Sunnyvale’s Sweetheart Housing Loans Raise Concerns

SUNNYVALE (KPIX 5) — There are new questions on how Sunnyvale is spending taxpayer cash.

We first informed you about prime executives, getting big low-curiosity housing loans.

As an example, it was the town of Sunnyvale’s low-curiosity mortgage that helped assistant metropolis supervisor Hanson Hom purchase a townhouse in 2007.

The town’s mortgage was at four % curiosity for forty five years.

However Hom solely needed to pay 2 % for the primary 5 years.

And in 2012 the town didn’t jack up the speed. As an alternative, it lowered it to 1.1 %.

Phrases of the mortgage allowed the speed to be reset after 5 years “if” market charges dipped which they did.

Sunnyvale Worker Affiliation President John Simontacchi is asking, “Are you taking good care of the one %?”

Simontacchi isn’t the one one asking questions.

A memo we obtained from the town finance division’s Juan Castro despatched to his superiors earlier this yr exhibits confusion within the metropolis about Hom’s mortgage, as a result of it apparently wasn’t utterly documented in 2012.

One supervisor said Hom must be paying four.2 %, one other doesn’t have a solution.

Lastly, Castro writes, “It appears nobody needs to the touch this matter.”

The town ultimately did return and correctly doc Hom’s mortgage, however solely when he was about to retire final February and 5 years after the very fact.

Simontacchi says, “They’re altering the coverage to stick to what they’ve already put in place. That does increase questions…Is all the things on the up and up?”

However Sunnyvale spokesperson Jennifer Garnett stated, “All the things for Mr. Hom’s mortgage was completed correctly.”

Garnett confirmed us a 2012 letter notifying Mr. Hom of the change in his rate of interest…which is seemingly the one documentation from that yr.

“On the time, the willpower was made to doc that info by way of a letter to Mr. Hom,” Garnett stated.

The town’s lengthy standing apply of giving very low curiosity, so-referred to as sweetheart loans, to its executives is a sore topic in Sunnyvale, particularly amongst staff who say they haven’t had a increase in 5 years.

Their union will take a strike authorization vote Tuesday, and it’s anticipated to cross simply.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *