Any modification to the terms of former Monrovia City Manager Scott Ochoa's city-issued home loan appears unlikely after the new Monrovia city manager said she's had "no contact" with Ochoa since his proposal was rebuffed earlier this month.
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Monrovia City Manager Laurie Lile said Tuesday that her office has not heard from Ochoa since the council on Ochoa's proposal earlier this month. Lile said at that meeting that she would reach out to Ochoa to consider other options for his home loan repayment, but she said the city has had "no contact" with him since then.
"At this point staff is not recommending any additional action on this item," Lile said.
Ochoa that he did not expect the council to reconsider his proposal to modify the terms of his home loan so he could immediately sell his Madeline Drive house and move to Glendale, where he is now city manager.
Ochoa left Monrovia for the , and had until December of 2012 to pay back the $275,000 housing loan he got from the city in 2004. Since he's upside down on this mortgage--he bought his house for $775,000 but secured a sales price for $739,000--Ochoa asked the city to modify the terms of the loan. The house is currently in escrow.
Under the terms he proposed earlier this month, the city would release its lien on the home so he could sell it. He would pay $200,000 immediately to the city before paying off the additional $75,000 balance within 90 days. The loan would be secured by a separate property his family owns in Crestline under the scenario.
But the council was split in its response to Ochoa's proposal, with Monrovia City Council members Tom Adams and Joe Garcia expressing reservations that any loan modification could be perceived as special treatment for the former city employee.
