RESOLUTION NO. _____________

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

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RESOLUTION AUTHORIZING THE ACCELERATION OF FORGIVENESS OF A LOAN TO CAMINAR IN THE AMOUNT OF $125,000 AND AUTHORIZING THE DIRECTOR

OF THE DEPARTMENT OF HOUSING TO EXECUTE DOCUMENTS NECESSARY

TO CLEAR THE LIEN FROM THE TITLE ON THE PROPERTY.

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

WHEREAS, on July 22, 1986, the County of San Mateo entered into an agreement with Community Living Centers (which has since merged with Caminar) to provide funding assistance for the acquisition and rehabilitation of a property at 2 Edgewood Court, Daly City (the Property) for use as a group home for persons with mental illness; and

WHEREAS, such assistance was made in the form of a forgivable loan secured with a deed of trust for the purposes of guaranteeing that the use of the property would remain restricted for the term of the loan; and

WHEREAS, the principal balance in the amount of $125,000 is currently scheduled for forgiveness in 2016; and

WHEREAS, the County of San Mateo entered into another agreement in 1998 to provide funds (the junior lien) for additional rehabilitation work which similarly restricts the use of the property until 2018; and

WHEREAS, the conventional first mortgage debt on the Property had a balloon payment which Caminar paid off by refinancing other properties; and

WHEREAS, in order to seek reimbursement for the payments on the new debt from their programmatic funders, Caminar must record the debt against the Property; and

WHEREAS, because work performed under the two County funding agreements actually reduced the value of the property by converting it from its highest and best use as a multi-unit apartment house to a large single unit group home, the conventional lender is not willing to make a new first mortgage against the property unless the overall debt is reduced; and

WHEREAS, County acknowledges the value of the services provided by Caminar at the Property, and recognizes that its interests in guaranteeing the continued use of the Property is protected by the junior lien;

NOW, THEREFORE, IT IS HEREBY RESOLVED that the County shall accelerate the forgiveness of the $125,000 loan and authorizes the Director of the Department of Housing to execute documentation necessary to clear the lien from the title on the Property.

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