HomeMy WebLinkAbout2006/12/12 Item 3
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PAGE 1, ITEM NO.:
MEETING DATE: 12/12/06
CITY COUNCIL AGENDA STATEMENT
ITEM TITLE:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
(1) ACCEPTING $9,500,000 OF DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT SECTION 108 LOAN FUNDS AND
APPROPRIATING SAID FUNDS TO MULTIPLE CAPITAL
IMPROVEMENT PROJECTS (STL303, STL304, STL305 AND STL306);
AND
(2) AUTHORIZING THE CITY MANAGER TO EXECUTE ANY AND ALL
DOCUMENTS, AGREEMENTS AND AMENDMENTS NECESSARY TO
EFFECTUATE THE LOAN
ACTING COMMUNITY DEVELOPMENT DIRECTOR
INTERIM CITY MANAGER II
SUBMlnED BY:
REVIEWED BY:
BACKGROUND
4/5THS VOTE: YES [!] NO D
In September of 2006, the Department of Housing and Urban Development (HUD)
approved a $9.5 million loan for use in the completion of a capital improvement project
in the Castle Park Area. Loan repayments will be made from the annual Community
Development Block Grant (CDBG) allocation for a period of 20 years.
This item will authorize the City Manger to execute any and all necessary loan documents,
agreements and amendments necessary to proceed with receipt of the Section 108 funds.
RECOMMENDATION
That the City Council approve a resolution: 1) Accepting $9,500,000 of Department of
Housing and Urban Development Section 108 Loan Funds; and 2) Appropriating said
funds to multiple Capital Improvement Projects, as follows:
· STL303 First Avenue (Palomar to Naples):
· STL304 Glenhaven Way:
· STL305 Oxford Street (Third to Alpine):
· STL306 Castle Park Street Improvement Projects:
$ 150,000
$ 100,000
$ 150,000
$9,100,000
ENVIRONMENTAL REVIEW
The City's Environmental Project Manager has completed the environmental review
process per National Environmental Protection Act (NEPA) Regulations and concluded that
the project is Categorically Excluded and not subject to any further environmental review.
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PAGE 2, ITEM NO.:
MEETING DATE:
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12/12/06
BOARDS/COMMISSIONS RECOMMENDATION
Not applicable.
..
DISCUSSION
On February 14, 2006, the City Council approved an application for a Section 108 Loan
Application for the Castle Park Infrastructure Improvement Project in the amount of
$9,500,000. HUD approved the application in September 2006. The loan is
contingent, however, on the execution of an Applicant Disclosure Form and a Funding
Approval Agreement as well as other necessary loan documents. Staff is requesting
authorization for the City Manger to execute these mentioned documents as well as any
forthcoming loan documents pertaining to the Section 108 Loan. At this time, stoff is
recommending that Council accept the funds for expenditures on the Costle Park
Infrastructure Improvement Project as follows:
. STL303 First Avenue (Palomar to Naples):
. STL304 Glenhaven Way:
. STL305 Oxford Street (Third to Alpine):
. STL306 Castle Park Street Improvement Projects:
$ 150,000
$ 100,000
$ 150,000
$9,100,000
DECISION MAKER CONFLICTS
Staff has reviewed the property holdings of the City Council and has found no property
holdings within 500 feet of the boundaries of the property which is the subject of this
oction.
FISCAL IMPACT
There is no impact on the General Fund as the funds for these improvements have been
provided by HUD as part of the Section 108 Loan Guarantee Program. Approval of this
resolution will result in accepting HUD Funds in the amount of $9,500,000 and
appropriation of said funds to the Castle Park Capital Improvement Proiects (STL303,
STL304, STL 305 and STL306).
The Section 108 Loan is an "advance" of future CDBG entitlement funds and, as such, is
repaid with a portion of the City's annual entitlement. Debt service payments will be
made with future CDBG entitlements for the next 20 years, beginning with fiscal year
200712008. Based on the City's annual entitlement, the requested loan amount, and the
current interest rate (5.38), the City anticipates annual debt service payments of
approximately $750,000 per year taken from the City's yearly CDBG Capital Improvement
category. After funding the Public Services category as well as the Administration and
Planning, approximately $300,000 would still be available for other infrastructure and
public facility improvements.
