REPORT TO THE CITY COUNCIL
January 12, 2017
FROM: JENNIFER K. CLARK, Director
Development and Resource Management Department
THROUGH: KELLI FURTADO, Assistant Director
Development and Resource Management Department
BY: THOMAS MORGAN, Manager
Housing and Community Development Division
CORRINA NUNEZ, Project Manager
Housing and Community Development Division
SUBJECT
Title
Approve a write-off on a 2007 Home Buyer Assistance Loan for property at 4019 East Garland Avenue, Fresno, CA 93726 in the amount of $68,852.
Body
RECOMMENDATION
In accordance with Fresno Municipal Code (FMC) 7-910(b)(3)(iii), staff recommends City Council approval of a write-off on a 2007 Home Buyer Assistance Loan for property at 4019 E. Garland Avenue, Fresno, CA 93726 in the amount of $68,852.
EXECUTIVE SUMMARY
On November 16, 2016, the Housing and Community Development Division received a request for approval of a short sale for the property located at 4019 E. Garland Avenue, Fresno, CA 93726. The senior lender has placed a $6,000 value on the outstanding second mortgage provided by the City. Since the proceeds from the sale will not be sufficient to pay off the principal balance on the first mortgage, the amount of the City's write-off will be $68,852. Pursuant to FMC 7-910(b)(3)(iii), write-offs in excess of $50,000 shall be submitted to Council for approval.
BACKGROUND
In 2007, the City provided the owner with a Home Buyer Assistance Loan (Exhibit "A" - Owner Participation Agreement), which currently has an outstanding balance of $74,852 (Exhibit "B" - Note). The homeowner is experiencing a hardship (Exhibit "C" - Owner Letter) and has fallen behind on first mortgage payments and is therefore seeking City approval to enter into a short sale.
The current value on the property is estimated at $130,000 as determined by a multiple listing service. The current principal balance of $96,446.16 is due on the first mortgage wit...
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