Title
Adopt a Resolution to Authorize the City Manager to Execute the Necessary Documents that Authorizes the Continued Participation of the City of San Leandro in the Alameda County HOME Consortium, and that Maintains the City’s Eligibility to receive HOME Program Funds in Accordance with the National Affordable Housing Act of 1990 (for the Federal Fiscal Years 2024-2026)
Staffreport
COUNCIL PRIORITY
• Housing and Homelessness
• Race and Equity Initiatives
SUMMARY AND RECOMMENDATIONS
The City of San Leandro receives HOME Investment Partnership Program (HOME) funds through its participation in the Alameda County HOME Consortium. The Consortium includes Alameda County cities and the Urban County area. The HOME Consortium Agreement for Federal Fiscal Years 2024-2026 continues the City’s participation in the consortium and establishes Alameda County Housing and Community Development Department (HCD) as the lead agency in the administration of the HOME funds. The current HOME Consortium Agreement expires this year.
Staff recommends that the City adopt a resolution approving the HOME Consortium Agreement between the City of San Leandro and County of Alameda for Federal Fiscal Years 2024-2026 (7/1/2023 through 6/30/2026).
This action is a procedural item that only provides for the administration of the HOME funds. All proposed HOME expenditures for specific projects will be brought to the City Council for review and approval under separate City Council action and with appropriate public engagement and a transparent project vetting process.
BACKGROUND
HOME is authorized under Title II of the Cranston-Gonzales National Affordable Housing Act (24 CFR Part 92), passed in 1990. It is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households.
The City has allocated over $4.5 million in federal HOME funds since 2005, including a proposal that is currently being considered to use over $600,000.00 for the acquisition and rehabilitation of the Nimitz Motel so that it may be converted into a shelter and drop-in navigation center for San Leandro residents experiencing homelessness. Program funds are allocated to local government agencies based on a formula that considers the relative inadequacy of each jurisdiction's housing supply, its incidence of poverty, its fiscal distress, and other factors.
Communities that do not qualify for an individual allocation under the formula can join with one or more neighboring localities in a legally binding consortium whose members' combined allocation would meet the threshold for direct funding. As the City of San Leandro does not qualify for an individual direct allocation due to its size, the City participates in the Alameda County HOME Consortium in order to receive federal HOME funds.
Analysis
San Leandro joins with six other cities - Alameda, Fremont, Hayward, Livermore, Pleasanton, and Union City - in Alameda County and the Urban County (consisting of the cities of Albany, Dublin, Emeryville, Newark, Piedmont, and the unincorporated County) in the Alameda County HOME Consortium. An agreement between the City and County of Alameda is required in order for the City to participate.
Alameda County HCD, as the lead HOME Consortium grantee and administrator, retains an annual, pro-rated fee from the annual HOME grant allocated by HUD to help defray the County’s costs to administer the Consortium and perform monitoring, record-keeping, and reporting required by the Act. For FY 2022-2023, the County retained $13,670.00 as its pro-rata share from the City of San Leandro to assist with County HCD oversight and administration costs. County HCD then allocated $238,908.00 to San Leandro as its FY2022-2023 annual HOME allocation, of which $225,238.00 may be awarded by the City for eligible affordable housing projects/activities and $13,670.00 towards City-related HOME administration costs.
The agreement under City Council consideration tonight will continue the City’s participation in the Consortium and provide for the administration of the HOME Program by Alameda County HCD for Federal Fiscal Years beginning 7/1/2023- through 6/30/2026.
Previous Actions
Resolution No. 2020-100 Authorizing the City’s continued participation in the Alameda County HOME Consortium adopted on July 20, 2020.
Applicable General Plan Policies
The Housing Element of the City of San Leandro General Plan contains several policies applicable to the HOME Program goals:
• Goal 2: Assist the Development of Housing Affordable to Extremely Low-, Very Low-, Low-, and Moderate-Income Levels and for populations with Special Needs
o Policy 2.2 Support and Increase Funding for Deed Restricted Affordable Housing
o Policy 2.3 Support Housing Production for All Needs. The City shall encourage the production of housing that is physically and financially suitable for individuals and families experiencing homelessness, residents with special needs, including but not limited to large households, seniors, extremely low-income residents, and persons with physical and developmental disabilities.
• Goal 6: Housing for Individuals and Families Experiencing Homelessness
o Policy 6.2: Support Existing and New Transitional and Emergency Shelters
o Policy 6.3: Fund Construction of New Permanent Supportive Housing
Financial Impacts
This agreement will not impact the City’s General Fund because HOME funds are federal discretionary funds from the U.S. Department of Housing and Urban Development.
Budget Authority
Federal Home Investment Partnerships Program, 24 CFR Part 92, Subpart C.
Attachments
• Attachment A: Resolution authorizing the City’s continued participation in the Alameda County HOME Consortium
• Attachment B: HOME Consortium 3 Year Grant Agreement FFY 2024-2026
PREPARED BY: Maryann Sargent, Senior Housing Specialist