HomeMy WebLinkAboutReso 96-082 - Authorizing implementation of Amendments to the Housing Rehab Loan Policy Adopted by City Council Reso 75-86 F ' � �
4
RESOLUTION NO. '�I�p�Z
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING IMPLEMENTATION OF AMENDMENTS TO
THE HOUSING REHABILITATION LOAN POLICY
ADOPTED BY CITY COUNCIL RESOLUTION NO. 75-86
WHEREAS, the City of Redding has previously adopted a Rehabilitation Loan
Policy by City Council action; and
WHEREAS, the City Council deems it to be in the best interest of the citizens
of the City of Redding that the aforementioned policy be further amended as set forth
in Exhibit "A" attached hereto; and
WHEREAS, it has been determined that this matter is categorically exempt
from the provisions of CEQA.
NOW, THEREFORE, BE IT RESOLVED that the amendments to the Housing
Rehabilitation Loan Policy, attached hereto as Exhibit "A", is hereby approved and
adopted.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at a
regular meeting of the City Council of the City of Redding on May 7, 1996, and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: P. Ar�e-rson, ?2. Anderson, Kehoe, :4urray and :�IcGeorge
NOES: COUNCIL MEMBERS: ��one
ABSENT: COUNCIL MEMBERS: �tone
ABSTAIN: COUNCIL MEMBERS: I1one
DAVID L , ay
City of e ding
ATTEST: �
/��iJ
��ON��li� �TROHMAYER, erk �
_ �
FORM APPR ED: , '
� �'�.i� , �� �,
��.. �'���:�
. L ONARD WINGATE City Attorney a:\resc.�-?
'`• � �
EXHIBIT "A"
CITY OF REDDING
HOUSI:N�G� REHABILITATION LOAN POLICY
�M � �».����:� �.
Prepared by
Development'Services; Department
��� Housing Rehabilitation
Adopted by Resolution No. 75-86
Effective September 2, 1975
Amended May 1996
' � � �
C/TY OF REDD/NG REHAB/L/TAT/ON POL/CY Page 1
SECT/ON 1 - /NTRODUCT/ON
Under the Housing and Community Development Act of 1974, the City of Redding was
allocated funds to develop and implement a community development program. In 1975, the
number one priority set by the Citizens Committee of the Community Development Advisory
Board was the establishment of a housing rehabilitation program.
The City's housing rehabilitation program provides: (1) low-interest loans to low- and
moderate-income homeowners; (2) loans to investor/owners who agree to participate in the
HOME Rental Program (HRP); and, (31 loans to non-profit corporations for transitional or
permanent housing facilities. The program promotes housing opportunities for low- and
moderate-income families by means of loans which are provided to homeowners who would
not otherwise be eligible for conventional home repair loans. Special consideration is given to
families on fixed incomes, particularly the elderly and disabled.
The program offers five types of loans:
Amortized Loan: A low-interest loan amortized monthly over a period not to exceed 15
years for homeowners.
Construction Loan: A loan having a term that is the actual term of rehabilitation plus 60
days, or one year for investor/owners participating in the HOME Rental Program (HRP),
whichever is less.
Partially-Deferred Payment Loan: Loans which are amortized in an amount not to exceed
25 percent of family income, and deferred for the balance of the amount necessary to
rehabilitate the property, but in no event shall a borrower be permitted to defer more than
90 percent of the total loan.
Deferred Payment Loan for Elderly and/or Disabled: A low-interest loan requiring no
monthly payments. These loans shall be repaid only when property title is transferred.
Rehabilitation Loan for Non-Profit Corporations: A low-interest loan carrying a term not
to exceed 15 years and repaid based upon the subject property's capacity to service the
debt.
As loans are repaid, the money is returned to the loan account, creating a revolving pool of
funds available for future applicants. With judicious qualifying of applicants and careful
monitoring of outstanding loans, the original fund is continually replenished and more families
benefit from the original account.
