REPORT TO COUNCIL
SUBJECT
Title
Approve HOME Investment Partnership Act (HOME) Loan Agreement with MP East Maude Associates, L.P., an affiliate of MidPen Housing Corporation, for a Loan of $1.3 Million to Develop MidPen Armory Apartments at 620 E. Maude in Sunnyvale
Report
BACKGROUND
The project to be assisted with this HOME loan is one of two "homeless housing" projects approved by the Onizuka Local Reuse Authority (LRA) as part of the Onizuka Base Reuse Plan. On June 26, 2013, the City approved a long-term ground lease of a portion of the City property located at 620 E. Maude Avenue (former site of the Sunnyvale Armory), to MidPen Housing Corporation ("MPHC"), a California non-profit public benefit corporation, which will develop 58 affordable housing units at the site.
In FY 2012-13, MPHC submitted a proposal to the City for a loan of $1.3 million in HOME funds to assist the development of MidPen Armory Apartments, which will include 57 units of affordable housing for lower-income households and a manager's unit. The project will provide 29 units of housing affordable to lower-income households, plus 29 units reserved for homeless applicants, of which ten (10) will be designated for participants in the County's Mental Health Services Program (MHSA Program units).
On May 7, 2013, (RTC 13-107), as part of the 2013 Action Plan hearing, Council approved the conditional loan commitment of $1.3 million in HOME funds to MPHC for the MidPen Armory Apartments project. The HOME loan commitment was conditioned on completion of the federal environmental review under the National Environmental Policy Act (NEPA) and City receipt of funding approval from HUD. The NEPA review was completed in May, and the City received HUD authorization to award HOME funds to the MidPen Armory Apartments project in June of 2013. In addition, MPHC has received the necessary City development permits, and has secured all other required matching funds, except for its tax cred...
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