Title
Adoption of Resolution Approving Continued Participation in the Alameda County HOME Consortium and Authorizing 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: Jill Keimach, City Manager
Re: Adoption of Resolution Approving Continued Participation in the Alameda County HOME Consortium and Authorizing 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. 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. Program funding levels have fluctuated over the years, but in recent years the federal budget for HOME has steadily decreased and the President’s budget proposes to eliminate the Program altogether.
Based on current population levels, Alameda is not eligible to receive HOME funds directly. Therefore, for the past 23 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 City 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 Cooperative Agreement. The Consortium Cooperative Agreement is attached as Exhibit 1.
DISCUSSION
The Consortium members include Alameda 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.) Alameda County Housing and Community Development (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 $7.8 million in HOME funds. These funds have been, or are being, used to assist:
• Public and private entities in acquiring, renovating or constructing affordable housing units with affordability restrictions for up to 59 years;
• First-time homebuyers through the City's Down Payment Assistance programs; and
• Tenant-based rental assistance.
The Consortium Cooperative Agreement extends the City's participation in the Consortium and sets ground rules for its administration and operation in federal Fiscal Years 2018, 2019 and 2020. In FY 17-18, the City will receive $148,275 for development projects and $9,259 in administrative funds. An administrative fee is retained by the County before the City receives the final annual HOME allocation. 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 2018, 2019, and 2020, 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
There is no financial impact on the General Fund. The funds for this project are budgeted annually in the HOME Fund (Fund 235).
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 authorizing 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,
Debbie Potter, Community Development Director
By,
Claudia Young, Director of Rent and Community Programs
Housing Authority of the City of Alameda
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Consortium Cooperative Agreement