20-Year Resource Allocation Plan - City of Sunnyvale

the form of a loan, with payments either amortized, deferred,
or based on residual receipts of the project’s projected
operating cash fl ow. Interest rates vary and are set forth in
each loan agreement. Down-payment assistance loans are
deferred for thirty years or until sale or transfer of the home.
Payments received on these loans are deposited into this Sub-
Fund and re-used for additional housing activities.
During the fi rst ten years of the planning period, staff projects
the Housing Fund/Housing Mitigation Sub-Fund will receive
a total of $5.8 million in loan repayments, primarily from
two large housing loans: approximately $1 million from the
loan on 662 Garland Avenue and $4 million on the loan for
the Fair Oaks Senior Housing property. Both of these rental
properties are operated by Mid-Pen Housing. The remaining
amount includes installment payments of $149,025 from
EHC Lifebuilders for the property at 183 Acalanes Avenue
and payment in full of the $450,000 loan on the Aster Park
Apartments property.
Additional revenue is anticipated from the sale of the property
located at 388 Charles Street in downtown Sunnyvale, which
was paid for with Housing Mitigation Funds pursuant to
Council action. Staff estimates proceeds of approximately
$650,000 from this sale will be received in FY 2012/2013.
In keeping with Council policy, this property and the others
owned by the General Fund in downtown will be sold
following development of the Sunnyvale Town Center. Rental
income from the property is projected in the Long-Term
Financial Plan through the end of FY 2011/2012.
Interest income on the reserve balances in this sub-fund
continues to accrue and is available for future housing
projects.
Project expenditures totaling $495,725 for FY 2011/2012
are for four special projects: maintenance of the City owned
affordable housing unit at 388 Charles St. ($5,725); fi rst-time
homebuyers assistance ($250,000); Individual Development
Account Matching Funds for fi rst-time homebuyers ($40,000);
and the Phase IV Contribution to the Housing Trust Fund
($200,000).
In FY 2009/2010, $8.2 million was set aside in a reserve for
homeless assistance as part of the Onizuka Base Relocation
and Closure process. These funds are programmed for
expenditure in FY 2012/2013.
By the end of FY 2011/2012 the Housing Mitigation Sub-Fund
is projected to have a Housing Mitigation Reserve balance of
approximately $3.9 million. These funds are available for
future affordable housing projects in the City when they are
identifi ed. A placeholder entitled Future Housing Projects is
included in the Long-Term Financial Plan for projects that are
not yet identifi ed.
Below Market Rate (BMR) Housing Sub-Fund
The Housing Fund has a second sub-fund for Below Market
Rate (BMR) housing revenues and expenditures.
The BMR Program does not generate funds for housing,