R-025-11 RECONVEYANCE OF LOAN BALANCES

Browse Search

I RESOLUTION NO. R-25-11 C 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON, CALIFORNIA, ADOPTING CERTAIN FINDINGS WITH RESPECT TO A 1984 COMMUNITY 3 DEVELOPMENT BLOCK GRANT LOAN PROGRAM, CONVERTING THE REMAINING OUTSTANDING LOANS TO GRANTS AND RECONVEYING THE LOAN BALANCES 4 WHEREAS, the City Council of the City of Colton applied for and received 5 Community Development Block Grant ("CDBG") funds through the Department of Housing 6 and Urban Development ("HUD") in accordance with Title I of the Housing and Community Development Act of 1974 (the "ACT"), Public Law 93-383; and 7 WHEREAS, pursuant to Title 24 of the Code of Federal Regulations ("24CFR") 8 section 570.202(b) CDBG funds may be used to finance certain rehabilitation activities 9 through the use of grants, loans, loan guarantees, interest supplements and other means for certain buildings and improvements; and 10 WHEREAS, on April 3, 1984, the City Council of the City adopted Resolution No. 11 4446 approving the creation of the Housing Rehabilitation Loan/Deferred Loan Program 12 ("Loan Program") for the purpose of assisting low-income residents in the City in the rehabilitation of their primary residences; and 13 14 WHEREAS, in accordance with the Loan Program, eligible recipients received loans not exceeding $25,000 and such loans were due and payable either: (i) within fifteen (15) C_ 15 years at six percent (6%) interest per annum; or (ii) upon the transfer of ownership of the property on which the rehabilitation was performed; and 16 17 WHEREAS, pursuant to the Loan Program, loans were granted and Deeds of Trust were recorded against those certain properties that are more specifically described in Exhibit 18 "A," which is attached hereto and incorporated herein by reference (the "Properties"). Each individual property owner of the Properties received a loan from the City ("Loan") for 19 rehabilitation to be performed on their individual owner -occupied homes on the Properties; and 20 21 WHEREAS, City Staff has determined that the status of each of the loans listed in Exhibit "A" may result in the need for excessive staff time or possible litigation to research 22 and resolve each of the possible issues; and 23 WHEREAS the Cit now desires to convert the Loan to a City grant no longer requiring 24 payment and will execute for each of the Properties a "Substitution of Trustee and Full Reconveyance," an example of which is attached hereto as Exhibit `B" and incorporated 25 herein by reference, which shall reconvey each Deed of Trust, and; 26 WHEREAS, the City now makes certain findings determining that the rehabilitation 27 work completed on the Properties complied with the Loan Program requirements as well as CCDBG requirements. 28 1