None. Approval of this Amendment Agreement will result in no change in the original $999,000 loan amount from the State to convert a County building for use as transitional housing. The loan compounds three percent (3%) simple interest per annum starting at the end of fiscal year 2009-2013. The State defers repayment of the loan as long as the County uses the facility for an emergency shelter or transitional housing. If the facility continues to operate as transitional housing through 2018, then the State will forgive the loan in its entirety. However, if a transfer or conveyance of the property occurs prior to 2018 that results in the property no longer being used as an emergency shelter or transitional housing, the State will terminate the loan, and the County must immediately repay all outstanding principal and accrued interest. No additional County funds are required.

On January 20, 2009, the Board of Supervisors approved the Standard Agreement #28-781-1 (as amended by Amendment Agreements #28-781-2 and #28-781-3) with the State of California Department of Housing and Community Development, for the period from July 1, 2008 through May 14, 2012, for the Emergency Housing Assistance Program to support the conversion of 4639 Pacheco Blvd. in Martinez (former site of Discovery House) for Capital Development Allocation to develop a transitional housing program for the homeless individuals in recovery.   
  
Funding from this State program was to be used to convert 4639 Pacheco Blvd. in Martinez (former site of Discovery House) into a facility that will be used as a transitional house for homeless individuals who recently graduated from residential and/or outpatient drug treatment. Funding from the State will cover the cost of converting the facility for fiscal years 2008-2009, 2009-2010, 2010-2011, 2011-2012, and 2012-2013. After the facility is converted, the County is required to operate the facility as a transitional house for the next seven (7) years. Funding for the facility’s operation is available through other Emergency Housing Assistance Program funds from the State. If the County operates the facility as a transitional house through 2018, the State will forgive the loan in its entirety. However, if a transfer or conveyance of the property occurs prior to the end of the loan term that results in the property no longer being used as an emergency shelter or transitional housing, the State will terminate the loan, and the County must immediately repay all outstanding principal and accrued interest.   
  
Approval of this Standard (Amendment) Agreement #28-781-4 will make technical adjustments to the Agreement, allowing continuous funding for the conversion of this facility, which will, in turn, provide homeless individuals with housing, goal-oriented counseling, and recovery support through May 14, 2013.   

If this contract is not approved, a transfer or conveyance of the property would occur prior to the end of the loan term that may result in the property no longer being used as an emergency shelter or transitional housing, the State will terminate the loan, and the County must immediately repay all outstanding principal and accrued interest.

Not Applicable.