HomeMy WebLinkAbout09/19/1989, C-4 - CITY PARTICIPATION IN ASSISTANCE PROGRAM FOR LOW-INCOME AND ""HARDSHIP"" CASES IN CHUMASH MOBILEHOME" I��H��GII�Iylllllll�l II
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Ipci o san tins oB�spo 9/19/89
COUNCIL AGENDA REPORT nW NUMBEI
FROM: William C. Statler, Director of Finance
Prepared by- Sharon F. Ross, Assistant Treasurer-
SUBJECT: CITY PARTICIPATION IN ASSISTANCE PROGRAM FOR LOW-INCOME
AND "HARDSHIP" CASES IN CHUMASH MOBILEHOME PARK CONVERSION
CAO RECOMMENDATION
By motion,
A. Authorize the CAO to execute loan documents in conjunction with the State loan
program for four low-income tenants for the purchase of their mobilehome park spaces.
B. Authorize the CAO to sign an agreement with the Housing Authority securing loans for
seven "hardship" tenants for the purchase of their mobilehome park spaces.
BACKGROUND
On June 20, 1989, the City Council granted conceptual approval to two financial
assistance programs designed to allow 11 households to purchase their spaces in Chumash
Village Mobilehome Park. Of these, four are low-income tenants who are eligible for
State loans (50% of the purchase price), but require additional assistance from the
City. The combined amount is approximately $60,000. The remaining seven households are
ineligible for State assistance and have various credit problems which prevent them from
obtaining conventional loans. If the City agrees to guarantee these loans, the Housing
Authority will borrow the funds from Commerce Bank and provide the necessary loans. The
estimated loan amount for all seven cases combined is approximately $350,000. A copy of
the Housing Authority's resolution authorizing an agreement with Commerce Bank for this
purpose is provided in Attachment A.
SIGNIFICANT IMPACTS
Amounts loaned under both of these programs are anticipated to be repaid and are secured
by the space and mobilehome unit. However, an initial cash outlay of $60,000 is required
for the low-income loan program and up to $20,000 may be required for the "hardship" loan
guarantee program, assuming foreclosure is necessary.
CONSEQUENCES OF NOT TAKING THE RECOMMENDED ACTION
It is unlikely that alternative assistance programs can be arranged in a timely manner.
As a result, the I1 households will not be able to purchase their spaces. Their rents,
which are no longer controlled, will rise. Accordingly, their ability to remain in their
homes may be jeopardized.
�I�nl�i��►���IIIIIIIQP ���IU city of san tins osispo
COUNCIL AGENDA REPORT
SUMMARY
It is recommended that the City Council:
A. Authorize the CAO to execute loan documents in conjunction with the State loan
program for four low-income tenants for the purchase of their mobilehome park spaces.
B. Authorize the CAO to sign an agreement with the Housing Authority securing loans for
seven "hardship" tenants for the purchase of their mobilehome park spaces.
APPROVALS•
t Adm nistrative Officer
City Attorney
i
Attachments: Resolution (to be distributed under separate cover)
Housing Authority Resolution
I
AgReport/CHUMASH
RESOLUTION 573 (1989 SERIES) ATTACHMENT A
RESOLUTION AUTHORIZING CHAIRMAN AND EXECUTIVE DIRECTOR TO ENTER LOAN
AGREEMENT WITH COMMERCE BANK FOR USE OF CHUMASH MOBILE HOME PARK
RESIDENTS
WHEREAS, the Commission of the Housing Authority of the City of San Luis
Obispo has agreed to assist the City of San Luis Obispo in helping certain
residents of Chumash Mobile Home Park in finance .the acquisition of their
trailers and homesites, and
WHEREAS, Commerce Bank has agreed to provide a loan to the Housing Authority
in an amount not to exceed $350,000 which the Authority will use to make loans
to qualified residents of Chumash Village,
NOW, THEREFORE BE IT RESOLVED BY THE COMMISSIONERS OF THEAUTHORITY that the
Chairman and Executive Director of the Authority are hereby empowered to sign
and enter all necessary legal documents. with Commerce Bank and the residents to
achieve the goals set forth above,
On motion of Commissioner O'Connor, seconded by Commissioner Steinberg,
and on the following roll call vote:
AYES: Commissioners O'Connor, Steinberg, Moldt, Balatti, Martin
NOES: None
ABSENT: Commissioner Nelson
i the foregoing Resolution was duly adopted and passed this 3rd day of August,
1989.
RUTH WIRSHUP, CHAIRMAN
SEAL:
ATTEST:
GEORGE MOYLAN1 SEC TART
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I
Resolution No, (1989 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING THE CITY ADMINISTRATIVE OFFICER TO EXECUTE LOAN DOCUMENTS
RELATING TO THE CHUMASH MOBILEHOME PARK CONDOMINIUM CONVERSION
WHEREAS, the City Council granted conceptual approval on June 20, 1989
to two financial assistance programs designed to allow I1 households to purchase
their spaces in Chumash Village Mobilehome Park;and
WHEREAS, four tenants are eligible for State loans, but require additional
assistance from the City; and
WHEREAS, the remaining seven tenants are ineligible for State assistance and
conventional loans, but could obtain loans from the Housing Authority if the City
guarantees these loans.
CNOW, THEREFORE BE IT RESOLVED as follows:
SECTION 1. The City Administrative Officer is authorized to execute
loan documents in conjunction with the State loan program for four low-income
tenants for the purchase of their mobilehorne park spaces.
SECTION 2. The City Administrative Officer is authorized to sign an
agreement with the Housing Authority securing loans for seven "hardship"
tenants for the purchase of their mobilehome park spaces.
C .
C
Resolution No. (1989 Series)
Page 2
On motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was passed and adopted this day of
1989.
Mayor
ATTEST:
City Clerk
APP OVED:
City min t ative�Of cer
City A ney
erector of Finance
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