HomeMy WebLinkAboutMINUTES - 11102009 - C.63RECOMMENDATION(S):
1. APPROVE request from North American Title Company to accept $10,000 in lieu of a
full repayment of $53,210 in Community Development Block Grant (CDBG) funds: and
2. AUTHORIZE the Deputy Director – Redevelopment, or his designee, to execute the
appropriate documents to reconvey the Deed of Trust.
FISCAL IMPACT:
No General Fund impact. The CDBG funds are provided to the County on a formula
allocation basis through the U.S. Department of Housing and Urban Development (HUD).
CFDA number 14.218
BACKGROUND:
In 2005, the County provided a $53,210 no interest loan in CDBG funds through the
Neighborhood Preservation Program to the owner of 1314 Chestnut Street, Martinez. At that
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 11/10/2009 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Kara Douglas
33-7223
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: November 10, 2009
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C.63
To:Board of Supervisors
From:Catherine Kutsuris, Conservation & Development Director
Date:November 10, 2009
Contra
Costa
County
Subject:Community Development Block Grant Neighborhood Preservation Program Partial Loan Repayment
BACKGROUND: (CONT'D)
time, the appraised value of the home was $400,000. In 2007, the County subordinated its
loan to a new first mortgage loan in the amount of $337,000. The home value was then over
$430,000. A Notice of Default was recorded June 29, 2009.
The owner of the property has a purchase offer of $250,000, which is substantially below
the total outstanding loans of approximately $390,000. The first lender, Wachovia (now
Bank of America) has agreed to a payoff of $220,000. The seller is requesting the County
agree to a payoff of $10,000. The remaining proceeds from the sale will be used to pay
property taxes, escrow fees, and Realtor commissions.
With the significant loss of home values in the County, staff expects that the County may be
requested to consider additional requests for partial loan repayment. Staff will prepare a
Board report and recommendation that would permit staff to handle such requests
administratively subject to conformance to Board policy and direction. Staff will bring a
recommendation forward in the first quarter of 2010.
CONSEQUENCE OF NEGATIVE ACTION:
If the Board of Supervisors does not approve this request, the buyer will not be able to
purchase the home and the bank will foreclose on the property. If the bank does foreclose,
the County will not receive any payment.
CHILDREN'S IMPACT STATEMENT:
CLERK'S ADDENDUM
ADOPTED the recommendations; and REQUESTED a report be prepared for the
Board's consideration in January 2010 with an estimate of the number of CDBG property
loans that may be subject to this type of in lieu settlement, the possible financial
ramifications to the CDBG fund and the County, and an overview of options to manage
these actions.