Accept Report and Specify Actions on Office of Affordable Housing Staffing and Use of Redevelopment Set-Aside Funds
BOS Agenda Date :December 17,2002
County of Santa Clara
Office of the County Executive
Office of Affordable Housing
CE07 121702
Prepared by: Susan Phillips
Acting Director, Office
of Affordable Housing
Submitted by: Jane Decker
Deputy County Executive
DATE:
December 17, 2002
TO:
Board of Supervisors
FROM:
Richard Wittenberg
County Executive
SUBJECT: Accept Report and Specify Actions on Office of Affordable Housing Staffing and
Use of Redevelopment Set-Aside Funds
RECOMMENDED ACTION
Consider recommendations relating to Office of Affordable Housing and use of
redevelopment set-aside funds.
Possible action:
a. Accept report on Office of AffordaMe Housing status and funding,
b. Direct Administration to proceed with staffing'ihitiatives identified as Phase 1 actions
and work with the Employee-Services Agency to return to the Board in January, 2003
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Bc'.'ird of Supervisors: Donnki F. Gage. Blanca Alvarado, Pete .McHugh, James T. BoallJr., Liz Kniss
County Kxccutivc: Richard Wittenberg
1
eos Agenda Date :December 17, 2002
with recommended actions necessary to implement this direction,
c. Authorize Administration to proceed with physical consolidation of Office of
Affordable Housing staff in leased space at 1735 N. First Street,
d. Direct the Administration to report back in January with level of initial redevelopment
set-aside funds required for use by Office of Affordable Housing for three-year
operating expenses, including housing initiatives.
FISCAL IMPLICATIONS
There is no impact on the General Fund as a result of this action. Although no requests for
appropriations are included in this transmittal, the Board is being asked to set direction for
action on salary ordinance amendments and appropriation modifications which will be
brought to the Board for action in January.
CONTRACT HISTORY
N/A
REASONS FOR RECOMMENDATION
The Administration's response outlines recommendations regarding the phasing of staffing for
the new Office of Affordable Housing(OAH)and presents a series of options for moving
forward to implement the Board's direction with regard to funding affordable housing
initiatives. The Administration is asking the Board to identify a preferred strategy for funding
and to direct the Administration to report back in January with the salary ordinance
amendments and appropriations modifications necessary to implement the Board's direction
on these issues.
Recommendations on Staffing for the Office of Affordable Housing
As previously reported to the Board, the Administration has been awaiting receipt of a staffing
analysis performed by the Enterprise Foundation under a Department of Housing and Urban
Development(HUD)technical assistance grant. A final report was received in early
December and is included in this report as'Attachment 1. The Administration has reviewed the
Enterprise Foundation's analysis and is recommending that the Board move forward with a
limited number of staffing actions m a jphased approach fo%ilow^the organization to assimilate
itUfU Number
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Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz ICniss
County Executive: Richard Wittenberg
2
BOS Agenda Date :December 17, 2002
new functions and determine how existing staff can be effectively utilized.
Phase 1 Staffing Recommendations
• Approve, in concept, establishment of Director, Office of Affordable Housing, position.
This is the pivotal position for the new organization. The Director will implement the
vision for the office through strategies designed to create and move forward a legislative
agenda to support affordable housing development, coordinate the use of County funds to
achieve the Board's direction on housing development, work with other local agencies and
affordable housing developers to set measurable goals for affordable housing development
in the county and develop an organizational culture to achieve successful outcomes.
Because the success of the new organization depends largely on more effective utilization
of staffing and targeting of existing resources to meet the increased expectations identified
by the Board and the community, this action should be taken immediately. The Employee
Services Agency has indicated, if recruiting begins in January, the Director could be in
place by late April, 2003. The cost of this position can be recovered through a combination
of HUD administrative cost reimbursements, MCC/Housing Bond Trust Fund resources
and redevelopment set-aside funds. With Board concurrence of this action, the
Administration will work with the Employee Services Agency to prepare a new job
description and salary ordinance for Board action in January.
• Approve, in concept, add/delete action for the existing, vacant Office Management
Coordinator position in the Housing and Community Development Division to an
appropriate office manager position.
With Board concurrence of this action, the Administration will work with the Employee
Services Agency to implement this administrative add/delete action. This vacant position
is already funded; however, a review of the position's changed functions in the new
organization suggests the need for a different position code at a roughly comparable
salary. Development of written policies and procedures, coordination of office-wide
procurement and administrative processes, development and management of an organized
filing system and more effective utilization of administrative staff time are critical
operational areas which require the re-establishment of this function. This position has
been held vacant, pending completion of the Enterprise Foundation staff analysis and is
vern >
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Board of Supervisors: Donald K. Gage, Blanca Alvarado. Pete McHugh, James T. Boall Jr., Liz Knias
County Executive; Richard Wittenberg
3
BOS Agenda Date :December 17,2002
expected to require minimal additional funds. The cost of this position can be recovered
through a combination of HUD administrative cost reimbursements, MCC/Housing Bond
Trust Fund resources and redevelopment set-aside funds.
• Approve, in concept, addition of one administrative position to support the Director.
With Board concurrence of this action, the Administration will work with the Employee
Services Agency to determine the appropriate level for this position and to prepare the
necessary salary ordinance amendment for action by the Board in January. This is a new
position and represents a new cost to the organization. The cost of this position can be
recovered through a combination of HUD administrative cost reimbursements,
MCC/Housing Bond Trust Fund resources and redevelopment set-aside funds. It is the
intention of the Administration to hold this position vacant until the new Director has been
hired.
• Approve, in concept. Addition of one analyst position to coordinate implementation of
HUD's HOME program, a need identified by a recent HUD compliance review.
The Enterprise Foundation report recommends the addition of two new analyst positions
— one to support the Director and to provide overall OAH analytical support and another
one to provide support to the HOME program. Only the HOME analyst position is being
recommended here. No new costs are associated with this position, as the cost of the
HOME position will be fully reimbursed by administrative cost reimbursement associated
with HOME. With Board concurrence of this action, the Administration will work with the
Employee Services Agency to determine the appropriate level for this position and to
prepare the necessary salary ordinance amendment for action by the Board in January. We
hope to fill the position by an internal transfer of existing County staff
Once the Director has been able to review current staff functions and assignments, the
need for an additional analyst position to provide analytical support for the Director and
the office can be evaluated. It may be possible to redirect the efforts of existing staff so as
to obviate the need for a second analyst position.
Date
^.;^ecerriber 'i/, 2002
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Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz Kniss
Countj' Execuuve; Richard Wittenberg
4
BOS Agenda Date :December 17, 2002
• Approve, in concept, addition of one analyst position to coordinate implementation of
the County's MCC/Housing Bond Trust Fund activities.
This function is currently performed by a contractor and the costs are fully covered by the
Housing Bond Trust Fund (Fund 0208). With the consolidation of this contracted program
into the new Office of Affordable Housing, the Administration believes that the ongoing
workload of this function should be handled by County staff. The full cost of this position
will continue to be funded by the Housing Bond Trust Fund. With Board concurrence of
this action, the Administration will work with the Employee Services Agency to determine
the appropriate level for this position and to prepare the necessary salary ordinance
amendment for Board action in January.
• The Enterprise Foundation report recognizes that, in order for the County to be
successful in creating housing, the OAH needs someone experienced in putting housing
deals together. This includes bringing parties together, investigating options to use
surplus land and identifying funding opportunities. This role requires specialized
knowledge and experience that is not currently available in the Office of Affordable
Housing. Initially, the Administration plans to fill this critical need through contract
assistance; however, the long-term plan is to bring the position in-house, perhaps as a
deputy to the OAH Director. The cost of this position can be recovered through a
combination of HUD administrative cost reimbursements, MCC/Housing Bond Trust
Fund resources and redevelopment set-aside funds. No action by the Board is requested
at this time.
Phase 2 Staffing Recommendation
• Add one position in the accounting unit to provide staffing necessary for centralized
support for all OAH divisions.
The cost of this position will be partly offset by reimbursements currently made to the
Controller's Office for one-third Accountant III (supporting the Housing Bond Trust Fund
0208) and overhead costs charged by the County Executive's Office accounting unit. The
remaining cost of this position will Ee covered by*administf’ative cost reimbursement
through HUD programs. The Adrninistration proposes^to work with the Employee
Services Agency to determine the'^appropriate level foUthis position and to include this
iern Nurnher
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Board of Supervisors: Donald F. Gage, Blanca .■Uvarado, Pete McHugh, James T. Beall Jr., Liz Kniss
Countj' Executive: Richard VVittenben?
