[Code 1975, § 18.5-1]
The administration of the City's housing rehabilitation
loan-grant program will be carried out by the Community Development
Commission and its Director and subordinate staff within the framework
approved by the Mayor and City Council and in conformance with the
guidelines established in this article. The administration and operation
of the program shall conform to all local codes and ordinances as
well as all requirements established by the U.S. Department of Housing
and Urban Development (HUD) and the state pertaining to the community
development block grant program.
[Code 1975, § 18.5-2]
The objectives of the City's rehabilitation loan-grant
program are as follows:
(1) To prevent blighting influences and deterioration of property and
neighborhoods.
(2) To improve the quality of the City's housing stock for low-moderate
income persons.
(3) To provide financial assistance to low-moderate income property owners
for purposes of housing rehabilitation.
(4) To eliminate code violations and deficiencies.
(5) To stimulate private investment in the project area.
[Code 1975, § 18.5-3; Ord. of 10-3-1989]
Financial assistance in a combination of grants and loans may
be made available in accordance with the provisions for each category
as prescribed below:
(1) Owner-occupant (Section
8 VLI), 100% CD financing. Applicant income must not exceed HUD Section
8 income limits for housing assistance to very-low-income households as established for the county or other income limits as may be established by the state relative to this program.
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Applicants meeting such income limits may qualify for a deferred
payment loan (DPL) for 100% of project costs up to a maximum of $15,000.
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(2) Owner-occupant (Section 8LI), 50% CD financing. Applicant income must not exceed HUD Section
8 income limits for housing assistance to lower-income households as established for the county or other income limits as may be established by the state relative to this program.
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Applicants meeting such income limits may qualify for a deferred
payment loan (DPL) for 50% of project costs up to a maximum of $10,000.
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(3) Owner-occupant (Section
8 median), 20% CD financing. Applicant income must not exceed Section
8 median income level as established for the county or other income limits as may be prescribed by the state relative to this program.
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Applicants meeting such income limits may qualify for a deferred
payment loan (DPL) for 20% of project costs up to a maximum of $4,000.
Assistance to owners under this category is subject to eligibility
standards established by the U.S. Department of Housing and Urban
Development and the state planning office.
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(4) Investor-owners (landlords), 30% CD financing. Applicant may qualify
for a deferred payment loan (DPL) for 30% of project costs up to a
maximum of $10,000 with the percentage level of such assistance correspondent
to the extent to which rental units are (or will be, in the case of
vacant units) occupied by income-eligible tenants.
(5) Slums and blighted areas and structures, 25% DPL financing. Consistent
with federal and state regulations, applicants who do not meet the
eligibility requirements previously cited in this section may be determined
eligible provided that rehabilitation is necessary for the elimination
of slums and blight and the prevention of blighting influences and
the deterioration of property and neighborhoods.
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Applicants meeting the eligibility provisions under this subsection
may qualify for a deferred payment loan for 25% of total project costs,
up to a maximum of $3,000.
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(6) Loan assistance. Loan assistance shall be provided in the form of
a deferred payment loan (DPL) at the levels prescribed for each owner
category in the preceding subsections under this section. Such DPL
shall be interest-free for a term of 20 years and shall contain a
provision for repayment upon conveyance of the property within the
twenty-year term. Specific standards governing such provision shall
be established by the City's Community Development Commission.
(7) Definition of income, total housing income. For the purpose of this
program, total household income shall include the combined gross incomes
of all household members, excluding dependents under age 18 or dependents
attending school on a full-time basis. In cases involving household
members who are earning an income but are not owners of the property,
only that income which they contribute to the household shall be considered
in determining the gross income of the household. Such contribution
is not to be less than 20% of the household member's gross income.
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Examples of sources of income to be included are: Wages, salaries,
Commissions, pensions, annuities, social security, AFDC, general assistance
payments, aid to the disabled, VA benefits, unemployment benefits,
support/alimony, and other income such as interest, dividends and
rental income. In determining the amount of rental income, adjustment
may be made for expenses incurred in generating this rental income
by deducting, on a pro rata basis, such items as mortgage interest
payments, taxes and insurance. Depreciation shall not be considered
to be a deductible expense.
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An applicant who is unemployed and wishing to qualify for assistance
as an owner-occupant must have been unemployed for a period of 180
continuous days in order for income to be calculated on the basis
of unemployment status at the time of application.
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[Code 1975, § 18.5-4]
The eligibility of the applicant for a loan-grant under this
article shall be determined by the community development committee
as follows:
(1) The applicant must be the owner of the property proposed for rehabilitation.
(2) Applicant and/or tenant(s) must meet income limits for the appropriate grant category as prescribed under Section
54-28.
(3) Owner-occupant applicants wishing to qualify for either a 50% or
100% grant may not have liquid assets in excess of $5,000. Applicants
60 years or older, however, may have liquid assets up to a maximum
of $10,000.
(4) The applicant must:
a. Complete the grant application and furnish all documents required
by the City to verify eligibility.
b. Comply with program procurement standards and procedures.
c. Certify to all program terms and conditions.
[Code 1975, § 18.5-6]
In order to determine the rehabilitation work necessary to bring
a property into conformance with local and state codes and to provide
assistance through this program, Community Development Department
staff shall:
(1) Inspect the property and prepare an inspection report which identifies
each deficiency that may be corrected with rehabilitation grant funds.
(2) Prepare a work writeup and cost estimate of the rehabilitation work.
