HomeMy WebLinkAboutStaff Report 11/21/2011 4.A A :. .Items #4.A
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DATE: November 21, 2011
TO: Honorable Mayor and Members of the City Council
FROM: John Brown, City Manager
SUBJECT: Resolution Encouraging Petaluma. Lending Institutions To Put Into Action A
Temporary Moratorium On Residential, Foreclosure And Eviction Processes From
November 24, 2011 Through January 1, 2012.
RECOMMENDATION.
It is recommended that the City Council adopt the attached Resolution Encouraging Petaluma
Lending Institutions To Put Into Action A Temporary Moratorium On Residential Foreclosure
And Eviction Processes From November 24, 2011 Through January 1, 2012.
BACKGROUND
At the November 7 City Council meeting, a representative from "Occupy Petaluma" requested
that the City Council "demonstrate compassion" by encouraging all mortgage lending
institutions and loan servicers to declare a moratorium on foreclosures and evictions. Although
it is recognized that the Council has no official capacity to instruct the lenders and that any
action would only delay, not prevent, a foreclosure or eviction, it is the Council's desire to take
whatever action is possible to support this request to alleviate, to the extent possible, the hardship
on our at -risk residents.
DISCUSSION
In response: to this request, housing staff has contacted the county's HUD certified housing.
counselors (Catholic Charities) to ascertain the. probable success of the lenders acting on this
request by the Council. The agency's Director of Communications considered the requested
resolution to be a worthwhile action. However, the counselor doubted the lenders.' ability to
participate in . a moratorium for the following reasons: 1) most mortgages are held by large,
diversified, national or intern ational lending companies; 2) mortgage activity is usually dictated
by California, State law; and 3) most loans have been bundled /resold and therefore not controlled
by one institution.
The staff at Catholic Charities will continue to assist at -risk homeowners as long as its funding
continues (see attached brochure). The City of Petaluma, housing staff also provides assistance,
information and referrals to participants of the City's first -time homebuyers and to any resident
Agenda Review: �4
City Attorne ®' Finance Director City Manager
who requests. assistance. Catholic Charities Housing Department can be reached at (707) 575-
02.15 and City Housing staff can be reached by phone at 778 -4555 and by email at
scastellucci @ci.petalunaa.ca.us.
ATTACHMENTS
1. Resolution
2. Foreclosure Prevention Workshop Notice
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ATTACHMENT #1
Resolution Encouraging Petaluma Lending Institutions To Put Into. Action A Temporary
M or-atorium On Residential Foreclosure And Eviction Processes From November 24, 2011
Through December 30, 2011.
WHEREAS the Petaluma City Council recognizes that having ,a place to call home is an
integral part of a healthy and sustainable, community; and
WHEREAS the worldwide housing crisis is threatening ,theimrnediate and long -term
housing security for many residents of our community; and
WHEREAS a request has been„made to the Council to assist residents most at risk of
losing their homes; and
WHEREAS the City Council is cognizant of the, complexityof each homeowner's
financial situation and that local governments have neither the authoritynor resources to resolve
each transaction; and
WHEREAS, the City Council nevertheless desires to help to the extent possible by
appealing to the lending community to acknowledge homeowners' hardship by supporting a
foreclosure and eviction moratorium; and
WHEREAS Freddie Mac, Fannie Mae, Community First, Credit Union, and Sonoma
County Grange Credit Union have, declared 'similar limited moratoria;
NOW, THEREFORE BE IT RESOLVED that the,Petaluma, City Council join in the
effort of those institutions by declaring a . "foreclosure moratorium" during the period November
24, 2011 through December 30, 2011, and
BE IT ALSO RESOLVED that housing ,staff is hereby directed to continue to work with
'affected homeowners by providing information and referral and cooperating with the appropriate
agencies, such as Catholic Charities.
Moratoriumno vember201 1/h
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ATTACHMENT #2
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Debi relief options and "qualified hardship”
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Other government programs that can help you
Why you can,tr�ust Catholic ; Chariti:es,
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Reserve ;}r ; spac CaII'Catholic Charities Housing De`partment'at'575 =i 5`
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Catholic:Charities US Santa Rosa CA 9540'2' (707) 575-0215
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