HomeMy WebLinkAbout62-Economic Development Agency
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S H A UNA C L ARK
I~ I T 'I C L E R K
AprilS, 1989
Wilbur Brown, Chairman
Board of Directors
Home of Neighborly Service, Inc.
839 N. Mt. Vernon Avenue
San Bernardino, CA 92411-279
Dear Mr. Brown:
Our letter dated March IS, 1989, concerning your request to re-
structure the Community Development Block Grant Loan, was incorrect.
It should have read as follows:
At the meeting of the Mayor and COlIIIIOn Council held on March 13,
1989, your request to restructure the Community Development Block
Grsnt Loan, was discussed.
The Mayor and C01lllOOn Council approved the following actions:
1. That the foreclosure proceedings be stayed.
2. That this matter be referred to the Ways and Means Committee
for review and recommendations to be brought back to the
Mayor and Common Council on May 15, 1989.
Please contact the Council Office at 384-5188 for schedule infor-
mation regarding the next Ways and Means Committee meeting.
Sincerely,
~~
City Clerk
SC:dc
cc: City Administrator .
Council Member Estrada p-U
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C . l I F 0 A N I'" t 2 ... 2
30') NORTH 0 STREET SAN BERNARDINO
CAt FORNIA 924180001 714/a.......2
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crh 0, SAN BERNARD~O - REQU~T FOR COUNCIL ACtiON
From: Kenneth J. Henderson, Director
Dept: community Development
Oate: February 22, 1989
SfttJFO.-,.~ IfYllli NUMBER 649-0012-48
:e;o~ fl!!'39EIGHBORLY SERVICES
~f~21 ~
Synop." of Previous Council action:
None.
Aeconllnended motion:
That the request for loan restructuring, conversion of loan to a grant
or discontinuing foreclosure proceedings, as appropriate, be denied and
staff diredcted to continue ~mplementation of loan collection policy
previously adopted by the Mayor and Common Council (Resolution Number
85-417) .
Lontat't petson: _
Ken Henderson
Phone:
5065
Supporting data attached:_H
Staff Report
Ward:
1
FI.'NlJIIIIG REQUIREMENTS:
Amount:
N/A
Source: (Acct. No.)
N/A
(Acct. DescriPtion)
N/A
Finance:
Council NoleS: __ __~_____
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CI" OF SAN BE'*NARDU - REQUEJr FOR COUNCIL AC\AN
STAFF REPORT
Representatives from the Home of Neighborly Services (HNS) have
requested to be placed on the Common council agenda for the
purpose of discussing the status of the city's loan with HNS.
On August 20, 1980, the City loaned to HNS $65,000 for the
purpose'of rehabilitating HNS's office complex. From the time
the loan was originally funded to July, 1987, the Home was able
to make principal and interest payments eventually fixed at
$338.50 per month. In November, 1987, the former HNS executive
director met with Community Development Department Loan Officer
und requested a reduction in monthly loan payments by, one-half,
a freeze in interest accrual for one (1) year and a possible
one (1) year deferral of payments. In response, staff re-
quested HNS's last two (2) years of Internal Revenue Service
Tax Audit Reports, a current balance sheet and income
statement, and a letter from the Synod of Southern California
concurring with any written
proposal HNS might submit to the City.
For some seven (7) months HNS did not respond to our request
for additional information, even as the delinquent amount grew
longer. Finally, on September 6, 1988, HNS resubmitted in part
its request to reduce its monthly payment to the City from
$338.50 to $200.00. In meeting with HNS representatives, staff
noted that HNS promissory note had been revised and re-executed
on September 17, 1983 for the purpose of consolidating certain
HNS debts. It is the revised promissory note that fixed HNS's
monthly pay at the current rate of $338.50.
Once appropriate information was received, staff conducted a
financial analysis to determine in part HNS's ability to
increase and diversify its revenue base and its ability to
repay its debt to the City. HNS's lack of liquidity, reduction
in funding and increase in salaries coupled with what appears
to be ongoing organizational problems, preclude the infusion of
any new monies from staff's perspective. The following is a
summary of the status of the HNS loan as of February 22, 1989:
Loan Balance:
Date of Last payment:
For the Month of:
$51,983.32
July 28, 1987
July, 1987
Principal and Interest:
Late Charges:
$ 6,431.50
$ 257.21
Total Amount Due to Bring
Account Current:
$ 6.618.76
2/22/89
.j;', .'
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'\- H~S staff Report Continu~'..
Page -2-
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Based upon the foregoing, particularly those areas describing
HNS's financial/organizational problems and the apparent vacuum
which exists at the board/executive management level, I recom-
mend adoption of the form motion which rejects requests
additional consideration and instructs staff to continue to
implement the Loan Collection Policy previously adopted by the
Mayor and Common Council.
evelopment
KJH/lab
2/22/89
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c::Jf . cHome orc:dVeighbO"t~ ~nvlce, [/nc.
6/V.:::S 'Jamil9 aoJ '!f~ll 9'\o9,am,
February 9, 1989
f-xn'litH'f "mud \11 Director!>
Non.Profit Organi13tiu
rax-Deduc.ibl< lO1-C
839 No. Mt, Vernon AVCftll
San Bernardino. CA 92411-27Y
(714) 88S.34YI
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l 'H~lUII~l' Dm:cwr
Dunilld \nlunll'
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City of San Bernardino
Shauna Clark, City Clerk
300 North "D" Street
San Bernardino, CA. 92418-0121
W.lbul HIO"1l
Vtn' Pre'\ldellt
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Dear Mrs. Clark;
This is a written request for the Home of Neighborly
Services, to be placed on the City Council Agenda for Mon-
day Feb. 20, 1989 to discuss the Community Development
Block Grant Loan.
Supporting Data will follow.
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United Presbyterian Settlement House
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