REPORT TO COUNCIL
SUBJECT
Title
Consent to Ownership Transfer of Affordable Rental Project Located at 183 Acalanes Drive ("Eight Trees") and Assignment and Assumption of City Loans and Authorize the City Manager to execute a new loan agreement in the amount of $600,000
Report
BACKGROUND
Eight Trees is a 24-unit affordable rental complex located at 183 Acalanes Drive in Sunnyvale. A map of the project vicinity is provided in Attachment 1. The property was built in 1958 as a market-rate rental project and sold to HomeFirst Services of Santa Clara County (HomeFirst), a non-profit agency, in 2002. HomeFirst, established in 1980 under the name Emergency Housing Consortium, provides emergency shelter, case management and supportive services for homeless people. Eight Trees is the only standard (long-term) rental property owned and operated by HomeFirst, although it operates several transitional housing facilities and shelters elsewhere in the County. HomeFirst applied for and received several loans from the City to partially finance the original acquisition and minor renovation of the property in 2002, as explained further below.
In addition to 24 rental units, the property has a laundry room, pool, courtyard, and covered parking. Eight Trees provides housing to lower-income households including families, individuals, and seniors. Most of the apartments are two-bedroom units, but there are several one- and three-bedroom units. All but one of the units are currently occupied. The property is dated and needs immediate repairs to address current deficiencies, as well as longer-term renovations to improve physical conditions, sustainability issues such as energy efficiency, and the safety and comfort of the residents.
When HomeFirst acquired this property in 2002, it expected to be allocated project-based vouchers by the Housing Authority to support the operational expenses such as property management, debt service, and supportive services. HomeFi...
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