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RM HSG JM JMM F \MERL\SHARE\PRJCTFILES\19TH 1943\ UNDERWRITING\ STAFF REPORT 062299
Council Meeting June 22, 1999 Santa Momca, Callforma
TO Mayor and CIty Council
FROM City Staff
SUBJECT Recommendation to Approve Multt-Famlly Earthquake Repair Loan
Program Loan Increase of $30,000 For Borrower Anme L Pero
INTRODUCTION
ThiS report requests approval for a Multi-Family Earthquake Repair Loan (MERL)
Program loan Increase of $30,000 to the current loan of $300,000 to Annie L Pero
The loan proceeds are for the reconstruction of three residential umts that were
severely damaged and red tagged In the Northndge Earthquake The requested Joan
Increase of $30,000 Will provide funds for an expanded rehabilitation scope and project
contmgency funds The loan Increase requires City CounCil approval
DISCUSSION
ThiS loan Increase reqUires City CounCil approval because It exceeds the MERL
Program loan limit gUidelines The anginal estimated development cost of rebUIlding
three earthquake damaged umts was $252,000, but was reVised to $300,000 dUring the
plan check process The first loan Increase, for $ 48,000, was approved by the City
CounCil at the meeting of Apnl 14, 1998 Construction has started on the project and
field inspections by the CIty have necessitated additional construction work including
the installatIon of underground utilitIes and upgradIng electrical sub-panels
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BUDGET/FINANCIAL IMPACT
ThIS request has no budgetary Impact on the General Fund and sufficIent fundIng IS
available at account #19-700-695-00000-4481-00000 When the additional loan IS
executed the Loan Receivable at account # 19-000-000-00000-9545-00950 will be
increased by $30,000
RECOMMENDATION
It IS recommended that the City Council authorize the MERL Program to Increase the
loan to Annie L Pero by $30,000 to aid In the reconstruction of thiS multifamily
earthquake damaged property
Prepared by Jeff Mathieu, Resource Management Director
Robert T Moncrief, HOUSing Manager
Jesus M Morales, MERL Program Coordinator