Housing Authority

The Housing Authority should extend a loan to California Programs for the Autistic for their Benton House residential facility at 325 Major Drive by 30 years (from September 2026 to September 2056), with a current outstanding balance of $55,722.73, because the nonprofit cannot repay the loan when it matures and needs the funds for property repairs and services for adults with developmental disabilities. Extending the loan also requires extending the affordability restrictions under the Regulatory Agreement by 25 years to September 2056, and this action will not cost the Housing Authority any additional money since it only defers repayment to a future date.

The Housing Authority is being asked to extend a $128,000 loan to Community Support Network for 30 years—pushing the repayment deadline from November 2026 to November 2056—because the nonprofit cannot repay the debt when it comes due and has requested the extension to continue operating Dutton Homes, an eight-bed housing facility for adults needing behavioral health and supportive services. The extension will also keep in place the Regulatory Agreement that ensures the property remains affordable for households earning no more than 80% of the area median income, and it requires no additional city spending since it simply defers the repayment obligation rather than forgiving the debt.

The Housing Authority should approve allowing its existing $558,071 in loans for Aston Avenue Apartments to be subordinated (moved behind) a new $600,000 first mortgage being taken out by the new owner, Crosscourt Properties, to finance the purchase of this ten-unit affordable housing complex. The subordination is necessary to complete the property sale scheduled to close by August 1, 2026, and the Housing Authority's existing loans will continue under the same favorable terms (3% interest, payments from cash receipts) while remaining secured by the property, with a maturity date extended to 2061 to match the affordability requirements. Staff has reviewed Crosscourt Properties' experience operating affordable housing in multiple states and determined the owner is financially capable of managing the property while maintaining its affordability.