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AGENDA ITEM NO. 9.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 11/12/2025 Originating Department: Housing |
City Manager:
Department Head:
SUBJECT:
RESOLUTION NO. 8562
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT FOR LOAN GUARANTEE ASSISTANCE UNDER SECTION 108 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 WITH THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD).
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT FOR LOAN GUARANTEE ASSISTANCE UNDER SECTION 108 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 WITH THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD).
RECOMMENDED MOTION:
The staff recommends that the City Council:
1. Adopt Resolution No. 8562.
2. Authorize the City Manager, or designee, to enter into the loan and execute all loan or loan-related documents.
1. Adopt Resolution No. 8562.
2. Authorize the City Manager, or designee, to enter into the loan and execute all loan or loan-related documents.
DISCUSSION:
The City seeks to secure funds necessary for certain capital improvement projects eligible under Title I of the Housing and Community Development Act of 1974. The City Manager and Director of Housing submitted an application to the U.S. Department of Housing and Urban Development (HUD) for a $5,889,800 Section 108 Loan Guarantee, in an amount equal to five times the City’s annual Community Development Block Grant entitlement award. On February 18, 2025, HUD approved the City’s request for the Section 108 Loan Guarantee (Section 108 Loan) in the amount of $5,889,000 and transmitted the Contract for Loan Guarantee Assistance under Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. §5308 (Section 108 Contract), along with the associated implementing documents, to the City for execution. As required under the Section 108 Contract, the City must pledge certain collateral by preparing, executing, and maintaining custody of security documents. The following real properties shall be included in the Borrower Authorization and Pledge of Security for the Section 108 Loan: 11529 Gale Avenue; 11537 Gale Avenue; 11605 Gale Avenue; 12529 Truro Avenue; 12720 Grevillea Avenue; and 11605 Hawthorne Boulevard. The Section 108 Contract and associated implementing documents are necessary to receive $5,889,800 in Section 108 loan-guarantee proceeds to improve the Senior Center (Project No. 24-03) and to improve Eucalyptus and Ramona Parks (Project No. 24-07).
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
None
FISCAL IMPACT:
None. The City of Hawthorne intends to repay the Section 108 Loan principal, interest, and associated fees over a period of 20 years using proceeds from its annual Community Development Block Grant entitlement awards.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act