5
BOS Agenda Date :December 17, 2002
position action in the FY2004 Recommended Budget.
Recommendations on Consolidation of the Office of Affordable Housing
While the three units comprising the Office of Affordable Housing have been consolidated
budgetarily, physical relocation of the staff who are currently located in the County
Executive s Office(Homeless Concerns Office, MCC/Housing Bond Trust Fund)has been
delayed, pending final Board action on appropriation of redevelopment set-aside funds. With
Board concurrence on use of these funds to support the ongoing costs associated with the
consolidation of OAH staff at one site, OAH staff and the Santa Clara County Housing Trust
contract position will be relocated to 1735 N. First Street, to a suite recently vacated by the
Office of the County Counsel. The County's lease for this suite extends through 2007; the
current monthly lease cost is $4,118. Additional costs associated with moving, purchase
and/or lease of furniture and equipment(computers, printers, telephones, faxes, copier) is
estimated at $18,000 in one-time costs and an additional cost for furniture. This move could
occur by using redevelopment set-aside funds to cover the new costs. With Board
concurrence of this action, the move will be implemented as soon as possible and an
appropriation modification action will be brought to the Board for approval in January.
Opportunities for T.ocating and Developing Affordable Housing — Surplus, Vacant and
Underutilized Property
The County has already made progress in designating key parcels of underutilized County
land for housing opportunities, as part of ongoing economic development projects managed
by the County Executive's Office and as part of the capital development plan.
• As part of the Fairgrounds Revitalization Project, the County, in cooperation with the
City of San Jose and the Housing Authority, has proposed to increase housing
opportunities by 560 units. Sixty townhomes for sale at entry-level market rate are
proposed for development, along with two hundred rental apartments for seniors and
another three hundred multi-family rental apartments. As proposed, it is estimated that
roughly 90% of the project will be affordable to low and very low income residents.
• Mixed-use development ofthe employee parking lofat North First and West Hedding
Streets may provide a significant opportunity for development of affordable housing
along a transit corridor. Depending on the timing of this development proposal, bond
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Board of Supervisors: Donald F. Gajje, Blanca Alvarado, Pete MeHugh, James T. BeallJr., Liz Knisa
County Executive: Richard Wittenberg
6
BOS Agenda Date :December 17, 2002
funds made available through the passage of Proposition 46 may be a potential source
of funding to increase affordability of the housing portion of the development.
• As reported at the Board's October Capital Workshop, three parcels in Milpitas near the
Elmwood Correctional Facility are being planned for commercial and residential
development coordinated by the County Executive's Office. The Request for Proposals
(REP)for commercial development has already been issued. The RFP for residential
development is in the final stages of development and is expected to be issued shortly.
• The Garland Avenue/Fairoaks parcel in Sunnyvale was also the subject of Board action
at the October workshop. It was assumed that housing could be developed in
conjunction with a clinic expansion. A new site plan is being developed to determine
the feasibility of developing housing after the clinic expansion, per Board direction.
Other surplus parcels of County-owned land offer additional opportunities. In February, the
Board was provided an off-agenda report which identified twenty-two parcels of vacant
and/or surplus land. In addition to the Milpitas and Fairoaks parcels that are discussed above,
this included a wide range of parcel sizes and locations. Some parcels were reviewed and
determined to be too small for independent housing development consistent with zoning
codes or too remote for development as affordable housing sites. The most promising sites
were recently reviewed with General Services Agency and Roads and Airports Department
staff Updated information is being provided to the Board off-agenda regarding parcels which
are currently under negotiation for disposal.
A number of sites on this list appear to be appropriately situated for housing. These, as well as
underutilized parcels which have not been identified as surplus, are being reviewed by cities,
by non-profit developers and by the County for their potential as development sites for
affordable housing. These sites include:
• A 2.5 acre parcel of excess right-of-way at the southeast comer of San Tomas
Expressway and Monroe Street in Santa Clara.
• Three small parcels located on Warren Avenue in Morgan Hill.
• A 1.2 acre parcel at Almaden Expressway and Camden Avenue in San Jose which is
currently used for parking.
• A 1.13 acre parcel on the northeast side of San Felipe Road, south of Silverland Court
in San Jose, which is currently leased for use ag landscaping,
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Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz iCniss
Countj' Executive; Richard Wittenberg
7
BOS Agenda Date ;December 17, 2002
• A 1.7 acre parcel on the east side of Old Almaden Road, south of Route 87 in San Jose.
• County property at Capri Drive in Los Gatos, which is currently used for Court and
Clinic activities.
Many of these sites are non-General Fund assets. Should any sites previously purchased with
funds carrying special restrictions on use (e.g.. Parks Fund, Roads Fund)be offered for
housing development, it may be necessary to sell or otherwise transfer these properties at fair
market value. The Administration is working with County Counsel to verify the specifics of
these restrictions and is working the Roads and Airports Department to research the source of
funds used originally to purchase the sites that are identified as Roads Fund properties.
These sites and vacant or surplus property controlled by other local agencies may offer an
opportunity for the County to partner with other local jurisdictions, non-profit organizations
and housing developers to provide affordable housing specifically geared to address some of
the "special needs" populations which rely on County services, as well as to provide
affordable housing generally. The Administration has begun this process by commissioning
preparation of a database of all vacant parcels in the County controlled by public agencies.
Review of these sites for potential housing opportunities will be an important focus for the
contract currently under development by the Administration to evaluate sites for housing
development and to secure expertise in pulling together alternative sources of financing to
create workable partnerships for housing development.
Other non-County sites also offer opportunities for collaborative housing development.
These include such projects as housing development and service provision proposed through
the Opportunity Center of the Midpeninsula that has been proposed in Palo Alto. The housing
elements of local cities also identify potential sites for the development of affordable housing.
In some cases, these sites may be appropriately situated to address County client needs and
County funding collaboration may enhance the opportunities for development of special
needs housing.
Use of Redevelopment Set-Aside Funds and Other Dedicated Funds to Leverage Affordable
Housing Development
meting Date
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Bchsrd of Supervisors: Donald F.
LJecember 17,2002
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Regaclar.
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Blanca Alvarado, Bste McHugh, James T- Beall Jr., Liz Kniss
County Executive; Richard Wittenbetig
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BOS Agenda Date ;December 17, 2002
In June, the Board set aside 30% of Redevelopment Settlement Agreement delegated funds to
provide a source offunding for affordable housing initiatives. To date, the County has
received approximately $34 million in Redevelopment Settlement Agreement delegated
funds, and a total of $61 million is expected through 2004. The 30% set-aside represents
approximately $8 million of current receipts, with a total of$18 million anticipated over this
four-year period.
In addition to these funds, the Office of Affordable Housing maintains and administers a
variety of special funds and program allocations. Most are administered through the Housing
and Community Development Program, through the annual funding cycle. One is
administered through the MCC/Housing Bond program. Others represent small funds which
rely on repayment of prior loans or in-lieu payments made previously by developers. These
current sources of funding are described in Attachment 2.
Coordinated Strategy for Applying Funds
An effective strategy to address countywide affordable housing needs must marshal all
available funding sources to target provision of affordable housing and operating support for
County housing activities. The Administration has identified a number of opportunities to
leverage the County funds described above. These are described briefly in Attachment 3. In
addition to these funding sources, other opportunities are certainly available. More
investigation is needed to review the alternatives and identify the approaches that would be
most productive. A short-term contract with a knowledgeable housing consultant is being
developed to secure this expertise.
Opportunities for Use of Redevelopment Set-Aside Funds
As indicated elsewhere in this report, some level of redevelopment set-aside funding is
required to provide operating support for the County to play a proactive role in the housing
field. New General Fund resources are not available for this enhanced effort. Depending on
the level of funding which is made available, set-aside funding can be used to augment
existing sources of funding which support County housing activities or can be used to
leverage other housing activities associated with County programs or other programs operated
by jurisdictions and organizations within ^qnta Clara Coiinty. ^
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Board of Supervisors; Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz ICnias
Countj' Executive: Richard Wittenberg
9
BOS Agenda Date :December 17, 2002
The key to the use of these funds is to use them in a way which helps the County change the
way business has previously been done— to become proactive in identifying housing
opportunities and in structuring funding deals to make projects possible, rather than reacting
to proposals which are submitted through an annual process. The Enterprise Foundation
report suggests three specific strategies for using new resources to establish special-purpose
funding sources for specific housing needs. Detailed descriptions appear in Attachment 1.
