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HomeMy WebLinkAboutMINUTES - 11042014 - HA C.03RECOMMENDATIONS APPROVE and AUTHORIZE the Housing Authority's Executive Director, or designee, to execute an assignment and assumption agreement to transfer 21 Rental Rehabilitation loans from the Housing Authority to the County of Contra Costa. BACKGROUND Between 1993 and 2012, the County, through the Department of Conservation and Development (DCD), provided CDBG funds to HACCC to administer a Rental Rehabilitation program for small rental properties. Most of the CDBG Rental Rehabilitation loans were provided to owners of single family homes, and apartments up to eight units. There are 21 outstanding Rental Rehabilitation loans totaling $794,804. Since HACCC is no longer receiving CDBG funds for this program, staff have asked DCD to manage the 21 outstanding Rental Rehabilitation loans. DCD has agreed to absorb these loans into their existing portfolio because DCD administers CDBG funds (including management of other CDBG funded loans) and thus can add these 21 loans to their existing CDBG loan portfolio with minimal additional effort. In order to transfer the loans from HACCC to the County, both the County and HACCC need to execute an assignment and assumption agreement (see attached). Upon execution of the assignment and assumption agreement, HACCC must then assign each note and Deed of Trust by executing and recording an Assignment of Note and Deed of Trust document for each property. Attachments: Assignment and Assumption Agreement Assignment of Note and Deed of Trust Action of Board On: 11/04/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF COMMISSIONERS AYE:John Gioia, Commissioner Candace Andersen, Commissioner Mary N. Piepho, Commissioner Karen Mitchoff, Commissioner Federal D. Glover, Commissioner Aqueela Bowie, Commissioner ABSENT:Fay Nathaniel, Commissioner 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: November 4, 2014 Joseph Villarreal, Executive Director By: June McHuen, Deputy cc: C. 3 To:Contra Costa County Housing Authority Board of Commissioners From:Joseph Villarreal, Housing Authority Date:November 4, 2014 Contra Costa County Subject:Assignment and Assumption of Rental Rehabilitation Notes and Deeds of Trust from the Housing Authority to the County of Contra Costa FISCAL IMPACT This program was funded by federal Community Development Block Grant (CDBG) funds allocated to the Housing Authority (HACCC) by the County. That funding is no longer available to HACCC. While ongoing monitoring and administration is required for these loans, HACCC cannot use voucher or public housing funds to do these tasks. CONSEQUENCE OF NEGATIVE ACTION Should the Board of Commissioners not approve the transfer of loans, HACCC will continue to manage the loan portfolio. This could result in an audit finding of non-compliance and could ultimately affect future funding from the U.S. Department of Housing and Urban Development. CLERK'S ADDENDUM ATTACHMENTS Assignment & Assumption Agreement Assignment of Note & Deed of Trust