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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JANUARY 7, 2013 <br />TITLE: <br />CAMBODIAN FAMILY PROPERTY LOAN <br />REFINANCING <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 1St Reading <br />? Ordinance on 2"d Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Direct Counsel to review and authorize the City Manager to sign an Assignment of Deed of Trust, <br />a Subordination of Deed of Trust, and a Substitution of Beneficiary for action taken by Cambodian <br />Family, a California non-profit organization, to refinance its building loan that was funded through <br />the Federal Empowerment Zone grant. <br />DISCUSSION <br />On May 18, 1999, the City of Santa Ana signed a Memorandum of Agreement with the <br />Department of Housing and Urban development (HUD) by which the City received the designation <br />of a Round II Empowerment Zone effective January 1, 1999 through December 31, 2009. <br />The Santa Ana Empowerment Corporation (SAEC) was created by Resolution No. 1999-043 and <br />adopted by the City Council on July 19, 1999, to undertake the implementation of the Santa Ana <br />Empowerment Zone program. The SAEC was subsequently incorporated under as a 501(c)(3) <br />non-profit organization. During its ten year designation, the SAEC dutifully carried out the <br />implementation of the Empowerment Zone Strategic Plan. <br />As one of its final grant awards, the SAEC awarded $1,730,939 to Cambodian Family for the <br />purchase of a building located at 1626 E. 4t" Street. This award was in response to a Request for <br />Proposal process and allowed Cambodian Family to purchase the building and relocate to a more <br />visible and accessible location while continuing to serve the community and enhance services in <br />the eastern portion of the City. The Loan Agreement ("Agreement") was structured as a forgivable <br />loan with the condition that Cambodian Family continues operating programs from the new facility <br />for the next five years. Each year 20 percent of the total debt owed to the SAEC would be <br />reduced. The organization has been in compliance with the terms of the Agreement and annually <br />submits a summary of their activities and services to the City. There are 20 months remaining on <br />the term of the Agreement. <br />30A-1