A program of the Borough of Middletown has been created known
as the "Homestead Loan Program." The purpose of the program is the
improvement of housing stock in Middletown; to promote an increased
vitality of neighborhoods; and to provide decent, safe, sanitary,
single-family housing that is in conformance with the Code of Ordinances
of the Borough of Middletown and the Borough's Comprehensive Plan,
as may be amended from time to time.
As used in this chapter, the following terms shall have the
meanings indicated:
ABSENTEE LANDLORD
A person who holds the legal or equitable title to any parcel
of real estate located in the Borough of Middletown or who holds the
equitable or legal title to any improvements on real estate or any
building located in the Borough of Middletown but does not maintain
primary residence at that real estate.
BOROUGH
The Borough of Middletown, Dauphin County, Pennsylvania.
BOROUGH SECRETARY
That employee of the Borough appointed to the position of
Secretary pursuant to the Borough Code.
CONVERSION
The creation of a single-family dwelling in a property that
was previously a multifamily dwelling.
FINANCE DIRECTOR
The Finance Director of the Borough of Middletown, Dauphin
County, Pennsylvania.
LOAN
The lending of funds in exchange for a mortgage agreement
and promissory note.
MULTIFAMILY DWELLING
A dwelling having more than one household or more than one
independent outside access to separate living areas not otherwise
easily accessible, or more than one party wall in common with adjoining
dwellings.
SINGLE-FAMILY DWELLING
A dwelling having only one household from ground to roof,
independent outside access, one side yard and not more than one party
wall in common with an adjoining dwelling.
TENANT
A person who has the use, either by himself or with others,
of a dwelling unit owned by a person other than himself.
The funding for the Homestead Loan Program is derived from residential,
rehabilitation loan repayments for loans previously granted through
federally funded projects. All monies accrued through loan repayments
and/or interest earnings shall be set aside in a special account,
referred to as the Homestead Program Account for the specific purpose
of supporting community redevelopment through the Homestead Loan Program
in accordance with the policies herein. The Finance Director shall
be the custodian of these funds.
Authority to approve loans shall be vested in the Homestead
Loan Program Executive Committee. Said Committee will consist of one
member of Council who will serve as the Chairperson and four members
of the general public, each of whom shall serve a four-year term.
Those members having been appointed pursuant to Resolution Number
240 of 1993, the predecessor to this chapter, shall continue in said
capacity for the balance of their terms.
In those cases where it is necessary for the property owner
to obtain other financing sources, with permission of the Executive
Committee, the Borough Secretary may enter into a subordination agreement
whereby a junior or inferior lien position is taken with respect to
the loan mortgage. However, all costs associated with this agreement
or filing shall be the burden of the party requesting the Borough
subordinate its position.
A loan shall be considered delinquent where no payment has been
received for 30 calendar days. Upon said delinquency, a written notice
of delinquency shall be issued to the borrower. Whenever a loan becomes
delinquent for a period greater than 60 days, the Borough Secretary
shall issue a certified letter, return receipt requested, notifying
the borrower of said delinquency. A late charge of 1% per annum may
be charged to the loan for delinquent payments for mortgages issued
on or after the effective date of this chapter. Delinquent loans will
be collected upon the sale or transfer of the real estate.
The Borough Secretary shall maintain all the records associated
with this chapter.