• Special Needs Housing Fund: The Enterprise Foundation recommends earmarking a
specific funding allocation($4 million per year) to address the need for construction of
group homes as well as set-aside units for special needs populations in other affordable
housing projects. Per unit subsidies are proposed, based on the housing unit size.
• Pre-Development Fund: Establishment of a pre-development fund ($250,000 per year)
is proposed as a revolving loan fund, which would provide seed money in the form of
$50,000 loans to cover such costs as land options or escrow accounts, professional fees
and project development staff salaries.
• Land Acquisition Fund: A land acquisition revolving fund is proposed ($1.5 million per
year) to provide 1-year loans (with potential for two additional 1-year extensions) to
developers so that land purchases can be made quickly and property secured for
affordable housing.
Other possible uses of these funds include the following:
• Funds can be used to assist the Santa Clara County Housing Trust to achieve the needed
match for Proposition 46 funding.
• Funds can be provided for additional emergency rent and mortgage assistance, to
prevent homelessness resulting from non-payment of rent or mortgage costs or the
inability of potential renters to provide security deposits.
• Funds can be made available to address funding requests through the CDBG process
that exceed the County's HUD allocations.
• Requests for Proposals (RFPs)can be developed and issued to offer funding for
affordable housing development which addresses the needs of County special needs
populations.
• Funds can be made available, through an RFP process, to non-profits seeking funds for
projects which will be submitted for Proposition 46 funding.
• Funds can be made availa^e to increase file level of affordability of housing units
included in County mixed-use development prpjecfs.(e.g.j Hedding Street project).
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Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz Kniss
County Executive: Richard Wittenberg
10
BOS Agenda Date ;December 17, 2002
• The County can partner with local jurisdictions to purchase surplus public land for
housing purposes. The County might require dedication of a certain percentage of
affordable housing units for County special needs clients as a condition of this
partnership.
The ability of the County to pursue any of these options will depend on the level of
redevelopment set-aside funding which the Board chooses to appropriate for these activities.
The Administration can provide more specific recommendations when a level of appropriation
is finalized.
RACKGROUND
On October 8, 2002, the Board of Supervisors directed the Administration to report back to
the Board with specific recommendations regarding staffing in the Office of Affordable
Housing and recommendations and a process for allocating funding (including redevelopment
settlement agreement funds previously set aside for housing) to support increased provision of
affordable housing in Santa Clara County. The Board also directed the Administration to
identify ways in which these funds could be leveraged to achieve a greater result. The
Administration's response to this direction is detailed above.
Hmising Task Force Recommendations
The Board also directed the Administration to report on the status of implementation of the
Housing Task Force recommendations. Progress in this area is described below.
The Administration reported back to the Board in June with an implementation plan for the
Housing Task Force Recommendations and a priority list for Office of Affordable Housing
activities. Progress in each of the six primary clusters of recommendations is described briefly
below.
Create an Office of Affordable Housing
This was accomplished in July and will be fully realized with the physical consolidation of
OAH staff and the hiring of a permanent OAH Director.
:.u:
Board of Supcrviaors; Donald F.
County Executive; Richard Wittenberg
M.,
Blanca Alvarado, Pete
.jer
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James T. Beall Jr., Liz Knias
11
BOS Agenda Date :Decennber 17, 2002
Establish Special Needs Housing as a County Priority
The Board has indicated this is a priority, recognizing that the availability of housing to
address the needs of County clients throughout a continuum of care is essential to
cost-effective long-term success of treatment and support programs. A listing of"special
needs" populations developed by the County's Supportive Housing Initiative is included here
as Attachment 5.
Specific housing needs associated with County clients include the following:
• Additional residential treatment facilities are required to provide an adequate source of
these facilities to serve County clients.
• Transitional supportive housing, which provides a stable, monitored living environment
for clients who have successfully completed the first phase of intensive treatment, is
required in order to move clients toward successful independent living situations.
• Permanent supportive housing for a variety of County clients is needed in order to keep
these individuals in as independent a living environment as possible and to keep some
clients from becoming homeless or remaining in custody situations due to lack of
suitable housing in community settings. Support services provided on-site can range
from support for the physical needs of clients who have been discharged from
hospitalization but require continuing care, as well as for disabled and elderly clients
who require some assistance with daily living.
• Permanent housing is needed for clients who have completed County—based treatment
services, but who are at risk ofreturning to previous behaviors and returning to the
County service stream due to stresses caused by the lack of available housing. In this
regard. County treatment clients face the same barriers to finding housing as do other
County residents who are seeking affordable housing. In addition, they may face social
stigma associated with their situation, which may exacerbate challenges in finding
housing. Coordinated County discharge planning or housing locator services may help
to place these clients, as would additional housing which is earmarked for County
clients.
• Development of a Safe House for short-term, interim housing placement is needed to
protect vulnerable adults who must be removed from their homes and placed under
protective service until alternate placement is possible,,or until they can be returned
home.
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Board of Supervisors; Donald F. Gage, Blanca Alvarado, Pete
County Executive: Richard Wittenberg
L=
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James T. Beall Jr., Liz Knias
12
BOS Agenda Date :December 17, 2002
Rental subsidies or affordable housing for working poor families is needed has been
proven essential to increasing the stability of low-income families and allowing them
to maintain employment and sustain economic self-sufficiency.
• Potential Resource Families (families who provide foster care, adoptive and relative
caregiver services) face a variety of State and Federal licensure and certification
standards which may prevent their participation in programs designed to provide
out-of-home placement. Flousing assistance, such as homebuying or home
modification assistance could provide financial assistance needed by these families to
meet housing standards required for program participation.
• Youth leaving the foster care system due to aging-out require specialized supportive
transitional living programs which increase their self-sufficiency and prevent
homelessness.
The Deputy County Executive and the Acting OAH Director have met with SSA and H&HS
representatives to discuss housing opportunities for their clients; further discussions in the
context of deal development will be possible once this expertise is available to the OAH. It is
clear that statistics generated previously on the extent of the housing need must be updated.
The OAH will be working with County operating departments to update these figures as part
of the next phase of action.
Locating and developing housing for some of these populations will offer the greatest
challenge to the County as affordable housing initiatives are pursued. In their interviews with
the Enterprise Foundation, some local cities indicated their support for special needs housing
development, but indicated that they were looking for coordinated County leadership in order
to identify regional needs and determine appropriate sites and strategies for implementation.
Create a County Housing Commission
Establishment of a Housing Commission will require action at the elected official level.
However, in the interim, the Administration is assessing whether it is possible to consolidate
the three advisory committees which work with OAH programs—the Housing Bond Advisory
Committee and the Council and Citizen Advisory Committees for the CDBG Program—to
streamline committee support requirements of existing staff. Additional investigation will be
required to determine how program requipments can be met by a reconfigured advisory body.
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Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz Kniss
County Executive: Richard Wittenbeig
13
BOS Agenda Date :December 17, 2002
County Assume Leadership in Regional, State and Federal Housing Policy Advocacy
County staff continue to participate actively in established housing forums. With the expected
Board approval to hire a permanent Director for the OAH,this activity can be more
effectively focused and additional opportunities for County leadership pursued. The proposed
job description for the director which is included in the Enterprise Foundation report
(Attachment 1) highlights the qualities of housing expertise and advocacy which will be
critical for successful County leadership in regional housing activities.
County Take Leadership to Identify New Local Source of Revenue for Housing
The Board set aside redevelopment funding for housing in June. Staff is identifying other
revenues as described above and is participating in discussions with other local government
officials about how to generate new revenue for housing.
County Work with Public Jurisdictions to Establish Policies on Use of Surplus Public Land
for Housing
extracting data on publicly—controlled vacant parcels using
Assessor's data—has been completed. The expected hiring of a consultant to assist with
The first step in the process
evaluating property for housing and negotiating deals for coordinated action on affordable
housing development is the next step in this process. Research on best practices and the
feasibility of establishing a land bank for affordable housing is under consideration for
funding through a HUD technical assistance grant(Phase 2 of proposed Enterprise Foundation
work).
