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ASSISTANTsaraemarrca  2  

COMMUNITY AND DEVELOPM ENT

suits: . . I
ii:  . U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT .14! 
a s. WASHINGTONDC zone?ram 6

0 

Bishop Dan Johnson
Heart of Fire Ministries
5101 Bardstown Road
Louisville. KY 40291

Dear Bishop Johnson:

President Barack H. Obarna received your letter of February 5, 2009, and has asked the

Department of Honsing and Urban Development (HUD) to reSpond to you because HUD
administers the Section 4 Loan Guarantee Recovery Fund. In your letter, you request ?nancial
relief from the debt for the loan made for the construction of the church facility for the Danny

Johnson Heart of Fire Ministries, Inc, which was guaranteed by HUD.

To briefly summarize the history of the Section 4 Loan Guarantee provided by HUD, on
August 23, 2006, Stock Yards Bank Trust Company (SYB) in Louisville, Kentucky submitted a
Section 4 Loan Guarantee application for a $1,500,000.00 loan to be made to Danny Johnson Heart
of Fire Ministries, Inc. The $1,500,000.00 Loan Guarantee was approved by HUD and executed on

November 21, 2006.

On Novamber 25, 2008, SYB noti?ed HUD that the loan was in default and requested the
Full Guarantee Payment pursuant to the Loan Guarantee Agreement between HUD and SYB dated
November 2006. SYB infortned HUD that as of November 25, 2008, the outstanding balance

due on the $1,500,000 loan would be $1,698,681.87, which included a principal balance of
SYB the amount of $1,565,986.89, representing a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

. $1,491,784100. On January 30, 2009, HUD paid 
principal balance of 1,491 ,784.00 and interest accrued through January 26, 2009, in the amount of
$74,202.89. is now the Holder of the Promissory Note.

internal HUD Distribution: 
Chmn: 7251 DEE: 7137 cums
110148 -
Identi?cation Linc: JARHED Congressional Johnson . 5 
Correspondence Originator Concun?ence Cpn?e rrencc Coricumnce no as Concurrence 
Code: DED can con use, 5 %9 0
Name: Mary May i A  I 
Young Min ?13? Willie Duncan qrigcela, ?r Marquez
. 1 il; 931i" 

Damsazzms g/n/Uq (Wu/6.9 1 AUG  c?l?oq  . 63,)

Of?cial Rozord Copy US. Department of Housing and Urban Deveibpment form (02'0 VY)

. Previous edition is obsolete. 3 

(13'


 

 

espanoi.hud.gov

 

 

 



Unfo?ttunstely, HUD has no authority to convert this loanv'to a giant, nor does HUD have any
other programs that could ?nancially assist you with this debt. Therefore, Danny Johnson Heart of
Fire Ministn?es, Inc. has a debt obligation to the federal govemmont in the amount of$ 1,555,986.89
minus any net proceeds that might be received ?om the sale of the property.

- Thank you for your interest in thoDopamnent?s programs.

Sincerely,
- Original Signed by Mercedes M. Marquez

Merl-tales M?l'quez
. Assistant Secretary