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PAGE 3, ITEM NO.:
MEETING DATE:
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12/12/06
In the event there are insufficient annual CDSG entitlement funds to repay the Section
108 loan, the City prepared two alternate collateral options. The first is to be repaid by
the City General Fund. The second option consisted of .real property collateral. The
properties include the Rancho Del Rey Library Site and Harborside Park.
Prepared by: Angelica Davis, Community Development Specialist /I, Community Development Department
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CITY COUNCIL RESOLUTION NO. 2006-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (I) ACCEPTING $9,500,000 OF
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
SECTION 108 LOAN FUNDS AND APPROPRIATING SAID
FUNDS TO THE CASTLE PARK CAPITAL IMPROVEMENT
PROJECT (STU03, STU04 STU05 AND STU06); AND
(2) AUTHORIZING THE CITY MANAGER TO EXECUTE
ANY AND ALL NECESSARY DOCUMENTS, AGREEMENTS
AND AMENDMENTS
WHEREAS, the Department of Housing and Urban Development (HUD) has established
the Section 108 Loan Guarantee Program ("Loan Program") in order to provide below-market
rate loans for qualified projects that serve the needs of low and moderate income persons; and
WHEREAS, on February 14, 2006, Council approved the submittal of a Section 108
Loan Guarantee Application for the Castle Park Infrastructure Improvement Project in the
amount of$9,500,000; and,
WHEREAS, on September 20, 2006, HUD approved the Section 108 Loan Guarantee
Application in the amount of$9,500,000; and,
WHEREAS, the loan is contingent upon execution of an Applicant Disclosure Form and
a Funding Approval Agreement (attached hereto as Exhibit I).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista accepts $9,500,000 of Department of Housing and Urban Development Section 108 Loan
Funds and appropriates said funds to the Castle Park Capital Improvement Project (STU03,
STU04, STU05 and STU06).
BE IT FURTHER RESOLVED, that the City Council of the City of Chula Vista
authorizes the City Manager to execute an Applicant Disclosure Form and Funding Approval
Agreement and is authorized to execute the forthcoming HUD Contract for Loan Guarantee
Assistance, Note and all other necessary documents, agreements and amendments.
PRESENTED BY
APPROVED AS TO FORM BY
JjU&
Ann Hix
Assistant Director of Community Development
Ann oore
A ncy Attorney
C:\Documents and Settings\cynthiam\Local Settings\T~mporary Internet Files\OLKC4\CDBG 108 RESO.doc
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EXHIBIT 1
Applicant/Recipient
Disclosure/Update Report
U.S. Department 01 Housing
and Urban Development
OMS Approval No. 2510-0011 (exp.313112003)
Instructions. (See Public Reporting Statement and Privacy Act Statement and detailed instructions on page 2.)
ApplicantJRecipient Information Indicate whether this Is an Initial Report 0 or an Update Report 0
1. ApplicanVRedplent Name, Acfdress, and Phone (include area code): 2. Social Security Number or
Employer 10 Number:
( )
s. HUD Program Name
4. Amount of HUO Assistance
Reques~eceNed
5. State the name and location (street address. City and State) of the project or activity:
Part J Threshold Determinations
1. Are you applying for assistance for a specific project or activity? These
tenns do not include formula grants. such as public housJng operating
subsidy or CDSG block granls. (Por further Inronnallcn See 24 CFR See
4.3).
Dyes D No
2. Have you received or do you expect to receive assistance within the
JurisdlcUon of the Department (HUD) , involving the project or activity in
this applicatIon, In excess of $200,000 during this flscal year (Oct. 1 _
Sap. 30)? For further information, sae 24 CFR Sec. 4.9
Dyes D No.
If you answered "No. to either question 1 or 2, Slop! You do not need to complete the remainder of this form.
However, you must sign the certification at the end of the report.
Part" Other Government Assistance Provided or Requested I Expected Sources and Use of Funds.
Such assistanoe Includes, bUlls not limited to, any grant, loan, subsidy, guarantee, insurance, payment, oredlt, or tax benefit.
Type of Assistance
Amount
RenuestedJPl'ovided
Expected Uses of the Funds
OepartmentlStateILoca! Agency Name and Address
(Note: Use Additional pages If necessary.)
Part III Interested Parties. You must disclose:
1. All developers, contractors, or consultants invoJved In the application for the assistance or In the planning, development, or implementation of the
project or activity and
2. any other person who has a financial interest In the project or actMty for which the assis:tance is sought that exceeds $50,000 or 10 percent 01 '!he
assistance (whichever is lower).