CONSEQUENCES OF NECATTVE ACTION
If action is not taken on these recommendations, the Administration will be unable to proceed
with the consolidation of functions in the new Office of Affordable Housing and no additional
County funds will be available to support increased provisibri of affordable housing.
Pi
STEPS FOLI OWING APPROVAL
Board of Supervisors: Donald F. Gage, Blairca Alvarado, Pete McHugh. James T. BcaU Jr., Li2 Knisa
County Executive: Richard Wittenberg
14
BOS Agenda Date :December 17, 2002
No action by the Clerk of the Board is required.
ATTACHMENTS
• Attachment 1: Enterprise Foundation Report(Miscellaneous)
• Attachment 2: OAH Current Funding Sources (Miscellaneous)
• Attachment 3: Funding Opportunities (Miscellaneous)
• Attachment 4: Proposition 46 Overview (Miscellaneous)
• Attachment 5: Special Needs Populations (Miscellaneous)
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Bc»ard of Supervisors; Donald F. Gage, Blanca Alvamdo, Pete McHugh, James T. Beall Jr., Liz Kniaa
Countj' Executive: Richard Wittenberg
15
County of Santa Clara
Office of the Board of Supervisors
m
mm
County Government Center, East wing
70 West Bedding street, ioth Fioor
San Jose, California 951 10
(408) 299-2323
THIS RELATES TO:
FAX 298-8460 TDD 993-8272
; 12/17/02(Item 43) v
Supplemental Information #2
James T, Beall, Jr,
Supervisor, Fourth District
To;
Board of Supervisors
From:
Supervisor James T, Beall, Jr.
District 4
^
Supervisor Liz Kniss
District 5
Date:
December 16, 2002
Subject:
Agenda Item #43 - Report on Office of Affordable Housing Staffing and
Use of Redevelopment Set-Aside Funds.
I respectfully propose the following actions be approved by the Board of Supervisors:
A. Accept report on the Office of Affordable Housing status and funding.
B. Direct the Administration to proceed with staffing initiatives identified as Phase 1
actions and work with the Employee Services Agency to return to the Board on
January 14th, 2003 with recommended actions necessary to implement this
direction. At this time. Phase 1 should only include staffing recommendations for
the position of Director, Office or Affordable Housing and one analyst position.
C. Authorize the Administration to proceed with the physical consolidation of the
Office of Affordable Housing staff in leased space at 1735 N. First Street.
D. Direct the Administration to report back on January 14‘^, 2003 with level of initial
redevelopment set-aside funds required for use by the Office of Affordable
Housing for a three-year operating plan, including housing initiatives, as directed
by the Board on June 10‘^, 2002.
Acid Free Paper
®
E. Finalize dedication of Redevelopment Set-Aside Funds for affordable housing.
Staff will report back on January 14th, 2003 with a year one funding plan. The
balance will remain set-aside for affordable housing.
I
!
i
Attachment 2
Office of Affordable Housing - Current Funding Sources
The following are non-General Fund sources of support for current Office of Affordable
Housing programs and activities.
• Housing Bond Trust Fund (Fund 0208)
This fund was established in 1991 with administrative fees and revenues from the
Housing Bond and Mortgage Credit Certificate Program. Application fees from
Mortgage Credit Certificates(MCCs)and Reissued MCCs(RMCCs), fees to lenders
who participate in the MCC and RMCC programs, and issuance and administrative
fees for housing bonds provide operating funds to support the contract-based MCC
program and administration of tax-exempt bonds. Almost $2.5 million has been
disbursed from the Housing Bond Trust Fund to affordable housing projects as loans
in $100,000 increments. It is estimated that the balance of the Housing Bond Trust
Fund will reach approximately $450,000 at the conclusion of FY2003.
• CDBG Program - Community Development Block Grant(Fund 0035)
This is an HUD formula-based program providing block grant funding to carry out a
wide range of community activities, including providing safe and secure housing,
revitalizing neighborhoods, supporting economic development and improving
community facilities and services. The County administers CDBG funds for the
Urban County - “non-entitlement” jurisdictions within the County whose populations
total fewer than 50,000. These jurisdictions are Morgan Hill, Saratoga, Monte
Sereno, Campbell, Los Gatos, Los Altos, Los Altos Hills and Cupertino. Because
Cupertino has met the population threshold to become an entitlement jurisdiction, it
is expected to leave the Urban County group in the upcoming cycle. This funding
allows 20% of the allocation to support administrative costs. Use of CDBG
funds is not restricted to housing programs. The Urban County allocation for the
source
current year was $2,584,000; of this, the County’s share was $801,846 - $190,046
for project allocations which are obligated by Board action annually, $200,000 in
funding set aside for rehabilitation program services and $411,800 to cover County
administrative costs.
• HOME Program (Fund 0038)
This is a HUD formula-based program providing grant funding for housing
rehabilitation targeted to low and very low-income residents. Administration of this
fund is similar to the CDBG fund and allocations are approved by the Board in the
same
funding process. This funding source allows 10% of the allocation to support
administrative costs. Use of these funds is restricted to housing programs. The
Urban County allocation for the current year was $1,043,000, which includes County
administrative costs.
Attachment 2, Page 1
Office of Affordable Housing - Current Funding Sources
• ESG - Emergency Shelter Grant(Fund 0034)
This is a HUD formula-based program for rehabilitation or conversion of buildings
into homeless shelters and funding of certain social services, homeless prevention
activities, operating expenses and administrative costs. Program administration is
handled through the HCD Program. The County allocation for the current year was
$91,000, which includes County administrative costs.
• Shelter Plus Care (Fund 0032)
This is a HUD program to provide rental assistance and continuum service support
for people with disabilities. Program administration is handled through the Housing
Authority, with County program coordination through the Homeless Concerns
Program. This program allows 8% of the allocation to support administrative costs,
which is shared between the Housing Authority (6%)and the County (2%).
• Revolving Loan Program - Single Family (Fund 0036)
This fund was established to capture loan repayments from the CDBG program.
Loan proceeds are used for single family housing rehabilitation and is administered
by the HCD Program. Loans are reviewed and approved by a County loan
committee, comprised of staff from the Finance Agency, General Services Agency
and County Executive's Office. This funding allows 20% of the allocation to support
administrative costs. The fund balance (as of June, 2002) totaled $766,507.
• Revolving Loan Program - Multi-Family (Fund 0029)
Like the Single Family Revolving Loan Program, this fund was also established to
capture loan repayments from the CDBG program. The program has been closed
by HUD; however, the County has the flexibility to continue to use the program funds
matching funds under the HOME program rules and/or as a match for any CDBG
eligible activities. The fund balance (as of June, 2002) totaled $516,437.
as
• CALDAP Earthquake Loan (Fund 0252)
This was a State program to rehabilitate owner-occupied and rental properties
damaged in the Loma Prieta earthquake. The program is now closed. The fund
balance represents reimbursements to the HCD Program for expenses incurred in
Loma Prieta staff response. Use of these funds is not restricted. The fund balance
(as of June, 2002) totaled $311,568.
• Low and Moderate Income Housing Fund (0209)
This fund was established in 1979, when the Board approved the Density Bonus
Program. This program permitted a 10% increase in density for subdivisions in
which 10% or more of the units are devoted to low or moderate income housing.
The additional “affordable” lots can be sold at fair market value and the proceeds
deposited in the Low and Moderate Income Housing Fund. In 1999, it was reported
to the Board that activity in this program had ceased, after roughly ten subdivisions
participated in the program. Historically, these funds have been allocated by the
Board to supplement CDBG-funded projects for housing and housing services. The
fund balance (as of June, 2002) totaled $497,242.
Attachment 2, Page 2
Office of Affordable Housing - Current Funding Sources
• Stanford Affordable Housing Trust Fund (Fund 289)
This is a recently-established fund, relating to the General Use Permit for Stanford
University. The GUP requires that, for every 11,763 square feet of academic
development, one affordable housing unit be developed or a cash in lieu fee of $15
per square foot of development be paid into this fund. The June 2002 fund balance
totaled $85,772; another $50,720 will be deposited into this fund prior to the end of
FY2003. These funds must be used for affordable housing projects located within 6
miles of the Stanford Campus.
