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County closer to sorting out HOME mess |
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Friday, 25 April 2008 |
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By Mike Gervais
Register Staff 4-24-2008
The fate of Inyo County’s HOME loan program will ultimately be decided by the Inyo County Board of Supervisors in May, but county staff has been able to answer some of the questions that have clouded the future of the program.
Progress in addressing several issues with the HOME loan program stalled at the board’s meeting last week. At that time, neither of the program administrators, the Inyo County Planning Department and the Inyo Mono Advocates for Community Action, could answer vital questions regarding the current status of the program’s bank account, past loans or administrative fees that are to be paid out to both agencies.
The board tabled the discussion to give the Planning Department and IMACA time to gather information.
Planning Director Pat Cecil has reviewed the books on the HOME loan grant program and determined how much money has been taken from the original $1 million budget, where those funds have gone and how much has gone to administrative fees for the program handlers.
According to Cecil, there is $135,492 remaining to be loaned out to first-time home-buyers by IMACA. That’s enough money to complete one more loan, if the county can leap what it considers a major financial hurdle.
Both Inyo County and IMACA’s administrative fees have already been removed from the budget, meaning the full $135,492 is available for the final loan.
But there is still a catch. If the county chooses to go through with the loan, it must front the $135,000 and wait an undetermined amount of time before the state sends a reimbursement check.
“In talking to the county auditor, she feels that we can float this loan as long as the state doesn’t hang us out too long,” said Cecil.
There are still fears that the state may not be in a strong enough financial condition to follow through with the reimbursement.
“I don’t see any possible way that we can front this money and wait 6-8 weeks” to get it back, Third District Supervisor Beverly Brown said at last week’s board meeting.
At that time the supervisors all agreed the county could end up in a financial bind if the state failed to come through on its commitment.
“I just don’t believe that this small county can suffer a cash flow hit of $200,000,” said Fourth District Supervisor Jim Bilyeu.
Though the loan will be no more than the $135,492 remaining in the grant budget, the county Planning Department is also concerned that even loaning that amount could be detrimental to the General Fund,
“If we went ahead with the loan, and the state declares a fiscal emergency and stops payment for a month or two, we’re in deep trouble,” Cecil said this week.
Aside from the availability of county funds to front the loan, there is another problem regarding this final HOME loan.
According to Michelle Schaup, IMACA approved her mother for a grant between $160,000 and $200,000 to help her purchase her first home.
Schaup said that her mother was not the last to complete the necessary paperwork for the loan, but will be the last to receive funds, and will not receive enough from the program to close escrow on the property she wants to buy.
In addition to the monetary setbacks, Schaup said her mother has requested that IMACA staff survey the property her mother is hoping to buy, but for one reason or another, those necessary inspections have not been conducted.
The Board of Supervisors will meet on Tuesday, May 6 to hear a full staff report and audit regarding the status of the HOME loan grant program from IMACA and the Planning Department. At that time the county will decide if it is willing to front the final loan.
At a later date, the board will take up a discussion on whether it is willing to continue administering the HOME grant program. If the supervisors choose to keep the program alive after July of 2008, it will be required to provide the loan money upfront and wait an estimated 2-8 weeks to receive its reimbursement from the state.
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Last Updated ( Wednesday, 25 June 2008 )
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