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File #: 19-0929   
Type: Report to Council Status: Passed
Meeting Body: City Council
On agenda: 9/10/2019
Title: Consider Request from Sunnyvale Community Services for Forgiveness of 2003 Community Development Block Grant (CDBG) Loan in the amount of $400,000.
Attachments: 1. Report to HHSC, 19-0836, 8-28-19, 2. RTC 14-0701, 10-28-14, 3. Excerpt of City Council Minutes of 10-28-14, 4. Letter from Sunnyvale Community Services, 5-1-19, 5. Follow-up Letter from Sunnyvale Community Services, 6-27-19, 6. Excerpt of Draft HHSC Minutes of 8-28-19
Related files: 19-0836
REPORT TO COUNCIL
SUBJECT
Title
Consider Request from Sunnyvale Community Services for Forgiveness of 2003 Community Development Block Grant (CDBG) Loan in the amount of $400,000.
Report
SUMMARY OF COMMISSION ACTION
The Housing and Human Services Commission considered this item on August 28, 2019.

The Housing and Human Services Commission voted (4-0) to recommend loan forgiveness, indicating that the forgiveness of this loan should not be viewed as setting precedent for future requests for loan forgiveness.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.

ALTERNATIVES
1. Approve the CDBG Loan Forgiveness for Sunnyvale Community Services (SCS) in the amount of $400,000, and make a formal policy statement that this action shall not be seen as a precedent for other borrowers, and is made only due to the increasing service provided by SCS to the Sunnyvale community.
2. Do not approve the CDBG Loan Forgiveness request from Sunnyvale Community Services.

STAFF RECOMMENDATION
Recommendation
Alternative 1: Approve the CDBG Loan Forgiveness for Sunnyvale Community Services (SCS) in the amount of $400,000, and make a formal policy statement that this action shall not be seen as a precedent for other borrowers, and is made only due to the increasing service provided by SCS to the Sunnyvale community.


As staff evaluated SCS's loan forgiveness request, several variables were factored into the decision-making process, including:

1. Supportive Service Enhancement and Expansion
a. By forgiving the CDBG loan principal of $400,000, it will support SCS's ability to purchase a new, larger facility that will more adequately meet the service-needs of its customers, our commu...

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