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County Administrator's Report 13. 2.

BCC Regular Meeting

Discussion

Meeting Date:	01/21/2016
Issue: Request for Deferment of CDBG Low Interest Loan for Lydia Darnes
From:	Tonya Gant
Department:	Neighborhood & Human Svcs
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Deferment of Community Development Block Grant Low Interest Loan for Lydia Darnes - Tonya Gant, Neighborhood & Human Services Department Director

That the Board either approve or deny the request from Lydia E. Darnes to defer her Community Development Block Grant (CDBG) low interest loan for three months.

BACKGROUND:

Lydia Darnes received assistance in 2012 through the County's Community Development Block Grant (CDBG) moderate housing rehabilitation program to make repairs to her homestead property at 811 Montclair Road. Over $30,000 in repairs and lead based paint remediation were performed on her property, and a portion of the repair assistance was provided in the form of a five year, 5% interest loan. Monthly principal and interest payments for the $6000 low interest loan total $113.23 monthly. The mortgage (Exhibit I) and note (Exhibit II) were executed September 11, 2012.

Ms. Darnes submitted the attached correspondence (Exhibit III) requesting deferment of her payments for three months due to hardship resulting from budgeting issues. Ms. Darnes began making payments to the County in February 2013 and has made her payments in full monthly with the exception of the months of June, July and August of 2014, when she wrote requesting a similar deferment. Ms. Darnes also has a first mortgage with Regions Bank that pre-dates her assistance from the County.

As of January 1, 2016, her current low interest loan balance is $2986. Ms. Darnes' property taxes are current and she is not in default of any other program terms. If approved by the Board, Ms. Darnes' new maturity date would be July 2018 for this loan.

BUDGETARY IMPACT:

Non-payment on the loan constitutes a default of the mortgage terms.

LEGAL CONSIDERATIONS/SIGN-OFF:

Not applicable.

PERSONNEL:

Not applicable.

POLICY/REQUIREMENT FOR BOARD ACTION:

The County currently does not have a loan modification policy in place for recipients of HUD CDBG mortgages. Therefore, the modification requested by Ms. Darnes cannot be authorized by staff.

IMPLEMENTATION/COORDINATION:

Neighborhood Enterprise Division will coordinate any recommended action with the Clerk's Finance Division and/or the County Attorney's Office as appropriate.

Attachments
Ex I-Darnes LIL Mortgage
Ex II-Darnes LIL Note
EX III-Darnes Correspondence