AlphabelJcaJ list of all persons with a reportable financial Interest Social Security No. Type of ParticipatIon in financial Interest in
In the oroiect or activItY (For indIviduals. give the last name first} or Emelove. ID No. F'rolecVAcllvity Prol.c~Acli~~($ and %)
(Note: Use Additional pages II necessary.)
Certification
Warning: If you knowingly make a false statement on this fOITT1. you may be subject to civil or criminal penalties under Section 1001 olTiUe 18 01 the
United Stales Code. In addiUon, any person who knowingly and materially violates any required disclosures of lnf6nnatlon, including intentional non-
disclosure, Is subject to civR money penalty not to exceed $10,000 for each vielation.
I certify that this infonnatlon is true and complete.
Signature:
x
I Dale: (mmlddlyyyy)
Fonn HUD-2B80 (3188)
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Public reporting burden for this collection of Infonnatlon is estimated to average 2.0 hours per response, including the time for reviewing instructions,
searching existing data sources, ga1hering and maintaining the data needed, and completing and reviewing the coUection of information. This agency
may not conduct or sponsor, and a parson is not required to respond to, a collectIon information unless that collection displays a valid OMS contro!
number.
Privacy Act Statement. Except for Social Security Numbers (SSNs) and Employer Identification Numbers {EINs), the Department of Housing and Urban
Development (HUD) is authorized to collect all the infonnation required by this IOITll under section 102 of the Department of Housing and Urban
Development RefolTll Act of 1989, 42 U.S.C. 3531. Disclosure of SSNs and EINs is optional. The SSN or EIN is used as a unique identifier. The
information you provide wijJ enable Hue to carry out its responsibilities under Sections 102{b), (e), and (d) of the Department of Housing and Urban
Development Reform Act at 1989, Pub. L 101.235, approved December 15, 1989. These provisions will help ensure greater accountability and integrity
in the provision of certain types of assistance administered by HUD. They will also help ensure that HUe assistance for a speclfic housing project under
Section 102(d) Is not more than is necessary to make the project feasible after taking account of ~ther government assistance. HUD Wlll make avanable
to the public all applicant disclosure reports for five years in the case of applications for competitive assistance. and. for generally three years In the case
oj other applicatfons. Update reports wnl be made available along with the disclosure reports, but in no case for a period generally less Ulan three years.
AU reports, hath iniUal reports and update reports, wiU be made avaUable in accordance with the Freedom of Informatlon Act {5 U.S.C. 9552) and HUD's
implementing regulations at 24 CfR Part 15. HUe wm use the information in evaluating individual asslslance applicatlons and in perlonning Internal
administrative analyses to aSSist In the management of specific HUe programs. The information will also be used In making the determination under
Section 102(d) whether HUD assistance for a specific housing project is more than is necessary to make the project feasible after taking account of other
govemment assistance. You must provide all the required informaUon. Failure to provide any required Information may delay the processing of your
application, and may result in sanctions and penalties, Including imposition of the administralive and civil money panaItles specified under 24 CFA ~4.3a.
Note: This form only covers assistance made available by the Departmenl States and unils of general local government that carry out responsibilities
under Sectionss 102{b) and (c) of the Reform Act must develop their own procedures for complying with the Act.
Instructions
Overview.
A. COverage. You must complete this report if:
(1) You are applying lor assistance from HUe for a specific project or
activity and you have received, or expect to receive, assistance
from HUe in excess of $200,000 during the during the fiscal year;
{2} You are updating a prior report as discussed below; or
(3) You are submitting an applIcation for assistance to an entity other
than HUD] a Stale or local government if the application is required
by statute or regulation to be submitted to HUD for approval or for
any other purpose.
B. Update reports (flied by "Recipients" of Hue Assistance):
General. All recipients of cove~ assistance must submit update
reports to the Department to refiect substantial changes to the initial
applicant dfsclosure reports.
Line-by-Llne Instructions.
AppilcantJReciplent InformatJon.
All applicants for HUD competitive assistance, must complete the
Information required in blocks 1~5 of fann HUO.28BO:
1. Enter the full name, address, city, State, zip code, and telephone
number (including area code) of the appllcanVrecipienl Where the
applicant/recipient is an IndIvidual, the last name, first name. and
middle initial must be entered.
