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Council Meeting: February 22, 1994
Santa Monica, California
TO: Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Authonze the City Manager to Guarantee a Loan for
Ocean Park Community Center's (OPCC) Transitional Housing Project
INTRODUCTION
ThiS report recornrnends that the Council authorize the City Manager to guarantee a
loan for Ocean Park Community Center's (OPCC) transitional housing project.
BACKGROUND
In March 23, 1993, the City Council unanimously authorized a grant of $380,000 of
matching funds to the Ocean Park Community Center (OPCC) for their new faCility on
16th Street In Santa MOnica. These City funds serve as a direct cash match to a U S
Department of HOUSing and Urban Development award of $2.8 millIOn to assist with
the acqUIsition, rehabilitation and five years of operation of a 55-bed transitional
hOUSing program and related faCilities
DISCUSSION
To date, In addition to the HUD and City grants, OPCC has received over $550,000
In pledges to Its building campaign. These pledges are payable to OPCC over a one
to five-year penod Based on these pledges, OPCC has applied for a bndge loan
FEB 2 2 1994
(p-G.
through the Low Income Housing Fund to begin project construction by May 1994.
The Low Income Housing Fund IS a nonprofit organization dedicated to provide bridge
financing to affordable housing projects such as thiS one
The Low Income Housing Fund has requested the City's endorsement of 80% of the
bndge loan of $400,000 requested by OPCC frorn thiS Fund. opec staff and board
of directors expect to raise the needed funds to repay the loan Within the two and a
half year loan-term offered to them.
FISCAL/BUDGETARY IMPACT
Given the track record of the agency and the $550,000 In pledges, It IS unlikely that
the City would Incur costs from thiS loan. However, If OPCC defaults on the loan to
the Low Income HOUSing Fund, the General Fund would be temporarily responsible for
$320,000 until HOUSing or Human Services funds could be prograrnmed for thiS
purpose.
RECOMMENDA TION
ThiS reports recommends the CounCil to authOrize the City Manager to guarantee
$320,000 of a $400,000 loan for Ocean Park Community Center's (OPCC) transitional
hOUSing project on behalf of the City of Santa Monica
Prepared by: Julie Rusk, Acting Manager
Human Services DIVISion
Community and Cultural Services Department