Palmdale council approves application for $7.13 million Section 108 loan to expand SAVES food bank

The Palmdale City Council voted to authorize submission of a Section 108 loan guarantee application to the U.S. Department of Housing and Urban Development and adopted a resolution authorizing the application for a new SAVES facility at Third Street East and East Avenue Q.

The action, introduced during a public hearing, was presented by Sophia Reyes, director of housing, who said the city is requesting a Section 108 loan of $7,134,000 to fund tenant improvements at SAVES’ new location and would effect the expenditure through a substantial amendment to the 2024–25 action plan. "We are requesting to apply for CDBG section 108 loans of 7,134,000," Reyes said, and asked the council to adopt resolution CC 2024-0007 and authorize submittal of the application.

The loan would be combined with other local funding sources already identified by staff: $16,000 in existing CDBG funds, $633,000 in ARPA for design previously approved, and $1,199,600 in Neighborhood Stabilization Program funds converted to CDBG for construction and related soft costs. Reyes described the total capital plan as roughly $8,982,600 in combined construction and soft costs and proposed a 20-year repayment schedule drawing from annual CDBG allocations; she said current annual CDBG entitlement is about $1,500,000 and estimated the Section 108 repayment portion at approximately $575,400 per year. Proposed collateral listed in staff materials included the SAVES-improved facility and adjoining parcels, with an estimated collateral valuation above $8 million.

Public comment included David Laird, who said SAVES has partnered with local churches for more than 20 years and described rising demand at the organization’s distribution site: "When we first began 20 years ago, we had about 80 on average. Now, we have 364 coming out to our place in Pear Blossom," Laird said, urging council support for the expansion. Council discussion emphasized the role of SAVES in serving the Antelope Valley; one councilmember noted SAVES assists more than 6,000 residents annually and that the current facility is at capacity.

After a motion and second on the item, the council voted to approve the staff recommendation; the meeting record shows the motion passed. No roll-call tally was recorded in the transcript.

The council directed staff to submit the Section 108 loan application, process the required amendment to the 2024–25 CDBG action plan, and coordinate financing and reporting consistent with HUD and CDBG requirements. Staff said the project’s public notice had appeared in the Antelope Valley Press and on city social media and that no written comments had been received prior to the hearing.

The proposed renovations listed by staff include removal of temporary rooms, added ADA-compliant restrooms, replacement of roll-up doors, HVAC upgrades, improved parking access, the addition of solar energy and EV charging for SAVES vehicles, and other tenant improvements. Staff and public comments stressed that the project is intended to increase capacity for food distribution and related services for residents of the Antelope Valley.

Council action was limited to authorizing the loan application and adopting the resolution; specific construction contracts, final financing documents, and detailed repayment schedules remain to be approved in subsequent administrative steps.

The city clerk’s record identifies adoption of the resolution and authorization to submit the application as the formal council action on item 7.1.