To: Board of Supervisors
From: Health and Human Services Agency
Meeting Date: February 14, 2017
|
Department Contact: |
Tammy Moss Chandler |
Phone: |
463-7774 |
|
Department Contact: |
Jenine Miller |
Phone: |
472-2341 |
|
Item Type: Consent Agenda |
|
Time Allocated for Item: N/A |
Agenda Title:
title
Approval of Agreement with Rural Communities Housing Development Corporation in the Amount of $1,336,000 to Provide Mental Health Services Act (MHSA) Rental Housing to Mendocino County Residents and Clients for Health and Human Services Agency (HHSA) Behavioral Health and Recovery Services (BHRS) Through December 2038
End
Recommended Action/Motion:
recommendation
Approve Agreement with Rural Communities Housing Development Corporation in the amount of $1,336,000 to provide Mental Health Services Act (MHSA) Rental Housing to Mendocino County residents and clients for HHSA BHRS Through December 2038; and authorize HHSA Director or designee to sign any future amendments to the Agreement that do not affect the annual maximum amount; and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
March 17, 2015, approval for BHRS to receive MHSA Housing Program funds and Resolution authorizing BHRS Director to sign MHSA funding release form. May 17, 2016, Item 5(f), MHSA Housing presentation/update to the Board. January 23, 2017, Item 6(a), BHAB Agenda Item 4, Mental Health Housing update.
Summary of Request:
On August 23, 2007, the State of California Department of Mental Health, now the Department of Health Care Services (DHCS), and the California Housing Finance Agency (CalHFA) released the MHSA Housing Program notice of availability of funds to solicit qualified borrowers interested in applying for capital development and operating subsidies for permanent supportive housing for individuals with serious mental illness. HHSA submitted an application for these funds in order to provide housing services for this population in Mendocino County. However, that project application was never realized and in May 2015 Mendocino County’s share of those funds were distributed to the County with the dissolution of the State program.
In March 2015 HHSA released a Request for Qualifications (RFQ) for professional services to acquire, own, operate and manage affordable housing using the MHSA Housing Program funds in the amount of $1,336,000. HHSA selected Rural Communities Housing Development Corporation (RCHDC) as the preferred provider through the RFQ. The Agreement before the Board today will allow the County and RCHDC to move forward in their shared commitment to develop MHSA Rental Housing for Mendocino County residents and clients. MHSA funding for this project requires a minimum of 20 years of service to the MHSA population. Therefore, this agreement has a term through December 2038. It includes regular reporting and review requirements throughout that time period, and an early termination trigger in 2018 if leveraged funding is not secured.
To fully fund the capital, operating and service costs associated with a supportive housing project like this, RCHDC and the County will rely on a range of funding sources. For this project, RCHDC will be seeking Low Income Housing Tax Credits administered by the California Tax Credit Allocation Committee (TCAC). The TCAC regulations include long term affordability requirements that exceed the 20 year requirements of the MHSA funding, resulting in the viability of housing for the County’s low income MHSA Housing Program population for 55 years. Timely approval of the Agreement with RCHDC is important in order to secure the anticipated match/leveraged funds and to meet upcoming deadlines for Low Income Housing tax credit funding, the first of which is due in early March 2016.
Alternative Action/Motion:
Return to staff for alternative handling.
Supplemental Information Available Online at: N/A
Fiscal Impact:
|
Source of Funding: MHSA |
Budgeted in Current F/Y: Yes |
|
|
Current F/Y Cost: $1,336,000 |
Annual Recurring Cost: N/A |
|
|
|
|
|
|
Supervisorial District: All |
Vote Requirement: Majority |
|
Agreement/Resolution/Ordinance Approved by County Counsel: Yes
|
CEO Liaison: Jill Martin, Deputy CEO |
|
|
|
CEO Review: Yes |
|
|
Comments: