Item 6-F
Council Meeting: June 22, 1999
Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Approve Multi-Family Earthquake Repair Loan Program Loan Increase of $30,000 For Borrower Annie 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 units that were severely damaged and red tagged in the Northridge Earthquake. The requested loan increase of $30,000 will provide funds for an expanded rehabilitation scope and project contingency 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 original estimated development cost of rebuilding three earthquake damaged units 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 April 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.
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