CC Resolution No. 14-161 Approving the Community Development Block Grant (CDBG) loan extension for 10526 Sterling Boulevard RESOLUTION NO. 14-161
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING
THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) LOAN EXTENSION FOR
10526 STERLINCO-r BOULEVARD
WHEREAS, the Housing and Community Development Act of 1974 provides that funds
be made available for the Community Development Block Grant (CDBG) program; and
WHEREAS, the City of Cupertino receivE'd CDBG funds under said Act; and
WHEREAS, the City of Cupertino originated a CDBG rehabilitation loan to the borrower
of 10526 Sterling Boulevard; and
WHEREAS, the borrower of 10526 Sterling Boulevard has requested a CDBG loan
extension under Section 13 of the City of Cupertino Housing Rehabilitation Program Owner
Participation Agreement; and
WHEREAS, the borrower of 10526 Sterling Boulevard and has submitted sufficient
financial documentation and has been deemed eligible for a loan extension under Section 13 of
the City of Cupertino Housing Rehabilitation Program Owner Participation Agreement; and
WHEREAS, the City of Cupertino Housing Commission has recommended to the City
Council of the City of Cupertino to approve a CDBG loan extension for the borrower located at
10526 Sterling Boulevard at their regular meeting held on March 19, 2014; and
NOW, THEREFORE, BE IT FURTHER IESOLVED, that the City Council of the City of
Cupertino hereby approves the Housing Commission's recommendation to approve a CDBG
loan extension to the borrower located at 10526 Sterling Boulevard; and
BE IT FURTHER RESOLVED that the City Council of the City of Cupertino hereby
authorizes the City Manager to execute the CDBG loan extension agreements in substantially
the forms as Attachments D and E to the City Council staff report dated June 2, 2014 entitled
"CDBG Loan Extension Request for 10526 Sterling Boulevard".
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 2nd day of June, 2014 by the following vote:
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Vote Members of the City Council
AYES: Wong, Sinks, Chang, Mahoney, Santoro
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: APPROVED:
t
Grace Schmidt Gilbert Wong
City Clerk Mayor, City of Cupertin
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FIRST AME'LNfDMENT TO
CITE' OF CUPERTINO
HOUSING REHABILITATION PROGRAM
OWNER PARTICIPATION AGREEMENT
(Patricia Elustamante)
THIS FIRST AMENDMENT. TO CITY OF CUPERTINO HOUSING
REHABILITATION PROGRAM OWNER PARTICIPATION AGREEMENT (this "First
Amendment") is entered into as of _, 2014, by and between Patricia Bustamante, a
single woman (the "Owner"), and the City of Cupertino, a municipal corporation (the "City")
(collectively, the "Parties"), with reference to the following facts:
RECITALS
A. Owner and City entered into the City of Cupertino Housing Rehabilitation
Program Owner Participation Agreement (the "Agreement"), dated as of July 14, 1999, pursuant
to which Owner agreed to borrow and City agreed to lend funds for rehabilitation of the Property
(as defined in the Agreement and as further described in Exhibit A attached to and incorporated
into this First Amendment).
B. The Parties desire to modify Section 3 of the Agreement.
NOW, THEREFORE, based on the Recitals stated above, which Recitals are fully
incorporated into this First Amendment, the Parties agree as follows:
1. Section 3 of the Agreement is hereby replaced in its entirety as follows:
"3, LOAN PROVISIONS:
"City has loaned and disbursed to Owner for the work described in
the Agreement and past due interest the total sum of Forty Four
Thousand One Hundred and Ninety Four Dollars and Forty Eight
Cents ($44,194.48), which. shall bear an interest rate of zero
percent (0%) per annum, except that if an event of default occurs,
interest shall accrue as described in the Promissory Note. The loan
is evidenced by a Promissory Note executed by Owner and secured
by a Deed of Trust against the Property in favor of City. Said Deed
of Trust also secures performance of Owner's duties and
obligations under this Agreement.
"Owner also agrees to abide by City's Housing Rehabilitation
Program Guidelines. Unless otherwise specified in said guidelines,
the Property shall at all thn.es be occupied by Owner as Owner's
principal,place of residence.
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"The loan shall be due and payable upon Transfer (as defined in
the Promissory Note) of the Property, upon an event of default as
described in the Promissory Note, or if the Owner no longer
occupies the Property as the Owner's principal residence."
IN WITNESS WHEREOF, the Parties have executed this First Amendment on the day
and year first above.written.
OWNER:
PATRICIA BUSTAMANTE, a single woman
Date
CITY:
CITY OF CUPERTINO, a municipal corporation
By-
David Brandt, City Manager
Date
Appr-ved as to form:
Carol Korade, City Attorney
Date
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.EXHIBIT A
LEGAL DESCRIPTION
The land referred is situated in the City of Cupertino, County of Santa Clara, State of California,
and is described as follows:
Lot 282, Tract No. 1183 as shown on a map recorded June 23, 1953 in Book 44, Pages 11, 12,
and 13 of Maps, Records of Santa Clara County, California.
Excepting therefrom the underground water rights without right of surface entry, as conveyed to
San Jose Water Works, a California corporation, by deed recorded January 21, 1954 in Book
2799, Page 73 of Official Records.
Address: 10526 Sterling Boulevard, Cupertino, California 95014
APN: 375-23-034
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