2. Entry of the applicantlrecipienfs SSN or E1N, as appropriate, is
optional.
3. Applicants enter the HUO program name under which the assistance
is being requested.
4. Applicants entsr the amount of HUe assistance Ihat is being
reques1ed. Recipients enter the amount of HUD assistance that has
been provided and to which 1he update report relates. The amounts
are those stated In the application or award documentation. NOTE; In
the case of assistance that Is provided pursuant to contract over a
period of Ume (such as project~based assistance under section 8 of
the United Slates Housing Act of 1937), the amount of assistance 10
be reported includes all amounts that are to be provided over the term
of the contract, irrespective of when they are 10 be received.
5. Applicants enter the name and full address of the project or activity for
which the HUD assistance Is sought. Reciprents enter the name and
fuU address at the HUD-assisted project or activity to which the update
report relates. The most appropriate government identifying number
must be used (e.g., AFP No.; IFe No.; grant announcement No.; or
contract. grant, or loan No.) lndude prefixes.
Part I. Threshold OetennJnattons. Applicants Only
Part I contains information to help the appUcant determine whether the
remainder of the form must be completed. Recipients filing Update
Reports should not complete this Part.
If the answer to either questions 1 or 2 ts No, the applicant need not
complete Parts Il and Ul of the report, but must sign the certifICation at
the end of the form.
Part II. Other Government Assistance and Expected Sources and
Uses of Funds.
A. Other Government Assistance. This Part is to be completed by both
applicants and recipients for assistance and recipients filing update
reports. Applicants and recipients must report any other government
assistance involved in the project or activity for which assistance is
sought Applicants and recipients must report any other govemment
assistance involved in the project or activity. Other government
assistance is defined in note 4 on the last page. For purposes of this
definition, other government assistance ts expected to be made
available if, based an an assessment of all the circumslances
involved. there are reasonable grounds to anticipate that the
assistance will be forthcoming.
80th appl1cant and recipIent disclosures must Include all other
govemment assistance involved with the HUD assistance, as well as
any other government assistance thal was made available before the
request, but that has conlinuing vitality at the time. of the request.
Examples of this latter category include tax credits that provide for a
number of years of tax benefits, and grant assistance that continues 10
benefit the project at the time of the assistance request.
The following information must be provided:
1. 'Enter the name and address, city, State. and zip code of the
government agency making the assistance available.
2. State the type of other government assistance (e.g., loan, grant.
loan insurance).
3. Enter the dollar amount of the other government assIstance that ts,
or is expected to be, made available with respect 10 the project or
activities for which the Hue assistance is sought (applicants) or
has been provided (recipients).
4. Uses of funds. Each reportable use of funds must clearly identify
the purpose to which they are to be pul Reasonable aggregations
may be used, such as "total structure- to Include a number of
structural costs. such as roof. elevators, exterior masonry, etc. n'....
8. Non.Government Assistance. Note that the applicant and recipient
disclosure report must specify an expected sources and uses of funds
. both Irom HUe and any other source ~ that have been or arele be,
Form HUlJ.2880 (:JI99)
3-6
made available for the project or activity. Non.govemment sources at
funds typically Include (but are not limited to) foundations and private
contnbutors.
Part III. Interested Parties.
This Part is to be completed by both applicants and recipients filing
update reports. Applicants must provide Infannelion on:
1. All developers. contractors, or consuJtants Involved in the application
for the assistance or In the planning, development, or implementation
01 the project or activity and
2. any other person who has a fanancial interest In the project or activity
for which the assistance is sought that exceeds $50,000 or 10 percent
of the asststance (whichever Is lower).
Note: A financial interest means any financiat involvement In the
project ar aclivity, including (but not Umited to) situations in which an
Individual or entity has an equity interest in the project or activity,
shares in any profit on resale or any dIstribution of surplus cash or
other assets of the project or activity, or receives compensation for
any goOds or servIces provided In connection with the project or
activity. Residency of an individualln housing for which assistance is
being sought is not, by itself, considered a covered financial interest
TIle informatlon required below must be provIded.
1. Enter the full names and addresses. If the person is an entity, the
listing must incl.ude the fun name and address of the entity as well as
the CEO. Please list all names alphabetically.
2. Entry of the Social Security Number (SSN) or Employee IdentifICation
Number (EIN), as appropriate, fer each person Ilstad Is optional.
