied units, 862 units under construction, and 1,202 units in predevelopment.
In 2024, under the twelfth (and most recent) round of AHF competitive funding including a supplemental NOFA 12.5 to award returned funds from AHF 12, AHF 12.0/12.5 awarded $40,530,131 for the new construction of nine affordable rental housing developments. Sources for AHF 12.0/12.5 included Measure K funds (both new and recovered), County Impact Fees, federal HOME funds, federal Community Development Block Grant funds, Measure K funds dedicated to Former Foster Youth, and Permanent Local Housing Allocation funds, as well as Moving to Work reserve funds awarded by the Housing Authority of the County of San Mateo.
DISCUSSION:
On June 2, 2025, the County’s Department of Housing (DOH) released a Notice of Funding Availability (NOFA) for its thirteenth round of AHF competitive funding (AHF 13.0). AHF 13.0 made available $19,000,000 in Measure K Fiscal Year (FY) 2025-26 funds approved by the Board for affordable housing purposes; $18,022,198 in Measure K funds allocated in previous AHF rounds that were returned to DOH; $824,271.75 in PLHA funds awarded by the California Department of Housing and Community Development (HCD) subject to approval of the County Housing Element; $100,000 from County impact fees (available only for projects in unincorporated San Mateo County); and $1,200,000 of Mental Health Services Act funds provided by County Behavioral Health and Recovery Services (BHRS). During the NOFA, the Human Services Agency provided an amount not to exceed $2,000,000 of Homeless Housing Assistance and Prevention funds to be awarded through AHF 13.0 for units for people experiencing homelessness.
DOH received seventeen applications for AHF 13.0 funding by the application deadline of July 3, 2025, requesting a total amount of almost $125,000,000 for the creation of 1,352 affordable housing units with an aggregate development cost of more than one billion dollars.
The seventeen applications for AHF 13.0 funds proposed worthy projects that would increase the supply of high-quality affordable housing in diverse communities across the County. After considering the total amount of funding available, the comparative readiness of each project to proceed, the specific restrictions imposed on different funding sources available for allocation, the competitiveness of the project for low-income housing tax credits and other funds, and the County’s funding priorities, DOH staff and the Housing and Community Development Committee jointly recommend that the available AHF 13.0 funds totaling $41,146,469.75 be awarded, in varying amounts as specified, to the projects listed on Attachment A.
The proposed resolution has been reviewed and approved as to form by the County Attorney.
COMMUNITY IMPACT:
By financing the development of housing affordable for households with a range of incomes, typically between 30% and 60% of Area Median Income, the AHF creates high-quality, stable homes for residents of San Mateo County who are often a paycheck from homelessness. By requiring that at least 5% of all units create housing opportunity for households experiencing homelessness and rewarding the production of even more units for homeless households, AHF contributes to the County’s continuing commitment to pursue zero functional homelessness.
FISCAL IMPACT:
The proposed competitive AHF 13.0 awards authorized by the proposed Resolution and specified in Attachment A are limited to the utilization of up to $19,000,000 in Measure K FY 2025-2026 funds approved by the Board for affordable housing purposes; $18,022,198 in Measure K funds allocated in previous AHF rounds but returned due to adjustments in project plans; $824,271.75 in PLHA funds (subject to approval of County Housing Element); $100,000 in County Impact Fees (for unincorporated San Mateo County only); $1,200,000 in Mental Health Services Act (MHSA funds); and up to $2,000,000 of Homeless Housing Assistance and Prevention funds.