AgdaPkt 2017-06-12 Joint SA PFA - Laserfiche WebLink

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REPORT To the Honorable Mayor and City Council From the City Manager June 12, 2017 SUBJECT Redwood Family House Transitional Housing Loan Forgiveness RECOMMENDATION Adopt a resolution (a) approving forgiveness of two loans for a total of $507,000 in Community Development Block Grant Funds made to Mid-Peninsula Coalition Belle Haven, Inc. and MidPen Housing Corporation and (b) authorizing the City Manager or designee to execute agreements and related documents necessary to complete the loan forgiveness and the transfer of the property and related transitional housing facility at 110 Locust Street from Mid-Peninsula Coalition Belle Haven, Inc. to LifeMoves BACKGROUND Family Shelter Acquisition and Rehabilitation Loan On June 3, 1985, the City of Redwood City (the “City”) allocated Community Development Block Grant (“CDBG”) funds to assist with the development of a shelter facility. On November 10, 1986, the City and County of San Mateo (the “County”) entered into a three party agreement with MidPen Housing Corporation (formerly Mid- Peninsula Coalition Housing Fund and Mid-Peninsula Housing Coalition, “MidPen”) for the acquisition of a twelve unit apartment building located at 110 Locust Street in Redwood City (the “Property”) to be used as a shelter facility. MidPen Housing Corporation and its affiliate, Mid-Peninsula Coalition Belle Haven, Inc. (collectively, “MidPen”) received loans comprised of CDBG funds from the City and the County totaling $560,900. Of that total loan amount, the City contributed $452,000 and the County provided $108,900. The loan was provided with a 30 year use restriction and zero percent interest. The loan was conditioned upon the 30 year use restriction, which was met. In order to complete the acquisition of the Property, MidPen also received a loan from the State of California, Department of Housing and Community Development (“HCD”) through their Emergency Shelter Program (“ESP”) on March 31, 1986. The HCD loan of $607,542 was provided with a 30 year use restriction and zero percent interest. This loan matured on March 30, 2016 and HCD has recently forgiven this loan and removed associated restrictions from title. No repayment was required as the loan was conditioned upon the 30 year use restriction, which was met. The City also provided MidPen with an additional loan in 1988 of $55,000 in CDBG funds for the rehabilitation of the Property, subject to the same terms and conditions of 6.3.B. - Page 1