by SC Reporter Emilie Alfino
City Council approved a request from Community Housing and Resources (CHR) to forgive the fiscal year 2026 debt service payment of $20,000 for the Casa Mariposa property.
The city lent $650,000 to CHR in 1999 for the project and established a repayment schedule. CHR’s current total debt to the city for the Casa Mariposa property is $92,715.
In 2023, the Council amended the agreement due to the financial impact of Hurricane Ian and agreed to reduce the funding the city provided to CHR.
The city’s annual contribution to CHR was $331,582 in FY24; $373.020 in FY2025; and $414,447 in FY2026. The FY2026 amount is the same amount the city provided to CHR in FY2023.
In consideration of the necessary funding reductions from the City, CHR has asked City Council to forgive the debt service payment of $20,000 per year for 2024 and 2025, for a total of $40,000.
CHR’s letter requesting debt service forgiveness for FY26 said it will help ease CHR’s financial burden and that they will use the funds to support operations and resident services. Forgiving the debt will have a minimum impact on the City’s FY2026 budget.