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THE CITY OF ' 1 F L �rrrI.�,� CITY COUNCIL AGENDA REPORT 25 pL£ASANTONo January 15, 2013 Assistant City Manager TITLE: APPROVAL OF A LOAN AND GOVERNANCE AGREEMENT WITH THE TRI-VALLEY HOUSING OPPORTUNITY CENTER AND AUTHORIZATION TO CONSIDER ADDITIONAL. FINANCIAL ASSISTANCE SUMMARY The Tri-Valley Housing Opportunity Center (TVHOC) is requesting $525,000 in financial assistance from the cities of Livermore, Dublin and Pleasanton to meet its current and future operating expenses. The financial assistance includes a $155,001 loan to meet outstanding debt, a $100,000 pledge as an incentive to promote the sale of a portion of its real estate holdings, and a $270,000 three year grant to meet its current and projected futures expenses. At this time, staff is recommending approval of the attached $155,001 loan agreement, an appropriation of $51,667 representing Pleasanton's share of the loan, and authorization to enter into negotiations with the cities of Dublin and Livermore and the TVHOC regarding full request for financial assistance. The cities of Dublin and Livermore have previously approved the loan agreement and the recommendations below. RECOMMENDATION 1) Approve the Loan and Governance Agreement with TVHOC (Attachment 1) and authorize the City Manager to approve the final terms of repayment based on cooperative discussion with the cities of Livermore and Dublin and the TVHOC. 2) Approve a $51,667 appropriation from the Lower Income Housing Fund (271900) representing Pleasanton's share of a $155,001 loan and governance agreement to the Tri-Valley Housing Opportunity Center to meet existing debt. 3) Authorize the City Manager to negotiate with the cities of Livermore and Dublin and the TVHOC regarding its additional requests for financial assistance and other matters related to TVHOC operations and finances. FINANCIAL STATEMENT City of Pleasanton funds would come from the Lower Income Housing Fund (LIHF) (271900). This loan was not anticipated in the Fiscal Year 2012-13 budget and therefore, an additional appropriation of $51,667 is recommended. The LIHF fund has an unencumbered balance of approximately $8 million.