DATE: January 10, 2017
TO: Board of Supervisors
SUBMITTED BY: Dawan Utecht, Director, Department of Behavioral Health
SUBJECT: Participation Agreement with California Housing Finance Agency
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Participation Agreement with the California Housing Finance Agency, for permanent supportive Mental Health Services Act housing funds, to transfer $6,186,361 plus accrued interest, effective upon execution.
REPORT
Approval of the recommended action will allow the County to continue its relationship with the California Housing Finance Agency (CalFHA) which serves as a State lender of Mental Health Services Act (MHSA) funds for seriously mentally ill clients and families. CalFHA provides the County with loan development and underwriting of MHSA housing funds. The recommended agreement will allow for the release and transfer of the remaining County MHSA Housing Loan Program (HLP) funds, in addition to any accrued interest received prior to the transfer of these funds held by CalFHA, to the newly-created MHSA Special Needs Housing Program (SNHP). The Participation Agreement contains CalFHA boilerplate evergreen contract language and allows the Department to participate in the SNHP for permanent supportive housing utilizing the remaining MHSA housing funds, with no increase in Net County Cost; however, it can be terminated by either party upon 60 days advanced notice.
ALTERNATIVE ACTION(S):
Non-approval of the recommended action would require CalFHA to return the remaining MHSA permanent supportive housing funds. Non-approval of the Participation Agreement with CalFHA would require the County to seek the assistance of another loan underwriting agency for future loans associated with County MHSA housing. Additionally, non-approval of the recommended action further delays development of permanent supportive housing for clients. The County lacks such expertise and experience in MHSA housing loan ...
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