AGENDA DATE: 6/10/2015
TITLE:
Title
Resolution authorizing the County Executive to sign certain loan documents and appoint substitute Trustee(s)
BODY
SUBJECT/PROPOSAL/REQUEST: Resolution authorizing the County Executive to appoint substitute Trustee(s) and sign certain documents on loans securing Community Development Block Grant Funds and the Crozet Crossings Housing Trust Fund
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Foley, Walker, Kamptner, White
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: In the mid-to-late 1990's, the County was required to be a noteholder for loans generated using Community Development Block Grant (CDBG) funds, including loans made through the Crozet Crossings Housing Trust Fund. The loan documents named Roxanne White and Melvin Breeden as "Trustees" for the County.
On December 12, 2002, the Board authorized the County Executive to "execute documents necessary to protect the County's interest (in the loans) and/or CDBG program requirements." This authorization specifically addressed loan modifications and subordination requests, but did not explicitly authorize action on other potential requests, such as for releasing liens.
An estimated two dozen loans still remain outstanding, with about half of those being under the Crozet Crossings Housing Trust Fund and the others associated with the Porters Road/Yancey School Neighborhood Community Improvement Project.
STRATEGIC PLAN: Operational Capacity: Ensure County government's ability to provide high quality service that achieves community priorities.
DISCUSSION: Recently, the County has received requests to release liens on properties associated with these CDBG loans. In each case, either the loan has been satisfied by payment in full or the loan deferral period has ended. The process used prior to the execution of any document includes a review by the Chief of Housing and the County Attorney. Once approved, such requests require the signature of either the "noteholder" or "trustee(s)". However, with both of the named Trustees now retired from the County's employment, the County lacks a timely, efficient way to act on approved requests. The proposed Resolution (attached) would authorize the County Executive to: (1) execute these loan documents as the "Noteholder" on behalf of the County; and (2) appoint the Deputy County Executive and Director of Finance (either of whom may act) as Trustee(s) or Substitute Trustee(s) for these loans. Both authorizations are intended to improve the County's ability to respond to requests involving these loan documents.
BUDGET IMPACT: There is no budget impact associated with this request.
RECOMMENDATION:
Recommendation
Staff recommends that the Board adopt the attached Resolution (Attachment A) authorizing the County Executive to execute any documents associated with loans created with Community Development Block Grant Funds, including those through the Crozet Crossings Housing Trust Fund, and to appoint the Deputy County Executive and Director of Finance (either of whom may act) as Trustee(s) or Substitute Trustee(s) for these loans.
ATTACHMENTS:
A - Resolution