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Home My WebLink AboutReso 95-045 - Approve & Adopt the 47th amendment to city budget reso 94-199 appropriating $ for Southeast Asian Community Awareness Program - RESOLUTION NO. 175-45 A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 47TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 94-199 (1) APPROPRIATING $23,620 FOR A SOUTHEAST ASIAN COMMUNITY AWARENESS PROGRAM AND (2) AUTHORIZING THE RECEIPT OF $10,000 IN REVENUE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING: THAT Budget Resolution No. 94-199 be and is hereby amended as follows: FUND DIVISION DESCRIPTION INCREASE DECREASE 111 427 Non-Departmental $ 5,000 121 730 Convention and Visitors Bureau 18,620 THAT account titles and numbers requiring adjustment by this Resolution are as follows: SOURCE USE OF FUNDS OF FUNDS Decrease Fund Balance General Fund A/C No. 111-000-00-0000 Unappropriated Fund Balance $ 5,000 Increase Revenue A/C No. 121-730-07-2010 Contribution - Anonymous 10,000 A/C No. 121-730-05-5041 Transfer from General Fund 8,620 Increase Appropriations Non-Departmental A/C No. 111-427-00-5784 Citizen Information System $ 5,000 Convention and Visitors Bureau A/C No. 121-730-00-4697 Southeast Asian Community Awareness Program 18,620 23 620 L12,620 THAT the purpose is to (1) appropriate $23,620 for a Southeast Asian Community Awareness program and (2) authorize the receipt of $10,000 in revenue. 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 the 21 st day of February , 19 95 , and was duly adopted at said meeting by the following vote: AYE: COUNCIL MEMBERS: P. Anderson, Kehoe, McGeorge, Murray and R. Anderson NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None �wJ X) OBERT C. ANDERSON, Mayor G� i ATTEST: FORM APPROVAL:41 (A AIA f� CONNIE STR HMAYER, ity Jerk DOUGLAS ALKINS, Interim City Attorney RESOLUTION NO. r A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AUTHORIZING IMPLEMENTATION OF AMENDMENTS TO THE REHABILITATION LOAN POLICY AND MOBILEHOME REPAIR PROGRAM POLICY ADOPTED BY CITY COUNCIL RESOLUTION NOS. 75-86 AND 92-343 WHEREAS, the City of Redding has previously adopted a Rehabilitation Loan Policy and Mobilehome Repair Program 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 Exhibits "A" and "B," 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 Rehabilitation Loan Policy and the Mobilehome Repair Program Policy, attached hereto as Exhibits "A" and "B," are hereby approved and adopted. HEREBY CERTIFY that the foregoing resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 21st day of Fe ruciry 1995, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: P. Anderson, Kehoe, McGeorge, Murray and R. Anderson- NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None or C. BERT C. ANDERSON, Mayor City of Redding ATTEST: �� 6t CONNIE ST OHMAYE , City Clerk FORM APPROVED: DOUGLA,S H. CALKINS, Interim City Attorney dAamend95.cc 1 CITY OF REDDING REHABILITATION LOAN POLICY Prepared by Department of Planning and Community Development Housing Division Adopted by Resolution No. 75-86 Effective September 2, 1975 Amended February 1994 EXHIBIT "A" CITY OF REDDING REHABILITATION LOAN POLICY TABLE OF CONTENTS Page No. SECTIONI - INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 SECTION 2 - DEFINITION OF TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SECTION 3 - GENERAL ELIGIBILITY REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . 4 A. Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 B. Owner Occupant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 C. Income/Housing Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 D. Determination of Adjusted Gross Income . . . . . . . . . . . . . . . . . . . . . . . 5 E. Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 F. Housing Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 G. Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 H. Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 I. Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 J. Assurance of Completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 K. Water and Sewer Connection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 SECTION 4 - DESCRIPTION OF LOAN PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 A. Amortized Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 B. HOME Investment Partnerships Program Loans . . . . . . . . . . . . . . . . . . . 8 C. Partially-Deferred Payment Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 D. Deferred Payment Loans for Elderly and Disabled . . . . . . . . . . . . . . . . 10 E. Water and Sewer Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 F. Deferred Payment Loans, Non-Profit Corporations . .. . . . . . . . . . . . . . . . 12 SECTION 5 - ELIGIBLE COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 A. Code and Rehabilitation Requirements . . . . . . . . . . . . . . . . . . . . . . . . 