HomeMy WebLinkAbout1994-10-25 - AGENDA REPORTS - WITHDRAWAL HUD SECTION 108 (2)City Manager Approval
Item to be
Vyto Adomaitis &
CONSENT CALENDAR
DATE: October 25, 1994
SUBJECT: Withdrawal of Housing and Urban Development Section 108 Loan Application
DEPARTMENT: Community Recovery Agency- Community Development Block Grant Division
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In 1993, the City of Santa Clarita applied for a Section 108 Land Acquisition Loan in the amount of
$1.1 million dollars, with the Department of Housing and Urban Development (HUD) for the
acquisition of a site to be used for a community center and neighborhood park within the East
Newhall area of the City. Efforts to acquire suitable property within this area have been exhausted
and due to current market conditions, is now beyond our price range. Accordingly, the City now
needs to withdraw its loan application in order to free up CDBG monies in the amount of $260,000
previously allocated to the debt service on this loan over the last two years, to address immediate
needs within the community. One such need, is the Newhall Stream Bank Protection Project, a
joint effort between the City and the U.S. Department of Agriculture, to prevent creek erosion and
flooding within East Newhall. Approval for this project and the conceptual use of CDBG funds was
given by the City Council at the September 27, 1994 City Council meeting. Finally, the withdrawal
and cancellation of our 108 loan application will not have an adverse effect on the City's ability to
apply for a land acquisition loan with HUD in the future.
RECOMMENDATION
Approve the withdrawal of the City's Section 108 Loan Application from the Department of
Housing and Urban Development.
Direct staff to Amend the 1993-94 and 1994-95 Program Year Final Statements to eliminate the loan
repayments and reprogram those funds into the Newhall Creek Bank Protection Project.
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Direct staff to transfer $48,000 from account # 12-&45 227 into account # 12-95034-227, Newhall
Creek Bank Protection Project, and transfer the remaining balance of $212,000 into the CDBG
contingency account #12-5500-290.
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