HomeMy WebLinkAboutMINUTES - 05112010 - C.70RECOMMENDATION(S):
1. APPROVE request from California Autism Foundation to sell property located at 5116
La Honda Avenue, El Sobrante and repay the Community Development Block Grant
(CDBG) loan in the amount of $129,960;
2. AUTHORIZE the Conservation and Development Director, or her designee, to execute
the appropriate documents to reconvey the Deed of Trust and CDBG Loan and Regulatory
Agreement; and
3. DETERMINE that this action is not a project under the California Environmental Quality
Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA guidelines;
FISCAL IMPACT:
No General Fund impact. All funds are provided to the County on a formula basis through
the U.S. Department of Housing and Urban Development.
Catalog of federal domestic assistance (CFDA) numbers:
Community Development Block Grant – 14.218
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 05/11/2010 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: Robert Calkins
335-7220
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: May 11, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: EMY L. SHARP, Deputy
cc:
C.70
To:Board of Supervisors
From:Jim Kennedy, County Redevelopment Director
Date:May 11, 2010
Contra
Costa
County
Subject:Community Development Block Grant $129,960 Loan Pre-Payment by California Autism Foundation
BACKGROUND:
On December 5, 2000, the County loaned California Autism Foundation (CAF) $125,000 in
Community Development Block Grant (CDBG) funds for the acquisition and rehabilitation
of a single family home known as ABC IX and located at 5116 La Honda Avenue, El
Sobrante. CAF signed a loan and regulatory agreement with a term of 30 years. The loan
has a three percent interest rate and is fully amortized. The remaining principal balance is
$97,800. However, CDBG regulations require that if real property is sold before five years
past the end of the contract term, CDBG funds are to be repaid in a proportionate share of
the CDBG investment. In this case, CDBG funds are currently 36.1 percent of the
investment in ABC IX. Therefore, the amount due is $129,960.
CAF has provided services to the developmental disabled for over 26 years. In 2007 and
2008 CAF underwent severe financial distress. CAF worked with the Regional Center (the
primary funder of ABCIX and other CAF programs), clients, and family members to shrink
programs and close or sell homes. While CAF was able to find other special needs housing
providers to purchase homes, it could not identify a similar buyer for ABC IX. ABC IX
provided permanent supportive housing for persons with development disabilities until
February 1, 2009 when CAF forfeited its State license for ABC IX. The home has been
vacant for two years. No one is being displaced by the sale of this property.
Staff is recommending that CAF be allowed to sell ABC IX and remit to the County
$129,960.
Proceeds from the sale of this property will be retained by the County for use in other
CDBG eligible projects.
CONSEQUENCE OF NEGATIVE ACTION:
CAF does not have the resources to continue operating this home. It would continue CAF
financial hardships to not allow this loan prepayment.