REPORT TO COUNCIL
SUBJECT
Title
Approve Loan Agreements with Crescent Terrace, Inc. to Rehabilitate Crescent Terrace Apartments
Report
BACKGROUND
In January 2015, the City released a Request for Proposals (RFP) for affordable housing projects to be funded with Community Development Block Grant (CDBG) and/or HOME Investment Partnerships Program (HOME) funds in FY 2015/16. The City received one proposal from MidPen Housing Corporation (MidPen) to rehabilitate Crescent Terrace Apartments, a 48-unit affordable rental housing project for seniors, located at 130 Crescent Avenue in Sunnyvale. On May 5, 2015, (RTC 15-0158), Council approved a conditional award of $500,000 in CDBG funds (the "CDBG loan") and $550,000 in HOME funds (the "HOME loan") to rehabilitate Crescent Terrace as part of the 2015 HUD Action Plan. Funding for this project was included as a capital project in the FY 2015/16 Projects Budget approved by Council in June 2015 (RTC 15-0158).
The project did not get underway as soon as anticipated, due to the need for additional time for City and MidPen staff to finalize the scope of work, negotiate the Agreements, and allow for the required review by the senior lienholder, the California Housing Finance Agency (CalHFA).
The CDBG and HOME Loan Agreements, included as Attachments 1 and 2, respectively, to this Report, are consistent with the appropriation approved by Council in 2015 and sets forth the terms under which the City may provide $500,000 in CDBG funds and $550,000 in HOME funds toward the rehabilitation of Crescent Terrace. The Agreements include financing terms, general requirements, and CDBG/HOME program requirements.
EXISTING POLICY
General Plan: Housing Element
Policy B.3: Strengthen multi-family neighborhoods through partnership with non-profit housing organizations in the acquisition and rehabilitation of older residential properties and maintenance as long-term affordable housing.
2015-2020 Sunnyvale Consolidated...
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