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ATTACHMENT 1 Tai - Jut I lou5inr Cpf.•rtunit9 ( DATE: December 1, 2010 TO: Linda Barton, City Manager, City of Livermore Joe Calabrigo, Town Manager, Town of Danville Nelson Fialho, City Manager, City of Pleasanton Herb Moniz, City Manager, City of San Ramon Joni Pattillo, City Manager, City of Dublin FROM: James Paxson, Chairperson Tri- Valley Housing Opportunity Center Subject: Request for Funding Proposal to Stabilize the Tri - Valley Housing Opportunity Center SUMMARY REQUEST The Tri - Valley Housing Opportunity Center (Center) was created to provide Tri - Valley residents with financial tools and resources necessary to secure affordable housing and build assets within their communities. In the wake of an unprecedented downturn in the ownership housing market and economic recession, the Center has developed a negative cash flow and revenue loss threatening its ability to continue to provide services. The Center's Board has commenced on a comprehensive restructuring process in response to this crisis to address the factors contributing to the current situation, including: a change of management, budget reductions, and a re- focusing of operations to those that address the greatest needs in the community and enhance and support the Center's core mission; pre- and post- foreclosure counseling, financial literacy and education, and homebuyer education. The Tri - Valley Housing Opportunity Center is requesting $125,000 in financial support, in the form of a loan, from its City stakeholders to address the cash flow deficit and to stabilize and sustain operations of the Center as it completes its restructuring and long-term asset development plans. These City funds would be in addition to funds currently committed by our city partners and placed in a reserve account that the Center could draw down during fiscal year 2010-2011 as needed to fill the funding gap and to leverage other federal, state and private sources. Funds drawn from the reserve will he used only after every effort is made to secure revenues by other means, including grant procurement and increasing our client base. During the restructuring period, the Center interim management, supported by its Board of Directors, will seek additional ongoing financial support through community partners, grant writing, increased client services and a fundraising campaign. The Board has enlisted the support of the Tri - Valley Community Foundation, which has offered to provide a wide variety of resources including: technical assistance, grant writing support and aid in the development of a strategic plan, management analysis, business plan and fundraising plan. With the Foundation's support, the Center has received a commitment of $25,000 in grant funds from two local foundations. BACKGROUND & ACCOMPLISHMENTS The cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville have a long- standing history and commitment of working together to address the affordable housing needs of Tri- Valley residents. In 1992, the cities created the Tri - Valley Affordable Housing Committee, a collaboration of municipal leaders, community organizations and private businesses to work regionally on the housing needs of low and moderate income households. The Tri - Valley housing Opportunity Center was created as a result of this committee. In September 2005, the Center opened for business and became a "one -stop- shop" of local, state and federal housing information for Tri - Valley residents. The Center was established to respond to the unique needs of the region including the geographic isolation from services and resources located in other parts of Alameda and Contra Costa counties. The Center was further structured to be able to engage local lenders and real estate professionals that could leverage public support.