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UNDERWRITING\STAFF REPORT 030498
Council MeetIng Apnl 14. 1998 Santa Monica, California
TO Mayor and City Council
FROM City Staff
SUBJECT' Recommendation to Approve Multi-Family Earthquake Repair Loan
Program Loan Increase of $48,000 For Borrower Annie L Pero
INTRODUCTION
This report requests approval for a Multi-Family Earthquake Repair Loan (MERL)
Program loan Increase of $48,000 to the onglnalloan of $252,000, to Annie L Pero
The loan proceeds are for the reconstruction of three residential units that were
severely damaged In the Northndge Earthquake The requested loan Increase of
$48,000 WIll cover the gap between the current total development cost of $300,000 and
the onglnalloan of $252,000 The requested loan Increase requires CIty Council
approval
DISCUSSION
The original total development cost of rebUilding three earthquake damaged Units was
estimated at $252,000 However, the total development cost was revised to $300,000
dunng the plan check process and provides for a fire spnnkler system, and a
sOIls/engineering report The MERL Program IS also requiring that the total
development budget provide for a Project Manager / Owner's Representative to assist
In the day-to-day management of the project and a construction contmgency reserve
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BUDGET/FINANCIAL IMPACT
ThIS request has no budgetary Impact on the General Fund and sufflcrent funding rs
available through the CDBG Emergency Earthquake Recovery HUD Grant No B-94-
MG-06-0529
RECOMMENDATION
It IS recommended that the City Council authorize the MERL Program to Increase the
loan to Annie L. Pero by $48,000 to aid In the reconstruction of this multifamIly
earthquake damaged property
Prepared by' Jeff Mathieu, Resource Management Director
Robert T MonCrief, Housing Manager
Tina Rodriguez, MERL Program Coordinator
Jesus M Morales, MERL Program Senior Loan Officer