#9B Appearance Client 97-117
NEIGHBORHOOD SERVICES MEMORANDUM
September 16, 2009
TO: Community Development Authority
FROM: Carrie Clark, Housing Financial & Rehabilitation Specialist
SUBJECT: Agenda Item #9B – Appearance by Home Improvement Client to
Explain Loan Delinquency
Summary
Home Improvement Program client 97-117 has been invited to appear before the Community
Development Authority (CDA) to discuss their loan delinquency. This memo 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 97-117 – This client has received one (1) loan from the City of Janesville to assist them in
rehabilitating the property located at 106 S Academy Street. In July, 1997 a loan in the amount of
$22,000 was made to this client from the Recently Purchased Home Improvement Program to assist
them with making improvements to the kitchen, bathroom and windows. Under the terms of the loan
agreement, one-half (½) of the loan amount ($11,000) is structured as a forgivable loan, forgiven at the
th
rate of one-tenth (1/10) per year over ten (10) years of continued occupancy. The other one-half (½ )
of the loan amount ($11,000) 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. A review of the client’s
income in 2006 resulted in the monthly minimum payment being increased to $125.
This client has been invited to appear before the CDA on several occasions. The last invitation was in
May, 2008. At that time, the client made a payment to bring the account current. No payments have
been received since then. The client has not responded to the numerous collection letters or made any
other contact with staff. The loan is currently $1,315.00 in arrears.
The following table summarizes the balances owed on this client’s loans:
Loan # Amount Payment Balance
97-117D-1 11,000.00 0.00
0.00
*97-117I-1 11,000.00 50.00 0.00
97-117I-2 5,056.00 125.00 1,315.00
* refinanced to raise 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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