|
Back to Calendar
Return
|
| |
Consent-General Government # 13.
|
| Board of Supervisors |
Financial Services |
|
|
|
| Subject |
| Approve the discharge of $270,238 in four Community Development Block Grant (CDBG) housing loan receivable accounts as uncollectible in accordance with Government Codes section 25257-25259 and adopt budget resolution appropriating $270,238 in the CDBG Revolving Loan Fund. (No general fund impact) (Newens/Rinde) |
| Recommended Action |
| Approve the discharge of a total of $270,238 in four Community Development Block Grant housing loan receivable accounts as uncollectible in accordance with Government Codes section 25257-25259 and adopt budget resolution appropriating $270,238 in the CDBG Revolving Loan Fund. |
| Strategic Plan Goal(s) |
Operational Excellence
|
| Reason for Recommended Action/Background |
Since the 1980s, the County has received funds through the US Department of Housing and Urban Development (HUD) and the California Department of Housing and Community Development (HCD) for Community Development Block Grants (CDBG), and Home Investment Partnership program grants. The County has used these funds to provide loans through a Revolving Loan Fund (RLF) and First Time Homebuyer Loans (FTHB). These loans are primarily used as deferred second mortgage loans with varying interest provisions to assist first-time homebuyers to purchase homes and for the rehabilitation of owner occupied homes.
The loan portfolio was previously managed internally. Starting in February 11, 2014, the County Administrator's Office contracted the Yolo County Housing Authority to provide grant administration services which included the CDBG and Home programs. Part of their effort was to review the County's loan portfolio and follow up on continuing compliance requirements associated with the loans. As part of this project, various loans were determined to be uncollectible and require a discharge of accountability. As described in Attachment A, the primary reason for the inability to collect on these loans is that the homes were foreclosed upon and the County did not receive notice of the default.
The County of Yolo Administrative Procedure and Policy on "Revenues and Receivables" delegates authority to discharge certain receivables, in accordance with Government codes sections 25257-25259, to the Auditor Controller (presently Chief Financial Officer). However, due to the unique nature of these loans, we have elected to seek Board of Supervisors approval.
Staff recommend the write-off of uncollectible housing loans and interest receivable in the amount of $270,238 as outlined in Attachment A. The write-off of the loans will result in a corresponding expense in the fund and as a result a Budget Resolution has been included in attachment B. |
| Collaborations (including Board advisory groups and external partner agencies) |
| Staff in the Department of Financial Services collaborated with the County Administrator's Office and the Yolo County Housing Authority, who has been contracted though an Intergovernmental Agreement for grant administrative functions including continuing compliance for the CDBG & Home Loan portfolio. |
|
| Fiscal Impact |
|
|
| Source of Funds for this Expenditure |
|
|
Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| The four loans in Attachment A were recommended by the Yolo Housing Authority to be written off. Due diligence was performed and determined that each of the properties were sold in a foreclosure sale. The County in a foreclosure sale has lower priority due to these loans being a second mortgage loan on the property. The County is notified when a property goes into foreclosure; however when this occurs the county has limited options to remedy. If a property isn't underwater, it is possible for the County to receive excess proceeds from the foreclosure (trustee) sale. There is no indication that any proceeds were received in any of the four loans requested for discharge. |
|
|
|
|
|