Title
Adoption of a City of San Leandro City Council Resolution to Substitute Collateral for the Section 108 Guaranteed Loan from the United States Department of Housing and Urban Development (HUD) for the Construction of the San Leandro Senior Community Center by Designating as Collateral $190,635.20 in the City's General Fund Reserves
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends adoption of a resolution to substitute collateral for the Section 108 guaranteed loan from the United States Department of Housing and Urban Development ("HUD") for the construction of the San Leandro Senior Community Center by designating as collateral $190,635.20 in the City's General Fund Reserve. In 2009, the City Council authorized the City Manager to submit an application to HUD for a Section 108 loan to finance construction of the San Leandro Senior Center. The 20-year Section 108 loan was awarded to the City of San Leandro in 2010 in the amount of $2,500,000 (the "Section 108 Loan"). Annual loan repayments began in 2011 and are paid out of the City's annual HUD Community Development Block Grant (CDBG) allocation.
BACKGROUND
In 2009, the City Council approved City Council Resolution No. 2009-054, and authorized the City Manager to submit an application to HUD for a Section 108 loan to finance construction of the San Leandro Senior Center. The 20-year loan was awarded to the City of San Leandro in 2010 for $2,500,000 with annual loan repayments beginning in 2011 and paid out of the City's annual Federal HUD Community Development Block Grant (CDBG) allocation. The Section 108 Loan is regulated by the Housing and Community Development Act of 1974, as Amended, 42 U.S.C. ? 5308.
In late 2017, HUD informed City staff that the Section 108 Loan was part of an ongoing nation-wide review by HUD's Financial Management Division. Documents required as a part of the City's contract for the Section 108 Loan were missing from HUD's files since the inception of the loan. Additi...
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