Attachment 2, Page 3
Office of Affordable Housing - Current Funding Sources
County of Santa Clara
Office of the County Executive
Office of Affordable Housing
CE07 121702
Prepared by: Susan Phillips
Acting Director, Office
of Affordable Housing
Submitted by: Jane Decker
Deputy County Executive
DATE:
December 17, 2002
TO:
Board of Supervisors
FROM:
Richard Wittenberg
County Executive
SUBJECT: Accept Report and Specify Actions on Office of Affordable Housing Staffing and
Use of Redevelopment Set-Aside Funds
RECOMMENDED ACTION
Consider recommendations relating to Office of Affordable Housing and use of
redevelopment set-aside funds.
Possible action:
a. Accept report on Office of AffordaMe Housing status and funding,
b. Direct Administration to proceed with staffing'ihitiatives identified as Phase 1 actions
and work with the Employee-Services Agency to return to the Board in January, 2003
;:pr
■i! frnv:'
Bc'.'ird of Supervisors: Donnki F. Gage. Blanca Alvarado, Pete .McHugh, James T. BoallJr., Liz Kniss
County Kxccutivc: Richard Wittenberg
1
eos Agenda Date :December 17, 2002
with recommended actions necessary to implement this direction,
c. Authorize Administration to proceed with physical consolidation of Office of
Affordable Housing staff in leased space at 1735 N. First Street,
d. Direct the Administration to report back in January with level of initial redevelopment
set-aside funds required for use by Office of Affordable Housing for three-year
operating expenses, including housing initiatives.
FISCAL IMPLICATIONS
There is no impact on the General Fund as a result of this action. Although no requests for
appropriations are included in this transmittal, the Board is being asked to set direction for
action on salary ordinance amendments and appropriation modifications which will be
brought to the Board for action in January.
CONTRACT HISTORY
N/A
REASONS FOR RECOMMENDATION
The Administration's response outlines recommendations regarding the phasing of staffing for
the new Office of Affordable Housing(OAH)and presents a series of options for moving
forward to implement the Board's direction with regard to funding affordable housing
initiatives. The Administration is asking the Board to identify a preferred strategy for funding
and to direct the Administration to report back in January with the salary ordinance
amendments and appropriations modifications necessary to implement the Board's direction
on these issues.
Recommendations on Staffing for the Office of Affordable Housing
As previously reported to the Board, the Administration has been awaiting receipt of a staffing
analysis performed by the Enterprise Foundation under a Department of Housing and Urban
Development(HUD)technical assistance grant. A final report was received in early
December and is included in this report as'Attachment 1. The Administration has reviewed the
Enterprise Foundation's analysis and is recommending that the Board move forward with a
limited number of staffing actions m a jphased approach fo%ilow^the organization to assimilate
itUfU Number
43
Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz ICniss
County Executive: Richard Wittenberg
2
BOS Agenda Date :December 17, 2002
new functions and determine how existing staff can be effectively utilized.
Phase 1 Staffing Recommendations
• Approve, in concept, establishment of Director, Office of Affordable Housing, position.
This is the pivotal position for the new organization. The Director will implement the
vision for the office through strategies designed to create and move forward a legislative
agenda to support affordable housing development, coordinate the use of County funds to
achieve the Board's direction on housing development, work with other local agencies and
affordable housing developers to set measurable goals for affordable housing development
in the county and develop an organizational culture to achieve successful outcomes.
Because the success of the new organization depends largely on more effective utilization
of staffing and targeting of existing resources to meet the increased expectations identified
by the Board and the community, this action should be taken immediately. The Employee
Services Agency has indicated, if recruiting begins in January, the Director could be in
place by late April, 2003. The cost of this position can be recovered through a combination
of HUD administrative cost reimbursements, MCC/Housing Bond Trust Fund resources
and redevelopment set-aside funds. With Board concurrence of this action, the
Administration will work with the Employee Services Agency to prepare a new job
description and salary ordinance for Board action in January.
• Approve, in concept, add/delete action for the existing, vacant Office Management
Coordinator position in the Housing and Community Development Division to an
appropriate office manager position.
With Board concurrence of this action, the Administration will work with the Employee
Services Agency to implement this administrative add/delete action. This vacant position
is already funded; however, a review of the position's changed functions in the new
organization suggests the need for a different position code at a roughly comparable
salary. Development of written policies and procedures, coordination of office-wide
procurement and administrative processes, development and management of an organized
filing system and more effective utilization of administrative staff time are critical
operational areas which require the re-establishment of this function. This position has
been held vacant, pending completion of the Enterprise Foundation staff analysis and is
vern >
43
Board of Supervisors: Donald K. Gage, Blanca Alvarado. Pete McHugh, James T. Boall Jr., Liz Knias
County Executive; Richard Wittenberg
3
BOS Agenda Date :December 17,2002
expected to require minimal additional funds. The cost of this position can be recovered
through a combination of HUD administrative cost reimbursements, MCC/Housing Bond
Trust Fund resources and redevelopment set-aside funds.
• Approve, in concept, addition of one administrative position to support the Director.
With Board concurrence of this action, the Administration will work with the Employee
Services Agency to determine the appropriate level for this position and to prepare the
necessary salary ordinance amendment for action by the Board in January. This is a new
position and represents a new cost to the organization. The cost of this position can be
recovered through a combination of HUD administrative cost reimbursements,
MCC/Housing Bond Trust Fund resources and redevelopment set-aside funds. It is the
intention of the Administration to hold this position vacant until the new Director has been
hired.
• Approve, in concept. Addition of one analyst position to coordinate implementation of
HUD's HOME program, a need identified by a recent HUD compliance review.
The Enterprise Foundation report recommends the addition of two new analyst positions
— one to support the Director and to provide overall OAH analytical support and another
one to provide support to the HOME program. Only the HOME analyst position is being
recommended here. No new costs are associated with this position, as the cost of the
HOME position will be fully reimbursed by administrative cost reimbursement associated
with HOME. With Board concurrence of this action, the Administration will work with the
Employee Services Agency to determine the appropriate level for this position and to
prepare the necessary salary ordinance amendment for action by the Board in January. We
hope to fill the position by an internal transfer of existing County staff
Once the Director has been able to review current staff functions and assignments, the
need for an additional analyst position to provide analytical support for the Director and
the office can be evaluated. It may be possible to redirect the efforts of existing staff so as
to obviate the need for a second analyst position.
Date
^.;^ecerriber 'i/, 2002
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43
Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz Kniss
Countj' Execuuve; Richard Wittenberg
4
BOS Agenda Date :December 17, 2002
• Approve, in concept, addition of one analyst position to coordinate implementation of
the County's MCC/Housing Bond Trust Fund activities.
This function is currently performed by a contractor and the costs are fully covered by the
Housing Bond Trust Fund (Fund 0208). With the consolidation of this contracted program
into the new Office of Affordable Housing, the Administration believes that the ongoing
workload of this function should be handled by County staff. The full cost of this position
will continue to be funded by the Housing Bond Trust Fund. With Board concurrence of
this action, the Administration will work with the Employee Services Agency to determine
the appropriate level for this position and to prepare the necessary salary ordinance
amendment for Board action in January.
• The Enterprise Foundation report recognizes that, in order for the County to be
successful in creating housing, the OAH needs someone experienced in putting housing
deals together. This includes bringing parties together, investigating options to use
surplus land and identifying funding opportunities. This role requires specialized
knowledge and experience that is not currently available in the Office of Affordable
Housing. Initially, the Administration plans to fill this critical need through contract
assistance; however, the long-term plan is to bring the position in-house, perhaps as a
deputy to the OAH Director. The cost of this position can be recovered through a
combination of HUD administrative cost reimbursements, MCC/Housing Bond Trust
Fund resources and redevelopment set-aside funds. No action by the Board is requested
at this time.
Phase 2 Staffing Recommendation
• Add one position in the accounting unit to provide staffing necessary for centralized
support for all OAH divisions.
The cost of this position will be partly offset by reimbursements currently made to the
Controller's Office for one-third Accountant III (supporting the Housing Bond Trust Fund
0208) and overhead costs charged by the County Executive's Office accounting unit. The
remaining cost of this position will Ee covered by*administf’ative cost reimbursement
through HUD programs. The Adrninistration proposes^to work with the Employee
Services Agency to determine the'^appropriate level foUthis position and to include this
iern Nurnher
43
Board of Supervisors: Donald F. Gage, Blanca .■Uvarado, Pete McHugh, James T. Beall Jr., Liz Kniss
Countj' Executive: Richard VVittenben?
5
BOS Agenda Date :December 17, 2002
position action in the FY2004 Recommended Budget.