It is anticipated this program will remain a useful tool in helping to maintain and upgrade the
housing stock within the City of Redding; and in particular, help stabilize and enhance various
neighborhoods. It is intended the program be liberal enough in scope and terms to help
families and individuals of low income, yet conservative enough to ensure the security of the
investment and thus be acceptable to a broad cross-section of the community.
It should be recognized that it may be necessary to make adjustments to the program as
working experience dictates. Above all, the program endeavors to create and maintain a
workable program of housing rehabilitation.
' ' � •
C/TY OF REDD/NG REHAB/L/TAT/ON POL/CY Page 3
FAMILY shall mean all individuals who reside in a dwelling unit who are related by blood,
marriage, or kinship.
GENERAL PROPERTY IMPROVEMENTS shall mean improvements other than code violations
and incipient code violations which are eligible for rehabilitation Ioan money.
HOME INVESTMENT PARTNERSHIPS ACT of the National Affordable Housing Act of 1990
shall mean the federal legislation which provides funding for the current program activities in
the City of Redding including tenant-based rental subsidies, assistance to first-time home
buyers, property acquisition, new construction, reconstruction, moderate or substantial
rehabilitation, site improvements, demolition, relocation and other reasonable and necessary
expenses related to the development of affordable housing.
HOUSEHOLD shall mean all individuals who reside in or have an ownership interest in a
dwelling unit regardless of family ties.
�"� HOUSEHOLD INCOME shall mean adjusted gross income of,�ll members.residing in
�� � a� r _
a dwelbng unit;Y whether or not�they�are related by family�ties.
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 shall mean the federal enabling
legislation which provides funding for the current program of housing and community
development in the City of Redding.
HOUSING LOAN COMMITTEE shall mean a committee consisting of three members of the City
Staff, derived from tlie following positions: the City Manager, the Assistant City Manager, the
City Attorney, the Director of Planning and Community Development and the Director of
Finance. The Housing Loan Committee shall be charged with approving or disapproving loan
applications consistent with the policies of the City of Redding.
INCIPIENT CODE VIOLATIONS shall mean a condition or element of a structure which will
deteriorate into an actual violation within a year or two of inspection.
INCOME/HOUSING EXPENSES shall mean the ratio of adjusted gross income to housing
expenses.
INTEREST shall mean a charge for borrowed money, repaid with the amount of the loan.
INVESTOR/OWNER shall mean an individual (or individuals) or family who owns or is buying
a unit(s) for the purpose of renting as residential property.
LAND CONTRACT shall mean a contract ordinarily used in connection with the sale of property
in cases where the seller does not wish to convey title until all or a certain part of the purchase
price is paid by the buyer; often used when property is sold on a small down payment.
LIEN shall mean a form of encumbrance which usually secures �ehes property -seet�+� for
.... .
the payment of a debt or discharge of an obligation. Example: judgments, taxes, mortgages,
deeds of trust.
LOW INCOME shall mean those incomes which do not exceed 80 percent of the area median
income as established by the Department of Housing and Urban Development
, � �
C/TY OF REDD/NG REHAB/L/TAT/ON POL/CY Page 5
1. Owner-Occupant. The applicant must be an individual (or individuals) or family who
owns or is buying a home. Persons buying homes under land contracts are excluded
from the loan rehabilitation program, except in those special cases where a Iand
contract is held by the State of California Department of Veteran Affairs. One or
more of the applicants must reside in such home.
2. Owner-/nvestor. The applicant must be an individual (or individuals) or family who
owns or is buying a unitls) for the purpose of renting as residential property. Income
eligibility requirements as identified in Paragraphs C & D of this section do not apply
to investor/owner applicants. Investor/owners are not eligible for Water and Sewer
Loans. Investment properties shall have a positive cash flow.
