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 and County Impact Fees from the Affordable Housing Fund 14.0 to affordable housing projects
RECOMMENDATION:
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Measure K: Adopt a resolution:
A) Approving commitments of Affordable Housing Fund (AHF) 14.0 funds for the construction of the affordable housing projects listed in Attachment A in the total amount of up to $24,347,311, consisting of $24,247,311 in Measure K funds previously approved for affordable housing purposes and $100,000 in County Impact Fees (for unincorporated San Mateo County only), 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 thirteen subsequent annual AHF competitive funding rounds, this Board has awarded more than $400 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 contributed to the development or rehabilitation of approximately 5,122 affordable units, including 3,142 completed and occupied units, 790 units under construction, and 1,190 units in predevelopment.
In 2025, under the thirteenth (and most recent) round of AHF competitive funding, AHF 13 awarded $41,146,469.75 for the new construction of nine affordable rental housing developments. Sources for AHF 13 included Measure K funds (both new and recovered), County Impact Fees, Permanent Local Housing Allocation funds, Mental Health Services Act funds, and Homeless Housing and Prevention Program funds.
DISCUSSION:
On April 20, 2026, the County’s Department of Housing (DOH) released a Notice of Funding Availability (NOFA) for its fourteenth round of AHF competitive funding (AHF 14.0). AHF 14.0 made available $19,000,000 in Measure K Fiscal Year (FY) 2026-27 funds approved by the Board for affordable housing purposes; $5,247,311 in Measure K funds allocated in previous AHF rounds but returned due to adjustments in project plans; $100,000 from County impact fees (available only for projects in unincorporated San Mateo County); and $5,000,000 of Mental Health Services Act (MHSA) funds provided by County Behavioral Health and Recovery Services (BHRS).
DOH received ten applications for AHF 14.0 funding by the application deadline of May 20, 2026, requesting a total amount of more than $70 million for the creation of 810 affordable housing units with an aggregate development cost of more than $761 million.
The ten applications for AHF 14.0 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 14.0 funds totaling $24,347,311 be awarded, in varying amounts as specified, to the projects listed on Attachment A. MHSA funds in the total amount of $5,000,000 were not awarded due to lack of qualified applications and will be made available either in an Over-the-Counter solicitation as authorized by the AHF 14 NOFA or in a subsequent NOFA, as determined in consultation with BHRS.
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 14.0 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 2026-2027 funds approved by the Board for affordable housing purposes; $5,247,311 in Measure K funds allocated in previous AHF rounds but returned due to adjustments in project plans; and $100,000 in County Impact Fees (for unincorporated San Mateo County only).