To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Consent
SUBJECT:
title
Authority to Forgive interest for CalHome Program Loan Participant Mariana Krattiger
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Authorize staff to collect principal owed of $19,600 and place in restricted fund number 3959; and
2. Authorize staff to write off interest accrued to date of $5,086.
Body
SOURCE OF FUNDING:
CalHome Grant funds
DISCUSSION:
Planning and Building Department staff are asking permission to write off interest, in accordance with State Regulations and Program Guidelines, for a low-income senior who finds it necessary to refinance with a reverse mortgage.
The CalHome Program is a state grant program for jurisdictions to invest in their communities by providing owner-occupied rehabilitation and homebuyer loans at low- or no-interest for lower income residents. The county has received three CalHome grants and currently has 36 outstanding loans.
The Board adopted Owner-Occupied Guidelines (Attachment 2) that cover all three sources of funds, CalHome Program, Community Development Block Grant, and HOME Program Grant. The Guidelines offer 3 percent deferred interest loans that are due and payable in 30 years or when a resident sells or refinances. The guidelines also allow for subordination to a first loan. There is a provision in the guidelines that if the county wishes to make an exception that the governing body may review the circumstances and make that exception, after submission of a written report summarizing the situation.
Mariana Krattiger received a $19,600 loan in March 2010. That loan was to fix-up her home, which as a senior on a fixed income she was unable to finance on her own. Ms. Krattiger's income has been from social security and by selling art. She is no longer able to do art, which has made her fall behind on the Wells Fargo primary mortgage. Wel...
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