In addition to the above requirements, participants in the HOME Rental Program (HRP)
must agree to abide by all contracts and program regulations relating to the Section
8 Housing Assistance Program.
C. Income/Housing Expenses: The applicant must meet both of the following conditions:
1 . Household adjusted annual gross incor��e must be less than the following amounts
(NOTE: These income guidelines are from the Section 8, Title 2 of the Housing Act
of 1974, as most recently published by the Department of Housing and Community
Developmentl:
1 person 519,500
2 persons $22,500
3 persons 525,050
4 persons $27,850 -
5 persons 530,050
6 persons 532,300
7 persons $34,500
8 or more 536,750
2. The ratio of housing expense to adjusted gross income shall be not more than 25
percent, except for applicants that otherwise qualify for deferred or partially-deferred
payment loans.
D. Determination of Adjusted Gross Income: In calculating adjusted gross income, all of the
income of the applicant or applicants in cash or in kind shall be considered, except for the
following specific exceptions:
1. Social Security monthly educational benefits to the children of an individual entitled
to disability or old age insurance benefits, provided that the child is:
a. Unmarried.
b. Under age 18.
c. A full-time student under age 22.
2. Annual amounts paid for child support, provided that:
.. ... .._. ,.... ..... _ _. .. ...
. . . �1 !
C/TY OF REDD/NG REHAB/L/TAT/ON POL/CY Page 7
be presented to the City of Redding befo�e the loan can be approved.
K. Water and Sewer Connection: In those cases where water and sewer services are
available, the structure must be connected to those services or a part of the proceeds of
the loan must be used to connect to these services.
SECT/ON 4 - DESCR/PT/ON OF LOAN PROGRAMS
All loans made pursuant to any of the programs described in this section shall be evidenced
by a written promissory note signed by the borrower, payment of which is secured by a deed
of trust in a form approved by the City, which describes the real property and is recorded with
the Shasta County Recorder. When a loan is made for which a mobile home is security, the
security instrument, and any required supporting documents, must be filed and recorded with
the appropriate state agencies.
A. Amortized Loans:
1. Purpose. The purpose of an Amortized Rehabilitation Loan is to pay the costs of
rehabilitation in those cases where the applicant's income is adequate to meet the
increased monthly housing expense of a rehabilitation loan payment.
2. Eligibi/ity. In order to qualify for an Amortized Rehabilitation Loan, the applicant must
meet all general eligibility requirements.
3. Abi/ity to Repay. The applicant's debt payments should not exceed 40 percent of the
applicant's gross income.
4. Amount. The amount of an Amortized Rehabilitation Loan shall not exceed the lesser
of:
a. The actual (and approved) cost of repairs and improvements.
b. Those amounts detailed under Section 221(d)(3) of the National Housing Act as
follows. Amounts are based on bedroom size:
Studios 531,624
1-Bedroom 536,250
2-Bedroom 544,081
3-Bedroom 557,025
4-Bedroom + 562,596
c. Projects requiring substantial rehabilitation (including reconstruction) through the
HOME Investment Partnerships Program may not exceed those amounts detailed
under Section 221(d)(3) of the National Housing Act.
d. These limits also apply to the Partially-Deferred Payment Loans and Deferred
Payment Loans for Elderly and/or Disabled.
5. Repayment:
a. Homeowner: A rehabilitation loan shall be repaid. The borrower shall not be
�� � • !
C/TY OF REDD/NG REHAB/L/TAT/ON POL/CY Page 9
3. Abi/ity to Repay, The applicant must demonstrate the property's ability to generate
and maintain a positive cash flow. Evidence of a good credit rating by the applicant
is also required.
4. Amount. The maximum amount for HOME-assisted units are as follows:
Studios $31r;624
1-Bedroom $36;�250
2-Bedroom $4"4;081x
3-Bedroom $57,025;
..
4-Bedroom + $62,596
5. Loan-to-Va/ue Ratio:
a. The loan-to-value ratio of a �'ental project having less than 12 units shall not
exceed 90 percent of the post-rehabilitation value.
b. The loan-to-value ratio for rentai projects having more than 12 units cannot
exceed 80 percent of the post=rehabilitation value.
