Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Ken Cole, Director, Department of Housing
Subject: Loan agreement with HEART of San Mateo County for $5 million
RECOMMENDATION:
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Measure K: Authorize the Director of the Department of Housing to execute a $5 million loan agreement with Housing Endowment and Regional Trust (HEART) of San Mateo County for the purpose of making housing development, preservation, acquisition, and rehabilitation loans to non-profit and for-profit developers and educational institutions.
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BACKGROUND:
Measure K is the half-cent general sales tax initially approved by San Mateo County voters in November 2012, and extended in November 2016 for a total of thirty years. The Board and County staff have conducted study sessions and community outreach efforts to inform priorities for Measure K spending.
On May 16, 2017, the Board approved the Measure K Allocation Plan and Affordable Housing Plan for Fiscal Years 2017-19, during which time the County anticipates Measure K receipts of approximately $80 million annually. The plan includes allocations for affordable housing of $40.5 million with a sub-allocation to HEART in the amount not to exceed $5 million for the purpose of making housing-related loans.
DISCUSSION:
County of San Mateo will loan $5 million to HEART on the condition that the full sum of the loan be used for the sole purpose of making loans to non-profit and for-profit organizations and educational institutions for the development or preservation of affordable and workforce housing projects, as described in more detail in Exhibit A of the agreement. Upon request, the County will remit funds to HEART's account at the County Pool. HEART will request these funds from time to time as it makes loans for projects eligible under the Agreement's guidelines.
HEART may use the loan to make two types of loans: 1) predevelopment, acquisition, construction, and bri...
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