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Committee reviews revolving-loan fund status, past-due payments and two pending draws
Summary
Staff told the committee that a few loans were past due (partly because of recent wild weather delaying mail), Salon 54 has ordered about $23,000 of furniture under a $25,000 approval and Hollywood Nails has not yet drawn funds; staff said fund balance is a moving target tied to repayments and HUD timelines.
At an informational agenda item, staff updated the Community Development Block Grant Revolving Loan Committee on portfolio status, past-due accounts and pending draws.
Staff reported some loan payments were past due and attributed part of the delay to recent severe weather that delayed mailings; they said they have been communicating with borrowers and have received at least one recent payment. For borrowers with orders, staff verified documentation: Salon 54 has placed about $23,000 of furniture orders against an approved $25,000 amount, while Hollywood Nails has not yet drawn funds.
Committee members asked about the total principal available in the revolving loan fund. Staff said the available balance is a moving number tied to repayments and HUD-required timelines and offered to provide a ballpark figure for the committee in a future report. Staff emphasized the need to spend HUD dollars within required timeframes while balancing other pending loan opportunities.
Committee discussion noted that current repayment trends are improving and that, even when approving a maximum loan, the committee could retain capacity to consider other applications. Staff also flagged contractor delays and shipping/tariff issues as operational factors slowing some draws.
The committee did not take formal action on this informational item but directed staff to follow up with a report on fund availability and continued monitoring of the flagged accounts.
