HomeMy WebLinkAboutMINUTES - 12142010 - C.120RECOMMENDATION(S):
1. APPROVE request from Old Republic Title Company to accept $1,000 in lieu of a full
repayment of $17,100 in American Dream Downpayment Initiative (ADDI) funds: and
2. AUTHORIZE the Department of Conservation and Development Director, or her
designee, to execute the appropriate documents to reconvey the Deed of Trust.
FISCAL IMPACT:
No General Fund impact. The ADDI funds are provided to the County on a formula
allocation basis through the U.S. Department of Housing and Urban Development (HUD).
CFDA number 14.256
BACKGROUND:
In 2005, the County provided a $17,100 shared appreciation loan in ADDI funds to the
buyer of 98 Pelican Street, Brentwood. The purchase price of the home was $285,000. The
APPROVE OTHER
RECOMMENDATION OF CNTY
ADMINISTRATOR
RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 12/14/2010 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
Federal D. Glover, District
V Supervisor
Contact: Kara Douglas
335-7223
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: December 14, 2010
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C.120
To:Board of Supervisors
From:Catherine Kutsuris, Conservation & Development Director
Date:December 14, 2010
Contra
Costa
County
Subject:American Dream Downpayment Initiative Partial Loan Repayment – 98 Pelican Street, Brentwood
BACKGROUND: (CONT'D)
County subordinated its loan to a first mortgage loan in the amount of $228,000 and a
second mortgage lien of $15,000. Both loans were made by the California Housing Finance
Agency (CalHFA). There was also a CalHFA loan of $3,550 which is in 4th lien position.
The owner of the property has a purchase offer of $160,000, which is substantially below
the total outstanding loans of approximately $255,650. CalHFA has agreed to a payoff of
$147,899. As the first lender, CalHFA has the power to negotiate the terms of a short sale.
It is CalHFA’s policy to allow only $1,000 to subordinate lenders. CalHFA will receive
$1,000 on its second lien position loan and $1,000 on its forth lien position loan. The
remaining proceeds from the sale will be used to pay property taxes, transfer and escrow
fees, and Realtor commissions.
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 CalHFA will foreclose on the property. If CalHFA does foreclose,
the County will not receive any payment.
CHILDREN'S IMPACT STATEMENT:
N/A