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<br />REPORT <br /> <br /> <br /> <br />February 9,2009 <br /> <br />SUBJECT <br />Funding Agreement for Community Housing Development Organization (CHDO) <br />HOME Setaside Funds - Fiscal Year 2008-09 <br /> <br />RECOMMENDATION <br />Authorize, by motion, approval of funding agreement with Cedar Street Apartments, Inc. <br />for HOME CHDO setaside funds <br /> <br />BACKGROUND <br />Each year the City receives an entitlement of HOME Investment Partnership (HOME) <br />funds from the U.S. Department of Housing and Urban Development. HOME funds are <br />exclusively targeted to low and very low income occupants of owner and rental housing. <br />Redwood City has used these funds to provide affordable housing programs to <br />Redwood City citizens through site acquisition, acquisition/rehabilitation, and new <br />construction of affordable housing. <br /> <br />24CFR Part 92 regulating HOME funds requires that 15%) of each entitlement received <br />be setaside for use by an eligible Community Housing Development Organization <br />(CHDO) to assist in the sponsorship and capacity building for development of affordable <br />housing opportunities. A CHDO, acting as owner, sponsor, or developer, may use <br />setaside funds to carry out acquisition and/or rehabilitation of rental housing, new <br />construction of rental housing, acquisition and/or rehabilitation of homebuyer properties, <br />new construction of homebuyer properties, and direct financial assistance to purchasers <br />of HOME-assisted housing sponsored or developed by a CHDO with HOME funds. <br /> <br />A Community Housing Development Organization (CHDO) is an IRS designated 501 (c) <br />organization intended to respond to a community's particular needs. The CHDO must <br />have provided services in the community at least one year where it plans to develop <br />HOME-assisted housing. The structure of the CHDO Board is the main indicator of <br />community control over the CHDO. <br /> <br />. At least one third of the Board must be composed of the low income community. <br />. No more than one third may be representatives of the public sector, including <br />elected officials, and employees of the Participating Jurisdiction (PJ). <br />. The balance is unrestricted, and may include people such as human and social <br />service providers, lenders, individuals with access to philanthropic resources, or <br />others willing to contribute their professional expertise. <br /> <br />Mental Health Association of San Mateo County has formed an eligible CHDO to <br />develop the Cedar Street Supportive Housing Development. The CHDO is known as <br />Cedar Street Apartments, Inc. A roster of the CHDO Board is included in this report as <br />Attachment 1. <br /> <br />1:\2009 STAFF REPORTS. AGREEMENTS\02-2009\CHDO\CHDO Funding Agreement Staff Report.2.9.2009.doc <br />