RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

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RESOLUTION AUTHORIZING 1) AN INCREASE FROM $20,000 TO $75,000 FOR THE REVOLVING FUND ESTABLISHED TO COVER COSTS ASSOCIATED WITH FORECLOSURE OF PROPERTIES WHERE SAN MATEO COUNTY HOUSING REHABILITATION LOAN FUND OR FIRST-TIME HOMEBUYER FUNDS ARE AT RISK 2) AUTHORIZE THE DIRECTOR OF SAN MATEO COUNTY OFFICE OF HOUSING TO UTILIZE THESE FUNDS TO CURE DEFAULTS

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, San Mateo County offers low interest housing rehabilitation loans and low interest first-time homebuyer loans which are secured by deeds of trust on borrowers’ properties; and

WHEREAS, occasionally, property owners become delinquent on their first mortgage, and the first lender initiates a property foreclosure process; and

WHEREAS, it is in the interest of the County to protect its interest in these properties at minimum cash outlay by curing the first mortgage default and initiating foreclosure activities for the County-held second mortgage; and

WHEREAS, on April 16, 1996, the Board, by Resolution 60142, authorized establishment of a revolving fund in the amount of $20,000 to cover costs associated with foreclosure of properties where San Mateo County Housing Rehabilitation Loan Funds or First-Time Homebuyers Funds are at risk; and

WHEREAS, due to the significantly higher costs of rehabilitation and housing prices, the first mortgages are considerably higher and the costs to cure a default are proportionately higher, resulting in a need for a larger revolving loan fund than initially established.

NOW THEREFORE, IT IS HEREBY RESOLVED, that the President of this Board of Supervisors be, and is hereby authorized and directed to execute said Resolution to increase the amount in the revolving fund from program income from $20,000 to $75,000, to cover costs associated with foreclosure of properties where San Mateo County Housing rehabilitation funds or first-time homebuyer funds are at risk and the Director of San Mateo County Office of Housing is authorized to utilize these funds to cure defaults of senior mortgages and protect the County’s junior deeds of trust on properties where it has provided housing rehabilitation loan funds or first-time homebuyer funds.

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