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<br />DRAFT <br />MINUTES <br />HOME IMPROVEMENT LOAN COMMITTEE <br />October 14, 2009 <br />8:00-9:00 AM <br />City Hall, Room 18 <br />1017 Middlefield Road <br />Redwood City, CA. 94063 <br /> <br />ATTACHMEIT. <br /> <br />6.11 <br />~age 11 <br /> <br />Committee Members Present: N. Call, N. Blackburn, K. Bondonno and B. Warhurst <br /> <br />Committee Members Absent: B. Butler, J. Ochsner and C. Robinson <br /> <br />Staff Present: D. Jones-Thomas, R. Coffman, MJ Robles, J. Young and J. Aranda <br /> <br />Guests Present: B. Hamilton <br /> <br />The meeting was called to order by Chairman Call <br /> <br />1. ADDroval of Minutes <br />MIS (BondonnolWarhurst) to approve minutes of August 12, 2009. <br />Approved <br /> <br />2. Oral Communication - None <br /> <br />3. New Items <br /> <br />4. Continuina Items <br />4.b. Reauest for loan subordination of Citv HOME loan for HIP Housina <br />Assistant City Attorney presented the item noting that the City loan could not be bought <br />out by CaIHFA; City does have risk by being moved to fourth position; City's <br />Subordination Policy requires City's financing not to exceed 80% of Loan to Value ratio <br />and ratio would be exceeded in this case. Equity take out would, however, allow <br />financing for improvements to correct code and safety problems. <br /> <br />Bruce Hamilton answered the Committee's questions indicating City now holds third <br />position with the County to $2.8 million and under subordination, would hold fourth <br />position to $2.9 million. <br /> <br />After considerable discussion, the Committee decided to make a recommendation to <br />Council based on Findings. <br /> <br />MIS (BondonnolWarhurst) to recommend the Council to approve Subordination based <br />on these findings: <br />. Acknowledgement of the role of HIP in the residential community as an affordable <br />housing provider <br />. Effort to maintain a quality project in the neighborhood <br />. By design, the original intent of the City's loan was to recoup funds when suuperior <br />mortgages have been paid <br />. It is entirely possible that the type of improvements being made will impact the <br />value of the property so that the City is not in any worse position economically than <br />if HIP did not have the repair work done <br />. Proposed structural improvements help to ensure the health and safety of low- <br />income tenants and reduce their risk of hazards <br /> <br />1:\2009 STAFF REPORTS, AGREEMENTs\ll.2009\HIP Subordination\Minutes Loan Committee 1()'14-09.doc <br />