Title
INTERLOCAL AGREEMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FLOAT LOAN TO THE LONGVIEW HOUSING AUTHORITY
COUNCIL STRATEGIC INITIATIVE ADDRESSED:
Council Initiative: Continue Effective Financial Management
CITY ATTORNEY REVIEW: REQUIRED
SUMMARY STATEMENT:
This Interlocal Agreement with the Longview Housing Authority allows the City to provide a CDBG Float Loan for $300,000 for the Comrade Quarters rehabilitation activity for the Stratford Arms Apartments, 1312 Hemlock St., Longview. The agreement provides for a 1% interest rate on the loan. The Longview Housing Authority has agreed to repay the loan with interest on or before July 23, 2012.
A public hearing was held on January 26, 2012 to add a Float Loan provision to its 2009-2013 Consolidated Plan and a Float Loan activity for Comrade Quarters during the 2011 CDBG Program year. Council directed the Acting City Attorney to prepare the Inter-Local Agreement at that meeting. A companion Resolution has also been prepared for adoption under a separate agenda item.
The City has found it necessary to provide a float loan in order to reduce its CDBG line of credit and remain timely regarding drawdowns per HUD regulations which will be measured on June 1st., 60 days prior to the end of our CDBG 2011 Program Year.
RECOMMENDED ACTION:
Motion to adopt the Interlocal Agreement for the CDBG Float Loan with the Longview Housing Authority.