REPORT TO COUNCIL
SUBJECT
Title
Consider Authorizing City Manager to Negotiate and Execute an Amended Loan Agreement with MidPen Housing to Extend the $964,750 HOME Loan for Carroll Inn for 55 Years
Report
SUMMARY OF COMMISSION ACTION
The Housing and Human Services Commission considered this item on June 26, 2024 and voted to approve Alternative 3: Do not grant MidPen's request for a 55-year extension of the HOME loan for Carroll Inn. The vote was 5-1-1, with Commissioner Weiss dissenting and Commissioner Riviere absent.
FISCAL IMPACT
As of December 31, 2023, the loan issued by the City of Sunnyvale has a principal and interest balance of $1,433,526 which was due in full in March 2024.
Payments received on HOME loans are deposited back to the City's HOME fund as Program Income and reallocated for future grants and loans. If the request to extend this loan for an additional 55 years is approved, the HOME fund would not receive full loan repayment until 2079; however, annual residual receipt payments would still be deposited into the HOME fund as Carroll Inn cash flow allows. Approving the extension of this loan and lack of full repayment in 2024 would lead to less available funding in future cycles of HOME funding availability for the Tenant Based Rental Assistance (TBRA) program. There is no General Fund impact.
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. Authorize the City Manager to negotiate and execute an Amended Loan Agreement with MidPen extending the remaining balance of the HOME Loan for Carroll Inn for an additional 55 years and requiring annua...
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