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DATE: December 15, 2025
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Sofia Mangalam, Community Development Director
Nori Jabba, Housing and Sustainability Manager
DEPARTMENT: Community Development
SUBJECT: AGREEMENTS WITH HABITAT FOR HUMANITY GREATER SAN FRANCISCO, INC. AND REBUILDING TOGETHER PENINSULA
TO MANAGE 2023-2031 HOUSING ELEMENT PROGRAMS; AND
APPROPRIATIONS TO FUND THE TWO (2) PROGRAMS
RECOMMENDATION
It is recommended that the City Council take the following actions as part of the adopted 2023-2031 Housing Element (HE) Program Implementation: (1) Adopt the attached Resolution (Attachment 1) authorizing the Mayor to execute an Agreement with Habitat for Humanity Greater San Francisco, Inc. (“HGSF”) for the Home Rehabilitation Program in an amount not to exceed $861,750, to issue loans and provide construction services for lower income homeowners to implement HE Program H-B-2-a, Lower-Income Homeowner Rehabilitation Loans; approving an appropriation of $861,750 from the Commercial Linkage Fee Fund (Fund 137) to 137-0847-419-42-51; and find the agreement exempt from the CEQA pursuant to sections 15061(b)(3) and 15301; and (2) Adopt the attached Resolution (Attachment 2) authorizing the City Manager to execute an Agreement with Rebuilding Together Peninsula (“RTP”) for the Minor Home Repair Program in an amount not to exceed $17,500 to manage construction and administer grants for minor home repairs for very low income homeowners to implement HE Program H-B-2-b, Facilitate Non-Profit Rehabilitation/Maintenance Assistance (Exhibit 2- A); approving an appropriation of $17,500 from the Commercial Linkage Fee Fund (Fund 137) to 137-0847-419-42-51; and (3) find the agreement exempt from the CEQA pursuant to sections 15061(b)(3) and 15301.
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EXECUTIVE SUMMARY
The Housing Element is an integral part of the Foster City General Plan, which identifies the City’s housing needs, states the City’s goals and objectives regarding housing production, rehabilitation, preservation, and conservation to meet those needs, and defines the policies and programs necessary to achieve them. The two (2) HE Programs relevant to this staff report include:
1.H-B-2-a, Lower-Income Homeowner Rehabilitation Loans (page HE-84 of adopted 2023-31 Housing Element)
The City will provide or partner with a regional program to provide rehabilitation loans, energy improvements such as weatherization or solar, disaster assistance programs, and proactive outreach to lower-income homeowners.
Responsible Agency: Community Development Department
Timeframe: Implement program by December 2024
Funding Source: Affordable Housing Fund
Quantifiable Objective: 18 new loans by 2031 or three (3) per year, half of which being very low income and half of which being low income.
This program is referred to as the “Home Rehabilitation Program” in this staff report.
2.H-B-2-b, Facilitate Non-Profit Rehabilitation/Maintenance Assistance (page HE-85 of adopted 2023-31 Housing Element)
The City will initiate a rebate program to provide up to $5,000 in funding to very low- income homeowners who cannot otherwise afford the repairs. Eligible repairs include weatherization of doors and windows, repair of broken doors and windows, installation of smoke detectors, replacement of water heaters, electrical/mechanical work, plumbing repairs, solar photovoltaic, and accessibility improvements. The City will identify possible non-profit organizations (such as Rebuilding Together Peninsula, churches, service clubs, or Girl or Boy Scouts) that can provide assistance/proactive outreach and will provide information on the City’s website and handouts at City Hall.
Responsible Agency: Community Development Department
Timeframe: Implement program by December 2024
Funding Source: Affordable Housing Fund
Quantified Objectives: six (6) units improved with assistance by 2031, or one very low-income owner unit improved with assistance per year.
This program is referred to as the “Minor Home Repair Program” in this staff report.
Government Code Section 65400 requires each jurisdiction to prepare an annual progress report (APR) on the jurisdiction’s status and progress in implementing its 4928-9378-3422 v1
housing element. Each jurisdiction’s APR must be submitted to HCD and the Governor’s Office of Planning and Research (OPR) by April 1 of each year (covering the previous calendar year). The California Department of Housing & Community Development (HCD) has created the Housing Accountability Unit to enforce Housing Elements and ensure that jurisdictions follow through with their Housing Element commitments by implementing their goals, policies, and programs.
