Title
Authorization to Amend Federal Community Development Block Grant Construction Loan Agreement, City Contract 85077 with Chicanos Por La Causa (Ordinance S-51251)
Description
Request for City Council to grant authorization to the City Manager, or his designee, to amend the federal Community Development Block Grant (CDBG) Construction Loan Agreement, City Contract 85077, between the City of Phoenix and Chicanos Por La Causa, Inc. (CPLC), or a City-approved nominee, to increase the period of affordability by 10 years in exchange for a forgiveness of the outstanding loan balance in the amount up to $400,000. Further request to authorize the City Manager, or his designee, to execute all necessary documents. There is no impact to the General Fund.
Report
Summary
City Contract 85077, in the original amount of $983,300 of federal CDBG funds, was executed on June 28, 2001, to assist with the rehabilitation of a shelter and the construction of an additional 24 emergency and 12 transitional unit housing facility adjacent to the existing shelter. The Construction Loan Agreement currently secures all 36 CDBG units serving survivors of domestic violence.
The property met Federal and Housing Department affordability periods. The current owner, CPLC, has agreed to increase the public benefit by extending the period of affordability by 10 years to 2034 in exchange for forgiveness of the outstanding loan balance of up to $400,000.
The property use has remained the same for the past 22 years, and this amendment will ensure it continues to provide emergency and transitional housing for another 10 years.
Financial Impact
There is no financial impact to the General Fund.
Location
Confidential Location
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.