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HomeMy WebLinkAboutMINUTES - 07281987 - S.5 TO: BOARD OF SUPERVISORS Contra FROM: Costa Tom Powers, First District Supervisor WJl DATE: Count July 21, 1987 SUBJECT: Conversion of Subsidized Housing Loans by HUD SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. That the Board of Supervisors of Contra Costa County authorizes the Chair of the Board to send a letter to the county's federal legislators stating the Board's opposition to the sale of mortgages on low and moderate income housing by the Federal Housing and Urban Development Department(HUD) . 2. That the Board of Supervisors of Contra Costa County directs County Counsel to investigate ways of ,joining the current lawsuit by the San Francisco Legal Assistance Foundation and the National Law Housing Project. This lawsuit challenges HUD's right to sell mortgages without requiring that the terms and conditions of these mortgages be maintained. BACKGROUND: Under the Reagan Administration's direction, HUD is currently planning to sell $536 million in mortgages including one for St. John's Apartment Complex in Richmond. The terms of sale do not specify that the terms and conditions of the current mortgages will be upheld. As a result, r many low and moderate income families may be forced to move because of increased rents. Clearly, the need for low and moderate income housing is acute. There are currently 6,583 people on the waiting lists for Section 8 or Public Housing .Assistance in Contra Costa County alone. At the same time there are 2,071 low and moderate income units in the county that are near expiration of their contracts. This suggests that the two year wait for public housing may become even worse in the future. The lawsuit by the San Francisco Legal Assistance Foundation and the National Law Housing Project challenges the sale of over 300 mortgages nationwide. The lawsuit alleges that current HUD policies ignore the intent of the National Housing Act which implies that transferred loans should maintain low and moderate income housing as specified by the original terms and conditions under which the projects were implemented. CONTINUED ON ATTACHMENTS YES SIGNATUREi RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER i SIGNATURE(S) ACTION OF BOARD ON July 28 , 1987 APPROVED AS RECOMMENDED _X_ OTHER X On recommendation of Supervisor Powers, IT IS BY THE BOARD ORDERED that the issue of conversion of subsidized housing loans by HUD is REFERRED to County Counsel for a report to the Board on August 18 , 1987 . ' VOTE OF SUPERVISORS X UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. CC., County Counsel ATTESTED July 28 , 1987 County Administrator Phil Batchelor, Clerk of the Board Community Development of Supervisors and County Administrator a M3e2/7-63 BY CkAADEPUTY