On June 20, 2011, the Housing Authority of Contra Costa County loaned $25,000 in Community Development Block Grant (CDBG) funding to Kichana Ayore to rehabilitate his rental property located at 1914 Miner Avenue, San Pablo. Mr. Ayore entered into a Promissory Note secured by a Deed of Trust, and a Loan and Regulatory Agreement. In exchange for the loan, Mr. Ayore agreed to rent the property to a low income household for twenty years. On February 9, 2015, the Housing Authority assigned the Deed of Trust, and the Loan and Regulatory Agreement to the County. On July 10, 2015, Mr. Ayore and co-owner Neema T. Riuanda recorded a Grant Deed to transfer the property to Neema T. Riaunda and Ayore R. Riaunda. The new owners have requested that the County consent to an assignment of the loan and regulatory agreement to the new owners.
The Riaundas have provided documentation demonstrating the terms of the Regulatory Agreement continue to be met and the property is being rented to a low income family at an affordable rent. In order to maintain this property as affordable housing, it is appropriate to assign the loan from the original property owner, Mr. Ayore, to the new owners, Mr. and Mrs. Riaunda.
The County is providing a consideration to the new owners by not immediately demanding payment of the loan. This consideration benefits the County by maintaining the rental unit as affordable housing.
If the County does not assign the loan from Mr. Ayore to Mr. and Mrs. Riaunda, then the loan would be due and payable. The property may have to be refinanced, or sold to pay the loan and an affordable housing unit may be lost to the County rental stock.