HomeMy WebLinkAboutMinutes - 02-06-07 - Comm. Dev. Comm. MINUTES OF THE
COMMUNITY DEVELOPMENT COMMMISSION
OF THE CITY OF DOWNEY
SPECIAL MEETING
FEBRUARY 6, 2007
The Community Development Commission of the City of Downey held a Special Meeting at
6:04 p.m., February 6, 2007, in the Council Chamber of the Downey City Hall, 11111 Brookshire
Avenue, Downey, California, Chairman Rick Trejo presiding.
PRESENT: Commissioners:
Rick Trejo Chairman
David R. Gafin Vice - Chairman
Kirk O. Cartozian
Mario A. Guerra
Anne M. Bayer
ALSO PRESENT: Gerald Caton, Executive Director
Charles S. Vose, City Attorney /Economic Development Director
Scott Pomrehn, Assistant to the City Manager
Linda Haines, Development Services Director
Ed Velasco, Housing Manager
— Joyce E. Doyle, Acting Secretary
PUBLIC COMMENT ON SPECIAL MEETING AGENDA ITEM: No one came forward to speak.
1. AUTHORIZED STAFF TO BID $310,000 IN HOUSING SET -ASIDE FUNDING FOR THE
FORECLOSURE AUCTION OF THE RESIDENTIAL PROPERTY LOCATED AT 8631
STEWART & GRAY ROAD: Development Services.
Housing Manager Velasco presented a staff report explaining that in August 2005 the
Housing Division made a home improvement loan secured by a Deed of Trust in the amount of
$39,500 to the property owner at 8631 Stewart & Gray Road. He said the loan was made to correct
Code Enforcement issues as well as home improvements. Mr. Velasco related that the property
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owners have since fallen behind in their mortgage payments and that the first mortgage
lender, Saxon Mortgage, has initiated a foreclosure sale of the property at a public auction at 10:00
a.m., February 8, 2007. He stated that City staff will have to be present at the auction to
make certain the amount bid is sufficient to pay the first mortgage amount and the City's loan. The
house has been appraised at $529,000 and staff is asking for authorization to bid $310,000, if
necessary, to protect the City's investment. Mr. Velasco assured Council there are sufficient funds
in the Housing Set -Aside budget to cover this transaction if necessary.
Vice - Chairman Gafin clarified with Housing Manager Velasco that the first mortgage with
penalties was approximately $270,000.
Commissioner Guerra expressed concern for the property owners and inquired if they had
been notified by City staff of the upcoming foreclosure auction. Mr. Velasco responded in the
affirmative, but noted to date, the owners have not secured funding to stop this action.
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Commissioner Cartozian also expressed concern that foreclosures would become more
common in the future with many homes in the City and inquired as to how many home loans the
City currently had outstanding. Mr. Velasco responded there are approximately $1 million in
outstanding loans with the average being approximately $39,000.
It was moved by Vice - Chairman Gafin, seconded by Commissioner Bayer and unanimously
carried to approve staff recommendation.
ADJOURNMENT: 6:10 p.m.
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