Recommendations on Consolidation of the Office of Affordable Housing
While the three units comprising the Office of Affordable Housing have been consolidated
budgetarily, physical relocation of the staff who are currently located in the County
Executive s Office(Homeless Concerns Office, MCC/Housing Bond Trust Fund)has been
delayed, pending final Board action on appropriation of redevelopment set-aside funds. With
Board concurrence on use of these funds to support the ongoing costs associated with the
consolidation of OAH staff at one site, OAH staff and the Santa Clara County Housing Trust
contract position will be relocated to 1735 N. First Street, to a suite recently vacated by the
Office of the County Counsel. The County's lease for this suite extends through 2007; the
current monthly lease cost is $4,118. Additional costs associated with moving, purchase
and/or lease of furniture and equipment(computers, printers, telephones, faxes, copier) is
estimated at $18,000 in one-time costs and an additional cost for furniture. This move could
occur by using redevelopment set-aside funds to cover the new costs. With Board
concurrence of this action, the move will be implemented as soon as possible and an
appropriation modification action will be brought to the Board for approval in January.
Opportunities for T.ocating and Developing Affordable Housing — Surplus, Vacant and
Underutilized Property
The County has already made progress in designating key parcels of underutilized County
land for housing opportunities, as part of ongoing economic development projects managed
by the County Executive's Office and as part of the capital development plan.
• As part of the Fairgrounds Revitalization Project, the County, in cooperation with the
City of San Jose and the Housing Authority, has proposed to increase housing
opportunities by 560 units. Sixty townhomes for sale at entry-level market rate are
proposed for development, along with two hundred rental apartments for seniors and
another three hundred multi-family rental apartments. As proposed, it is estimated that
roughly 90% of the project will be affordable to low and very low income residents.
• Mixed-use development ofthe employee parking lofat North First and West Hedding
Streets may provide a significant opportunity for development of affordable housing
along a transit corridor. Depending on the timing of this development proposal, bond
.et';; Nm
fir
43
Board of Supervisors: Donald F. Gajje, Blanca Alvarado, Pete MeHugh, James T. BeallJr., Liz Knisa
County Executive: Richard Wittenberg
6
BOS Agenda Date :December 17, 2002
funds made available through the passage of Proposition 46 may be a potential source
of funding to increase affordability of the housing portion of the development.
• As reported at the Board's October Capital Workshop, three parcels in Milpitas near the
Elmwood Correctional Facility are being planned for commercial and residential
development coordinated by the County Executive's Office. The Request for Proposals
(REP)for commercial development has already been issued. The RFP for residential
development is in the final stages of development and is expected to be issued shortly.
• The Garland Avenue/Fairoaks parcel in Sunnyvale was also the subject of Board action
at the October workshop. It was assumed that housing could be developed in
conjunction with a clinic expansion. A new site plan is being developed to determine
the feasibility of developing housing after the clinic expansion, per Board direction.
Other surplus parcels of County-owned land offer additional opportunities. In February, the
Board was provided an off-agenda report which identified twenty-two parcels of vacant
and/or surplus land. In addition to the Milpitas and Fairoaks parcels that are discussed above,
this included a wide range of parcel sizes and locations. Some parcels were reviewed and
determined to be too small for independent housing development consistent with zoning
codes or too remote for development as affordable housing sites. The most promising sites
were recently reviewed with General Services Agency and Roads and Airports Department
staff Updated information is being provided to the Board off-agenda regarding parcels which
are currently under negotiation for disposal.
A number of sites on this list appear to be appropriately situated for housing. These, as well as
underutilized parcels which have not been identified as surplus, are being reviewed by cities,
by non-profit developers and by the County for their potential as development sites for
affordable housing. These sites include:
• A 2.5 acre parcel of excess right-of-way at the southeast comer of San Tomas
Expressway and Monroe Street in Santa Clara.
• Three small parcels located on Warren Avenue in Morgan Hill.
• A 1.2 acre parcel at Almaden Expressway and Camden Avenue in San Jose which is
currently used for parking.
• A 1.13 acre parcel on the northeast side of San Felipe Road, south of Silverland Court
in San Jose, which is currently leased for use ag landscaping,
■^siier
43
Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz iCniss
Countj' Executive; Richard Wittenberg
7
BOS Agenda Date ;December 17, 2002
• A 1.7 acre parcel on the east side of Old Almaden Road, south of Route 87 in San Jose.
• County property at Capri Drive in Los Gatos, which is currently used for Court and
Clinic activities.
Many of these sites are non-General Fund assets. Should any sites previously purchased with
funds carrying special restrictions on use (e.g.. Parks Fund, Roads Fund)be offered for
housing development, it may be necessary to sell or otherwise transfer these properties at fair
market value. The Administration is working with County Counsel to verify the specifics of
these restrictions and is working the Roads and Airports Department to research the source of
funds used originally to purchase the sites that are identified as Roads Fund properties.
These sites and vacant or surplus property controlled by other local agencies may offer an
opportunity for the County to partner with other local jurisdictions, non-profit organizations
and housing developers to provide affordable housing specifically geared to address some of
the "special needs" populations which rely on County services, as well as to provide
affordable housing generally. The Administration has begun this process by commissioning
preparation of a database of all vacant parcels in the County controlled by public agencies.
Review of these sites for potential housing opportunities will be an important focus for the
contract currently under development by the Administration to evaluate sites for housing
development and to secure expertise in pulling together alternative sources of financing to
create workable partnerships for housing development.
Other non-County sites also offer opportunities for collaborative housing development.
These include such projects as housing development and service provision proposed through
the Opportunity Center of the Midpeninsula that has been proposed in Palo Alto. The housing
elements of local cities also identify potential sites for the development of affordable housing.
In some cases, these sites may be appropriately situated to address County client needs and
County funding collaboration may enhance the opportunities for development of special
needs housing.
Use of Redevelopment Set-Aside Funds and Other Dedicated Funds to Leverage Affordable
Housing Development
meting Date
r,r -
lame
Rfn h
Bchsrd of Supervisors: Donald F.
LJecember 17,2002
Ly
nsiei
Regaclar.
^3
Blanca Alvarado, Bste McHugh, James T- Beall Jr., Liz Kniss
County Executive; Richard Wittenbetig
8
BOS Agenda Date ;December 17, 2002
In June, the Board set aside 30% of Redevelopment Settlement Agreement delegated funds to
provide a source offunding for affordable housing initiatives. To date, the County has
received approximately $34 million in Redevelopment Settlement Agreement delegated
funds, and a total of $61 million is expected through 2004. The 30% set-aside represents
approximately $8 million of current receipts, with a total of$18 million anticipated over this
four-year period.
In addition to these funds, the Office of Affordable Housing maintains and administers a
variety of special funds and program allocations. Most are administered through the Housing
and Community Development Program, through the annual funding cycle. One is
administered through the MCC/Housing Bond program. Others represent small funds which
rely on repayment of prior loans or in-lieu payments made previously by developers. These
current sources of funding are described in Attachment 2.
Coordinated Strategy for Applying Funds
An effective strategy to address countywide affordable housing needs must marshal all
available funding sources to target provision of affordable housing and operating support for
County housing activities. The Administration has identified a number of opportunities to
leverage the County funds described above. These are described briefly in Attachment 3. In
addition to these funding sources, other opportunities are certainly available. More
investigation is needed to review the alternatives and identify the approaches that would be
most productive. A short-term contract with a knowledgeable housing consultant is being
developed to secure this expertise.
Opportunities for Use of Redevelopment Set-Aside Funds
As indicated elsewhere in this report, some level of redevelopment set-aside funding is
required to provide operating support for the County to play a proactive role in the housing
field. New General Fund resources are not available for this enhanced effort. Depending on
the level of funding which is made available, set-aside funding can be used to augment
existing sources of funding which support County housing activities or can be used to
leverage other housing activities associated with County programs or other programs operated
by jurisdictions and organizations within ^qnta Clara Coiinty. ^
43
Board of Supervisors; Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz ICnias
Countj' Executive: Richard Wittenberg
9
BOS Agenda Date :December 17, 2002
The key to the use of these funds is to use them in a way which helps the County change the
way business has previously been done— to become proactive in identifying housing
opportunities and in structuring funding deals to make projects possible, rather than reacting
to proposals which are submitted through an annual process. The Enterprise Foundation
report suggests three specific strategies for using new resources to establish special-purpose
funding sources for specific housing needs. Detailed descriptions appear in Attachment 1.
