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appropriate mechanism for repayment and/or the potential for addressing the TVHOC's additional funding requests. To date, the following have been discussed and/or agreed to: . Utilize and unsecured loan agreement (Included as Attachment 1) to meet TVHOC's immediate $155,000 loan request with the expectation that repayment would come, most likely, from TVHOC cash flow and/or direct services in lieu of cash repayment. Because in the short term cash flow will be limited, payments would not begin immediately and could have to be forgiven depending on TVHOC's long term financial situation. If the City Council approves the report's recommendation, staff anticipates working collectively with the cities and TVHOC regarding repayment options. The loan agreement has already been approved by the cities of Livermore and Dublin. Also, not that while the TVHOC loan request is for $155,000, the actual loan amount is $155,001 due to rounding resulting from each three cities paying the same amount. . Regarding the $100,000 pledge, an additional unsecured loan agreement has also been discussed with an understanding that the cities would share in proceeds of TVHOC's office/housing unit located at 141 North Livermore Avenue if the property is eventually sold. A loan of this type could also include terms for potential cash payments subject to TVHOC cash flow. Should it be determined that a loan of this type is necessary, staff would report back to the City Council with a recommendation regarding loan terms and approval. • Another option related to the pledge request, involves having one or all of the cities purchase the commercial property with the expectation that it would be held until such time as the market improves when it could be sold at no or minimal financial loss. This option could also include purchasing the office/rental property with the expectation that TVHOC could relocate to more affordable or donated space. Should this be determined to be the most advantageous option, staff would report back to the City Council with a recommendation regarding participation prior to agreeing to participate. • Regarding the $270,000 grant request, Pleasanton could provide its share of the request as part of the City's ongoing Housing and Human Services Grant (HHSG) program guidelines. This assistance would be discussed as part of the City's annual operating budget, the ongoing grant program or other timeline as agreed between the parties. Regardless, of the contractual vehicles utilized, the City may benefit from having the TVHOC continue to provide services to the Tri-Valley since it continues to meet this service demand in a cost effective manner. As the council is aware, affordable housing loans are typically structured around cash flow which includes loan payment deferrals in the event of insufficient funds and as such, there is potential that the loans would not be repaid. In the event cash flow is unavailable for loan payments, staff would again look to direct services in lieu of the cash payments. Services would include the following: Page 4 of 5