ECONOMIC DEVELOPMENT AUTHORITY- Erik J. Thorvig, Economic Development Coordinator
Title
FORGIVING CERTAIN HOME LOANS AS PART OF THE HASTINGS STREET RECONSTRUCTION PROJECT LITIGATION
Background
In November 2016, the City of Blaine EDA offered an emergency loan program to assist homeowners impacted by the sewer backup that occurred on Hastings St. The terms of the loan were 0% interest, deferred (no monthly payments), and forgivable if the homeowner stays in their home for 20 years. If the homeowner were to sell prior to 20 years, the loan would be paid back via proceeds from the sale. The maximum loan amount was $10,000. Six residents took advantage of the loan program and a total of $55,684.29 was borrowed. The addresses of the properties with loans are:
8690 Hastings St. - $10,000
8695 Hastings St. - $8,757
8504 Hastings St. - $9,631
8685 Hastings St. - $7,294
1801 86th Ln. - $10,000
8600 Hastings St. - $10,000
The first five addresses listed were involved in the Hastings St. litigation against the City of Blaine. Part of the litigation settlement was to forgive the home loans to those five properties. Staff is not recommending forgiving the loan at 8600 Hastings St. as they were not part of the litigation.
A total of $45,684 would be forgiven. The loan program is set-up as a revolving loan program so these funds would be lost. The program has roughly $1,000,000 available; therefore the loss of $45,684 shouldn’t impact the viability of the program to continue.
Recommendation
Approve the attached resolution.
Body
WHEREAS, the City of Blaine EDA offered an emergency home loan program to assist homeowners impacted by the sewer backup that occurred on Hastings St. in 2016; and
WHEREAS, six homeowners received loans from the City of Blaine EDA and addresses and amounts are listed as follows:
8690 Hastings St. - $10,000
8695 Hastings St. - $8,757
8504 Hastings St. - $9,631
8685 Hastings St. - $7,294
1801 86th Ln. - $10,000
8600 Hastings St. - $10,000
WHEREAS, five homeowners that received loans were part of the litigation against the City of Blaine regarding Hastings St. reconstruction; and
WHEREAS, part of the settlement for the litigation was for those five loans to be forgiven; and
NOW, THEREFORE, BE IT RESOLVED, that the Blaine Economic Development Authority hereby approves the forgiveness of home loans for the following properties:
8690 Hastings St.
8695 Hastings St.
8504 Hastings St.
8685 Hastings St.
1801 86th Ln.
PASSED by the Blaine Economic Development Authority this 15th day of November, 2018.