• Special Needs Housing Fund: The Enterprise Foundation recommends earmarking a
specific funding allocation($4 million per year) to address the need for construction of
group homes as well as set-aside units for special needs populations in other affordable
housing projects. Per unit subsidies are proposed, based on the housing unit size.
• Pre-Development Fund: Establishment of a pre-development fund ($250,000 per year)
is proposed as a revolving loan fund, which would provide seed money in the form of
$50,000 loans to cover such costs as land options or escrow accounts, professional fees
and project development staff salaries.
• Land Acquisition Fund: A land acquisition revolving fund is proposed ($1.5 million per
year) to provide 1-year loans (with potential for two additional 1-year extensions) to
developers so that land purchases can be made quickly and property secured for
affordable housing.
Other possible uses of these funds include the following:
• Funds can be used to assist the Santa Clara County Housing Trust to achieve the needed
match for Proposition 46 funding.
• Funds can be provided for additional emergency rent and mortgage assistance, to
prevent homelessness resulting from non-payment of rent or mortgage costs or the
inability of potential renters to provide security deposits.
• Funds can be made available to address funding requests through the CDBG process
that exceed the County's HUD allocations.
• Requests for Proposals (RFPs)can be developed and issued to offer funding for
affordable housing development which addresses the needs of County special needs
populations.
• Funds can be made available, through an RFP process, to non-profits seeking funds for
projects which will be submitted for Proposition 46 funding.
• Funds can be made availa^e to increase file level of affordability of housing units
included in County mixed-use development prpjecfs.(e.g.j Hedding Street project).
43
Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz Kniss
County Executive: Richard Wittenberg
10
BOS Agenda Date ;December 17, 2002
• The County can partner with local jurisdictions to purchase surplus public land for
housing purposes. The County might require dedication of a certain percentage of
affordable housing units for County special needs clients as a condition of this
partnership.
The ability of the County to pursue any of these options will depend on the level of
redevelopment set-aside funding which the Board chooses to appropriate for these activities.
The Administration can provide more specific recommendations when a level of appropriation
is finalized.
RACKGROUND
On October 8, 2002, the Board of Supervisors directed the Administration to report back to
the Board with specific recommendations regarding staffing in the Office of Affordable
Housing and recommendations and a process for allocating funding (including redevelopment
settlement agreement funds previously set aside for housing) to support increased provision of
affordable housing in Santa Clara County. The Board also directed the Administration to
identify ways in which these funds could be leveraged to achieve a greater result. The
Administration's response to this direction is detailed above.
Hmising Task Force Recommendations
The Board also directed the Administration to report on the status of implementation of the
Housing Task Force recommendations. Progress in this area is described below.
The Administration reported back to the Board in June with an implementation plan for the
Housing Task Force Recommendations and a priority list for Office of Affordable Housing
activities. Progress in each of the six primary clusters of recommendations is described briefly
below.
Create an Office of Affordable Housing
This was accomplished in July and will be fully realized with the physical consolidation of
OAH staff and the hiring of a permanent OAH Director.
:.u:
Board of Supcrviaors; Donald F.
County Executive; Richard Wittenberg
M.,
Blanca Alvarado, Pete
.jer
,
4j
James T. Beall Jr., Liz Knias
11
BOS Agenda Date :Decennber 17, 2002
Establish Special Needs Housing as a County Priority
The Board has indicated this is a priority, recognizing that the availability of housing to
address the needs of County clients throughout a continuum of care is essential to
cost-effective long-term success of treatment and support programs. A listing of"special
needs" populations developed by the County's Supportive Housing Initiative is included here
as Attachment 5.
Specific housing needs associated with County clients include the following:
• Additional residential treatment facilities are required to provide an adequate source of
these facilities to serve County clients.
• Transitional supportive housing, which provides a stable, monitored living environment
for clients who have successfully completed the first phase of intensive treatment, is
required in order to move clients toward successful independent living situations.
• Permanent supportive housing for a variety of County clients is needed in order to keep
these individuals in as independent a living environment as possible and to keep some
clients from becoming homeless or remaining in custody situations due to lack of
suitable housing in community settings. Support services provided on-site can range
from support for the physical needs of clients who have been discharged from
hospitalization but require continuing care, as well as for disabled and elderly clients
who require some assistance with daily living.
• Permanent housing is needed for clients who have completed County—based treatment
services, but who are at risk ofreturning to previous behaviors and returning to the
County service stream due to stresses caused by the lack of available housing. In this
regard. County treatment clients face the same barriers to finding housing as do other
County residents who are seeking affordable housing. In addition, they may face social
stigma associated with their situation, which may exacerbate challenges in finding
housing. Coordinated County discharge planning or housing locator services may help
to place these clients, as would additional housing which is earmarked for County
clients.
• Development of a Safe House for short-term, interim housing placement is needed to
protect vulnerable adults who must be removed from their homes and placed under
protective service until alternate placement is possible,,or until they can be returned
home.
P o
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It.
Board of Supervisors; Donald F. Gage, Blanca Alvarado, Pete
County Executive: Richard Wittenberg
L=
4v
James T. Beall Jr., Liz Knias
12
BOS Agenda Date :December 17, 2002
Rental subsidies or affordable housing for working poor families is needed has been
proven essential to increasing the stability of low-income families and allowing them
to maintain employment and sustain economic self-sufficiency.
• Potential Resource Families (families who provide foster care, adoptive and relative
caregiver services) face a variety of State and Federal licensure and certification
standards which may prevent their participation in programs designed to provide
out-of-home placement. Flousing assistance, such as homebuying or home
modification assistance could provide financial assistance needed by these families to
meet housing standards required for program participation.
• Youth leaving the foster care system due to aging-out require specialized supportive
transitional living programs which increase their self-sufficiency and prevent
homelessness.
The Deputy County Executive and the Acting OAH Director have met with SSA and H&HS
representatives to discuss housing opportunities for their clients; further discussions in the
context of deal development will be possible once this expertise is available to the OAH. It is
clear that statistics generated previously on the extent of the housing need must be updated.
The OAH will be working with County operating departments to update these figures as part
of the next phase of action.
Locating and developing housing for some of these populations will offer the greatest
challenge to the County as affordable housing initiatives are pursued. In their interviews with
the Enterprise Foundation, some local cities indicated their support for special needs housing
development, but indicated that they were looking for coordinated County leadership in order
to identify regional needs and determine appropriate sites and strategies for implementation.
Create a County Housing Commission
Establishment of a Housing Commission will require action at the elected official level.
However, in the interim, the Administration is assessing whether it is possible to consolidate
the three advisory committees which work with OAH programs—the Housing Bond Advisory
Committee and the Council and Citizen Advisory Committees for the CDBG Program—to
streamline committee support requirements of existing staff. Additional investigation will be
required to determine how program requipments can be met by a reconfigured advisory body.
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Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, James T. Beall Jr., Liz Kniss
County Executive: Richard Wittenbeig
13
BOS Agenda Date :December 17, 2002
County Assume Leadership in Regional, State and Federal Housing Policy Advocacy
County staff continue to participate actively in established housing forums. With the expected
Board approval to hire a permanent Director for the OAH,this activity can be more
effectively focused and additional opportunities for County leadership pursued. The proposed
job description for the director which is included in the Enterprise Foundation report
(Attachment 1) highlights the qualities of housing expertise and advocacy which will be
critical for successful County leadership in regional housing activities.
County Take Leadership to Identify New Local Source of Revenue for Housing
The Board set aside redevelopment funding for housing in June. Staff is identifying other
revenues as described above and is participating in discussions with other local government
officials about how to generate new revenue for housing.
County Work with Public Jurisdictions to Establish Policies on Use of Surplus Public Land
for Housing
extracting data on publicly—controlled vacant parcels using
Assessor's data—has been completed. The expected hiring of a consultant to assist with
The first step in the process
evaluating property for housing and negotiating deals for coordinated action on affordable
housing development is the next step in this process. Research on best practices and the
feasibility of establishing a land bank for affordable housing is under consideration for
funding through a HUD technical assistance grant(Phase 2 of proposed Enterprise Foundation
work).
CONSEQUENCES OF NECATTVE ACTION
If action is not taken on these recommendations, the Administration will be unable to proceed
with the consolidation of functions in the new Office of Affordable Housing and no additional
County funds will be available to support increased provisibri of affordable housing.
