REPORT TO COUNCIL
SUBJECT
Title
Loan Amendment to Increase Community Development Block Grant Loan to Crescent Terrace, Inc. from $500,000 to $600,000 for Crescent Terrace Rehabilitation Project and Budget Modification No. 44
Report
BACKGROUND
Crescent Terrace is a three-story, 48-unit affordable rental housing project for low-income seniors located at 130 Crescent Avenue in Sunnyvale. The property is owned by Crescent Terrace, Inc., an affiliate of MidPen Housing Corporation, a non-profit affordable housing developer. MidPen applied for City financing for rehabilitation of Crescent Terrace in response to a Request for Proposals for Community Development Block Grant (CDBG) and HOME Funds issued by the Housing Division in January 2015.
On May 5, 2015, Council conditionally approved a loan of $500,000 in CDBG funds (the "CDBG loan") and $550,000 in HOME funds to Crescent Terrace, Inc. for this project as part of the 2015 HUD Action Plan (RTC 15-0158). That funding was included as a capital project in the FY 2015/16 Projects Budget approved by Council in June 2015 (RTC 15-0158). On April 19, 2016, Council approved the form of the loan agreements between the City and Crescent Terrace, Inc. (RTC 16-319) consistent with the project's budget, and the project work began shortly after that.
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 Plan
Goal A.1.a: Provide financial and/or technical assistance to qualified affordable housing developers for rehabilitation, construction and/or preservation of affordable rental housing and/or site acquisition.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by aff...
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