Item 10 Staff Report Approve an Exeption to the Loan Maximum for a Housing Conservation Program Borrower/6
COUNCIL AGENDA
DATE:12-6-93
ITEM NO. / D
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: November 30, 1993
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT: APPROVE AN EXCEPTION TO THE LOAN MAXIMUM FOR A HOUSING
CONSERVATION PROGRAM BORROWER
RECOMMENDATION:
Approve the Loan Review Committee's recommendation to grant a $63,000 Housing Conservation Program
loan.
BACKGROUND:
Housing Conservation Program guidelines established by Town Council permit loans up to $35,000. The
guidelines were written to assure adequate loan funds for several loans each fiscal year.
DISCUSSION:
A very low income senior hasrequested a loan through the Housing Conservation Program (HCP) to
rehabilitate her earthquake damaged home. The total project cost is $100,000. Red Cross will provide
$37,000 in grant funds subject to HCP providing a loan for the remaining. Other funds are not available: the
California Natural Disaster Assistance Program (CALDAP) was a major funding source for earthquake
rehabilitation projects; however, by the time the borrower decided to pursue public monies, the CALDAP
program closed. A zero percent, deferred loan of $63,000 is requested from HCP.
A loan this amount requires an exception to the HCP loan cap of $35,000. The total amount of loan funds
requested exceeds the cap by $28,000. The loan cap's purpose is to ensure fund availablility for several
loans/grants each fiscal year. As of 10/31/93, the HCP rehabilitation loan balance was $250,266.
Encumbering $63,000 will leave $187,266 for other projects. Our 1993-94 goal is eight rehabilitation projects.
Three projects, including this one, are in progress; we need to process five more to meet our goal. There
will be $37,450 available per project.
The borrower is an 83 year old widow who resides with her daughter in the Glenridge district. Their
combined incomes are less than 50% of County Median income ($23,700). Due to federal requirements, the
name and address of the borrower must remain confidential.
The loan will be secured by a deed of trust and a promissory note will be executed for the full loan amount.
The borrower's credit is excellent and there are no encumbrances on the property. After rehabilitation, the
loan will be 17% of the estimated home value. The HCP loan will be in first position which guarantees its
payoff at loan term's end.
PREPARED BY: Regina A. Fal
Community
RAF:dr
CSD17:A: CNCLRPTS\HCPCAPEX.CEP
e Director
11/30/93 4:52 pm
File #
Reviewed by:
Attorney Clerk '��� Finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: APPROVE AN EXCEPTION TO THE LOAN MAXIMUM FOR A HOUSING CONSERVATION
PROGRAM BORROWER
November 30, 1993
CONCLUSION:
The increased loan will improve the quality and safety of this home and aid in preserving the Town's existing
housing stock. In addition, alternative funding for this project does not exist.
ENVIRONMENTAL ASSESSMENT:
Is not a project as defined under CEQA, and no further action is required.
FISCAL IMPACT:
The recommended action has no fiscal impact on the Town's general fund. The HCP is funded completely
with CDBG funds. The County holds unencumbered CDBG funds; the unencumbered HCP balance with
Santa Clara County is $250,266. Loan funds will be drawndown from the County and deposited into CDBG
fund 218 and the loan will be made from fund 218.
December 6, 1993
Los Gatos, California
PLANNING COMMISSION/PLANNING DEPARTMENT MONTHLY STATUS REPORT (05.47)
Informational report regarding monthly activity of Planning Commission and Planning
Department was received and filed.
COUNCIL CALENDAR OF MEETINGS (06.10)
Informational item presenting future Town Meetings for Council and other Town Boards and
Commissions was received and filed.
PAYROLL/RATIFICATION/NOVEMBER 1993 (07.V)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council ratify the accompanying
check registers for payrolls of October 24 through November 6, 1993 and November 7 through
November 20, 1993 in the amount of $429,846.94 paid on November 12 and 24, 1993. Carried
unanimously.
ACCOUNTS PAYABLE/RATIFICATION/NOVEMBER 1993 (08.V)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council ratify accompanying check
registers for accounts payable invoices in the amount of $589,015.07 paid on November 12, 19,
and 24, 1993. Carried unanimously.
COMMUNITY GRANT AGREEMENTS/RULES-REGULATIONS/RESOLUTION 1993-173 (09.19)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council adopt Resolution 1993-
173 entitled, RESOLUTION OF THE TOWN OF LOS GATOS ADOPTING RULES AND
REGULATIONS GOVERNING COMMUNITY GRANTS AND ADOPTING A STANDARD
FORM OF COMMUNITY GRANT AGREEMENT, noting change to Exhibit A as before Council
in accompanying desk item. Carried unanimously.
HOUSING CONSERVATION PROGRAM LOAN (10.19)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council approve the Loan Review
Committee's recommendation to grant a $63,000 Housing Conservation Program loan. Carried
unanimously.
OFFICE OF TOWN ATTORNEY/ACCOUNT TRANSFERS (12.06)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council authorize the Town
Attorney's Office to transfer funds within the department's budget as delineated in the staff
report. Carried unanimously
FAX MACHINE/PROJECTOR/DATASHOW/POLICE DEPT (13.28)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council authorize appropriation
of $6,144.27 from the Police Department Computer System Project Contingency Fund (2201-
77006-201R-XTR-77000 for the purchase of plain paper fax machine #C3509A, Color DataShow
for projector #512C and 3m9550 overhead projector. Carried unanimously.
AMICUS BRIEF/HENSLER V. CITY OF GLENDALE (14.01)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that council authorize the Town to join
in the Amicus Brief being filed in Hensler v. City of Glendale. Carried unanimously.
TC: D5: MM120693
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