The 2018 Community Development Block Grant-Disaster Recovery Multi-Family Housing Program is meant to develop low- to moderate-income multifamily housing units for those who lost housing as a result of the Mendocino Complex fire in 2018.
The county is eligible to receive $7,594,201 and the city of Lakeport is eligible for $2,433,284, the county reported.
However, officials said the county hasn’t been able to pursue the program’s funding because it lacks an affordable housing program and relevant policies and procedures.
The county previously reallocated Community Development Block Grant-Disaster Recovery funds to the city of Clearlake that were given to the county following the 2017 Sulphur fire and meant to be used for housing, county staff reported.
During the discussion, Board Chair Bruno Sabatier would voice his frustration that the county can’t pursue the funds, noting, “It’s not where we want to be.”
Deputy Administrative Officer Susan Parker told the board on Tuesday that the city of Lakeport approached the county to request the reallocation of the funds. At that time, she said she was unaware of any county department pursuing use of the money. Since then the city formally submitted the request for the reallocation.
Then on Monday Parker said she found out indirectly that the city of Clearlake also is interested in a portion of that funding allocation.
“Unlike the city of Lakeport, the city of Clearlake did not receive a 2018 CDBG allocation,” said Parker.
However, she said she confirmed on Monday with the state Housing and Community Development Department that the board has the discretion to reallocate its funds to the city of Clearlake should it choose to do so.
“I think it’s in our best interest to keep all of these monies within the county of Lake to serve our communities,” said Parker.
She said she asked Lakeport City Manager Kevin Ingram to share an alternative for handling the funds in order to prevent them from being returned to the state.
Ingram, who attended the meeting via Zoom, told the board that over the last few months the city of Lakeport has had conversations with three affordable housing developers – two of them he termed as “serious,” with the third not yet having a final proposal – interested in some sites in the city for projects.
The $2.4 million set aside for Lakeport is enough to get a project off the ground, Ingram said.
He said he reached out to the county to ask for the reallocation of its funding in an effort to prevent those funds from being returned to the state.
Once the money is allocated, Ingram said the city would issue a call for projects in the beginning of June and would review them shortly thereafter. “Determining the amount of money available would determine the number of projects.”
Ingram said that in addition to speaking with Parker, he had discussed the funds with Clearlake City Manager Alan Flora. He said Clearlake can potentially use the funds for some projects they are pursuing. “We’re completely open to that.”
He said he was not sure how Clearlake would get the money and if it would they need to submit a due diligence packet. Lakeport had to submit such a packet in mid-March.
Ingram said there may be an avenue for creating a subrecipient agreement to allow Clearlake to use the money. That might also be an option if there are project proposals in the unincorporated county.
Supervisor Jessica Pyska said it’s a great opportunity that can’t be allowed to slip by, but she said the county needs to take this seriously and have projects in the pipeline to be ready to use the funds in the future.
“The last thing we want to do is return money back to Sacramento if we’re able to use it here,” said Supervisor Tina Scott.
Scott said many of the issues the board talks about go back to the county’s housing inventory, and she agreed with Pyska, wishing the county was prepared with a project. She added that she was concerned about piecemealing the funding.
Sabatier said it was frustrating to read through the report and to see $7.5 million slip through the cracks. He said the board needs to bring back a future discussion about having a housing coordinator or another plan to use the money.
“There will be more funding that comes along and we cannot afford to lose this,” he said, adding that he agrees with sharing this allocation with the cities.
Scott asked if the funds were on a first-come, first-served basis. Parker said the program has fairly stringent requirements and she said points and criteria are needed to meet the obligations.
Ingram agreed, explaining that he would speak to Housing and Community Development to find out about the best plan of action, and whether it’s to split the funds between the cities or to do a subrecipient agreement. He also suggested that the county could participate in drafting a request for proposals and also be on the selection committee.
County Administrative Officer Carol Huchingson said they appreciated Ingram’s offer to let the county have a seat at the table during the process. “We all have a vested interest in the development of housing.”
She said she feels strongly that the county needs to do something to develop its own capacity to move forward with such housing projects. “It’s been a regular conversation of the Economic Development Task Force and needs to become some form of recommendation the board can act on soon.”
Scott moved to authorize having Huchingson draft a letter to the Housing and Community Development Department authorizing the reallocation of the county’s funds to the cities of Clearlake and Lakeport, which Supervisor Moke Simon seconded. The board vote was 5-0.
Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.
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Board of Supervisors agrees to reallocate housing funds to cities of Clearlake, Lakeport - Lake County News
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