Memorandum
Date: April 27, 2021
To: The Honorable Bruno Sabatier, Chair, Lake County Board of Supervisors
From: Carol J. Huchingson, County Administrative Officer
Subject: Consideration of Request from the City of Lakeport to reallocate the County’s share of the 2018 Community Development Block Grant - Disaster Recovery Multi-Family Housing Program funding of $7,594,201 to the City of Lakeport to develop multi-family housing units.
Executive Summary: (include fiscal and staffing impact narrative):
California Department of Housing and Community Development published its policies and procedures related to the 2018 Community Development Block Grant - Disaster Recovery Multi-Family Housing Program (CDBG-DR-MFH) in January 2021 with a notice of interest due March 15, 2021.
The County of Lake has been allocated funding under this program and is eligible for $ 7,594,201 and the City of Lakeport is eligible for $2,433,284. This program is intended to help fund and develop low to moderate income multifamily housing units intended to address those dislocated as a result of the Mendocino Complex Fire.
The County of Lake has not been able to pursue this program funding because of the lack of an affordable housing program and relevant policies and procedures. As is presently under discussion through your Board’s Economic Develop Task Force, the County lacks Housing Coordinator or designated staffing or consultant support to due diligence requirements, solicitation of developers, provision of project oversight, completion of environmental reviews, compliance monitoring and project closeout, all of which would be necessary to complete a project of this type.
The City of Lakeport has had several developers interested in proposing housing projects for these funds and the City has retained a consultant to assist in pursuing this funding. The City of Lakeport approached the County to inquire if we intended to pursue this funding and if not, would the County be agreeable to pool its funding with the City of Lakeport to retain those funds within the County of Lake.
Staff recommends this funding be reallocated to the City of Lakeport so it can be pooled with the City of Lakeport’s funds so this housing opportunity can still be of benefit residents of Lake County. As your Board is aware, the County also partnered recently with the City of Clearlake to reallocate CDBG-DR funding earlier allocated to the County following the North Bay Firestorm of 2017 (Sulphur Fire), to ensure the funds remain in Lake County to be used to meet the housing needs of local residents.
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Recommended Action: Authorize the County Administrative Officer or designee to draft letter to California Department of Housing and Community Development Department authorizing the reallocation of the County’s 2018 Community Development Block Grant - Disaster Recovery Multi-Family Housing Program share of funding to the City of Lakeport.