The City Council agreed on Wednesday to lend Albany Helping Hands $100,000 to complete an expansion of its shelter despite opposition from a group assisting the homeless and working poor.

Ben Atchley and Kim Sass of the steering committee of HEART (Homeless Enrichment and Rehabilitation Team) urged the council not to make the loan.

They cited several reasons: the city's lack of oversight of the shelter's finances, no time set to repay the loan, no fund raising campaign in place to repay the loan, and no contingency plan for what to do if the shelter defaults on payments.

They also said shelter officials routinely allow more people to stay there at night than what the facility is designed to hold, not much is being done to get the homeless there back on their feet, and if the loan is not repaid it leaves less money available for other low-cost housing projects.

The shelter is at 619 Ninth Ave. S.E.

The council voted 4-2 to provide the money with the stipulation that if the city chooses, it could demand repayment in a year. Last summer, the city lent the shelter $50,000 for the expansion and is still awaiting repayment. Each loan is interest free for a year and then the interest rate goes to 9 percent.

Voting in favor were Bessie Johnson, Dick Olsen, Ralph Reid Jr. and Sharon Konopa. Opposed were Jeff Christman and Dan Bedore. Councilors supporting the loan said the shelter must be finished because it now is an eyesore. They also worried about would happen to many of the homeless if the new dormitory is not finished.

With the loan, councilors suggested shelter officials put a cap on the number of people who stay each night at the center. By allowing so many residents, the homeless from around the mid-valley come to Albany as there are no such facilities in their cities.

The Rev. Les Bailey, the shelter's executive director, said he needs the loan to complete a dormitory for women and families by Feb. 15, 2008, the date set by the city's fire marshal when residents can no longer sleep in the dining area where there is no sprinkler system.

Before the vote, John Donovan, the shelter's development director, told the council there would be no default on the loan. He said donors would step up to help pay it off, and there would be proceeds from three shelter businesses: summer garden, Christmas tree lot, and the thrift store at the Carriage House Plaza.