HomeMy WebLinkAboutMINUTES - 09251990 - 1.49 IL-049
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TO: BOARD OF SUPERVISORS �. .
FROM: Harvey E. Bragdon '� _T�- v�a
Director of community Development
CCurty
A Cll
DATE: 25 September 1990
SUBJECT: Approval of subordination agreement with the Housing For
Independent People
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Authorize the Chair to approve the Subordination Agreement between
the County and The Housing For Independent People.
FISCAL IMPACT
None (100% HUD Funds)
BACKGROUND/REASONS FOR RECOMMENDATIONS
In 1989, HIP acquired a house located at 1859 Clayton Way, Concord
to be used as housing for mentally disabled people. The County
CDBG program provided $10,000, County Mental Health provided
$20, 000 and the balance of the $230, 000 acquisition price was
- provided with an interim loan through Wells Fargo Bank. The interim
financing was necessary to allow time for HIP to coordinate .
permanent financing through the State Housing and Community
Development Program. The County recorded a Deed of Development
Rights against the Clayton Way property resulting in a negative
easement in gross as well as a financing instrument as to the
County CDBG program's financial interest.
The State is now requesting that the County subordinate to the
their loan to HIP retiring the Wells Fargo interim loan. The
interim loan is costing HIP $78. 00 in interest per day and is
eroding HIP's fiscal ability to administer their programs. This
instrument will allow HIP to finance their project and at .the same
time protect the County's interest in the project.
CONTINUED ON ATTACHMENT: X - YES SIGNATURE.
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON SEP 2 5 1990 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
cc: Community Development ATTESTED: SEP 2 5 1990
CAO PHIL BATCHELOR, CLERK OF
Auditor c/o Nona THE BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
Contractor f
BY C� , DEPUTY
se16/hipsub.bos