Title
Additional Neighborhood Commercial Rehabilitation Loan Agreement Payment Authority - Sandhu Investments, LLC (Ordinance S-49524)
Description
Request to authorize the City Manager, or his designee, to increase payment authority by $150,000, for a total loan amount of up to $250,000, with Sandhu Investments, LLC for facade and site improvements through the Neighborhood Commercial Rehabilitation program for their tenant, Hotel Electric, LLC. Further request authorization for the City Controller to disburse all funds related to this item. This program is funded by the U.S. Department of Housing and Urban Development; no General Funds are required.
Report
Summary
On April 21, 2021, City Council authorized City Manager, or his designee, to enter into a loan agreement with Sandhu Investments, LLC for up to $100,000 (Ordinance S-47499). The Neighborhood Commercial Rehabilitation (NCR) offers Community Development Block Grant (CDBG) funding for property owners to complete exterior improvements through a deferred loan, secured by a Deed of Trust which is forgiven over a period of up to 10 years. Unforeseen economic inflation and delays related to COVID resulted in increased construction costs. The additional spending authority is necessary to complete the NCR project.
Financial Impact
The CDBG Program is funded by the U.S. Department of Housing and Urban Development; there is no impact to the General Fund. With the $150,000 dollars of additional funds, the revised total maximum value is now $250,000.
Location
10402 N. 19th Ave.
Council District: 3
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Neighborhood Services Department.