#9 Appearance Client 04-114
NEIGHBORHOOD SERVICES MEMORANDUM
August 14, 2009
TO: Community Development Authority
FROM: Carrie Clark, Housing Financial & Rehabilitation Specialist
SUBJECT: Agenda Item #9 – Appearance by Home Improvement Client to
Explain Loan Delinquency
Summary
Home Improvement Program client 04-114 has been invited to appear before the Community
Development Authority (CDA) to discuss their loan delinquency. This memorandum will briefly
summarize the loans made to this client, the repayment provisions, and the current status of their loan.
No action is required on the part of the CDA at this time, however, members may wish to ask questions
of the client and/or give staff direction on how to proceed.
Background
Client 04-114 – This client has received one (1) loan from the City of Janesville to assist them in
rehabilitating the property located at 533 S. Chatham Street. In June, 2004 a loan in the amount of
$20,000 was made to this client from the Recently Purchased Home Improvement Program to assist
them with making improvements to the electrical, heating, roof system and windows of their home.
Under the terms of the loan agreement, one-half (½) of the loan amount ($10,000) is structured as a
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forgivable loan, forgiven at the rate of one-tenth (1/10) per year over ten (10) years of continued
occupancy. The other one-half (½ ) of the loan amount ($10,000) is structured as a zero-percent interest
(0%) installment loan with payments set at $50.00 per month as long as the client remains income
eligible.
This client has been invited to appear before the CDA on at least 3 separate occasions at the point their
loan becomes 6 months delinquent. The last invitation to appear was in November, 2008. The client did
not appear but made a payment in the week following the meeting that brought the loan current to
December, 2008. Staff also reviewed the client’s income and decreased the monthly payment to $75.
No payments have been made since November, 2008.The loan is $699 in arrears.
The following table summarizes the balances owed on this client’s loans:
Loan # Amount Payment Balance
04-114D-1 10,000.00 7,000.00
0.00
04-114I-1* 10,000.00 50.00 0.00
04-114I-2 9,120.00 125.00 0.00
04-114I-3** 4,761.00 75.00 4,761.00
* refinanced to raise payment amount.
** refinanced to lower payment amount.
Action
No action is required on the part of the CDA at this time. However, CDA members may have questions
of the clients and may also give staff direction on how to proceed.
Cc: Jennifer Petruzzello, Neighborhood Services Director
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