HomeMy WebLinkAboutR27-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco, Director
Housing and Community Development
SUBJECT:
CAPITAL IMPROVEMENT LOAN -
HOME OF NEIGHBORLY SERVICES
OF SAN BERNARDINO, INC.
DATE:
January 29, 2001
Of1[C,'j;wrAL
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Svnopsis of Previous Commission/Council/Committee Action(s):
On January 11,2001, the Redevelopment Committee recommended approval of this item and authorized staff to forward
it to the Community Development Commission for approval.
_____________________________________________________________________________________________________________________________n_
Recommended Motion(s):
(Community Development Commission)
MOTION:
That the Community Development Commission approve the forgiveness of the Community
Development Block Grant (CDBG) Capital Improvement Loan made to the Home of Neighborly
Services in October 1980.
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Contact Person(s): Gary Van OsdellMaggie Pacheco
Project Area( s) Mt. Vemon Corridor
Phone:
663-1044
Ward(s):
1"Ward
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 LetterlMemo
FUNDING REQUIREMENTS Amount: $
Source:
See fiscal impact
SIGNATURE:
Budget Authority:
Not applicable
~O~.
Maggie Pacheco, Director
Housing and Community Development
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Commission/Council Notes:
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GVO:MP:lag:02-05-01 HNS
COMMISSION MEETING AGENDA
Meeting Date: 02105/2001
Agenda Item Number: Ell
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Forl!:iveness of CDBG Capital Improvement Loan to Home of Neil!:hborlv Services of San
Bernardino. Inc, (HOME).
BACKGROUND:
On October I, 1980, the City made a CDBG loan to the HOME in the approximate amount of $65,000 to
make needed repairs to the Home of Neighborly Services site located at 839 N. Mt. Vernon Avenue, San
Bernardino. The monthly loan payment is $339 and the maturity date of the loan is August 2003; the
balance is approximately $11,652. It appears that it was customary in the 1980's for the City to loan,
rather than grant, CDBG funds.
CURRENT ISSUE:
Although, generally the HOME has diligently and faithfully been making monthly payments on their
loan, in the last year their financial difficulties have resulted in them being unable to make the necessary
payment, thereby, prompting a request that the Agency consider forgiving their loan. The HOME prefers
to use their limited resources to provide services to the City's indigent population (see attached letter).
Given the Agency's recent past practice and history of providing outright grants to non-profit
organizations to carry out their capital improvements and to provide grants for direct services, (i.e. recent
grant made to the HOME in the amount of $468,000 to make seismic improvements, among other repairs
to the HOME), Staff and the Redevelopment Committee reviewed the HOME's request and concurred
that forgiveness of the loan balance is appropriate and consistent with past practices of the City/Agency.
ENVIRONMENTAL:
Not applicable.
FISCAL IMP ACT
The forgiveness of the loan will have no significant fiscal impact on the Agency CDBG program.
RECOMMENDATION
That the Community Development Commission approve the forgiveness of the Community Development
Block Grant (CDBG) Capital Improvement Loan made to the Home of Neighborly Services in October
1980.
:::p~r~~
Housing & Community Department
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GYO:MP:lag:02-05-01 HNS
COMMISSION MEETING AGENDA
Meeting Date: 02/05/2001
Agenda Item Number: ..Ra:l..-
.
~ RECEIVEEiS)
/ ~ "' r:CIH!OMIC DEVE-lOr'tolEN1
,., h I ~ tl. uOO NOU ~;'~~ 7 ~!
"o~e ome '(). ne. rlOme ell Y 0 F
Sel'vIOQ The (;vmmuUlh' SIOce l~MERNARDlN'
Maggie Pacheco
Economic Development Agency
CiryofSan Bernardino
300 North "D" St.
San Bernardino, Ca. 92418
c
Dear ~~checo:
Subject: Redevelopment Loan #1428
The Home of Neighborly Service of San Bernardino Inc., would like to again request the
forgiveness of the current balance of Redevelopment Loan #1428. This agency borrowed
$65,000 in 1980 forroofrepairs of the main building at 839 N. Mt Vernon Avenue which
the roof has been repaired twice since.
The Home of Neighborly Service has been requesting relieffrom this loan over the past
quite frequently, in order to dedicate more of OUT financial resources to our programs
which serve the majority of low-moderate income level residents of the City of San
Bernardino,
In correspondence dated November 20, 1998 we had repaid $72,542.49. According to my
research, in July of 1999 we owed only $ J 1,443,00. We understand that this financial
arrangement was a loan, though maybe it could and should have been a grant.
I myself do not understand why we must sacrifice programs benefiting our community,
in order to continue the repayment schedule. Perhaps you can help us to address this issue
correctly.
Than~
~~msExe~:::Director
~ ~ome of Neighborly Service
cc: Mayor Judith Valles
Councilmember Esther Estrada
City Council Members
Board of Directors HNS
Jerry L. Esparza, Interim Executive Director
839 North Mt. Vernon Ave.
San Bernardino, Ca 92411
(909) 885-3491
Member Agency-Arrowhead United Way