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6.3.A. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> July 22, 2013 <br /> SUBJECT <br /> Mental Health Association of San Mateo County Site Acquisition for Affordable Housing <br /> RECOMMENDATION <br /> Adopt resolution authorizing a funding agreement with Mental Health Association of San <br /> Mateo County for the acquisition of 105 5th Avenue for the development of affordable <br /> rental housing and authorizing the City Manager, or his designee, to execute the <br /> agreement. <br /> BACKGROUND <br /> In 2010, the Council adopted a Consolidated Plan (Plan) for 2010-2015 that established <br /> a strategy for expending federal funds over the five year life of the Plan to meet the <br /> needs of low income and special needs populations. The Plan targeted federal <br /> resources to meet the various needs identified in the Plan with 50% of the City's annual <br /> Community Development Block Grant (CDBG) and 90% of its annual HOME Investment <br /> Partnership (HOME) entitlement funds to produce additional affordable housing units. <br /> The Five Year Strategy focused on three primary areas that impact quality of life for <br /> Redwood City residents including housing, services, facilities and jobs. Site acquisition <br /> of affordable rental housing and special needs housing is one of the highest priority <br /> goals identified in the Consolidated Plan and subsequent Annual Action Plans. <br /> ANALYSIS <br /> The City received a funding proposal from Mental Health Association of San Mateo <br /> County (MHA) to assist with the acquisition of a vacant commercial property in May <br /> 2013. MHA intends to purchase the site to develop permanent supportive rental housing <br /> for very low income households. In June 2013 the Housing and Human Concerns <br /> Committee recommended approval of the acquisition to be funded with $400,000 of <br /> CDBG funds budgeted for affordable housing site acquisition in the FY2012-2013 and <br /> FY2013-2014 Action Plans. <br /> This project will allow the City to increase the supply of affordable housing for persons <br /> with special needs to meet the goals identified in the 2010-2015 Consolidated Plan and <br /> the Housing Element and will facilitate the timely expenditure of funds. <br /> Project Description <br /> MHA made an offer and received acceptance to purchase the site located at 105 5tn <br /> Avenue, located in unincorporated Redwood City. Currently the site contains old vacant <br />