3. Enter the type of particlpation in the project or activity for each person
listed: i.e., the person's specific role in the project (e.g., contractor,
consultant, planner, Investor).
4. Enter the financial Interest in the project or activity for 9ach person
Ifsted. The Interest must be expressed both as a dollar amount and 8$
a percentage of the amount of the HUe assistance involved.
Note that if any of the sourceJuse Information required by this report has
been provided elsewhere in this application package, the applicant need
not repeat the infonnatlon, but need only rafer to the form and location to
incorporate it into this report. (It Is likely that some of the information
required by this report has been provided on SF 424A. and on various
budget forms accompanying the application.) If this report requires
information beyond that provided eisewhere in the application package,
the applicant must include in this report all the additional information
required.
Recipients must submit an update report far any change in previously
disclosed sources and uses af funds as provided in Section ].0:.5., above.
Notes:
1. All citations are tQ 24 CFR Part 4, which was published In the Federal
Register. [April!: 1SS6, at 63 Fed Reg. 14446.]
2. Assistance means any contract, grant, loan, cooperative agreement,
ar other form of assistance, IncludIng the Insurance or guarantee of a
loan or mortgage, that is provided with respect to a specifIC project or
activity under a program admInistered by the Department The tenn
does not include contracts, such as procurements contracts, that are
subject 10 the Fed. Acquisition RegtJlallon (FAA) (48 CFR Chapter 1).
3. See 24 CFR ~4.9 for detailed guidance on how the threshold is
calculated.
4. "Other government assistance" Is defined to include any loan, grant,
guarantee, insurance, payment, rebate, subsidy, credit, tax benefit, or
any other form of direct or Indirect assistance from the Federal
govemment (other _than that requested from HUe in the application). a
State, or a unit of general local government, or any agency or
instrumentality thereof, that is, or Is expected to be mads; available
with respect to the project or activities for which the assistance Is
soughL
5. Far the purpose of this form and 24 CFR Part 4, "person" means an
Individual (including a consultant, lobbyist. or lawyer); corporation;
company; association; authority; linn; partnership; society; State, unit
of generailocal govemment, or other government entity, or agency
thereof (including a public housing agency); Indian tribe; and any other
organization or group of people.
Form HUD-2880 (SIllS)
3-7
Funding Approval/Agreement
Tille I of the Housing and Community
Development Act (Public Law 930383)
HI-00515R of 20515R
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Community Development Block Grant Program
1. N~9 of Grantee (as shown rn item 5 01 Slandaltl Form 424) 3. Grantee's 9-dlgitTax ID Number 4. Dala usa oj funds may begin
City of Chuia Vista, California (mmlddlyyyy)
2. Grantee's Comp~te Address I" shOWll in item 5 01 SIand,," Fom1424) Sa PlOjecllGrant No.1 6a. Amount ApplOYlld
276 Fourth Avenue B-05-MC-06-0540
Chula Vista, CA 91910 5b. ProjecllGranI No. 2 6b. Amount Approved
,
5e. Pmi.clIGrant No, 3 60. Amount Approved
Gnnt Agreement: lltis Gr-tnl Agreemwl between the DcpartmcDl of Hausmg and Urban Development (HUD) and the above named Grnntcc 15 made pursuant to !.be
authority o(Title I of lhe Housing and Community Development Act of 1974, as amended, (42 use 5301 et seq.). The Gnlluec's submissions for Title I assistance. the
HUD regumtioas at 24 CFR Pout 570 (as now in effect and as may be atnetldcd from time to time), and this Funding Approval, including an)' special conditions.
constitute pnn of !he Agreement Subject to 1.he provisions of this Gr:nu Agreement, HUD will make the funding: a:isislZIIlce specified here available to the Grantee upon
execution of Lhe Agreement by the parties. The funding assistance specified in the FllDdiog Approvnl may be used to pay costs incum:d 3iter the date specified in item
4 above provided the activities to wbich such C03lS are related 3I'e carried out in compliance with all appliar.ble rcquircmenls. Pre.agreement costs lIIOJY Dot be paid wilh
funding assistance specified here unless they are authorlz.cd in HUD regulations or :lpproved by waiver and listed jn the special conditions to the Funding Approval.
