REPORT TO COUNCIL
SUBJECT
Title
Approve Assignment and Assumption and Modification Agreements between Senior Housing Solutions, Sunnyvale Senior Homes LLC (an affiliate of Charities Housing), and the City of Sunnyvale Regarding Transfer of 1230 Klee Court and 1675 S. Wolfe Road in Sunnyvale
Report
BACKGROUND
Between 1994 and 2010, the City made several loans of Community Development Block Grant (CDBG) and HOME Investments Partnership Program (HOME) funds to Senior Housing Solutions (SHS), a non-profit housing agency based in Milpitas, to acquire and rehabilitate two residential properties in Sunnyvale to serve as group homes for lower-income seniors. These properties included a duplex located at 1230 Klee Court (which has a second street address of 436 Offenbach Place) and a single-family home located at 1675 S. Wolfe Road. The particulars of these loans are summarized in Attachment 1. Both of these homes are currently fully occupied by eligible seniors and receive operating subsidies in the form of project-based Section 8 vouchers provided by the Housing Authority of the County of Santa Clara.
In February 2013, through RTC 13-034, Council approved the transfer of a third Sunnyvale home previously owned by SHS, located on Socorro Avenue, to the Bill Wilson Center (BWC) for use as a home for young adults exiting foster care. The current proposal is to transfer the remaining two properties to Charities Housing similar to the method of transfer of the Socorro home to BWC. However, the remaining SHS homes both have estimated property values well in excess of the outstanding debts against the properties, and both homes are operating stably with a solid financial position.
About a year ago, SHS was still considering retaining the more successful group homes, such as the Klee and Wolfe homes, in its portfolio, which originally included 15 homes throughout the county, and transferring only those with operational difficulties to other entities. H...
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