HomeMy WebLinkAboutMINUTES - 12032013 - C.107RECOMMENDATION(S):
APPROVE AND AUTHORIZE the Conservation and Development Director, or designee, to write off loans
receivable balances totaling $335,465.68 from the Neighborhood Preservation Program that are not collectible due to
the loan loss through foreclosure, property abandoned, property in a tax collector’s auction, or loan partially repaid
through a short sale.
FISCAL IMPACT:
No fiscal impact to the General Fund. All funds are Community Development Block Grant funds, CFDA#14.218.
The total write off amount is $355,465.68 from Fund 134900, Account 0120.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 12/03/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Kara Douglas
674-7880
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 3, 2013
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stephanie L. Mello, Deputy
cc:
C.107
To:Board of Supervisors
From:Catherine Kutsuris, Conservation and Development Director
Date:December 3, 2013
Contra
Costa
County
Subject:Neighborhood Preservation Program Uncollectable Loans Write Off
BACKGROUND:
The Department of Conservation and Development administers the Neighborhood Preservation Program (NPP). NPP
provides low interest loans and grants to low-income households who own and occupy their home and who cannot
obtain conventional financing. Funds are used to eliminate conditions that are detrimental to health and safety, and
for repairs such as roofing, electrical, plumbing, mechanical, termite repairs, lead paint mitigation, disabled
accessibility, interior and exterior painting, and other necessary deferred maintenance repairs. The program promotes
the stabilization and enhancement of older neighborhoods in order to encourage a sense of pride in the neighborhood.
During a program review by the County Auditor’s office, staff noted that uncollectible loans had not been written off
since program inception in 1987. The Department will now begin to write off uncollectible NPP loans on an annual
basis. Of all loans made from 1987 through 2012, there are 17 uncollectible loans totaling $355,465.68. This
represents approximately two percent of all loans funded through the history of the program, and 0.5 percent of the
outstanding loan portfolio. The 2013 national default rate on home mortgages is 1.4 percent. The loans are not
collectible due to one or more of the following reasons: the loan was eliminated through foreclosure, the property
was abandoned, property was sold in a tax collector’s auction, or the loan was partially repaid through a short sale.
Following is a table summarizing these loans:
Year # of
Loans
Value of
Balances
1987 3 $25,364.23
1989 1 6,000.00
1994 1 14,107.00
1996 1 9,088.00
1998 3 46,222.80
2008 1 40,035.00
2009 3 118,876.74
2010 3 81,880.91
2012 1 13,891.00
TOTAL 17 $355,465.68
CONSEQUENCE OF NEGATIVE
ACTION:
The NPP loans receivable balance
will be overstated by $355,465.68.
CHILDREN'S IMPACT
STATEMENT:
None.