The City of Farrell hereby creates what shall be known as its "Demolition Assistance Program."
[HISTORY: Adopted by the City Council of the City of Farrell 10-27-2014 by Ord. No. O-2-2014. Amendments noted where applicable.]
The purpose of the Demolition Assistance Program, to be utilized for the demolition of private structures, is to create a fund not to exceed $50,000 to make available low-interest loans to qualified applicants for demolition of the applicant's structure(s) certified by the City Code Officer as a hazard or danger to the community and otherwise certified for demolition.
As used in this chapter, the following terms shall have the meanings indicated:
Unless otherwise stated shall mean any registered/recorded owner of a structure situate in the City. Registration shall be through recording in both the offices of the City and Recorder's Office of Mercer County, Pennsylvania.
Unless otherwise stated shall mean City of Farrell.
Includes both nondelinquent real estate taxes and Farrell sewer bills.
The low-interest loan fund established by and through the Demolition Assistance Program.
Presently designated as the City Manager, who shall review all applications, qualifications and, in his or her sole discretion, grant or deny said loan.
Any building situate within the City which has been certified for demolition by the City's Code Officer.
Applicant will be required to show that he/she is eligible for funding. To be considered eligible, in addition to any other requirement and/or document deemed necessary by the loan officer, in the loan officer's sole discretion, the applicant must show that:
A.
Applicant is the registered/recorded owner of the structure situate within the City;
B.
Applicant must be creditworthy;
C.
The maximum amount of the low-interest loan shall not exceed $10,000;
D.
All real estate taxes must be current through the date of the application and must remain current to prevent default;
E.
All Farrell sewer bills must be current and must remain current to prevent default;
F.
The Office of Code Enforcement has issued its certification that the structure is a hazard/nuisance and is certified for demolition;
G.
The structure must be vacant;
H.
Applicant shall deliver to the City a bona fide estimate for the demolition and reclamation of the site, which must meet all code requirements as determined by the Code Officer;
I.
In lieu of Subsection H hereof, in the discretion of the Loan Officer, applicant may agree to place applicant's structure on the next available demolition list which, if accepted by City Council, applicant shall advance to City the total amount of the line item applicable to applicant's structure;
J.
Applicant must secure from the City certification of final demolition and site reclamation at the conclusion of the demolition; and
K.
Applicant must deliver to City a certification of applicant's assets and liabilities for the purpose of determining available assets which the City could use as collateral to secure the repayment of the loan.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
A.
Interest shall be at the rate of 3% per annum;
B.
The loan shall be amortized over a period of 60 months with the right of prepayment without penalty;
C.
An administrative fee in an amount as set by City Council shall be assessed and must be paid separately and prior to distribution of the loan proceeds; and
D.
Applicant shall execute an installment note and mortgage encumbering applicant's properties to be selected by City and shall execute any other loan document deemed necessary by City. In addition to satisfying the administrative fee, applicant shall satisfy, in advance, any recording or other expenditures incurred by the City for the purpose of perfecting the lien.
The City's Demolition Assistance Program shall be funded exclusively from the City's Revolving Loan Fund in an amount not to exceed $50,000 at any one time. This amount shall include repaid interest.
Additional terms, conditions, provisions and homeowner qualification for the low-interest loan may be established, or amended by resolution, by a majority of Council, which may include, without limitation, the adoption of modified policy and qualifications of applicant.
If any time Council, by ordinance, repeals this ordinance, as amended, remaining funds shall be returned to the City's Revolving Loan Fund.