Title
Adoption of Resolution Approving Continued Participation in the Alameda County HOME Consortium and Authorize the City Manager to Execute the HOME Consortium Cooperative Agreement with Alameda County. (Housing 235)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Adoption of Resolution Approving Continued Participation in the Alameda County HOME Consortium and Authorize the City Manager to Execute the HOME Consortium Cooperative Agreement with Alameda County.
BACKGROUND
Title II of the Cranston-Gonzales National Affordable Housing Act of (NAHA) of 1990 created the HOME Program, which 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. Program funding levels have fluctuated over the years, but in the last two years, the federal budget for HOME has been cut to nearly half of what was allocated prior to Fiscal Year (FY) 2012-13. In FY 2103-14 the City received $144,253 and in FY 2014-15, it will receive $136,240 and $83,889 in program income. The City Council has previously approved the use of $367,043 over three years from the FY 2013-14, 2014-15, and 2015-16 HOME grants, to be used for pre-development expenses for the affordable housing units being built on Lot 108 at Alameda Landing. For FY 2014-15, approximately $79,695 in HOME grant funds remain unobligated.
Based on current population levels, Alameda is not eligible to receive HOME funds directly. Therefore, for the past 20 years, Alameda has received funding from this program through its participation in the Alameda County HOME Consortium (Consortium). The City's continued participation in the Consortium must be approved by the Council at three-year intervals and the Consortium Cooperative Agreement executed to allow receipt of future funds. The City also executes a contract designating the City of Alameda as a sub-recipient of HOME funds on an annual basis in the approved three-year term of the Consortium Agreement.
DISCUSSION
The Consortium members include Alameda County and seven cities in the County. (Oakland and Berkeley are large enough to receive HOME funds directly and are not included in the Consortium.) Alameda County Housing and Community Development (ACHCD) is the lead agency for the Consortium. In this capacity, ACHCD will submit applications and reports, coordinate preparation of the Consolidated Plan, maintain financial and program records, monitor compliance with HOME Program regulations, and staff the Technical Advisory Committee.
To date, the City has received a total of approximately $7.5 million in HOME funds. These funds have been or are being used to assist:
• Public and private entities in acquiring, renovating or constructing units with affordability restrictions for 59 years;
• First-time homebuyers through the City's Downpayment Assistance programs; and
• Tenant-based rental assistance.
The attached Consortium Cooperative Agreement (Exhibit 1) extends the City's participation in the Consortium and sets ground rules for its administration and operation in federal fiscal years 2015, 2016 and 2017. In Fiscal Year 2013-14, the City received approximately $144,253 of HOME funds for projects and administrative costs. An administrative fee is retained by the County before the City receives the final annual HOME allocation. Therefore, no additional funds are required to participate in the HOME Consortium. Following City Council approval, the City Manager will execute this Agreement and separate Sub-Recipient Agreements for FYs 2015, 2016, and 2017, conforming agreements with public and private entities, and related documents, as necessary, to implement HOME-funded programs and activities. All agreements and other documents are substantially similar to those previously approved by the City Council and City Attorney.
FINANCIAL IMPACT
The funds for this project are budgeted annually in the Housing Department's HOME Fund (Fund 235). There is no financial impact on the General Fund.
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.
RECOMMENDATION
Adopt a Resolution approving continued participation in the Alameda County HOME Consortium and authorize the City Manager to execute the HOME Consortium Cooperative Agreement with Alameda County and take all other necessary actions to carry out the City of Alameda's participation in the Alameda County HOME Consortium.
Respectfully submitted,
Michael T. Pucci, Housing Authority Executive Director
By,
Claudia Young, Community Development Program Manager
Financial Impact section reviewed,
Fred Marsh, Finance Director
Exhibits:
1. Draft Agreement