Pi
STEPS FOLI OWING APPROVAL
Board of Supervisors: Donald F. Gage, Blairca Alvarado, Pete McHugh. James T. BcaU Jr., Li2 Knisa
County Executive: Richard Wittenberg
14
BOS Agenda Date :December 17, 2002
No action by the Clerk of the Board is required.
ATTACHMENTS
• Attachment 1: Enterprise Foundation Report(Miscellaneous)
• Attachment 2: OAH Current Funding Sources (Miscellaneous)
• Attachment 3: Funding Opportunities (Miscellaneous)
• Attachment 4: Proposition 46 Overview (Miscellaneous)
• Attachment 5: Special Needs Populations (Miscellaneous)
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43
Bc»ard of Supervisors; Donald F. Gage, Blanca Alvamdo, Pete McHugh, James T. Beall Jr., Liz Kniaa
Countj' Executive: Richard Wittenberg
15
County of Santa Clara
Office of the Board of Supervisors
m
mm
County Government Center, East wing
70 West Bedding street, ioth Fioor
San Jose, California 951 10
(408) 299-2323
THIS RELATES TO:
FAX 298-8460 TDD 993-8272
; 12/17/02(Item 43) v
Supplemental Information #2
James T, Beall, Jr,
Supervisor, Fourth District
To;
Board of Supervisors
From:
Supervisor James T, Beall, Jr.
District 4
^
Supervisor Liz Kniss
District 5
Date:
December 16, 2002
Subject:
Agenda Item #43 - Report on Office of Affordable Housing Staffing and
Use of Redevelopment Set-Aside Funds.
I respectfully propose the following actions be approved by the Board of Supervisors:
A. Accept report on the Office of Affordable Housing status and funding.
B. Direct the Administration to proceed with staffing initiatives identified as Phase 1
actions and work with the Employee Services Agency to return to the Board on
January 14th, 2003 with recommended actions necessary to implement this
direction. At this time. Phase 1 should only include staffing recommendations for
the position of Director, Office or Affordable Housing and one analyst position.
C. Authorize the Administration to proceed with the physical consolidation of the
Office of Affordable Housing staff in leased space at 1735 N. First Street.
D. Direct the Administration to report back on January 14‘^, 2003 with level of initial
redevelopment set-aside funds required for use by the Office of Affordable
Housing for a three-year operating plan, including housing initiatives, as directed
by the Board on June 10‘^, 2002.
Acid Free Paper
®
E. Finalize dedication of Redevelopment Set-Aside Funds for affordable housing.
Staff will report back on January 14th, 2003 with a year one funding plan. The
balance will remain set-aside for affordable housing.
I
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Attachment 2
Office of Affordable Housing - Current Funding Sources
The following are non-General Fund sources of support for current Office of Affordable
Housing programs and activities.
• Housing Bond Trust Fund (Fund 0208)
This fund was established in 1991 with administrative fees and revenues from the
Housing Bond and Mortgage Credit Certificate Program. Application fees from
Mortgage Credit Certificates(MCCs)and Reissued MCCs(RMCCs), fees to lenders
who participate in the MCC and RMCC programs, and issuance and administrative
fees for housing bonds provide operating funds to support the contract-based MCC
program and administration of tax-exempt bonds. Almost $2.5 million has been
disbursed from the Housing Bond Trust Fund to affordable housing projects as loans
in $100,000 increments. It is estimated that the balance of the Housing Bond Trust
Fund will reach approximately $450,000 at the conclusion of FY2003.
• CDBG Program - Community Development Block Grant(Fund 0035)
This is an HUD formula-based program providing block grant funding to carry out a
wide range of community activities, including providing safe and secure housing,
revitalizing neighborhoods, supporting economic development and improving
community facilities and services. The County administers CDBG funds for the
Urban County - “non-entitlement” jurisdictions within the County whose populations
total fewer than 50,000. These jurisdictions are Morgan Hill, Saratoga, Monte
Sereno, Campbell, Los Gatos, Los Altos, Los Altos Hills and Cupertino. Because
Cupertino has met the population threshold to become an entitlement jurisdiction, it
is expected to leave the Urban County group in the upcoming cycle. This funding
allows 20% of the allocation to support administrative costs. Use of CDBG
funds is not restricted to housing programs. The Urban County allocation for the
source
current year was $2,584,000; of this, the County’s share was $801,846 - $190,046
for project allocations which are obligated by Board action annually, $200,000 in
funding set aside for rehabilitation program services and $411,800 to cover County
administrative costs.
• HOME Program (Fund 0038)
This is a HUD formula-based program providing grant funding for housing
rehabilitation targeted to low and very low-income residents. Administration of this
fund is similar to the CDBG fund and allocations are approved by the Board in the
same
funding process. This funding source allows 10% of the allocation to support
administrative costs. Use of these funds is restricted to housing programs. The
Urban County allocation for the current year was $1,043,000, which includes County
administrative costs.
Attachment 2, Page 1
Office of Affordable Housing - Current Funding Sources
• ESG - Emergency Shelter Grant(Fund 0034)
This is a HUD formula-based program for rehabilitation or conversion of buildings
into homeless shelters and funding of certain social services, homeless prevention
activities, operating expenses and administrative costs. Program administration is
handled through the HCD Program. The County allocation for the current year was
$91,000, which includes County administrative costs.
• Shelter Plus Care (Fund 0032)
This is a HUD program to provide rental assistance and continuum service support
for people with disabilities. Program administration is handled through the Housing
Authority, with County program coordination through the Homeless Concerns
Program. This program allows 8% of the allocation to support administrative costs,
which is shared between the Housing Authority (6%)and the County (2%).
• Revolving Loan Program - Single Family (Fund 0036)
This fund was established to capture loan repayments from the CDBG program.
Loan proceeds are used for single family housing rehabilitation and is administered
by the HCD Program. Loans are reviewed and approved by a County loan
committee, comprised of staff from the Finance Agency, General Services Agency
and County Executive's Office. This funding allows 20% of the allocation to support
administrative costs. The fund balance (as of June, 2002) totaled $766,507.
• Revolving Loan Program - Multi-Family (Fund 0029)
Like the Single Family Revolving Loan Program, this fund was also established to
capture loan repayments from the CDBG program. The program has been closed
by HUD; however, the County has the flexibility to continue to use the program funds
matching funds under the HOME program rules and/or as a match for any CDBG
eligible activities. The fund balance (as of June, 2002) totaled $516,437.
as
• CALDAP Earthquake Loan (Fund 0252)
This was a State program to rehabilitate owner-occupied and rental properties
damaged in the Loma Prieta earthquake. The program is now closed. The fund
balance represents reimbursements to the HCD Program for expenses incurred in
Loma Prieta staff response. Use of these funds is not restricted. The fund balance
(as of June, 2002) totaled $311,568.
• Low and Moderate Income Housing Fund (0209)
This fund was established in 1979, when the Board approved the Density Bonus
Program. This program permitted a 10% increase in density for subdivisions in
which 10% or more of the units are devoted to low or moderate income housing.
The additional “affordable” lots can be sold at fair market value and the proceeds
deposited in the Low and Moderate Income Housing Fund. In 1999, it was reported
to the Board that activity in this program had ceased, after roughly ten subdivisions
participated in the program. Historically, these funds have been allocated by the
Board to supplement CDBG-funded projects for housing and housing services. The
fund balance (as of June, 2002) totaled $497,242.
Attachment 2, Page 2
Office of Affordable Housing - Current Funding Sources
• Stanford Affordable Housing Trust Fund (Fund 289)
This is a recently-established fund, relating to the General Use Permit for Stanford
University. The GUP requires that, for every 11,763 square feet of academic
development, one affordable housing unit be developed or a cash in lieu fee of $15
per square foot of development be paid into this fund. The June 2002 fund balance
totaled $85,772; another $50,720 will be deposited into this fund prior to the end of
FY2003. These funds must be used for affordable housing projects located within 6
miles of the Stanford Campus.
Attachment 2, Page 3
Office of Affordable Housing - Current Funding Sources
Document
Memorandum requesting to proceed with staffing initiatives and authorize the consolidation of the Office of Affordable Housing staff.
Initiative
Collection
James T. Beall, Jr.
Content Type
Memoranda
Resource Type
Document
Date
12/17/2002
District
District 4
Creator
Richard Wittenberg, County Exec.
Language
English
Rights
No Copyright: http://rightsstatements.org/vocab/NoC-US/1.0/