The Gilroy City Council eliminated a short-lived program Feb. 22 that would have provided home loans to department heads.
In October 2019, the council, on a 5-2 vote, agreed to establish the program that would provide up to $800,000 loans to attract candidates to fill vacant executive-level positions within city government. Loans would have gone to the council for approval.
More than a year later, the program has never been utilized, City Administrator Jimmy Forbis said.
“To date, we have not had any demand for it,” he said. “It has not been part of any of our negotiations with executive hirings. I can’t see a situation going forward where I would utilize this program, nor would I recommend to the council to approve a loan.”
With interest rates at all-time lows, Forbis said he would encourage potential candidates to look at the private sector instead for loans.
“I’m just not going to use it,” he said. “It was a good idea, but as time has gone on I don’t think it has really been that practical for our community to do this.”
The council was unanimous on rescinding the program.
