To: Board of Commissioners
Department or Agency Name(s): Community Development Commission
Staff Name and Phone Number: Michelle Whitman and Martha Cheever, 707-565-7521
Vote Requirement: Majority
Supervisorial District(s): All
Title:
Title
Extension of Project Based Voucher Agreements and Recognition of Affordable Housing Month
End
Recommended Action:
Recommended action
A) Approve extension of Project Based Voucher Agreement for Fitch Mountain Terrace II adding an additional 15 years, for a term expiring August 1, 2045, and authorize the Executive Director of the Community Development Commission to sign an extension amendment and any associated documents which may be necessary
B) Approve extension of Project Based Voucher Agreement for Fife Creek Commons Apartments adding additional 20 years, for a term expiring April 1, 2047, and authorize the Executive Director of the Community Development Commission to sign an extension amendment and any associated documents which may be necessary
C) Approve extension of Project Based Voucher Agreement for Daniel Drive Apartments for an additional 20 years, with a term expiring August 1, 2045, and authorize the Executive Director of the Community Development Commission to sign an extension amendment and any associated documents which may be necessary
D) Adopt a Resolution recognizing May 2026 as Affordable Housing Month.
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Executive Summary:
The U.S. Department of Housing and Urban Development (HUD) allows Housing Authorities to use up to 30% of the overall funding for the Section 8 Housing Choice Voucher program to support specific housing units via project-based vouchers. In contrast to the tenant-based voucher program, project-based housing subsidies remain with the unit even after a tenant moves out ensuring long-term affordability. Project-Based Vouchers (PBV) are an important resource because they provide reliable operating revenue for new and existing affordable multifamily rental housing projects, ensuring the most vulnerable members of our community have access to stable, affordable housing. To be eligible for an award of PBVs, the owner of a project must agree to rent the designated unit to eligible tenants for the duration of the Housing Assistance Payments contract. Upon initial award, these contracts are limited to a maximum term of 20 years but may be extended for an additional 20 years at any time during the term so long as the combined term does not exceed 40 years.
In addition, the Commission requests approval of a Resolution recognizing May 2026 as Affordable Housing Month.
Discussion:
Project Based Voucher Agreement Extensions
Federal regulation and local policy allow a housing authority to extend the term of a Project Based Voucher (PBV) agreement at any point during the agreement term so long as the total term does not exceed 40 years.
In accordance with regulatory requirements, the Housing Authority has determined that each extension listed below is appropriate to continue providing affordable housing or to expand housing opportunities.
1. Fitch Mountain Terrace Apartments located in Healdsburg is owned and operated by Burbank Housing Development Corporation (BHDC). The existing Project Based Voucher Agreement was executed on August 1, 2005, for a term of ten (10) years, expiring August 1, 2015, and provided 10 project-based vouchers. The Agreement was amended to extend the term for additional fifteen (15) years, for a term expiring August 1, 2030. To continue providing affordable housing to low-income residents, BHDC has requested to extend the Agreement for an additional 15 years for a term expiring August 1, 2045. Combined, this extension will take the agreement to the maximum allowable time of 40 years and is the final extension allowable under the current regulation.
2. Fife Creek Commons Apartments located in Guerneville, is owned and operated by Burbank Housing Development Corporation (BHDC). The existing Agreement was executed on April 1, 2012, for a term of fifteen (15) years, expiring April 1, 2027, and provides 12 project-based vouchers. To continue providing affordable housing to low-income residents, BHDC has requested to extend the Agreement for an additional 20 years for a term expiring April 1, 2047. Under current regulation, one additional extension of five (5) years will be available during the term of the Agreement should it be determined necessary to provide affordable housing and expand housing opportunities in the area.
3. Daniel Drive Apartments located in Petaluma, is owned and operated by Petaluma Ecumenical Properties (PEP Housing). The initial Project Based Voucher Agreement was executed on August 1, 2005, for a term of fifteen (10) years, expiring August 1, 2015, and provides 5 project-based vouchers. The Agreement was amended effective August 1, 2015, to extend the term for an additional ten (10) years, for a term expiring August 1, 2025. To continue providing affordable housing, and in accordance with regulation, PEP Housing has requested to extend the Agreement for an additional 20 years for a term expiring August 1, 2045. Combined, this extension will take the agreement to the maximum allowable time of 40 years and is the final extension allowable under the current regulation.
This proposed action is not a project pursuant to CEQA Guidelines Section 15378 because it is an administrative action that does not result in any direct or physical change in the environment.
All agreement extensions included in this item were recommended for approval by the Community Development Committee at their meeting on May 13, 2026.
Affordable Housing Month
The month of May is nationally recognized as affordable housing month, and the Commission requests the Board adopt a resolution that proclaims the month of May 2026 to be Affordable Housing Month for the County of Sonoma. The County of Sonoma, the Commission, and the Sonoma County Housing Authority have made affordable housing an important goal to be achieved by providing annual funding, programs and services that support the protection, preservation, and production of affordable housing. Affordable housing supports Sonoma County’s diversity and sustainability, and is the foundation for health, economic prosperity, and educational opportunity.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan and is aligned with the following pillar, goal, and objective.
Pillar: Healthy and Safe Communities
Goal: Goal 3: In collaboration with cities, increase affordable housing development near public transportation and easy access to services.
Objective: Objective 3: Create incentives for developers to promote affordable housing development in the County.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
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Prior Board Actions:
This item has no prior Board approval. Prior to the initial implementation of the Housing Opportunity Through Modernization Act in 2018, federal regulation did not require Board approval for Project Based Voucher agreements.
Fiscal Summary
|
Expenditures |
FY25-26 Adopted |
FY26-27 Projected |
FY27-28 Projected |
|
Budgeted Expenses |
703,032 |
731,153 |
760,399 |
|
Additional Appropriation Requested |
|
|
|
|
Total Expenditures |
703,032 |
731,153 |
760,399 |
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
703,032 |
731,153 |
760,399 |
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
|
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
703,032 |
731,153 |
760,399 |
Narrative Explanation of Fiscal Impacts:
All funding for the Project Based Vouchers is available from Federal Funds provided for the Housing Choice Voucher Program. Expenditure and Revenue appropriations for FY26-27 and FY27-28 will be included in the annual budgetary process.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
1. Burbank Housing Development Corporation request for extension of project-based voucher agreements
2. Project Based Voucher Agreement for Fitch Mountain Terrace II Apartments
3. Extension No. 1 of Project Based Voucher Agreement for Fitch Mountain Terrace II Apartments
4. Project Based Voucher Agreement for Fife Creek Apartments
5. PEP Housing request for extension of project-based voucher agreement
6. Project Based Voucher Agreement for Daniel Drive Apartments
7. Extension No. 1 of Project Based Voucher Agreement for Daniel Drive Apartments
8. Resolution Recognizing Affordable Housing Month
Related Items “On File” with the Clerk of the Board:
None