On September 3, 2024, the City Council approved the application for $4,675,000 for a Notice of Funding Availability (NOFA) for the 2024 Local Housing Trust Fund (LHTF) Program by HCD and authorized matching funds to be transferred from the Commercial Linkage Fee Fund (Fund 137) to LHTF (Fund 145) upon notification of approval of the application for the implementation of three (3) HE programs, including H-B-2-a. At the time, the City Council approved $1,000,000 in matching funds for the program H-B-2-a.
However, the City was not granted the award. Staff did not carry over the funds to FY 25-26, as we did not have a vendor to enter into an agreement.
The implementation of both programs requires collaboration with third parties. In order to stay on track for the timely implementation of the two (2) programs mentioned above, staff issued an Request for Proposal (RFP) for vendors and, after reviewing the responses, recommends that the City Council adopt the attached Resolutions (Attachments 1 and 2) authorizing the execution of two (2) agreements and associated appropriations as follows:
1. Habitat for Humanity Greater San Francisco, Inc. in the amount of $861,750 for HE Program H-B-2-a; and
2. Rebuilding Together Peninsula in the amount of $17,500 for HE Program H-B-2- b.
BACKGROUND AND ANALYSIS
Chapter 2, Housing Needs Assessment of the Housing Element, discusses various housing need issues, contributing factors, and meaningful actions to be taken by the City, including targets and a timeline for the actions (Table 1).
Table 1. Excerpt of Housing Needs Action Plan
(Source: Table 2-3, Page HE-26 of the adopted 2023-2031 Housing Element) Housing
Needs Issue
Contributing
Factors
Meaningful
Actions Targets and Timeline
Provide assistance to lower-income
homeowners:
Homeownership
costs are out of
reach for
households
earning a low or
moderate
income
Growth in sales prices
has outpaced income
growth
H-B-2-a: Lower
Income
Homeowner
Rehabilitation
Loans
18 new loans by 2031,
half very low income
and half low income
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H-B-2-b: Facilitate
NonProfit
Rehabilitation/
Maintenance
Assistance
6 units improved with
assistance by 2031, or
1 unit improved with
assistance per year
Difficulties are
compounded with low
income, racial
discrimination, need
for supportive
services, and other
factors
Provide housing that addresses special
needs for accessibility and supportive
services:
H-B-2-A: Lower
Income
Homeowner
Rehabilitation
Loans
18 new loans by 2031,
half very low income
and half low income
Persons with
disabilities face
additional
housing
challenges
Persons with
disabilities often need
extremely low-
income housing H-B-2-b: Facilitate
NonProfit
Rehabilitation/
Maintenance
Assistance
6 units improved with
assistance by 2031,
or 1 unit improved
with assistance per
year
Housing Element programs
1. H-B-2-a, Lower-Income Homeowner Rehabilitation Loans (Home Rehabilitation Program)
The Home Rehabilitation Program requires the City to provide or partner with a regional program provider to offer rehabilitation loans, energy improvements (such as weatherization or solar), disaster assistance programs, and proactive outreach to lower-income homeowners. The Home Rehabilitation Program calls for 18 loans, comprising nine (9) very low-income loans and nine (9) low-income loans to be issued by 2031.
RFP Process:
On September 15, 2025, staff issued an RFP for the Home Rehabilitation Program (see link), including the following two (2) main tasks:
TASK 1: Issue and manage 9 loans to low and very low-income Foster City homeowners for home rehabilitation projects.
TASK 2: Manage the construction of home rehabilitation projects for which loans are issued.
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Additionally, the RFP included program guidelines for the Home Rehabilitation Program.
The RFP was posted on the City’s website, and an email soliciting proposals was sent to multiple recipients, including the Housing Endowment and Regional Trust of San Mateo County (HEART), Meriwest Credit Union, AmeriNat, Habitat for Humanity Greater San Francisco (HGSF), Together Peninsula, Thrive Alliance for Nonprofits, Housing Leadership Council of San Mateo County, and HIP Housing.
Responses to RFP:
Staff received one (1) proposal for the Home Rehabilitation Program from HGSF (Attachment 3). Staff reviewed the proposal and noted that HGSF has extensive experience in administering home rehabilitation and repair programs.
Selected Vendor:
HGSF is a 501(c)(3) organization and one of approximately 1,000+ registered U.S. affiliates of Habitat for Humanity International. It was formed in August 2008 through the merger of Peninsula Habitat for Humanity and Habitat for Humanity San Francisco. HGSF’s Home Preservation Program is active in the City of Daly City, the City of Redwood City, and Menlo Park’s Belle Haven neighborhood. Over the last four (4) years, HGSF has completed 56 rehabs or repairs, valued at up to $75,000, as part of the Home Preservation Program.
