Title
Adoption of Resolution Authorizing Continued Participation in the Alameda County HOME Consortium for HOME Funds and Authorizing Execution of the Necessary Documents to Maintain the Eligibility of the Consortium for HOME Program Funds in Accordance with the National Affordable Housing Act of 1990; and
Recommendation to Authorize the City Manager to Take All Necessary Actions to Carry Out the City of Alameda's Participation in the Alameda County HOME Consortium. (Community Development 20161840)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) receives HOME funds through its participation in the Alameda County HOME Consortium (Consortium). The purpose of the HOME program is to expand the supply of affordable housing for low- and moderate-income households. Alameda County Housing and Community Development (ACHCD) is the lead agency for the Consortium. The City's continued participation in the Consortium must be approved by the City Council at three-year intervals and an Agreement executed between the City and the County of Alameda (County) to allow receipt of future funds. The partially executed Agreement is attached as Exhibit 1.
BACKGROUND
Title II of the Cranston-Gonzales National Affordable Housing Act (NAHA) of 1990 created the HOME Program. The HOME Program provides financing for a wide range of affordable housing programs and activities that benefit low- and moderate-income households and special populations such as the elderly and persons with disabilities.
Based on current population levels, the City is not eligible to receive HOME funds directly from the federal government. Therefore, for the past 29 years, the City received funding from this Program through its participation in the Consortium. The City's continued participation in the Consortium must be approved by City Council at three-year intervals and the Agreement executed to allow receipt of future funds. The City also executes an annual contract designating the City as a sub-recipient of HOME funds within the approved three-year term of the Agreement.
DISCUSSION
The Consortium members include the County and seven incorporated cities in the County. (Oakland and Berkeley are large enough to receive HOME funds directly and are not included in the Consortium.) ACHCD is the lead agency for the Consortium. In this capacity, ACHCD submits applications and reports, coordinates preparation of the Consolidated Plan, maintains financial and program records, monitors compliance with HOME Program regulations, and staffs the Technical Advisory Committee.
To date, the City has received a total of approximately $9.0 million in HOME funds plus an additional $2.35 million of HOME American Rescue Plan funds. These funds are used to support:
• Public and private entities to acquire, renovate or construct affordable housing units that have affordability restrictions for up to 55 years;
• First-time homebuyers through the City's Down Payment Assistance programs; and
• Tenant-based rental assistance.
The Agreement extends the City's participation in the Consortium and sets ground rules for its administration and operation in federal Fiscal Years (FY) 2023-24 through 2025-26. In FY 2023-24, the City will receive $225,238 for development projects and $13,670 in administrative funds. An administrative fee is retained by the County before the City receives its annual HOME allocation. No additional funds are required to participate in the HOME Consortium.
ALTERNATIVES
• Staff recommends that City Council authorize the City of Alameda’s continued participation in the Alameda County Home Consortium and authorize execution of the sub-recipient agreement with Alameda County for HOME Program funds.
• City Council could decline to continue participating in the Alameda County HOME Consortium at this time. This will result in reduced funding for affordable housing projects and programs.
FINANCIAL IMPACT
The funds for this program are budgeted annually in the HOME Fund (Fund 201). No local match is required to participate in the HOME Consortium.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Participation in the Alameda County HOME Consortium is consistent with the Housing Element of the General Plan.
ENVIRONMENTAL REVIEW
Participation in the Alameda County HOME Consortium is not considered a project pursuant to CEQA Guidelines Section 15378(b)(4), which states that the definition of "project" does not include the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
The execution of related agreements and final funding commitments are subject to satisfactory environmental clearance under 24 CFR Part 58.
CLIMATE IMPACTS
There are no climate impacts from approving continued participation in the Alameda County HOME Consortium.
RECOMMENDATION
Adopt a resolution authorizing the City of Alameda’s continued participation in the Alameda County HOME Consortium for HOME Funds and authorizing execution of the sub-recipient agreement with Alameda County for HOME Program Funds to maintain the Consortium’s eligibility for HOME Program Funds in accordance with the National Affordable Housing Act of 1990; and Authorize the City Manager to take all necessary actions to carry out the City of Alameda's participation in the Alameda County HOME Consortium.
Respectfully submitted,
Lisa Nelson Maxwell, Community Development Director
By,
Lisa Fitts, Community Development Manager
Financial Impact section reviewed,
Margaret O’Brian, Finance Director
Exhibit:
1. Agreement