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Mariposa supervisors adopt CDBG loan-forgiveness guidance, ask staff to apply it to Mountain Meadow Farms request
Summary
The Board approved a framework limiting forgiveness of CDBG microenterprise loans to rare, documented emergencies and directed staff to apply the new criteria to a specific $50,000 request from Mountain Meadow Farms; Supervisor Kaiser recused from the forgiveness vote.
The Mariposa County Board of Supervisors on April 8 approved loan-forgiveness guidance for the county's Community Development Block Grant microenterprise and business assistance programs, establishing strict criteria for when staff may recommend waiving repayments.
Will Fassett, community design and development planner, told the board the draft guidance mirrors U.S. Department of Housing and Urban Development standards and would reserve forgiveness for “extreme or extraordinary circumstances,” defined to include natural disasters, wildfire, public-safety incidents, civil disturbances, or unforeseen medical emergencies. The proposal requires applicants to show at least a 50% revenue loss using six-month pre- and post-event financial records and submit extensive documentation — insurance claims, photos, medical records and other verifiable evidence.
Fassett said the guidance is advisory and the board would retain final discretion on any forgiveness decision. County Administrative Officer Joel Lynch emphasized the policy aims to preserve taxpayer funds and allow forgiveness only rarely: “This should be done infrequently,” he said, describing the approach as protecting program integrity so the CDBG funds remain available for future businesses.
That framework was immediately relevant: the board considered a separate request from Brenda Ostrom of Mountain Meadow Farms, which received a $50,000 CDBG microenterprise loan in October 2023 and has an outstanding balance of about $44,000 after 15 payments. Ostrom told the board she sustained a dog attack that destroyed the farm’s egg business and said the loss reduced the farm’s revenue window to about four months a year, leaving loan payments unaffordable. “Consideration of my loan forgiveness request would help close the chapters of successful natural disasters and past system failures,” she said.
Board members discussed next steps and possible legal and administrative constraints. County counsel and a former district attorney explained that animal-control and prosecutorial remedies had limits under existing ordinances but that staff had worked with Ms. Ostrom on civil remedies. Supervisors agreed staff should apply the newly approved forgiveness framework to Ostrom’s documentation and bring a redacted board item forward for consent-agenda action rather than granting an immediate waiver. Supervisor Manatray said the move would ensure decisions follow the criteria the board just approved.
The guidance itself passed on a board vote; for the subsequent procedural direction on Mountain Meadow Farms staff will return with a redacted item after applying the new criteria.
