Board balks at proposed REAP transfer tied to Stanislaus housing authority; directs staff to reopen funding
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Summary
After public comment and questions about timing and local preference, the Calaveras Board of Supervisors signaled it will not approve a proposed contract amendment that would allow Stanislaus Regional Housing Authority to transfer the Foothill Terrace property to a limited partnership for REAP reimbursement; the board directed staff to return with options to terminate the current subaward and reissue a Notice of Funding Availability.
The Calaveras County Board of Supervisors on Feb. 10 declined to endorse a staff‑recommended amendment to a regional predevelopment grant that would have allowed Stanislaus Regional Housing Authority (SRHA) to create a limited partnership with Great Valley Housing Development Corporation and shift ownership of the Foothill Terrace site so acquisition costs could qualify for reimbursement under the county’s REAP award.
Kathy Gallino of Economic and Community Development told the board the county had executed a REAP grant agreement (Sept. 12, 2024) totaling $1,747,972.21 for predevelopment activities, and that SRHA later requested reimbursement that included an acquisition purchase dated to 2017, which staff initially found ineligible. Gallino said HCD staff advised that creating a limited partnership could make the acquisition eligible. SRHA’s representative, Kim Ryan, said the partnership and transfer would allow roughly $700,000 of acquisition costs and other predevelopment expenditures to qualify and keep the 26‑unit Foothill Terrace project moving toward construction.
But several supervisors and public commenters questioned the proposal’s timing, local benefit and appearance. Supervisors and speakers raised concerns that SRHA purchased the property in 2017, that reuse of funds to reimburse a prior acquisition looked like a mechanism to recover costs rather than expedite development in Calaveras, and that local organizations (including Habitat for Humanity Calaveras) had shovel‑ready projects that might better use the funds now.
Public commenters urged broad consideration. Peter Mauer and Emily Dondero of Habitat for Humanity Calaveras asked the board to reopen the funding opportunity to allow local applicants to compete; Tim Oski, Habitat board chair, submitted a letter from the mayor of Angels Camp supporting Habitat’s Eureka Oaks workforce housing project. Habitat representatives said their project is shovel‑ready and would deliver homes quickly for county residents.
County counsel told the board the existing contract can be terminated on 15 days’ notice and the board could then reissue a competitive Notice of Funding Availability (NOFA) if it chose to redirect the funds. Several supervisors said they were uncomfortable amending the agreement to permit a retroactive reimbursement through the limited partnership structure.
The board instructed staff to return with options, including termination of the current subaward and reissuing the NOFA so local applicants can compete. Staff said the termination and follow‑up items could be brought back at a subsequent meeting; the board signaled consensus to pursue that direction and asked staff to coordinate with HCD about what reimbursement amounts might still be eligible if the agreement is terminated.
Kathy Gallino and SRHA representatives emphasized the project’s readiness and the risk that failing to secure reimbursements could stall development; supervisors emphasized urgency for housing and a preference for solutions that use local partners and produce near‑term results.
No formal vote ratifying termination occurred that day; the board provided direction to staff to return with options for action consistent with the county’s contract terms.
