Catalyst gets a bridge loan
$500,000 to be paid back when state grant funds arrive
Butte County’s only domestic-violence shelter is in the midst of building a sparkling new multimillion-dollar facility, but problems with the state budget have put a hitch in its plans. Specifically, a $1 million grant from the state Emergency Housing Assistance Program is not coming through as fast as expected. That’s because state bond sales were put on hold from December 2008 through March 2009, creating a backlog of payment requests.
The problem is that construction is well under way, and the lack of funds threatens to make it hard for Catalyst to pay the bills. Tuesday (July 7) the Chico City Council, acting as the board of the Chico Redevelopment Agency, stepped in to authorize a $500,000 bridge loan from the agency’s Low and Moderate Income Housing Fund.
Housing and Neighborhood Services Director Sherry Morgado explained that the loan most likely would be paid back in a few months but in any case would have to be paid off in a year’s time. The loan was approved unanimously.