HomeMy WebLinkAboutR-2008-010 Coalition for the HomelessRESOLUTION NO. R-2008-10
A RESOLUTION authorizing the forgiveness of debt in the amount of $33,750 lien to
the Yakima County Coalition for the Homeless for property located at
604 and 606 Central Avenue and execution of a full reconveyance
deed for the property
WHEREAS, the City of Yakima is an annual recipient of CDBG and HOME funds
from the Federal government; and
WHEREAS, these funds are used for a variety of purposes that benefit low and
moderate income persons; and
WHEREAS, one of these purposes is to provide housing assistance to these
persons; and
WHEREAS, the City previously made a loan of $33,750 to the Yakima County
Coalition for the Homeless, secured by a 4th lien on property located at 604 and 606
Central Avenue, Yakima ; and
WHEREAS, The Coalition has gone out of business, has no further revenue
sources, and needs to sell all of its assets for the best price it can; and
WHEREAS, the Central property has been sold for a price far less than the total. of
the liens against the property; and
WHEREAS, there is no opportunity for the City to recover these funds from any
other source; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized and directed to execute all necessary
documents to accomplish said forgiveness of the lien.
ADOPTED BY THE CITY COUNCIL this 15th day of January, 2008
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ATTEST: David Edler, Mayor
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City Clerk
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
7
For Meeting Of January 15, 2008
ITEM TITLE. Resolution authorizing the forgiveness of debt in the amount of $ 33,750 to the Yakima
County Coalition for the Homeless, for property located at 604 and 606 Central Avenue and execution of a
full reconveyance deed for the property
SUBMITTED BY Bill Cook, CED Director
CONTACT PERSON/TELEPHONE Bill Cobabe, ONDS Manager (575-6101)
SUMMARY EXPLANATION As an entitlement community the City of Yakima receives direct Federal
funding for the Community Development Block Grant (CDBG) and HOME programs These funds can be
invested in a broad range of activities, projects, and programs, and services Approximately 10 years ago
the City provided a loan of $33,750 to assist with the renovation of apartments located at 604-606 Central,
owned by the Yakima County Coalition for the Homeless
The Coalition has become a victim of difficult economic times, and has gone out of business. All of its
assets have been sold, except this property A private party has made an offer to purchase the property
The property is not in good condition. The offer to purchase is for Seventy-seven Thousand Dollars
(
)
) ($77,000)
Liens against the property far exceed its purchase price Yakima Federal is owed about $35,000, The
State of Washington through Community, Trade, and Economic Development (CTED) is owed second and
third mortgages totaling about $75,000, and our loan is in 4th position at $33,750
We are being asked to forgive our loan and provide a full reconveyance If we do not do this, the Coalition
will be forced to file for bankruptcy protection, and our loan will likely be avoided in that process. We have
considered other options, and consulted with City and outside legal experts, who agree that it is best to
agree to forgive the Tien.
Resolution X Ordinance Other (Specify)
Contract Mail to (name and address)
Phone
Funding Source
APPROVED FOR SUBMITTAL.
City Manager
STAFF RECOMMENDATION Approve forgiveness of the loan
BOARD/COMMISSION RECOMMENDATION The Council Neighborhood Development Committee met
and discussed this request at their meeting on December 12, 2007
COUNCIL ACTION