REPORT TO COUNCIL
SUBJECT
Title
Consider Request from Charities Housing for Forgiveness or Extension of $100,000 Community Development Block Grant (CDBG) Loan for HomeSafe Santa Clara
Report
SUMMARY OF COMMISSION ACTION
The Housing and Human Services Commission considered this item on June 26, 2024 (see Attachment 1 for Report to Housing and Human Services Commission).
The Housing and Human Services Commission voted 6-0 (Commissioner Riviere was absent) to approve Alternative 3: Do not approve the CDBG Loan Forgiveness or Extension Request from Charities for HomeSafe Santa Clara, and require the loan be due and payable upon HomeSafe demolition in accordance with the Loan Agreement.
FISCAL IMPACT
If the request to forgive the CDBG loan is approved, it would reduce projected loan payment revenues to the CDBG Revolving Loan Fund in 2055 by $265,107 including principal and interest. If the request to extend the loan is approved, the City would not collect payment on the loan until approximately 2080.
If neither forgiveness nor extension is approved, the CDBG Revolving Loan Fund would receive approximately $170,000 in principal and interest if the HomeSafe demolition occurs (with additional interest if delayed), or $265,107 in 2055 if the loan is active through maturity.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Approve the CDBG Loan Forgiveness Request from Charities for HomeSafe Santa Clara and waive all financial requirements of the loan agreement and authorize the City Manager to enter into a loan forgiveness agreement.
2. Approve the CDBG Loan Extensi...
Click here for full text