CITY OF OAKLAND

Department of Housing and Community Development

Memorandum
TO:
ATTN:
FROM:
DATE:

Housing and Community Development Director

Michele Byrd
Dan Dayananthan, Loan Servicing Administrator
July 14, 2015

RE:

INFORMATIONAL MEMO AND RECOMMENDATION TO SEND LETTER TO

THE CHAIR OF THE BOARD OF DIRECTORS OF THE SOLID FOUNDATION
BORROWER: THE SOLID FOUNDATION
PROPERTY ADDRESS: 353 ATHOL STREET, OAKLAND, CA 94619
______________________________________________________________________________
This memo is to provide the current status of Solid Foundation, a non-profit organization which used to
provide programs for the rehabilitation of recovering drug addicted mothers and their infants.
BACKGROUND:
On September 4, 1991, the City of Oakland granted a loan to the Solid Foundation Inc. in the amount of
$450,000.00 for the purpose of purchasing and rehabilitating the subject property for use as a facility
for the rehabilitation of drug addicted mothers and their infants. The loan is secured by a Deed of Trust
on the property The term of the loan is 30 years, with simple interest at six percent (6%) per annum,
with interest and principal amortized for the term of the loan. The unpaid principal balance is
$193,246.62 and the loan has been delinquent since December 30, 2014.
CURRENT STATUS:
On May 6, 2013, Alameda County Behavioral Health Care Services terminated the contract with Solid
Foundation. In order to determine the status of the non- profit, a letter was sent on March 4, 2015 to Bill
Taylor Chair of the Board of Directors of Solid Foundation. The letter response from Bill Taylor on
May 11, 2015 indicated that there are no existing and on-going operations of the drug rehab program.
All of the clients were reassigned to new residences and all of the staff was laid off by Minnie Thomas
for lack of ability to pay the staff.
CONVEYANCE OF PROPERTY:
A Grant Deed dated conveying the property to Minnie Thomas, a widow, by The Solid Foundation,
Inc., was executed by Rita Nelson, as Minnie Thomas Attorney-in-Fact was recorded on August 29,
2014 as instrument no. 2014213008.
A Grant Deed to a Revocable Trust conveying the property by Minnie Thomas, a widow, to MinniePayne-Thomas and Rita Lynette Payne-Nelson, as co-Trustees of the Minnie Payne Thomas Living
Trust, U/A dated July 25, 2014, was executed by Rita Nelson, as Minnie Thomas Attorney-in-Fact was
recorded on August 29, 2014 as instrument no. 2014213009.

Solid Foundation 353 Athol Avenue

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There were no board resolutions authorizing the transfers and until notified by the City, even the board
chair was did not know that any property had been transferred out of the corporations name.
ANALYSIS:
The outstanding principal balance is $193, 246, 62 and the accrued interest as of August 14, 2015 is
$8,164.05 Zillow has a value of $716,586.
RECOMMENDATION:
The staff recommends that a demand for payment in full be sent to the Board Chair of Solid Foundation
with a copy to Rita Nelson If no response is received from Solid Foundation within 30 days the City
should initiate foreclosure action.

Dan Dayananthan
Loan Servicing Administrator
Approved for forwarding:

Loyd Ware, Manager

Residential Lending and Rehab Services

Approved for forwarding:

Norma Thompson, Manager

Housing Development

Approved:

Michele Byrd, Director

Housing and Community Development

Solid Foundation 353 Athol Avenue

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