HomeMy WebLinkAboutMINUTES - 04162013 - HA C.02RECOMMENDATIONS
RECEIVE report regarding the change in terms with Westamerica Bank for the Housing Authority's purchase of the
Housing Choice Voucher office, located at 2870 Howe Road, Martinez, CA.
BACKGROUND
On December 12, 2006 the Board authorized the Executive Director to execute all documents pertaining to the
purchase of the Howe Road property for $3,375,000. This building houses the majority of HACCC’s housing choice
voucher (Section 8) staff. A purchase agreement was executed on December 15, 2006. The interest rate for the
original purchase agreement was fixed at 7.25%. At HACCC’s request this rate was reduced to a fixed rate of 6.75%
effective April 28, 2008 and to 6.00% on December 1, 2011 in response to decreased lending rates. Ongoing
decreases in lending rates prompted staff to again approach Westamerica Bank about reducing the interest rate of the
loan. Effective January 9, 2013, Westamerica reduced the rate to 5.25%. Taken together, these changes in loan terms
have reduced annual payments by $43,801.08. The savings will be utilized to either offset costs in the Housing
Choice Voucher program or to reduce the remaining loan balance. All other terms of the Purchase Agreement remain
the same. A copy of the Change in Terms of Agreement is attached.
Action of Board On: 04/16/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF
COMMISSIONERS
Contact: 925-957-8028
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: April 16, 2013
Joseph Villarreal, Executive Director
By: , Deputy
cc:
C.2
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:April 16, 2013
Contra
Costa
County
Subject:Reduction of Interest Rate in Terms of Agreement for Purchase of 2870 Howe Road
FISCAL IMPACT
The change in terms will result in an annual savings of $21,559.80 compared to the previous loan agreement.
CONSEQUENCE OF NEGATIVE ACTION
None. Information item only.
ATTACHMENTS
Westamerica Terms Of Agreement