2002 AGN JAN 15 I16 - Laserfiche WebLink

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Schulte Loan January 15, 2002 Page 2 of 3 2) The Loan Program complied with the national objective benefiting low and moderate income persons in accordance with 24 CFR section 570.208 (a)(1) and 24 CFR section 208(a)(2) because, among other things, the Program was available only to residents whose income fell below eighty percent (80%) of the San Bernardino County median income; and 3) The Loan Program complied with the primary objective of the Act be providing and maintaining decent housing and suitable living environment for persons and families of low and moderate income; and 4) The Loan obtained by the Schultes was used in compliance with the Loan Program. The City Attorney's Office prepared the attached resolution adopting certain findings with respect to the City's compliance with CDBG Regulations in the administration of the Program. The proposed resolution would also effectively evidence the City's authorization to convert the Loan into a grant no longer requiring repayment. The City Attorney has also prepared a "Substitution of Trustee and Reconveyance" to be executed by the City and recorded against the Schulte Property to evidence the City's determination that the Schulte Loan need no longer be repaid. ALTERNATIVES: 1. Disapprove the conversion of the Loan to a grant and seek repayment of the Loan from the Schulte estate. 2. Take no action. FINANCIAL IMPACT: City staff has determined that the outstanding amount of the note totals approximately $29,548.47. By executing and recording the Substitution of Trustee and Reconveyance, the City will not be entitled to seek repayment of that amount. ENVIRONMENTAL IMPACT: None. RECOMMENDATION: Staff recommends that the City Council approve Resolution No.p,-i-Z-c),*�. and direct the City Manager to execute and record the Substitution of Trustee and Reconveyance. Report Prepared By: Dorine Lawrence -Hughes, Deputy City Attorney RVPUB\DLM625246