BACKGROUND: The Housing Authority approved a $47,000 loan to
Individuals Now, dba Social Advocates for Youth (SAY) to assist in the
acquisition of 1243 Ripley Street to be operated as a youth shelter.
The 30-year term of the loan will expire and become due in full on
August 4, 2023. The borrower has requested a loan modification to
extend the term by 15 years, forgive the accrued interest on the
principal balance to date, modify the interest rate to 0% as to not accrue
further interest, and allow prepayment of the loan if needed. In
connection with the loan, the site has a Regulatory Agreement
restricting the use of the property to operation of a 6-bed youth shelter
for thirty (30) years, which would also be extended by fifteen (15) years
if approved.
RECOMMENDATION: It is recommended by the Housing and
Community Services Department that the Housing Authority, by
resolution, approve a modification to the $47,000 loan with Individuals
Now dba Social Advocates for Youth for acquisition of 1243 Ripley
Street to: 1) extend the loan payment date fifteen (15) years to become
due August 4, 2038; 2) forgive all interest accrued from August 4, 1993
through October 24, 2022 in the approximate amount of $41,229.95
(final amount to be determined as of the date of loan modification); 3)
modify the interest rate for future accruals to 0%; and 4) extend the term
of the Regulatory Agreement by fifteen (15) years to be concurrent with
the loan repayment date to ensure continued community access to the 6
bed youth shelter.
Marc Hughes, Housing and Community Services Program
Specialist, gave a presentation and answered Commissioner
questions.
Nicole Del Fiorentino, Housing and Community Services Manager,
assisted in answering Commissioner questions.
Public Comment:
None
A motion was made by Vice Chair Owen, seconded by Commissioner
Downey Ph. D,to waive reading of the text and adopt as amended:
RESOLUTION NO. 1748 ENTITLED: RESOLUTION OF THE HOUSING
AUTHORITY OF THE CITY OF SANTA ROSA APPROVING MODIFICATION
OF LOAN NO. 9021-0274-93 AND INTEREST FORGIVENESS FOR THE
YOUTH SHELTER LOCATED AT 1243 RIPLEY STREET.