Agenda

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County Administrator's Report 11. 1.

BCC Regular Meeting

Discussion

Meeting Date:	07/07/2016
Issue: CDBG Mortgage at 604 Chaseville Street
From:	Tonya Gant
Department:	Neighborhood & Human Svcs
CAO Approval:

RECOMMENDATION:

Recommendation Concerning the Community Development Block Grant Mortgage at 604 Chaseville Street - Tonya Gant, Neighborhood & Human Services Department Director

That the Board consider the following action concerning the Community Development Block Grant (CDBG) Mortgage at 604 Chaseville Street:

A. Approve a payoff of $3667.50, in lieu of the full $24,450 owed to Escambia County; and

B. Authorize staff to prepare a Cancellation of Mortgage to be recorded upon closing on the sale of the property and receipt of funds.

BACKGROUND:

On September 14, 1994, Ray Riles signed a no monthly payment, 0% interest mortgage and note in favor of Escambia County for repairs performed to his home at 604 Chaseville Street, Pensacola, Florida under the Community Development Block Grant (CDBG) program (Exhibit I). Program terms state that the loan is payable if the property is sold, rented, or transferred during the 20 year loan period.

Mr. Riles passed away in July 2008 before the expiration of the loan. The property at 604 Chaseville was probated later that year and transferred to the heirs, causing a loan default, since the transfer occurred during the 20 year loan period. Since 2008, the property has been utilized both as a rental property and as the homestead property of one of the heirs, Barry Riles. Barry Riles lived in the property until 2012, when it was rented.

The Neighborhood Enterprise Division was contacted in December 2015 regarding a payoff of the CDBG Mortgage and indicated that the full amount was due. Barry Riles has attended several public forums requesting forgiveness of the loan in order to sell the property. The Board authorized staff at the May 19, 2016 meeting to negotiate a payoff with Mr. Riles. Staff recommends that Mr. Riles reimburse Escambia County the prorated amount of $3667.50 based on Ray Riles living in the home through 2008, and Barry Riles residing in the property through 2012 as his primary homestead residence.

If approved by the Board, Mr. Riles has an interested buyer and plans to use First International Title as his closing agent. Staff will prepare a Cancellation of Mortgage to be recorded upon closing contingent upon the receipt of funds at closing. Back taxes will also be paid at closing.

A timeline of activities associated with the property is attached as Exhibit II, including building permits and code enforcement issues. As of June 23, $1118.48 is owed in 2015 and 2014 property taxes. Tax certificates have been issued on both the 2014 and 2015 taxes. The assessed value of the property is $32,055 (Exhibit III).

BUDGETARY IMPACT:

Funds received will be receipted as program revenue for affordable housing programs.

LEGAL CONSIDERATIONS/SIGN-OFF:

Not applicable at this time.

PERSONNEL:

No impact to personnel.

POLICY/REQUIREMENT FOR BOARD ACTION:

Not applicable.

IMPLEMENTATION/COORDINATION:

Neighborhood Enterprise Division (NED) will implement needed actions based on Board direction.

Attachments
Ex I-CDBG Mortgage
Ex II-604 Chaseville Timeline
EX III-ESCPA 604 Chaseville