Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director of Housing
Subject: Authorization for the reallocation of 2019 and 2020 Permanent Local Housing Allocation funds from the City of Foster City to Abode Services
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing and directing the San Mateo County Department of Housing to reallocate no more than $430,025.37 in 2019 and 2020 Permanent Local Housing Allocation (PLHA) funds from the City of Foster City Emergency Relocation Assistance and Rent Subsidies (ERARS) program to Abode Services’ emergency re-housing and supportive services program for the 19 farmworker households displaced as a result of the January 23, 2023 mass shooting event in San Mateo County in accordance with all applicable PLHA rules and guidelines; and
B) Authorizing the Director of the Department of Housing, or designee, to negotiate and enter into amendments to the County’s Agreement with Abode Services to increase the County’s maximum fiscal obligation by no more than $430,025.37 and to make other modifications, as necessary or advisable, to effectuate the purposes of this resolution; and
C) Authorizing and directing the taking of all necessary actions by the Director of the Department of Housing, or designee, and the execution and delivery of any and all documents deemed necessary or advisable by the Director of Housing, or designee, to effectuate the purposes of this Resolution.
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BACKGROUND:
The Permanent Local Housing Allocation program (the “PLHA Program”), which is administered by the California Department of Housing and Community Development (“Department"), 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 Department 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.
The County’s Department of Housing (“DOH”) received a total of $3,089,566 in 2019 and 2020 PLHA grant funding. On May 19, 2020 this Board adopted Resolution No. 077442 authorizing and supporting the DOH’s grant application on behalf of the County and authorizing DOH to “execute any other documents related to the Program or the PLHA grant, as the Department may deem appropriate.” Among other purposes, the PLHA funds may be used to assist persons experiencing or at risk of homelessness, including via rental assistance and case management for individuals and families at or below 60 percent of area median income for PLHA 2019 funding or at or below 30 percent of area median income for PLHA 2020 funding.
Pursuant to this Board’s authority, a total of $643,636 was allocated to the City of Foster City to support its Emergency Relocation Assistance and Rent Subsidies Program (the “ERARS” program”). Among other things, the ERARS program assists low-income tenants at Foster’s Landing facing displacement due to expiring affordable housing covenants to find housing based on their specific needs and financial circumstances.
The City of Foster City has informed the DOH that its financial needs for this project are less than anticipated because the number of households that have needed emergency rental subsidies and the average subsidy awards have been lower than estimated; the City has been able to help find suitable alternative housing solutions for Foster’s Landing tenants before the expiration of the below market rate Agreements; and some households either relocated earlier than expected or were over the PLHA income level requirement. The City’s ERARS program will therefore not expend $86,739.37 in 2019 PLHA funds and $343,286.00 in 2020 PLHA funds allocated to the project.
The County has also received funds under the federal American Rescue Plan Act (ARPA) which can be used among other applications to respond to the public health emergency and its negative economic impacts. On February 14, 2023, through Resolution No. 079441, this Board allocated up to $1,500,000 in funds, from a combination of $750,000 in ARPA funds and third-party contributions, to provide emergency re-housing and supportive services to 19 farmworker households displaced by a mass shooting event in San Mateo County. Pursuant to the Board’s authorization, the County entered into an agreement with Abode Services, Inc. to provide these services, for an amount not to exceed $1,500,000 with a term through March 31, 2024. The services provided by Abode are also eligible for funding under the PLHA Program.
DISCUSSION:
Given the funds made available under the ERARS program and the PLHA-eligible need for funding for displaced farmworker services, staff recommends that the Board authorize the reallocation of $86,739.37 in 2019 PLHA funds and no more than $343,286 in 2020 PLHA funds from the Foster City ERARS program to support the County’s agreement with Abode Services to provide emergency re-housing and supportive, case management, services to farmworker households displaced by the mass shooting event in the County. The reallocation is to be implemented in accordance with all applicable PLHA rules and guidelines.
In connection with the reallocation, the DOH seeks this Board’s authority to negotiate and enter into amendments to the County’s agreement with Abode to increase the County’s maximum fiscal obligation by the amount of no more than $430,025.37, and to make other modifications, as necessary or advisable, to effectuate the purposes of the requested resolution.
The DOH also requests that this Board authorize and direct the taking of all necessary actions by the Director of the Department of Housing, or designee, and the execution and delivery of any and all documents deemed necessary or advisable by the Director of Housing, or designee, to effectuate the purposes of this Resolution.
The County Attorney has reviewed the attached resolution as to form.
FISCAL IMPACT:
There is no net County cost associated with this proposed PLHA funding reallocation. The $430,025.37 to be partially or fully reallocated by this action are PLHA funds previously received in connection with the County’s application for PLHA funding and would be applied to supplement an existing funding commitment. Budgetary appropriation for this funding is included in the FY 2023-24 Adopted Budget.