REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the City Manager to Negotiate and Execute two Lender Consent and Subordination Agreements for an Access Easement Agreement and Stormwater Easement Agreement for HomeSafe San Jose
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing, and Transportation Development
BACKGROUND
For almost 20 years Charities Housing Development Corporation ("Charities Housing") has been operating two housing facilities for survivors of domestic violence and their children, one located in Santa Clara (HomeSafe Santa Clara) and one located in San Jose (HomeSafe San Jose). The City of Santa Clara assisted with the funding for both properties. In November of 2002, the City Council appropriated $250,000 in Home Investment Partnership Act (HOME) funds to assist in the development of Homesafe San Jose, including architectural and engineering expenses and construction costs. A HOME Capital Loan Agreement was executed on November 19, 2002 with a loan period of 55 years set to mature in July 2058. Homesafe San Jose also received two loans from the City of San Jose which totaled $6,750,000 and a HOME loan from the County of Santa Clara in the amount of $217,800 for acquisition and rehabilitation. The City of Santa Clara maintains a financial interest in HomeSafe San Jose which requires the City to agree to proposed changes to that property.
Homesafe San Jose (the "Property" or "Homesafe San Jose") provides 24 co-housing (shared) living spaces for residents and one two-bedroom staff apartment on a 1.08-acre lot in San Jose. The Property consists of four two-story buildings: three residential and one containing a daycare space, management/service offices and a community room. All of the units are restricted at 30% Area Median Income (AMI). The Property includes 25 residential parking spaces and two for the daycare space on a surface parking lot off the cul-de-sac of Kentucky Place.
Charities Housing restructured the ownership...
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