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Page 1 of 3 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />DATE: January 27, 2025 <br />SUBJECT <br />Loan forgiveness for Service League of San Mateo County’s rehabilitation loan for Hope House located at <br />3789 Hoover Street <br />RECOMMENDATION <br />By motion, approve loan forgiveness of the Service League of San Mateo County’s $25,000 loan plus <br />accrued interest of $22,500 totaling $47,500 and authorize the City Manager to execute Substitution of <br />Trustee and Full Reconveyance to substitute the City as the Trustee and reconvey Service League of San <br />Mateo County’s property located at 3789 Hoover Street commonly referred to as Hope House. <br />STRATEGIC PLAN GUIDING PRINCIPLE <br />Housing <br />BACKGROUND <br />The Service League of San Mateo County (Service League) is a non-profit agency that provides in-custody <br />programming and services within the San Mateo County jails, as well as post-release services for those <br />who are re-entering the community. Additionally, it provides residential substance use disorder treatment <br />for individuals who are pregnant or with infants at Hope House, located at 3789 Hoover Street. <br />In 1994, the City provided a deferred payment loan to the Service League for property improvements at <br />Hope House. This was a joint loan with the County of San Mateo which provided $30,000; the City <br />contributed $25,000 of its federal Community Development Block Grant (CDBG) funds. This loan matured <br />on October 27, 2024. The terms of the promissory note state that the County and the City will be paid <br />back the principal plus accrued interest (3% simple interest). For the City portion of the loan, <br />the Service League owes $47,500 ($25,000 principal and $22,500 in accrued interest). For the County <br />6.B. - Page 1 of 7 <br />12