To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Cleaning Up Defaulted Housing Loans
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Forgive accrued interest and authorize the Auditor to write off two loans discharged by Bankruptcy Court; and
2. Authorize the Auditor to remove the interest and write off the principle of a lien stripped by Receivership; and
3. Authorize the Auditor to remove the interest and write off the balance of a lien dissolved by foreclosure.
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STRATEGIC PLAN:
This action supports the following areas of your Board's Strategic Plan.
Area of Focus: Housing for All
Strategic Plan Category: 4002 - Increase and prioritize housing development
DISCUSSION:
Staff requests consent to remove four failed residential loans from the county's receivables balance. The loans defaulted for various reasons, described below, and have been discharged by federal or state law, with the result that neither principal nor interest will be repaid.
The housing program receives grant funds to assist low-income households with First-Time Home Buyer loans and Owner-Occupied Rehabilitation loans to make household repairs. The loans come from California Department of Housing and Community Development grants and are operated under federal and state regulations and locally approved program guidelines. These grants have been administered by the county since 1984. One loan was written off in 1998. One loan was written off in 2010.
Normally, loans are paid back to the county and go into a revolving loan fund so they can be used again to assist other homeowners. In the following four circumstances, the loans will not be paid back to the county and are immune from collection efforts.
1. On March 28, 2017, S. Burris accepted a HOME Investment Partnership-funded First-Time Home Buyer loan in the amount of $106,282.08. On July 1, 2020, the United Stat...
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