HomeMy WebLinkAboutmemoCITY OF MIAMI, FLORIDA
14
)_ r G 9.5 ..r INTER OFFICE MEMORANDUM
TO :
FROM :
The Honorable Mayor and
�aembers of ThCommis
oe' Arriola
ity Manager
DATE
FILE :
Deobligating $484,580.43 in
SUBJECT : CDBG funds from Section 108
Loan Guarantee to Housing Loan
Recovery Fund
REFERENCES:
City Commission Agenda
ENCLOSURES. September 11, 2003
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the attached Resolution
authorizing the deobligation of 28th Year Community Development Block Grant (CDBG) funds
in the amount of $484,580.34 from the Section 108 Loan Guarantee program; and further
reallocating said funds to the Housing Loan Recovery Fund for the purpose of protecting the
City's housing loan portfolio.
BACKGROUND:
On July 9, 2002, the City Commission adopted Resolution No. 02-773 allocating 28`" Year
CDBG program funds and program income to support City Municipal services and related
activities, including $1,400,000 to the Section 108 Loan Guarantee program. Interest rates for
the program year were lower than expected and the projection was incorrectly calculated,
resulting in $484,580.34 in funds which were not needed for the Section 108 Loan Guarantee
program in the 28th Program Year.
On June 9, 1998, the City Commission established a Housing Loan Recovery Fund in the
amount of $500,000 for the purpose of protecting the City's Housing Loan portfolio for loans
provided through the single-family and multi -family rehabilitation loan programs. Since the
initial establishment of this fund, the City has recovered in excess of $6 million in defaulted
loans. A decision not to replenish this fund will severely himper the City's ability to continue
clearing defaulted loans from the housing loan portfolio.
Deobligate Funds from: Allocate Funds to:
Program/Activity Section 108 Loan Guarantee Housing Loan Recovery Fund
(IDIS #i 330)
Amount $484,580.43 $484,580.43
It is recommended that the City Commission adopt the attached Resolution authorizing the
deobligation of 28th Year Community Development Block Grant (CDBG) funds in the amount of
$484,580.34 from the Section 108 Loan Guarantee program; and further reallocating said funds
to the Housing Loan Recovery Fund for the purpose of protecting the City's. housing loan
portfolio.
The p , , ed Resolution does not have a budgetary impact on the General Fund.
L /BGR