Board adopts CDBG loan‑forgiveness criteria; staff to apply guidance to Mountain Meadow Farms request

The Mariposa County Board of Supervisors voted April 8 to adopt guidance for forgiveness of Community Development Block Grant (CDBG) microenterprise loans, aligning county practice with U.S. Department of Housing and Urban Development (HUD) guidance that forgiveness be granted only infrequently and under extraordinary circumstances.

Planning staff recommended a framework that limits forgiveness to external disasters or unforeseen emergencies — examples listed in the draft include wildfires or floods, public‑safety incidents (for example vandalism or violent incidents), and unforeseen medical emergencies causing sudden, severe impact on a business. The proposed guidance requires an applicant to document a revenue loss of 50% or more by comparing a six‑month period before the emergency with a six‑month period after, and to provide supporting evidence such as insurance claims, photographs, medical records and financial statements.

The board approved the guidance by voice vote; the record shows four supervisors voted aye and one supervisor recused. Under the adopted approach, the board retains final discretion to decide any forgiveness request.

The vote followed a separate, related request from Brenda Ostrom of Mountain Meadow Farms. Ms. Ostrom received a $50,000 CDBG microenterprise loan in October 2023 and has made 15 payments; staff reported the outstanding balance is about $44,000. She told the board the loan funds were spent within Mariposa County and helped hire local contractors and employees. Ms. Ostrom said the farm’s year‑round egg business was “decimated” by a dog attack and that loss substantially reduced the farm’s yearly revenue, leaving it unable to continue loan payments without operating at a loss.

Planning staff asked the board for direction on process: if Ms. Ostrom supplies documentation that meets the newly adopted guidance, should staff place a future board consent item recommending approval or denial of forgiveness (with personally identifying information redacted)? The board directed staff to apply the new criteria to Ms. Ostrom’s documentation and return with a public item that will include supporting documentation redacted for personal information.

County counsel and staff discussed enforcement and ordinance limits during public comment; counsel noted the county had used available enforcement tools at the time of the dog incidents but that some speakers believe additional ordinance changes are needed. No forgiveness decision was made April 8; the board’s action was limited to approving the guidance and instructing staff on the administrative handling of Ms. Ostrom’s request.