6. Repayment. Loans shall be repaid in one of three repayment plans depending upon
the needs of the project. The three repayment plans are;
a. Principal and interest that are fully amortized;
b. Partial amortization of principal and interest or interest-only payments;.
c. Principal and interest payments that are fully deferred in two- to five-year
increments on a case-by-case basis.
7. Terms and Conditions:
a. The maximum interest rate shall be five percent 15%) st�-�e interest; the
minimum rate shall be three percent (3%). (Interest rates are determined by the
needs of the project and/or term of affordability of the units.)
b. The term of the loan shall be no more than fifteen (15) years.
c. The loan shall be secured by a note and a deed of trust on the property.
d. There shall be a title insurance policy on the property issued to the City for the
full amount of the loan at the time of loan closing.
e. The borrower shall maintain current payments on property taxes and fire
insurance. The minimum amount of fire insurance must cover all trust deeds on
the property.
f. The borrower shall meet all HOME program conditions including, but not limited
to affordability and occupancy.
' � � �
C/TY OF REDD/NG REHAB/L/TAT/ON POL/CY Page 11
a. Be at least 60 years of age.
b. Be disabled according to the criteria established by the Social Security
Administration.
3. Amount. The amount of a Deferred Payment Loan shall not exceed:
a. The actual (and approved) cost of all necessary repairs, eligible improvements,
and allowable loan costs.
b. Those maximum amounts detailed under Section 221(d)13) of the National
Housing Act.
4. Repayment. The loan shall become due and payable upon sale of the property,
transfer of title, upon the death of borrower(s), or when the property is no longer the
principal residence of the borrower(sl.
5. Terms and Conditions:
a. The entire amount of a Deferred Payment Loan for the Elderly and/or Disa6led
shall be secured by a note and a deed of trust on the property.
b. There shall be a title insurance policy on the property issued to the City for the
full amount of the loan at the time of loan closing.
c. The borrower shall maintain current payments on property taxes and fire
insurance. The minimum amount of fire insurance must cover all trust deeds on
the property. The City shall e�att� monitor annual verification of paid taxes and
effective fire insurance.
d. This loan shall bear interest at a minimum of three percent (3%) simple interest.
e. Interest-only payments may be required on specific loans, as determined by the
Housing Loan Committee.
E. Water and Sewer Loans:
1. Purpose. The purpose of a Water and Sewer Loan is to pay for water and sewer
hook-up, whether or not the applicant is applying for a rehabilitation loan.
2. E/igibi/ity. In order to qualify for a Water and Sewer Loan, the applicant must meet
all general eligibility requirements.
3. Amount. The amount of a Water and Sewer Loan shall not exceed the actual (and
approved) cost of installation.
4. Terms and Conditions:
a. Repayment. The term of repayment of the Water and Sewer Loan shall be:
(1) A maximum loan term not to exceed 15 years for those applicants meeting
the eligibility requirements for Amortized Loans defined in Section 4A of this
policy. Installments shall be due monthly and shall bear interest at a
' � � �
C/TY OF REDD/NG REHAB/L/TAT/ON POL/CV Page 13
The maximum number of assisted units per project will be determined according to
project need and availability of funds.
4. Loan-to-Value Ratio:
a The loan to,value ratio of a rental pro�e�ct hav�ng�les�hanww12 ,units shall;�not
�. _.....��� -.a��..�
ezceed"90,peccent of the�post rehabilitation��alue
b. The loan-to-value ratio of a rental project h�avmg more;than 12„units' shall not
exceed 80 percent of the post-rehabilitation value.
5. Teims and Conditions:
a. The full amount of a Rehabilitation Loan under this section shall be evidenced by
a promissory note and secured by a deed of trust describing the property and
recorded with the Shasta County Recorder.
b. The loan shall be for a term not to exceed fifteen (15) years and shall bear
interest at the rate of a minimum of three percent (3%) stt�le interest per year,
and a maximum of five percent (5%) sr��e interest per year. The interest rate
shall be determined by the needs of the project and/or term of affordability of the
units.