HGSF reviewed the City’s program guidelines and input. HGSF also proposed partnering with AmeriNat for loan servicing, as they have on other Home Preservation programs. AmeriNat, based in Minnesota, provides loan servicing and other financial services to government entities, nonprofits, and financial institutions, with extensive experience in servicing affordable housing loans, including single-family and multifamily loans with diverse structures. AmeriNat currently manages 50,000 loans in 47 states. HGSF has partnered with AmeriNat on other loan programs for cities in the Bay Area, including Daly City.
Table 2 shows the vendor costs to manage the loan program and Table 3 shows a summary of the program.
Table 2. Home Rehabilitation Program: Proposed Vendor Fees for Nine (9) Loans Fee Amount per Loan Total – 9 Loans
Loans (maximum per loan) $75,000 $675,000
Vendor Administration (25%) $18,750 $168,750
Vendor Lending & Loan Initiation $2,000 $18,000
Total per Approved Loan $95,750
Total Agreement $861,750
Table 3: Summary of the Home Rehabilitation Program, HE Program H-B-2-a 4928-9378-3422 v1
Program Description Summary
HE Program Lower-Income Homeowner Rehabilitation Loans
HE goal 18 loans by 2031, half of which are very low-income loans and half low-income loans
Vendor Name Habitat for Humanity Greater San Francisco
Contract Amount $861,750
Scope of Work Issue nine (9) loans to eligible homeowners Provide rehabilitation/construction services for the
approved loans.
Term of Agreement 3 years with a renewal option of 3 years Loan terms Up to 30 years, 0% interest, no application fee, no down payment, payments deferred for up to 30 years. Loans can be extended to a maximum of 30 years.
Repayment of Loans to
the City of Foster City
Upon expiration of loan term or eligible repayment event such as sale of the home
Minimum and Maximum
Loan Amounts
Minimum of $25,000, maximum of $75,000
Examples of eligible
project work
Kitchen or bathroom remodel, roof repair or replacement, window repair or replacement, interior or exterior painting, flooring repair or replacement, photovoltaic panel
installation, energy improvement work, and other
rehabilitation work as stated in the program guidelines.
Applicant Income Level
and eligibility
requirements
Very low income (<50% of Area Median Income (“AMI”) for up to nine (9) loans or low income (<80% of AMI) for up to nine (9) loans; applicants must be an owner of the home.
The home must be a single-family residence, duplex, or
condominium in the City of Foster City. The home must be owner-occupied.
Additional Program Fees Project management and administration: $6,250 to $18,750 per project (25%); lending and loan initiation: and $2,000 per loan.
Total Program Budget $861,750
The HE Program requires the City to issue 18 loans by 2031. Currently, staff is proposing that the agreement with HGSF is for three (3) years, with a maximum amount of $861,750 for nine (9) loans. Staff is recommending that the City Council authorize a contract with HGSF for a period of three (3) years, with an option to renew the Agreement for an additional three (3) years.
Prior to the expiration of the Agreement, staff will re-evaluate the program funding, vendor performance, and community needs, and propose any necessary adjustments for the potential renewal of the Agreement to ensure that the City meets its HE goal of 18 loans by 2031.
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2. H-B-2-b, Facilitate Non-Profit Rehabilitation/Maintenance Assistance (Minor Home Repair Program)
The Minor Home Repair Program is designed for low-income homeowners (those earning less than 50% of Area Median Income) to keep their homes in good condition by providing funding and minor home repair services of up to $5,000 per home through a nonprofit organization.
RFP Process
On September 15, 2025, staff issued an RFP for the Minor Home Repair Program (see link), including the following two (2) main tasks:
TASK 1: Issue and manage a minimum of three and up to six (6) awards of up to $5,000 each for minor repairs for very low-income Foster City homeowners for minor home repair and maintenance projects.
TASK 2: Manage the repair and maintenance construction projects for which awards are issued.
Additionally, the RFP included program guidelines for the Minor Home Repair loan program.
The RFP was posted on the City’s website, and an email soliciting proposals was sent to multiple recipients, including the Housing Endowment and Regional Trust of San Mateo County (HEART), Habitat for Humanity Greater San Francisco (HGSF), Rebuilding Together Peninsula, Foster City Lions Club, Thrive Alliance for Nonprofits, Housing Leadership Council of San Mateo County, HIP Housing, and the Peninsula Clergy Network. Staff received one response from Rebuilding Together Peninsula.