13 B. Limited Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 C. Cost-Effective Energy Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 D. Historic Preservation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 E. Rehabilitation Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 F. Building Permits and Related Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 D. Certain Related Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 SECTION 6 - INELIGIBLE COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 SECTION 7 - PROCESSING A LOAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 SECTION 8 - COMPLETING A HOME REHABILITATION . . . . . . . . . . . . . . . . . . . . . . . 17 SECTION 9 - GENERAL CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 SECTION 10 - SPECIAL PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 SECTION 11 - ELIGIBLE AREAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 - i - City of Redding Rehabilitation Loan Policy Page - 1 - SECTION 1 - INTRODUCTION The City of Redding has been allocated funds to develop and implement a community development program pursuant to the Housing and Community Development Act of 1974. In 1975, the number one priority set by the Citizens Committee of the Community Development Advisory Board was the estab- lishment of a home rehabilitation program. The following program has been designed to provide: (1)low-interest loans to low-and moderate-income homeowners; (2)loans to investor/owners who agree to participate in the HOME Investment Partnerships Program; and, (3) loans to non-profit corporations for transitional or permanent housing facilities. Loans of up to $32,000 for homeowners, $62,596 for investor/owners participating in the HOME Investment Partnerships Program, and $10,000 per unit to non-profit corporations are available to correct housing deficiencies. The program will promote housing opportunities for low- and moderate-income families by means of loans which will be provided to homeowners who would not otherwise be eligible for conventional home repair loans. Special consideration will be given to families on fixed incomes, particularly the elderly and disabled. The program will offer four types of loans: A. Amortized Loan: A low-interest loan amortized monthly over a period not to exceed 10 years for homeowners. B. 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 Investment Partnerships, whichever is less. C. 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 the borrower be permitted to defer more than 90 percent of the total loan. D. 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. E. Deferred Pavment Loan - Non-Profit Corporations: A low-interest loan carrying a term not to exceed 20 years and repaid according to the following schedule. 1. Year 0 - 5 Interest and principal deferred; 2. Year 6 - 10 Annual payment of accrued interest required; 3. Year 11 - 20 Remaining balance and any accrued interest amortized for 10 years; Monthly payments of principal and interest required. As loans are repaid, the money will be returned to the loan account, creating a revolving pool of money available for future applicants. With judicious qualifying of applicants and careful monitoring of outstanding loans, the original fund will be replenished continually and more families will benefit from the original account. It is hoped this program will be a useful tool in helping to maintain and upgrade the housing stock within the City of Redding; and in particular, will help stabilize and enhance various neighborhoods. It is also hoped the program will be liberal enough in scope and terms to help families and individuals of low City of Redding Rehabilitation Loan Policy Page - 2 - income, yet be conservative enough to ensure the security of the investment and 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. SECTION 2 - DEFINITION OF TERMS The following definitions shall apply to this document unless another meaning is clearly apparent from the context: ADJUSTED GROSS ANNUAL INCOME shall mean the applicant's gross income less allowable exclusions. AMORTIZED LOAN shall mean a loan liquidated on an installment basis. ASSETS shall mean the entire property of all sorts belonging to an applicant. BORROWER shall mean the recipient of a rehabilitation loan. THE "CITY" shall mean the City of Redding, California, Department of Planning and Community Development. CITY COUNCIL shall mean the City Council of the City of Redding. CODE VIOLATIONS shall mean infractions against the applicable codes contained in the Housing Rehabilitation Standards. CONSTRUCTION LOAN shall mean a loan which has no monthly payment and bears interest and is liquidated within 60 days following the end of the construction period. CREDIT shall mean financial or commercial trustworthiness, as determined by the applicant's previous performance of the payment of debts. DEED OF TRUST shall mean a deed given by borrower to trustee to be held pending fulfillment of an obligation, which is ordinarily repayment of a loan to a beneficiary. DEFERRED PAYMENT LOAN shall mean a loan which is not liquidated on an