Township of Mullica, NJ
Atlantic County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Township Committee of the Township of Mullica 8-27-1996 by Ord. No. 6-96. Amendments noted where applicable.]
[Amended 3-9-1999 by Ord. No. 9-99; 12-12-2000 by Ord. No. 16-2000]
The purpose of this chapter is to create the Mullica Township Rehabilitation Committee (referred to herein as the "MTRC"), which will review, recommend and administer emergency loans for housing rehabilitation for the citizens of Mullica Township. For several years preceding the adoption of this chapter, the Township has been in receipt of community development block grants and small cities' grants which have resulted in loans being made to various township residents through the Mullica Township Rehabilitation Committee. As those loans have been repaid by homeowners, funds have become available and the Township wishes to take steps to assure that these repaid loan funds are again made available to low- and very-low-income households for purposes of emergency rehabilitation.
[Amended 3-9-1999 by Ord. No. 9-99]
The Mullica Township Rehabilitation Committee shall consist of five members, including the Township Committee member who serves as Director of Development and Housing, the Township Committee member who serves as Director of Revenue and Finance, the Township Clerk, the Township Code Enforcement Official and the Mullica Township Rehabilitation Committee Administrator. At any meeting of the MTRC, the Director of Development and Housing will serve as the Chairperson of the MTRC.
A. 
Emergency loans. Loans will be made on an emergency basis only. An emergency condition is deemed to be a condition which threatens the health and safety of the residents of the household. Emergency conditions include, but are not limited to, the lack of heat, the lack of potable water, the lack of electrical service and severe structural damage.
B. 
Additional criteria. During the course of administering loans from community development and block grants and small cities' grants, the Township has adopted and utilized certain standards in reviewing loan applications. In reviewing current applications, the MTRC will utilize the guidelines and procedures contained in Attachment A[1] attached hereto, and may utilize any standards and procedures previously incorporated as part of the original loan programs.
[1]
Editor's Note: Attachment A is available at the Township offices.
C. 
Loan limits. No loan will be made in an amount in excess of $5,000.
[Amended 3-9-1999 by Ord. No. 7-99]
A. 
Application. The application will be presented on a form which the Township Committee may from time to time approve and modify, which form shall be presented to the Township Clerk. The applications will be reviewed by the members of the MTRC.
B. 
Verification. The Code Enforcement Office will verify the emergency situation at the household and confirm to the MTRC that the emergency exists and that the situation is in need of rehabilitation. The Code Enforcement Official will also review all specifications and bids received for the performance of the work. Upon completion of the required repairs, the Code Enforcement Official shall confirm that the repairs have in fact been satisfactorily completed.
C. 
Review and recommendation. The MTRC will review all available information and make a recommendation to the Township Committee.
D. 
Disbursement of funds. Upon an affirmative majority vote of the Township Committee, the loan will be approved. Upon verification of satisfactory completion of the work, the Chief Financial Officer of the Township shall issue a check to the contractor in the amount previously approved by the Township Committee.
E. 
Repayment. Prior to the disbursement of the funds, the homeowner seeking the loan for rehabilitation will execute a note and mortgage in favor of the Township in an amount equal to the amount borrowed. Repayment will be made at the time that the applicant for the loan sells the property for which the loan was granted. If, at the time of the issuance of the loan, it is determined by the MTRC that the applicant is of low income in accordance with the guidelines, in that case the applicant will repay 100% of the face amount of the loan. If, at the time of the issuance of the loan, it is determined by the MTRC that the applicant is of very low income in accordance with the guidelines, in that case the applicant will repay 50% of the face amount of the loan. Loans will be interest free.
[Amended 12-12-2000 by Ord. No. 16-2000]
The Chief Financial Officer shall establish an interest-bearing account with a local financial institution. This account shall be monitored on an annual basis by the Township Auditor, and the Township Auditor shall provide the Township Committee with an appropriate audit on an annual basis. The Chief Financial Officer shall be responsible for all disbursements made from the account. At least two signatures will be required for any activity on the account. The Chief Financial Officer shall maintain all financial records and will monitor the number of loans that have been made, the status of each loan and the amount of funds that remain available to the MTRC for future loans.
[Added 3-9-1999 by Ord. No. 9-99]
There is hereby created the position of Mullica Township Rehabilitation Committee Administrator. Said Administrator will be responsible for reviewing loan applications for completeness, reviewing background information of applicants and advising the Mullica Township Rehabilitation Committee concerning certain standards and criteria which shall be applied based upon said background information.