HomeMy WebLinkAboutAgenda Statement 1979/02/20 Item 05cCITY OF CHULA VISTA
Item No. ~c
• COUNCIL AGENDA STATEMENT
For meeting of 2/20/79
ITEM TITLE Resolution ~}('~ Pledging Community Development Block Grant Funds
for Use In Repayment of Section 108 Loan Guarantee
SUBMITTED BY Community Development Director ,
ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES NO X )
As part of the 1979-80 Block Grant Application, staff is recommending the submittal
of a Section 108 Loan Guarantee amounting to $1 million. The loan would be used to
acquire sites and install public improvements on these sites for the provision of
housing for low and moderate-income persons. The loan would be repaid with Block
Grant funds over a six year period (see attached repayment scheduled). Interest on
the loan will be at the cur~enntTfundsrareonoolongeraprovidednbyythetFederal5ogovedrnment,
10.0%. In the event Block ara
the City would be released from the debt.
The City, as a metropolitan city, is eligible for the loan and has the legal authority
to make a pledge of its Block Grant funds. The attached resolution is required by
HUD as a condition for receiving loan assistance and provides HUD with assurance that
funds are available for repayment.
Prior to receiving any loan funds, an environmental review must be conddcted on the
proposed site and development.
JTS:as
Agreement
Resolution X
EXHIBITS
Ordinance
Other Schedule ENVIRONMENTAL DOCUMENT:
Plat_ Notification List_
Attached Submitted on
FINANCIAL IMPACT
Repayment of the loan will redear ase rovidedainutheBrepaymenttschedulemenAnymfunds
by an estimated $250,000 per y p lied to the loan
obtained in the resale of properties to a developer could be app
repayment.
STAFF RECOMMENDATION
City Manager recommends this item be cont~nouthetBlockoGrant p~ogramncausedFbyractions~
1979, to accommodate potential revisions lication to CPO, Housing and
on item number 15; adopting resolution and forwarding app
Community Development Department, State of California, and HUD would follow the Council
Conference.
BOARD/COMMISSION RECOMMENDATION
COUNCIL ACTION
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F o rm A-113 (Rev. 5/77)
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