Responses to RFP:
Staff received one (1) proposal for the program from RTP (see Attachment 4). Staff reviewed the proposal and noted that RTP has extensive experience in administering minor home repair programs.
Selected Vendor:
Since 1989, RTP, a nonprofit 501(c)(3) organization, has provided renovation and repair services for the peninsula’s most vulnerable homeowners, including seniors, veterans, individuals with disabilities, and families with children. Each year RTP improves approximately 130 homes. More information about RTP can be found here: Rebuilding Together Peninsula. Table 4 shows the RPT’s costs to manage the Minor Home Repair Program. Table 5 provides a program summary.
Table 4. Minor Home Repair Program: Proposed Vendor Fees Fees to Rebuilding Together Peninsula
Fund 137
Total
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Awards – Amount paid to vendor $15,000
Program Administration – paid to Vendor $2,500
Total Agreement Maximum $17,500
Table 5. Summary of the Minor Home Repair Program, HE Program H-B-2-b Program Description Summary
HE Program Name Facilitate Non-Profit Rehabilitation/Maintenance Assistance
HE goal 6 homes improved by 2031, or one per year
Recommended vendor Rebuilding Together Peninsula
Recommended Contract
Maximum
$17,500 for at least 3 and up to 6 awards
Scope of Work Issue awards to eligible homeowners and provide repair/construction services.
Term of Agreement 2 years with the option to renew for one year Maximum Award Amount $5,000
Examples of eligible project
work
Eligible repairs include weatherization of doors and
windows, repair of broken doors and windows,
installation of smoke detectors, replacement of water
heaters, electrical/mechanical work, plumbing repairs,
solar photovoltaic installation, accessibility
improvements, and other repair or maintenance work
as stated in the program guidelines. Repairs for the
program may be combined with other rehabilitation
work performed on the home by the vendor as part of
a larger project.
Applicant Income Level Very low income (<50% of Area Median Income) Total Program Budget $17,500
The Minor Home Repair program requires the City to improve six (6) homes through the program by 2031. Currently, staff is proposing that the agreement with RTP is for two (2) years, with a maximum amount of $17,500.
Prior to the expiration of the Agreement, staff will re-evaluate the program funding, vendor performance, and community needs and propose any necessary adjustments for the potential renewal of the Agreement to ensure that the City meets its HE goal of six (6) homes improved by 2031.
Budget Appropriation Request for Both Programs
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Staff is requesting $879,250 from Fund 137 for the two (2) program agreements as shown in Table 6. It shall be noted that Fund 137 has a balance of $5,775,576.10 as of October 31, 2025.
Table 6. Appropriation Request
Fund and Line-Item Number Fund and Budget Line-Item
Description
Total
1 Commercial Linkage Fees, Fund
137, Account Number 137-0842-
419-42-51
Home Rehabilitation
Program, H-B-2-a
$861,750
2 Fund 137, Account Number 137-
0842-419-42-51
Minor Home Repair
Program, H-B-2-b
$17,500
Total Appropriation Requested from Fund 137 $879,250
Next Steps
If approved by the City Council, the next steps include executing the two (2) agreements, developing loan documents for the Home Rehabilitation Program, and preparing promotional materials. Funding will be made available to eligible applicants in early 2026.
CEQA
The proposed actions would authorize the implementation of rehabilitation and repair programs, which would mostly be administrative and not result in physical changes to the environment and would be exempt pursuant to CEQA Guidelines Section 15061(b)(3).
Both the Home Rehabilitation Program and Minor Home Repair Program will enable a homeowner to make minor repairs to their existing home or rehabilitate their existing home, which would be categorically exempt pursuant to CEQA Guidelines Section 15301, as the repair or rehabilitation of existing homes will involve negligible or no expansion of existing or former use.
FISCAL IMPACT
Staff is requesting a total appropriation of $879,250 to Account Number 137-0847-419- 42-51. Currently, there is approximately $5.7 million available in the fund balance which is sufficient to absorb this supplemental appropriation.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:
Attachment 1 - Resolution - Home Rehabilitation Program Exhibit 1-A - Agreement with Habitat for Humanity Greater San Francisco
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Attachment 2 - Resolution - Minor Home Repair Program
Exhibit 2-A - Agreement with Rebuilding Together Peninsula Attachment 3 - Proposal - Habitat for Humanity Greater San Francisco Attachment 4 - Proposal - Rebuilding Together Peninsula