Repayment of the loan by the non-profit agency shall be based upon a revenue
analysis (including a cash flow analysis) prepared by a certified public accountant
for the purpose of establishing a payment schedule. Upon validation and
approval of the revenue analysis by the City, the terms of the loan shall be
established, and may include the following:
(1) Principal and interest payments deferred;
(2► Annual payment of accrued interest required;
�3) Remaining loan balance plus accrued interest, if any, to be amortized, with
monthly payments of principal plus interest required;
(4) Payment of residual receipts or surplus cash remaining, after payment of all
reasonable expenses necessary to operate and maintain the project in
habitable condition, including debt service, taxes, fire insurance, and
reasonable reserves.
c. The entire amount of the loan may be repaid early without penalty.
d. The entire amount of a Rehabilitation Loan under this section shall become due
and payable if the borrower sells the property, transfers title, or changes the use
of the property.
e. There shall be a title insurance policy on the property issued to the City for the
full amount of the loan at the time of loan closing.
f. The borrower shall maintain current payments on all liens, property taxes, and
fire insurance on the property. The minimum amount of fire insurance must
/
• � •
C/TY OF REDD/NG REHAB/L/TAT/ON POL/CY Page 15
2. Drain tiling to public streets, alleys, or storm sewers.
3. Landscaping of a similar quality and quantity to the rest of the neighborhood, in order
to improve visual quality.
4. A room addition built, altered, or improved in special cases where the absence of
such poses a serious hardship for the family.
5. Minor remodeling in order to make a dwelling more functional or attractive.
6. An adequate cooling system for each dwelling to an extent deemed appropriate by
the City.
7. Insect screens for windows and screen doors.
8. The repair/replacement or new installation of free-standing stove appliances, garbage
disposals, refrigerators, and dishwashers, provided compliance with HUD regulations
are met.
9. Window coverings, excluding drapes.
F. Building Permits and Related Fees: Funds may be provided in the rehabilitation loan to
cover costs of building permits and related fees if these are not included in the
contractor's fees.
G. Certain Related Costs: A rehabilitation loan may include funds to cover certain costs and
charges relating to processing the loan application and closing. Accordingly, a
rehabilitation loan may provide for the cost of the following:
1. Appraisals.
2. Preliminary title reports.
3. Filing and recording fees.
4. Title insurance.
5. Hazard insurance.
6. Unpaid property taxes.
7. Structural pest control report.
8. Other fees as may be required.
The City will advance funds as necessary for an appraisal and the preliminary title report
prior to final approval of the loan application. When the loan is approved, the City shall
be reimbursed from the proceeds of the loan at the time of the loan closing. If the loan
is not approved or the application is withdrawn, advances shall be paid by the City.
'A
' � • •
.
C/TY OF REDD/NG REHAB/L/TAT/ON POL/CY Page 17
this is not intended to detail the process of completing a home rehabilitation, bufi is only a
summary of the steps to be taken.
A. Prepare all documents necessary to close the loan.
B. Arrange for disbursal of loan money.
C. Determine method of rehabilitation (i.e., self-help, owner-assigned, owner-contractor or
open City bid) and prepare contracts.
D. Oversee work in progress and provide regular inspections of work.
E. Upon completion, file Notice of Completion, make final payments to contractors and
suppliers for rehabilitation work.
F. After expiration of 35 days, make final payments to contractors and suppliers for
rehabilitation work.
G. Monitor payment procedures.
H. Upon repayment of loan amount, execute a�-rteee� the document(s) required to cancel
the promissory note and reconvey the deed of trust, and deliver tliern ta"the�borrower(s1;
�3�. ��,,�,.�
or�appropriate`agent for recortling of #he"ieconueyance?
.��. � .. . cx.,. .._x_ ,�.�__�
SECT/ON 9 - GENERAL COND/T/ONS
Civil Rights: Comply with all HUD requirements with respect to Title VI of the Civil Rights Act
of 1964, as amended, to not discriminate upon . . . "the basis of race, color, creed, sex or
national origin in sale, lease, rental, use or occupancy of the subject property."
