HomeMy WebLinkAboutMINUTES - 07181995 - C74 Zj
_ HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS
FROM: Richard J.Martinez,Executive Director
DATE: July 18, 1995
SUBJECT: ADOPT RESOLUTION APPROVING A LOAN EXTENSION POLICY FOR THE
RENTAL REHABILITATION PROGRAM
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
ADOPT Resolution No. 3751 adopting the proposed loan extension policy for the Rental Rehabilitation
Program,as recommended by the Advisory Housing Commission.
II. FINANCIAL IMPACT:
None at this time.
III. REASONS FOR RECOMMENDATIONBACKGROUND
The Rental Rehabilitation Program was established by the Housing Authority of the.County of Contra Costa in
1984 to make loans from Federal funds to owners of rental housing for the improvement of units rented by low income
households. Some loans may require extension for an additional five years at the completion of their original ten year
terms. As a result,it is necessary that a policy with approval criteria for extension be adopted. The proposed Loan
Extension Policy is attached to,and make a part of,Resolution No. 3751.
At its Regular Meeting on Monday,July 17, 1995 'the Advisory Housing Commission voted to recommend
approval of Resolution No.3751,adopting a loan extension policy for the Rental Rehabilitation Program.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect to not adopt the Resolution No. 3751 the Housing Authority would
be unable to continue to assist landlords who find it necessary to request a five year loan extension.
CONTINUED ON ATTACHMENT: YES SIGNATURE
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON ad, I L. ° S APPROVED AS RECOMMENDED ✓ OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
N. UNANIMOUS (ABSENT .. fL 1 TRUE AND ,CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
COMMISSIONERS ON THE DATE SHOWN.
ATTESTED i
PHIL B TCHE: OR,CLERK OF
THE BOARD OF COMMISSIONERS
AND COUNTY ADMINISTRATOR
By A 0,, DEPUTY
V
THE BOARD OF COMMISSIONERS
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
RESOLUTION NO. 3751
RESOLUTION ADOPTING A LOAN EXTENSION POLICY
FOR THE RENTAL REHABILITATION PROGRAM
WHEREAS, the Housing Authority of the County of Contra Costa operates a Rental
Rehabilitation Program which makes loans from Federal funds for
housing rehabilitation; and
WHEREAS, policy criteria for extension of loan terms is needed for the operation of
the program to meet existing agreements; and
NOW, THEREFORE, BE 1T RESOLVED BY THE BOARD OF COMMISSIONERS of
the Housing Authority of the County of Contra Costa that the attached
Loan Extension Policy is hereby made a part of this Resolution and the
Executive Director of the Housing Authority of the County of Contra
Costa is hereby authorized to execute said Policy.
PASSED AND ADOPTED ON July 18. 1995 by the following vote of the
Commissioners.
AYES: Commissioners Rogers, DeSaulnier, Torlakson, Bishop
NOES: None
ABSENT: Commissioner Smith
ABSTAIN: None
i
LOAN EXTENSION POLICY
RENTAL REHABILITATION PROGRAM
Purpose
The Rental Rehabilitation Program (RRP) was established by the Housing Authority of the County of Contra
Costa (HACCC) in 1984 to make loans from federal funds to owners of rental housing for the improvement of
units for Low and Moderate Income households. Some loans are eligible for a five year extension at the
expiration of their original ten year term.
Process
Borrowers shall be notified prior to the due date for loan payoff and where applicable,that they may apply for
an extension. Applications shall be reviewed by HACCC based on the criteria below. Approval of extensions
will be made solely by the HACCC based on the criteria below. A memorandum of approval of the loan
extension shall be placed in the borrower's loan document file and a copy shall be given to the borrower.
Criteria for Approval
1. At least 51% of all units are rented to households with incomes of less than 80% of the median.
2. Rent for 51% of all units is less than 30%of 80% of median income as adjusted for household size.
3. Rental units are maintained in good condition.
4.Vacancies are advertised to households receiving rental assistance and to achieve equal opportunity.
5. Loan payoff is infeasible due to project or owner economics
6. An extension will primarily serve the public welfare.
Interest Rate
The interest rate to be charged for the extended term period only shall be the same as for new loans being made
in the current year.
Other Terms and Conditions
All other loan terms and conditions shall remain the same as provided in the original loan documents.
servi.ce.51 6115195