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File #: 16-771    Version: 1 Name:
Type: Resolution Status: Passed
File created: 10/25/2017 Departments: GOVERNING BOARD
On agenda: 11/21/2017 Final action: 11/21/2017
Title: Adopt a resolution authorizing the Director of the Department of Housing to issue a full forgiveness and reconveyance of the County loan issued to Samaritan House, Inc. in the amount of $178,808, which it used for the acquisition of real property located at 19 W. 39th Avenue, San Mateo, CA, in exchange for the imposition of a restrictive covenant limiting the use of the property for a period of thirteen years, the remaining term of the loan.
Attachments: 1. 20171121_r_Samaritan House, 2. 20171121_att_Restrictive Covenant
Special Notice / Hearing: None__
Vote Required: Majority

To: Honorable Board of Supervisors
From: Ken Cole, Director, Department of Housing
Subject: Samaritan House - 19 W. 39th Avenue, San Mateo County Loan Forgiveness and Reconveyance

RECOMMENDATION:
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Adopt a resolution authorizing the Director of the Department of Housing to issue a full forgiveness and reconveyance of the County loan issued to Samaritan House, Inc. in the amount of $178,808, which it used for the acquisition of real property located at 19 W. 39th Avenue, San Mateo, CA, in exchange for the imposition of a restrictive covenant limiting the use of the property for a period of thirteen years, the remaining term of the loan.

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BACKGROUND:
On December 19, 2000, the Board of Supervisors authorized an agreement for the San Mateo County Department of Housing ("DOH') to provide a Community Development Block Grant ("CDBG") loan in the amount of $178,808 (the "Loan") to the non-profit organization Samaritan House, Inc. ("Samaritan House") to assist with the acquisition of real property at 19 W. 39th Avenue, San Mateo, CA (the "Property"). Samaritan House intended to use the Property as a site to provide medical and dental clinic services to low-income individuals and homelessness prevention services (Resolution No. 64157). The Property, also known as the Free Clinic of San Mateo, has been continuously providing free medical, dental, and homelessness prevention services to community members since 2001, serving over 500 individuals per month.

DISCUSSION:
According to the terms of the Loan, Samaritan House is scheduled to begin making payments in 2031. However, on May 30, 2017, Samaritan House submitted a formal request to the Director of DOH for full forgiveness and reconveyance of the Loan in order to maintain funding eligibility for capital improvements. The Property is in need of a new roof, a re-paved parking lot, and updated plumbing, for which Samaritan House w...

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