Council approves housing rehab exception and $600K in Tel Shore Fund grants for health-related services

The council approved a resolution granting exceptions for substantial rehabilitation work at 1001 Colorado Avenue. City staff described the property's structural failure (roof, HVAC, electrical and plumbing) and estimated the total reconstruction cost at roughly $191,000–$245,000 with an appraisal of about $176,000; the recommended assistance includes forgivable loan terms to make the home habitable for a low-income resident. Councilors discussed handbook allowances, confirmed this meets an exception category, and voted to approve the measure.

Separately, Housing and Neighborhood Services staff presented a proposal to allocate $600,000 in Tel Shore Fund interest to 18 nonprofit organizations to support health-related public services in fiscal year 2025. Cynthia Villanueva described a competitive application process, a two‑year funding cycle with second-year renewal contingent on performance, and the Health & Human Services Advisory Committee recommendation. Councilors asked about the sustainability of continuing grants if Tel Shore Fund returns decline; staff said the council will need to revisit investment strategy and disbursement levels as part of future budget planning but noted strong current investment performance.

Councilors approved the grant allocations and the rehab exception. Staff noted that continued use of interest may reduce the corpus over time and that future council action may be needed to balance investment strategy and program commitments.