Equal Employment Opportunity: Must comply with Executive Order 1 1246 and HUD equal
opportunity requirements.
Use of Proceeds: Loan proceeds shall be used only to pay for costs of services and materials
necessary to carry out the rehabilitation work for which the loan will be approved.
Disbursement of Funds: Rehabilitation loan funds shall be disbursed in a manner defined by
the City.
Completion of Work: Assure that rehabilitation work will be carried out promptly and
efficiently, through written contract let with prior concurrence of the City.
Inspection: Inspection of the property, the rehabilitation work and all contract materials,
equipment, payrolls and conditions of employment pertaining to the work by the City or its
agent.
Loan Security: The applicant must agree to provide security for a loan in the form of a deed
of trust and promissory note in favor of the City of Redding. A second deed of trust is
acceptable if sufficient equity exists above the principal balance on the first trust deed.
Maximum Term: The maximum terms for a rehabilitation loan shall be fifteen years. Loans
.. ..... ...._....... .... _. .. _. ... ... ... ...
, � . � •
� C/TY OF REDD/NG REHAB/L/TAT/ON POL/CY Page 19
Pa"rtnerships Prograrn.
C. Emergency Deferred Loans: Emergency Deferred Loans may be availabie to those persons
who are unable to make a monthly loan payment and who do not meet the criteria of the
deferred loan program. Eligible costs under this program include loan processing fees and
code items. General property improvements are not eligible.
D. Home Repair Program Grants: Grant assistance, up to a maximum of $950, shall be
provided to eligible individuals or families requiring the completion of handicapped
accessibility improvements or immediate health/safety repairs. This special program is
designed to assist both owner-occupants and renters who are lower-income (typically,
elderly or disabled). The purpose of the program is to cover the service gap that exists
for eligible participants who need repairs but provision of a loan is not feasible or cost-
effective. Landlords who participate in the program are obligated to match the grant
amount with private dollars and are limited to handicapped accessibility improvements
only. Program recipients (either homeowners or tenants) must meet the applicable
definitions of "low income" or "disabled" as detailed in Section 2 of this policy. Eligible
repairs may include basic repairs of plumbing, electrical, flooring, mechanical and
installation of grab bars. Other repairs necessary to provide handicapped accessibility or
eliminate critical health/safety problems may also be included.
SECT/ON 11 - EL/G/BLE AREAS
To�be�`eligible for a�C�ty�of Redding ,Hous�ng,Rehabilitat�on Loan, a pro�ect�`must be with�n
. _... ,. . .�..,.._. _. . �.....�.
Redding city limits in�areas;that a;re zoned residential.
SECT/ON 12 - DEFAULT, FORECLOSURE AND PROPERTY D/SPOS/T/ON POL/CY
A. DEFAULT. If a borrower breaches or violates any provision of (1) the loan agreement, (2)
the promissory note, (3) the deed of trust, (4) any other agreement pertaining to the loan,
or (5) applicable program regulations, the City��-a�r s.h;all, give written notice to the
borrower to cure the breach or violation within a period of not less than 30 days from
such notice. If the breach or violation is not cured to the satisfaction of the department
within the specified time period, the City, at its option, may declare a default under the
relevant document and seek legal remedies for the default which include the following:
1 . The City may accelerate all amounts due under the prescribed loan, including
outstanding principal and interest, and demand immediate repayment. Upon a failure
to repay such accelerated amount in full, the City ma.y proceed with foreclosure in
accordance with the provision of the deed of trust;
2. The City may seek such other remedies, with Housing Loan Committee approval, as
may be available under the relevant program agreement and the law. Possible
.. ... ... ..... ...... .... .. .. ... .. ... ... ...
