REPORT TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Consider Request from MidPen Housing for Extension of $964,750 HOME Loan for Carroll Inn
Report
BACKGROUND
In October 1991, the City selected MidPen Housing Corporation (MidPen) to develop a single room occupancy (SRO) affordable housing development. The City entered into a purchase agreement (of then City-owned property) with MidPen for $964,750 and issued a loan in March 1994 in the same amount for development of Carroll Inn, a 122-unit single room occupancy (SRO) affordable housing development. The 30-year loan was funded with federal HOME funds and the property is deed restricted for thirty years to provide affordable housing. Carrol Inn serves special needs households with incomes at or below 40% of the Area Median Income.
The loan is currently split into two repayment directives:
* A principal loan amount of $750,000 with accrued interest being deferred for the loan term of thirty (30) years and due in full in March 2024.
* Remaining principal amount of $214,750 and accrued interest repaid in annual residual receipt payments (defined in the Second Amended Agreement regarding the SRO project at 174 Carroll Street, Attachment 2) with any unpaid principal and interest being due and payable in June 2024.
As of December 31, 2023, the loans with the City of Sunnyvale combined have a principal and interest balance of $1,433,526.
The development of the Carroll Inn received other loans for the construction of the project totaling approximately $15 million. Subsequent to the initial construction, other loans have been awarded for maintenance and upgrades to the development (or will be awarded in the coming months). Other funding for the initial development came from the State and County.
On January 18, 2024, MidPen formally requested a fifty-five (55) year extension of the City's HOME loan. Staff has currently allowed a pause on repayment until the Council considers this item. The City Council will...
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