HomeMy WebLinkAboutMINUTES - 05102011 - C.47RECOMMENDATION(S):
APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to
execute a First Amendment of CDBG Loan Agreement to extend the term of a $400,000
Community Development Block Grant (CDBG) loan to Greater Richmond Interfaith
Program (GRIP) until June 17, 2025.
FISCAL IMPACT:
No General Fund impact. Community Development Block Grant (CDBG) funds are
provided to the County on a formula allocation basis through the U.S. Department of
Housing and Urban Development (HUD).
CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBER
Community Development Block Grant (CDBG) Program – 14.218
BACKGROUND:
On June 17, 2005 GRIP executed a Promissory Note through which it promised to pay the
County $1,200,000 in CDBG funds. The
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 05/10/2011 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
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Kara Douglas,
925-335-7223
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: May 10, 2011
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C.47
To:Board of Supervisors
From:Catherine Kutsuris, Conservation & Development Director
Date:May 10, 2011
Contra
Costa
County
Subject:Greater Richmond Interfaith Program $400,000 Community Development Block Grant (CDBG) Loan
Modification
BACKGROUND: (CONT'D)
purpose of the 2005 loan was to assist in the construction of the GRIP facility in
Richmond, which houses the Resource Center, Souper Center, and Family Housing
(together the “Shelter Facility”) programs.
This loan was provided in two parts: $800,000 was provided with a 20 year term and is
called the “Long-Term Component”. The remaining $400,000 was provided with a 24
month term and called the “Short-Term Component”.
The Short-Term Component has the following terms:
• Zero interest
• Fully deferred during construction
• Payable in quarterly installments beginning the first day of the first quarter following
the issuance of the certificate of occupancy
• Due 24 months after the issuance of the certificate of occupancy
The Long-Term Component has the following terms:
• Three percent simple interest
• Fully deferred
• Twenty year term
The payments on the Short-Term Component were to be made from the proceeds of fund
raising activities. Those activities were not effective and GRIP did not make any
payments on the loan. GRIP’s priority is to support Shelter Facility operations and that is
where it focuses fund raising efforts. This is not an unexpected outcome. GRIP has been
providing the shelter and services that were expected. The loan agreement provides GRIP
with an option to extend the loan. GRIP has requested that the $400,000 Short-Term
Component be added to the $800,000 Long-Term Component for a single $1.2 million
loan.
CONSEQUENCE OF NEGATIVE ACTION:
GRIP meets the requirements for an extension of the Short-term Component. County
actions would not be consistent with the terms of the loan if it does not grant the
extension. Requiring GRIP to repay the loan would have serious negative consequences.
GRIP is working to raise enough funds to operate the facility at full capacity. A request
by the County to repay the construction loan would divert resources from operations.
GRIP would have to further reduce or eliminate programs.
CHILDREN'S IMPACT STATEMENT:
GRIP programs support the following community outcomes established in the Children’s
Report Card: “Children Ready for and Succeeding in School” and “Families that are
Safe, Stable, and Nurturing”.
ATTACHMENTS
ATTACHMENTS
GRIP First Amended and Restated Promissory Note
GRIP First Amendment of CDBG Loan Agreement