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Board approves contract amendment to extend CDBG-DR housing administration as projects proceed to construction
Summary
Supervisors approved a contract amendment with Housing Tools to extend program administration and increase the not-to-exceed amount to oversee nine CDBG-DR multifamily housing projects, extend monitoring through 2030 and cover closeout and oversight work.
The Butte County Board of Supervisors on Aug. 12 approved an amendment to the county’s contract with Housing Tools to administer Community Development Block Grant–Disaster Recovery (CDBG‑DR) funds and to support nine multifamily housing developments created in response to the Camp Fire and other disasters.
Katie Simmons, deputy chief administrative officer, and Shelley Ohmes, program development manager, told the board the county’s CDBG‑DR allocation has grown over time and the state extended the expenditure deadline to February 1, 2030. That change, combined with construction timelines, required more administrative time for monitoring and closeout.
County staff asked the board to extend the contract term with Housing Tools to Dec. 1, 2030, reallocate funds among tasks to cover additional closeout and monitoring needs, and increase the not-to-exceed contract amount by $212,349 to a new cap of $957,951. Simmons said the additional administrative costs are eligible for reimbursement under the federal program.
The nine projects range from approximately 47 to 75 units; one project, Lakeridge Circle Apartments in Magalia, will provide 64 units in the unincorporated Foothills and recently received state approval to execute loan documents. Other projects are in Chico, Gridley and Oroville; three Oroville projects are complete and leased. The county has conditioned affordability covenants and long-term monitoring obligations as part of the funding agreements.
Board action: The board moved, seconded and approved the contract amendment and authorized the chair to sign. Staff said they will continue to work with HCD to file required documentation and monitor developer compliance through the loan and covenant terms.
Why it matters: The CDBG‑DR funds are intended to be last-in financing to fill gaps in the funding stack for affordable multifamily housing created after disasters. Administrative and monitoring costs are recoverable under the grant rules but require additional staff time and consultant support to manage multiple projects at different stages of planning, construction and lease-up.
Next steps: County staff will execute the contract amendment, continue monitoring the nine projects, and return to the board if additional projects move forward.