The Grantee agrees to assume ail of the responsibilities for environmental review, decision making, and acoons. 3$ specified and n:quircd in regulations issued by the
Secretary pursuanllO Scctioa 104(g) otTitle 1 and published in 24 CFR Part 58. The: Grantee further acknowledges its responsibility for adherence to the Agreement by
sub--rttioieDt entiticsto which it makes fundinO' assistance hereunder awilable.
U.S. Dep.rtment 01 HMin9 and Urban Development (By Name) Grantee Name
Nelson R. Bregon City of Chula Vista
TiUe Title
General Deputy Assistan\.$ecre lfY for CPD
s~. lul\d\. If ~ //) , I~ Da r.:J~6 Signature I D.te (mmldd/yyjy)
.C: I
7.Cel!QOIYoITlIIeIAssiSt celortnBF~ AcII a.lpecielCondiUoos 9a. Date HUD R.ceived Submission 10. check one
(ch.d< only one) ''-.... (ch.d<onel (mmlddlyyyy) D..Ori9.Fundillg
o a. EntiUem.nl, See 106(b) o Non. 9b. cate Grantee Notified Approvel
o b. SIaIe-Admin~l.red, See 106(d)(1) !:81 Allached (mmlddlyyyy) 121 b. _ndmelll
o e, HUe-Administered Small Cllles, Seo l06(d){2)(B) 9c. Oateat Slartol Program Year Amendment Number
o d.lndlan CDBG PI1l1Irams. See 106(0)(1) (mmI<!dII"IYYJ
o .. SUIPluo Urban R.newal Fundo, See 112(b) 11. Amount 01 Community Development
o I. Special PuIjlOS8 Grants, See 107 BIccl<Grant FYI I FY( ) FYI )
!:81 g. Lean Guar.ntee, See 108 a. Funds ReseNed for this Grantee
b. Funds now being Approved
0. 7''''''lIon 10 be Cancelled
11. minus llbl
12a. Amount ot Loan Guarantee Commitment now being Approved 12b. Name and complete Address oj Publit Agency
$9,500,000 . N/A
Loan Guarantee AcccplDDce Provisions for Designated Agencies:
The public agency hereby nccepts the Grant Agreemenl c:u:cuted by the
Depaltmcnt of Housing and Urban. Deve.lopmcnl on the above date with
respect to the ;:above grant aumbcr(s) as Grantee designilted to receive 12c. Name of Authorized Official for Designeted Public Agency
loan guarantee mistancc. and agrc:s to comply with the terms and N/A
conditions of the A~ement. applicable regulations. and other nus
requirements of HUD now or hereafter in effcct, pertaining to the
assistance provided it.
.Signature
HUD Accounting use Only ElfecliveOala
Balcl1 TAG Pl1l1Iram Y A Reg An!a Ooc1Jment No. PlOjectNu....' CalBgory Amount (mmlddlyyyy) F
ITIJ m ITJJ q 0 0 CD [[JI] q;g;p [ill I II 10
Amounl
o DJTIJ I I
Y dIItJ Amounl I
0 I
Date Entered PAS (mm1dd/yyjy) D.te Entered LOces (mm1ddlyyyy) Balch Number Transaction Code Entered By lJariliedBy
24 CFR 570 lonn HUO.70B2 (4/93)
3-8
8. Special Conditions.
(a) In the event the public entity fails to submit notes or other obligations for
inspection and guarantee by the Secretary of Housing and Urban Development
(the "Secretary") before September 30, 2007, the c;ommitment will terminate and
expire as of such date.
(b) The repayment schedule for the GuaranteedLoan must be acceptable to the
Secretary.
(c) Pursuant to 24 CPR 570.705(b)(3), the public entity shall provide additional
security for the Guaranteed Loan and such additional security must be acceptable
to the Secretary. The additional security shall be identified in the Contract for
Loan Guarantee Assistance specified by !}570.705(b)(1), which will be executed at
the time the guaranteed obligations are issued.
(d) Prior to submitting notes or other obligations for inspection and guarantee by the
Secr~tary, the public entity shall submit information required under Section
102(b) of the Department of Housing and Urban Development Reform Act of
1989 (42 V.S.C. 3531). This information shall be submitted on Form HUD-2880
to HUD's Los Angeles Field Office.
(e) Any amount of this commitment that is not received by the public entity as an
advance under the Guaranteed Loan by September 30,2012, will be canceled in
compliance with 31 USC 1552(a).
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