(3) Consult with the applicant to finalize proposed work to be done,
estimated costs to be incurred, and the amount of rehabilitation grant
assistance which may be available.
[Code 1975, § 18.5-8; Ord. of 10-3-1989]
(a) Civil rights. The applicant will be required to comply with Title
VI of the Civil Rights Act of 1964 and 1968, to not discriminate upon
the basis of race, color, creed or national origin in the sale, lease,
rental, use or occupancy of the subject property.
(b) Use of funds. All funds made available by the loan/grant program
shall be used only for work approved and identified in the application.
(c) Work to be performed by applicant. An applicant wishing to perform
the project work may do so, provided that he has the necessary skill,
equipment and ability to satisfactorily perform the work. In such
a case labor costs expended by the applicant or any other person not
deemed to be a bona fide contractor shall not be an eligible expense.
Assistance, however, for the purchase of supplies and materials related
to the project work is authorized. When deemed appropriate, an applicant's
labor may be accepted in lieu of cash for the applicant's share
of the cost of the rehabilitation work authorized.
(d) Inspections. Inspection by authorized City officials of the property,
the rehabilitation work, materials and equipment shall be a condition
of the agreement.
(e) Supplementary funds. In instances where the rehabilitation project
costs exceed the amount of financial assistance provided, the applicant
shall be responsible for providing whatever additional amount is needed
to assure completion of the work.
(f) Conflict of interest. The operation and administration of this program
shall comply with all applicable local, state, and federal requirements
respecting conflict of interest.
(g) Tenant displacement. The applicant must assure that the rehabilitation
work being proposed will not result in the involuntary displacement
or relocation of tenants or persons presently residing on the premises.
(h) Applicant-contractor conference. Upon approval of the application
and the selection of a contractor, the financial analyst shall meet
with the applicant and the contractor to review the proposed work,
project costs, completion time, warranties and efficient completion
of the project work.
(i) Flood insurance. All structures within the City's flood-prone
areas, as identified on the official floodplain map of the City, shall
be required to be covered by flood insurance prior to any assistance
being given by the City under this program.
(j) Bonus, Commissions, fees, kickbacks. It shall be strictly prohibited
that any bonus, Commissions, fees or kickbacks be made to any person
having any connection with this program and the subject project.
(k) Conveyance of property. Any owner applying for rehabilitation financing
under this program shall agree to the following terms and provisions
as a condition of such assistance:
(1)
The owner shall agree to repay 100% of the deferred payment
loan (DPL) received if the assisted property is sold, disposed of
or title conveyed, excluding disposition by will or inheritance, within
10 years from the date of final inspection by the City.
(2)
The owner shall agree to repay 50% of the deferred payment loan
(DPL) received if the assisted property is sold, disposed of or title
conveyed, excluding disposition by will or inheritance, during the
period subsequent to the 10th year but prior to the end of the 20th
year from the date of final inspection by the City.
(3)
Subsequent to the end of the 20th year from the date of final
inspection by the City, the deferred payment loan (DPL) shall be considered
forgiven and the owner shall thereafter bear no further obligation
to repay such DPL.
(4)
If the assisted property is conveyed by will or inheritance,
then the heirs shall be bound by the sale provisions and time period(s)
prescribed in this article.
(5)
The owner may repay the deferred payment loan at any time prior
to the expiration of the time period(s) prescribed pursuant to this
subsection.
(l) Program grant limits. Program grant limits will be reviewed on an
annual basis and will be amended to reflect the annual increase or
decrease in the cost of living index. This review will be conducted
at the beginning of each community development program year and will
reflect the change in the cost of living over the previous 12 months.
A list of revised grant limits will be maintained by the Community
Development Department.
(m) Grant assistance in excess of established program grant limits. In
cases of severe need for the City's lowest income residents the
program grant limits for an individual property may be exceeded. If
the community development rehabilitation specialist believes such
action to be necessary he shall request the grant review subcommittee
to accompany him on an inspection of the property. The specialist
will review with the subcommittee the health, safety and energy related
deficiencies of the property. The subcommittee will then render a
decision as to whether or not the deficiencies warrant the expenditure
of grant assistance funds in excess of the established program grant
limits.
(n) Emergency grants. Rehabilitation grant assistance may be made to
owner-occupants residing outside of the project area on an emergency
basis in order to correct conditions which pose an imminent threat
to the health and safety of the occupants. Such assistance may be
granted provided that:
(1)
The owner meets all other program requirements identified in
this article;
(2)
No other source of assistance is available to correct the problem;
and
(3)
The nature and severity of the conditions is documented by appropriate
City inspectors.
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All requests for emergency grant assistance must be reviewed
and approved by the grant review subcommittee.
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(o) Loan repayment income.
(1)
Any community development housing rehabilitation loan repayments
received by the City prior to the closeout of the community development
block grant (CDBG) from which the certain loan was made are subject
to the reuse and expenditure regulations governing "program income"
as prescribed by the U.S. Department of Housing and Urban Development
and the state planning office.
(2)
Any community development housing rehabilitation loan repayments
received subsequent to the closeout of the CDBG from which the certain
loan was made may be used by the City for any eligible activity pursuant
to the Federal Housing and Community Development Act of 1974, as amended.
(3)
The reuse of the aforementioned repayments shall be determined
by the City's Community Development Commission subject to review
and approval by the City Council.
[Code 1975, § 18.5-11]
Any amendments to the City's rehabilitation loan-grant
program which are recommended by the Community Development Commission
must be approved by the City Council.