2006 Section 108 Public Facility Projects - California

Castle Park Capital Improvements
Chula Vista, CA
Section 108 Guaranteed Loans- $9,500,000

The City of Chula Vista will utilize a Section 108 Guaranteed Loan to finance the installation of new curbs, gutters, sidewalks and streetlights along seven streets in the Southwest area of the City in the Castle Park neighborhood. This neighborhood and service area are primarily residential and are comprised of 64% low-moderate income persons. The guaranteed loan will be used in the design and construction of these improvements. The total cost of the project will be $9,571,250.

The Community Development Block Grant (CDGB) national objective for the use of the City's guaranteed loan funds is to benefit low-moderate income persons on an area basis.

The City will repay its Section 108 Guaranteed Loan over a twenty-year period using $1,950,000 in special assessments and CDBG funds for the guaranteed loan repayment. Also, the City has authorized the use of monies from its General Fund in case its CDBG entitlement amount is insufficient to pay annual debt service. In order to secure the repayment of its Section 108 Guaranteed Loan, the City will also grant a first lien position on two pieces of real property, with an appraised value of $9,900,000. Also, the City is pledging its CDBG funds.

Hygiene Center- Homeless Community Center
Santa Cruz, CA
Section 108 Guaranteed Loan- $700,000

The City of Santa Cruz and the Homeless Services Center (HSC) will combine funding assistance to rehabilitate the Homeless Community Resource Center (HCRC) located on the Homeless Services Center campus. The City will finance the renovation of the showers, bathrooms, and locker areas of the hygiene facility located on the ground floor of the HCRC, as well as the existing mezzanine area above the hygiene facility to create a 42-bed year round homeless shelter, the first of its kind in the City. The City owns the HCRC building and leases it to HSC to provide services and assistance to homeless persons in Santa Cruz. The City will grant the Section 108 Guaranteed Loan to the HSC to complete the renovations.

The Community Development Block Grant (CDGB) national objective for the City's use of its guaranteed loan proceeds is to benefit a low-moderate income limited clientele (the homeless population of the City of Santa Cruz, CA).

The City will repay the Section 108 Guaranteed Loan over a four year period using a portion of its annual CDBG funds. To secure repayment of the guaranteed loan proceeds, the City pledges a second lien on the project site and its CDBG funds.