Title
Planning and Building Department, Affordable Housing Unit, recommending the Board:
1) Approve and authorize the Chair to sign Amendment III for the competitively bid Agreement 7389 with Housing Group LLC, doing business as HousingINC, for the provision of providing program administration of the Department’s Affordable Housing Program, extending the term of the Agreement by approximately five (5) months for a revised expiration date of December 31, 2026, with no changes to the not-to-exceed amount or scope of work; and
2) Authorize the Purchasing Agent to execute any further documents determined necessary related to Agreement 7389, including amendments which do not increase the not-to-exceed amount or the term of the Agreement, contingent upon approval by County Counsel and Risk Management.
FUNDING: General Fund - 70% / Grant Funds - 30%.
Body
DISCUSSION / BACKGROUND
The Affordable Housing Unit administers various housing related programs, with a focus on permanent housing solutions for low- to moderate-income households by partnering in the financing for development of affordable rental units and financing loans for homebuyers and homeowners. The unit also assists with implementation of General Plan policies and more specifically, the Housing Element.
Following the departure of the Department’s previous Housing Analyst, the Affordable Housing Unit was left without any staff who possessed comprehensive knowledge of the program’s structure, history, or operational procedures. Critical institutional knowledge had not been transferred, leaving the Affordable Housing Unit without adequate guidance on how to manage existing projects, maintain compliance with State requirements, or provide training to new personnel. This lack of internal expertise created significant challenges for day-to-day administration and highlighted the immediate need for external technical support to stabilize and organize the program.
On April 3, 2023, the County’s Purchasing Agent executed Agreement 7389 (Agreement) for HousingINC to complete an initial program needs assessment and development of a preliminary scope of work to provide development/management and long-term administration of the Affordable Housing Program, with a not-to-exceed amount of $40,000, and a term of one (1) year.
On March 27, 2024, the County’s Purchasing Agent executed Amendment I to the Agreement to expand the scope of services to include correspondence with HCD, responses to customer inquiries, and the preparation and submittal of reports for various HCD grant programs, increasing the not-to-exceed amount by $20,000 for a new total not-to-exceed amount of $60,000, and extending the term by three (3) months for a new expiration date of July 8, 2024.
On June 25, 2024, the Board approved and authorized the Chair to sign Amendment II to the Agreement, increasing the not-to-exceed amount by $360,000 for a new total not-to-exceed amount of $420,000, expanding the Scope of Work allowing for assistance with grant program administration and support, and extending the term by two (2) years for a revised expiration date of July 8, 2026.
Since the execution of Amendment II, HousingINC has been fully functioning as the program lead, carrying out the full range of responsibilities previously assigned to the incumbent Administrative Analyst and administering the Department’s Affordable Housing Program. While Department staff have continued to provide support on an as-needed basis, the complexity of the program requires comprehensive knowledge of grant administration, regulatory compliance, project management, and long-term program planning.
During Fiscal Year 2024-25, the Administrative Analyst position assigned to the Housing unit was underfilled with an Administrative Technician, and, in accordance with Personnel Rule 505.1, the position was trued up in the FY 2025-26 Recommended Budget. On April 21, 2026 (Legistar file 26-0497), the Board adopted Resolution 075-2026, reinstating the Administrative Analyst position. As the Department progresses through the recruitment process to fill the vacant position, continued assistance from HousingINC is essential to ensure uninterrupted program operations and compliance with State requirements.
To ensure continuity of operations during this transitional period, the Department is requesting approval of Amendment III to extend the Agreement with HousingINC by approximately five (5) months for a revised expiration date of December 31, 2026, with no changes to the scope of work or not-to-exceed amount. Recruitment for the Housing Administrative Analyst position is in progress. Extending the Agreement will allow HousingINC to continue providing essential program administration, grant support, and regulatory compliance functions until permanent staff is hired. This additional time will also ensure that, once a new hire is selected, HousingINC can assist with comprehensive training and knowledge transfer to support a smooth transition. If the new employee becomes fully proficient more quickly than anticipated or does not require extended training, the Agreement may be terminated earlier at the Department’s discretion.
ALTERNATIVES
If the Board chooses not to approve Amendment III, the County risks significant disruption to the administration of Affordable Housing Programs. Without continued support from HousingINC, there may be delays in communication with the public and partner agencies, as well as interruptions in services for various housing programs due to the absence of dedicated, fully trained staff. The Department also lacks personnel with the specialized knowledge necessary to train a new hire independently, which would further impede the onboarding process and prolong operational gaps. HousingINC currently assists with preparing and submitting required reporting documentation for numerous State grant and loan programs, and the inability to maintain this support could result in potential monetary consequences for the Department. Although the Agreement may be terminated early should the newly hired staff member gain proficiency more quickly than anticipated, approval of Amendment III is essential to ensure uninterrupted operations, compliance with State requirements, and a smooth transition once the position is filled.
PRIOR BOARD ACTION
On June 25, 2024 (Legistar file 24-1068), the Board approved and authorized the Chair to sign Amendment II to the Agreement, increasing the not-to-exceed amount by $360,000 for a new total not-to-exceed amount of $420,000, expanding the Scope of Work allowing for assistance with grant program administration and support, and extending the term by two (2) years for a revised expiration date of July 8, 2026.
On April 21, 2026 (Legistar file 26-0497), the Board approved and adopted Resolution No. 075-2026, adding a full-time Administrative Analyst to the Affordable Housing Unit.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management have approved the proposed Amendment.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no change to Net County Cost associated with this item. To date, the Department has only expended $180,487 of the $420,000, approximately 43% of the contract amount, since the execution of the contract in Fiscal Year 2023-24. Future funding for these services have been incorporated into the Fiscal Year 2026-27 budget. Additionally, the Department can utilize a portion of awarded grant funds and Program Income to offset related expenses.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair’s signature on two (2) original copies of Amendment III to Agreement 7389;
2) The Clerk of the Board will forward one (1) fully-executed original Amendment III to Agreement 7389 to the Chief Administrative Office, Procurement and Contracts Division, for further processing
STRATEGIC PLAN COMPONENT
Safe and Healthy Communities
Priority: Develop a continuum of support and housing opportunities for unhoused individuals
Action Item: Develop a comprehensive plan for affordable housing opportunities
CONTACT
Jennifer Morris, Sr. Administrative Analyst
Planning and Building Department