HomeMy WebLinkAboutMINUTES - 06251991 - 1.84 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS DATE: June 25, 1991
Perfecto Villarreal , Executive Director
FROM: cc:
SUBJECT: REVISED GUIDELINES
RENTAL REHABILITATION PROGRAM FOR
PRIVATELY OWNED PROPERTIES
I. RECOMMENDED ACTION:
APPROVE the revised Guidelines/Rental Rehabilitation Program for Privately
Owned Properties dated June 17, 1991, providing for Deferred Payment Loans, as
recommended by the Advisory Housing Commission.
II. FINANCIAL IMPACT:
No monthly payments would be made during the term of the loan, however, the
entire principal and accrued interest would be due in full at either:
1. The sale or transfer of the property; or,
2. Ten (10) years from the date of the note.
III. REASONS FOR RECOMMENDATION/BACKGROUND:
Rental Rehabilitation program loans are made to assist rental property owners
in providing good quality homes to low income families. The Housing Authority
receives funds from HUD Rental Rehabilitation and Community Development Block Grant
programs to make loans under federal rules and local guidelines. These .loans are
usually matched with private investment funds from the property owners. To make the
program work, many communities give the Rental Rehabilitation funds to rental owners
in the form of grants. In this County, we have required 3% interest and monthly
payments under local guidelines.
To attract more participants, the program must become more marketable by
allowing owners to maintain positive cash flows. Therefore, we propose changing our
loans from "amortized" to "deferred" . This means that borrowers, rather than making
monthly payments, will make one lump payment of loan principal and all accrued
interest at the end of ten years. As in the past, interest at 3% will continue to be
charged.
CONTINUED ON ATTACHMENT: YES SIGNATU(tE:
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ONAPPROVED AS RECOMMENDED OTHER
VOTE OF COMMISSIONERS
X UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS A TRUE AND
AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND
ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD
OF COMMISSIONERS ON THE DATE SHOWN.
CC: ATTESTED -I— /,?A?/
it Batchelor. Clerk of the
Board of Commissioners
M3e2/7-e3 BY i%!/l DEPUTY
Board of Commissioners
June 25, 1991
Page -2-
At its Regular Meeting, Monday, June 17, 1991 the Advisory Housing Commission
voted to recommend approval of the revised Guidelines/Rental Rehabiliation Program for
Privately Owned Properties dated June 17, 1991.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect to not approve the revised guidelines
for the Rental Rehabilitation program, opportunities to provide additional decent,
safe and sanitary affordable housing for low income families could be lost.