� � � � •
, C/TY OF REDD/NG REHAB/L/TAT/ON POL/CY Page 21
4. I# a senior lienholder files a Notice of Default on a property with a subordinate City
loan, staff may consider reinstating the senior lien to forestall a foreclosure action by
the senior lienholder. This action shall only be initiated when it is determined to be
in the City's best interest and upon Housing Loan Committee approval. In such
cases, the City may subsequently record a Notice of Default against the property on
its behalf, and pursue foreclosure. If staff determines it is in the City's best interest
to let the senior lienholder's foreclosure proceed, staff shall then determine whether
the City should bid at the trustee's sale to protect the City's investment or let the
trustee's sale proceed without City participation. Staff shall bid at the trustee's sale
only upon Housing Loan Committee direction and approval of a pre-established
amount.
C. PROPERTY DISPOSITION. When a property is acquired as authorized above, staff shall
consider if it is advisable to transfer the property to Housing Authority ownership as an
affordable housing resource, or to transfer ownership to a local, non-profit housing
organization with restrictions that would achieve an affordable housing objective, or if
neither action is advisable. To qualify as an affordable housing resource, at least 20
percent of the units in an acquired structure shall rent at levels affordable to household
earning no more than 50 percent of the area-wide median income; the remaining units
shall rent at levels affordable to households earning 60 percent or less of the area-wide
median income. Actual rents to be charged shall be those which are published from time
to time by the U.S. Department of Housing and Urban Development's HOME Investment
Partnerships Program.
1. If staff and the Housing Loan Committee concur that it is not advisable to utilize the
property as an affordable housing resource, the following procedures shall be#e+�e�rvee�
initiafed to sell the acquired property.
A notice indicating the City's intent to sell the property shall be mailed to all non-
profit corporations on the Housing Division's mailing list. The notice shall include the
terms and conditions of the sale, including the rent restrictions, and shall indicate a
date and place for the submittal of sealed bids. Concurrently, a public notice shall be
published indicating the City's intent to sell the property. Terms and conditions may
vary, dependent upon the specific circumstances surrounding a particular property.
All property shall be offered for sale on an "as is" basis as permitted by state law.
Staff may accept an offer to purchase, subject to approval of the Housing Loan
Committee, or it may reject all bids if deemed in the best interest of the City to do so.
2. In the event no bid or no acceptable bid is received after a public notice has been
published for fourteen (14) days, staff shall list the property for sale with a licensed,
residential real estate broker in the immediate vicinity of the property. The listing
shall require the broker to list the property with the Multiple Listing Service.
3. If a senior lienholder files a Notice of Default on a mobile home which has a
subordinate City Housing loan, or if a mobile home park owner places a lien against
a mobile home encumbered by a City Housing loan, staff shall analyze the potential
loss to the City and determine whether to bid or not to bid at the senior lienholder's
trustee's sale or the mobile home park owner's auction. Staff's decision to bid or not
to bid shall be based upon the feasibility of recouping the City's loss through
acquisition and resale of the mobile home and upon Housing Loan Committee's
approval.
� •
.;,.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING IMPLEMENTATION OF AMENDMENTS TO
THE HOUSING REHABILITATION LOAN POLICY
ADOPTED BY CITY COUNCIL RESOLUTION NO. 75-86
WHEREAS, the City of Redding has previously adopted a Rehabilitation Loan
Policy by City Council action; and
WHEREAS, the City Council deems it to be in the best interest of the citizens
of the City of Redding that the aforementioned policy be further amended as set forth
in Exhibit "A" attached hereto; and
WHEREAS, it has been determined that this matter is categorically exempt
from the provisions of CEQA.
NOW, THEREFORE, BE IT RESOLVED that the amendments to the Housing
Rehabilitation Loan Policy, attached hereto as Exhibit "A", is hereby approved and
adopted.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at a
regular meeting of the City Council of the City of Redding on May 7, 1996, and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: '
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
DAVID L. McGEORGE, Mayor
City of Redding
ATTEST:
CONNIE STROHMAYER, City Clerk
FORM APPROVED:
W. LEONARD WINGATE, City Attorney a:\reso.4-7