By:  Diane Benjamin

See Part 1 here:   https://blnnews.com/2018/12/26/is-bloomington-a-bank/

The lists I received by FOIA show 4 types of loans.

• Deferred loans from the General Fund
• Loans receiving payments from the General Fund
• Deferred loans using CDBG money
• Loans receiving payments made with CDBG money

The General Fund is tax money received locally.  CDBG money is tax money citizens pay to the Federal Government and then part is given back for specific purposes.  Deferred loans mean payments are mostly not being made.  Liens are placed on the properties in hopes of collecting when the homeowner either sells or no longer lives at the property.

General fund money should never have been used.  Outstanding loans go back to 2001 and as recently as 2013.

Deferred General Fund loans total $163,459

General Fund loans receiving payments total $54,364

Total:   $217,823

A page on the City of Bloomington website describes how the program is supposed to work:   http://www.cityblm.org/government/departments/community-development/block-grant

My FOIA requested this information:

I only received details for the 15 loans below.  The lists of all loans show 153 CDBG loans and 26 from the General Fund.  Why they picked these 15 loans to provide details is unknown.  I am withholding the names and addresses for now.  Most of the homes are located in depressed areas of west Bloomington.  I’m also withholding most of my comments on the program until I’ve presented all the information I received.  There will be at least a Part 3.

Note:  All but 1 of these loans should have been paid off by now.

Loans from CDBG money:

$21,000 15-year loan at 6% interest on 1/7/93.  Payments have been sporadic – current balance $14,865.99.  In 1998 Judy Markowiz signed a release of the mortgage the City of Bloomington had on the property.  According to County records the people still live in the house.

$21,500 18-year loan at 0% interest on 5/11/98.  Bloomington does have a lien on the property.  Current balance $3331.38.  It should have been paid off in 2016.

$25,000 15-yr loan at 0% interest on 9/14/2000.  Payments have been sporadic – current balance $10,258.76.   A lien was not filed on the property until 2014.

$10,000 10-year loan at 0% interest on 7/11/2003.  Only three payments were made in 2018.  Current balance is $1,513.67.  Bloomington  does have a lien on the property.

$10,000 10-year loan at 3% interest on 8/5/2004.  No payments have been made since 2014.  Current balance is $3,740.68.  From information on the Recorder’s site, this debt will never be collected.

$24,890 20-year loan at 0% on 9/28/06.  No payments have been received since 10/20/17.  Current balance is $14,296.31.  Bloomington does have  lien on the property.

$9,443.00 10-year loan at 3% on 11/19/07.  No payments have been received since 10/16/15.  Current balance is $8,678.47.  Bloomington does have a lien on the property.

$24,963.00 15-year loan at 3% on 12/4/07.  No payment have been received for the last 5 months.  They were sporadic payments prior to July.  Current balance is $16,727.48.  Bloomington does have a lien.

$7,343.00 10-year 0% loan on 1/24/08.  This person makes sporadic payments but isn’t horribly behind.  Current balance is $2,101.00.  Bloomington does have a lien.

$11,000.00 15-year 0% interest loan on 8/29/02.  No payments have been received since 5/9/17.  Current balance is $6,974.89.   Bloomington has a lien.

$8,000.00 10-year loan at 3% on 10/15/04.  No payments have been received since 5/3/17.  Current balance is $4,558.00.  Bloomington does have a lien.

These four are from the General Fund:

$11,375.00 10-year loan at 0% on 3/4/05.  Payments are sporadic but one was made this month.  Current balance is $2,840.00.  Bloomington has a lien.

$4,125.00 5-year loan at 0% interest on 4/15/05.  It should have been paid off in 2015, but payments are still being made.  Current balance is $760.25.

$18,638.00 10-year loan at 0% interest  on 6/5/05.   Payments of $50 are made almost every month.  Current balance is $13,668.00.  In 23 years it will be paid off.  Bloomington has a lien on the property.

$13,000 10-year loan at 3% interest on 6/8/05.  No payments have been received since early 2007.  Blomington has a lien.

Stay tuned for Part 3

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