HomeMy WebLinkAbout07.D- Successor Agency 7.D
DOC ID: 2983 A
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Grant
From: Brandon Mims M/CC Meeting Date: 03/17/2014
Prepared by: Brandon Mims, (909) 384-5122
Dept: Successor Agency Ward(s): All
Subject:
Authorization to Reimburse the Housing and Urban Development Department in the Amount of
$759,255.84 for a Draw Done on Home Investment Partnership Program (HOME) Funds During
Fiscal Year 2011-2012 (#2983)
Current Business Registration Certificate: Not Applicable
Financial Impact:
Funds to reimburse the Housing and Urban Development Department are available in Account
Number 7101001.001 Cash—Parent deposits, Wires.
Motion: Authorize the Director of Administrative Services to wire transfer an amount not
to exceed $759,255.84 to Housing and Urban Development Line of Credit for
reimbursement of funds drawn in error.
Background
Following the dissolution of Redevelopment in June of 2012, the former Economic Development
Agency transferred a total of$8.1 million dollars in cash to the City as part of the transfer of
operations necessary to complete the wind-down. Part of the funds transferred included an
earmark of$759,255.84 to by used by the City to reimburse HUD -- that reimbursement never
took place. Pursuant to the HOME Program rule, any funds that are drawn and not expended for
eligible costs within 15 days of the disbursement must be returned to HUD for deposit in the
participating jurisdiction's United States Treasury account of the HOME Investment Trust Fund.
Interest earned after 15 days belongs to the United States and must be remitted promptly, but at
least quarterly to HUD, except that a local participating jurisdiction may retain interest amounts
up to $100 per year for administrative expenses. As a result of this non-payment, our local HUD
Los Angeles Office has restricted access to the HOME program module and we cannot get
reimbursed for any of the City's current program expenses. The Program Office has requested
the City complete this repayment before any program activities may continue.
Recommendation
Payment on the above-mentioned draw is over 18 months late to HUD, it is recommended that
the Council approve this repayment so that program activities may continue and outstanding
reimbursements due to the City from HUD may be received.
Supporting Documents:
Undated: 3/11/2014 by Georiieann"Giei" Hanna A Packet Pg. 305