Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director of Housing
Subject: Measure K-Amendment to Agreement with HIP Housing
RECOMMENDATION:
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Measure K: Adopt a resolution authorizing an amendment to the agreement with HIP Housing for the Home Sharing Program, increasing the amount of the agreement by $92,000 in Measure K funds to a new total obligation amount not to exceed $457,907 and extending the term of the agreement through March 31, 2022.
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BACKGROUND:
Measure K is a 20-year half-cent sales tax extension passed by voters in November 2016 to run through March 31, 2043 to support essential County services and to maintain or replace critical facilities. The original tax was passed in 2012 (previously referred to as Measure A). The Board and County staff have conducted study sessions and community outreach efforts to inform Measure K spending priorities.
On September 24, 2019, the Board of Supervisors approved the fiscal year 2019-20 Adopted County Budget, which included HIP Housing’s Home Sharing Program as a continuing initiative. The Adopted County Budget for fiscal year 2019-20 allocated $180,250 to HIP’s Home Sharing Program. On September 29, 2020, the Board of Supervisors approved the fiscal year 2020-21 Adopted County Budget, which also included HIP Housing’s Home Sharing Program as a continuing initiative, and which allocated $185,658 to HIP’s Home Sharing Program.
On September 24, 2019, the Board of Supervisors authorized the Director of the Department of Housing or the Director’s designee to execute an agreement with HIP Housing for the Home Sharing Program for the term of July 1, 2019 through June 30, 2021, in an amount not to exceed $365,907 (“Agreement”). On September 24, 2019, County and HIP Housing entered into the Agreement.
HIP Housing’s Home Sharing Program offers a creative solution for expanding housing opportunities and choice in San Mateo County. The Home Sharing Program matches persons who have space available to rent in their home (“Home Providers”) with persons seeking an affordable place to live (“Home Seekers”), maximizing housing inventory by using existing housing stock to create affordable housing options. HIP Housing’s Home Sharing Program is the only program of its kind in San Mateo County and is one of the largest programs in the country, providing a housing option for 660 people a year. Over 90% of the people applying to the Home Sharing Program qualify as low to extremely low-income according to HUD’s standards. Additionally, 55% of the home providers are seniors aging in place. The Home Sharing Program utilizes a 3-pronged marketing approach (1) a large-scale marketing campaign; (2) a Community Outreach Specialist who facilitates and attends outreach events and executes the marketing strategy; and, (3) a cash incentive for new Home Providers (“Home Provider Incentive Payments”) and a cash incentive for Home Providers who offer rent at or below $1,000 per month. Since 2015, HIP Housing’s marketing campaign, supported by Measure A funds and Measure K funds, has contributed to matching over 350 Home Providers with Home Seekers.
DISCUSSION:
The Agreement’s scope of services includes Home Provider Incentive Payments to new Home Providers who participate in the Home Sharing Program for at least three months. These Home Provider Incentive Payments are disbursed to Home Providers upon completion of three months of participation in the Home Sharing Program. One new Home Provider was recruited by HIP Housing in July 2021 and is expected to earn Home Provider Incentive Payments in September 2021, three months after the current expiration date for the Agreement.
Additionally, since 2015, the County has contracted with HIP Housing for the Home Sharing Program on a sole source basis. Beginning in Fall 2021, the County will issue a Request for Proposals (“RFP”) for such home sharing program services. The RFP process is expected to be complete for the fiscal year 2022-2023 allocations in December 2021. However, in order to avoid any gaps in Home Sharing marketing services during the pendency of the RFP process, we recommend that the Board authorize an amendment to the Agreement to extend the term for nine months, through March 31, 2022 and to authorize a corresponding increase in Measure K funding of $92,000. This additional funding will allow HIP Housing to (1) make Home Provider Incentive Payments to Home Providers who joined the Home Sharing Program in April 2021 through July 2021, and (2) continue to provide Home Sharing Program marketing services until the County’s RFP process for similar services is complete.
PERFORMANCE MEASURE:
|
Measure |
FY 21-22 Nine-Month Amendment Period |
|
Number of Home Providers who contact HIP Housing to inquire about the Home Sharing Program |
165 |
|
Number of Home Providers interviewed by Home Sharing Counselors in preparation for Home Sharing |
120 |
|
Number of Home Sharing matches made |
25 |
|
Amount of incentives distributed to Home Providers 90 days after a housemate moves in |
$3,000 12 Providers at $250 each |
|
Amount of incentives distributed to Home Providers 90 days after a housemate moves in who has offered a rent at or below $1,000 per month |
$4,750 19 Providers at $250 each |
|
Amount of incentives distributed to Home Providers after a client they referred enrolls as a Home Provider |
$3,750 25 providers at $150 each |
The agreement and resolution have been reviewed and approved by County Counsel as to form.
FISCAL IMPACT:
Net County cost amounts to $92,000 of Measure K funds for the FY 2021-22 funding cycle.