installment basis. DESIGNATED NEIGHBORHOODS shall mean those neighborhoods designated by the City Council of the City of Redding for rehabilitation assistance. DISABLED shall mean incapacitated by illness or injury, according to criteria established by the Social Security Administration, that substantially limits activity. EMERGENCY REPAIRS shall address those conditions which pose a serious and immediate health and/or safety threat to the inhabitants of a dwelling. These conditions shall include either hazardous City of Redding Rehabilitation Loan Policy Page - 3 - wiring, plumbing, mechanical, structural or sanitation problems as detailed in Chapter 10 of the current Uniform Housing Code. EQUITY shall mean the value of a property in excess of claims or liens against it. FAMILY shall mean all individuals who reside in a dwelling unit related by blood, marriage, or kinship. FAMILY INCOME shall mean adjusted gross income. GENERAL PROPERTY IMPROVEMENTS shall mean improvements other than code violations and incipient code violations which are eligible for rehabilitation loan 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. 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. 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 makes property security for the payment of a debt or discharge of an obligation. Example: judgments, taxes, mortgages, deeds of trust. LOAN COMMITTEE shall mean a committee consisting of three members of the City Staff, derived from the 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 Loan Committee shall be charged with approving or disapproving loan applications consistent with the policies of the City of Redding. City of Redding Rehabilitation Loan Policy Page - 4 - LOW INCOME shall mean those incomes which do not exceed 80 percent of the median income as established by the Department of Housing and Urban Development MONTHLY HOUSING EXPENSES shall mean those expenses allowable as legitimate housing expenses. MORTGAGE shall mean an instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation; the procedure for foreclosure in event of default is established by statute. NON-PROFIT CORPORATION shall mean a non-profit public benefit corporation organized under the Non-Profit Public Benefit Corporation Law for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. OWNER OCCUPANT shall mean an individual or family who occupies and owns or is buying a unit of residential property. PROPERTY REHABILITATION STANDARDS shall mean that document of the same title, identifying City codes applicable to residential rehabilitation and other environmental deficiencies to be corrected during the rehabilitation process not identified in City codes. REHABILITATION COST shall mean the total cost of repairs and improvements and other costs for rehabilitation to be incurred by the applicant that are eligible for inclusion in a rehabilitation loan. SECTION 8 MODERATE REHABILITATION PROGRAM shall mean that program which is designed to provide a rent subsidy for an eligible tenant residing in a unit which has been rehabilitated according to Section 8 Moderate Rehabilitation guidelines. TITLE I, COMMUNITY DEVELOPMENT shall mean that portion of the Housing and Community Development Act of 1974 which provides for general improvements in the community and particularly for home rehabilitation. TITLE II,SECTION 8 shall mean that portion of the Housing and Community Development Act of 1974 which states that housing assistance payments may be made for new and substantially rehabilitated housing. In this policy handbook, Section 8 Income Guidelines are used. TRANSITIONAL HOUSING FACILITY shall mean residential units which are occupied for a specified length of time under a written contract while independent living skills are learned. UTILITIES shall mean gas, electricity, water, sewage disposal and refuse collection. VERY LOW INCOME shall mean those incomes which do not exceed 50 percent of the median income as established by the Department of Housing and Urban Development. SECTION 3 - GENERAL ELIGIBILITY REQUIREMENTS A. Location: Rehabilitation loans will be made only in neighborhoods designated by the City Council, to correct code violations, and to make general improvements in the dwelling unit as defined in the Housing Rehabilitation Standards. City of Redding Rehabilitation Loan Policy Page - S - B. Owner Occupant/Investor Owner: To be eligible for a rehabilitation loan, the applicant must be included in one of the following categories: 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 land contract is held by the State of California Department of Veteran Affairs. One or more of the applicants must reside in such home. 2. Investor Owner. The applicant must be an individual (or individuals) or family who owns or is buying a unit(s) for the purpose of renting as residential property. Income eligibility requirements as identified in Items C & D 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, individual programs require the following: a. HOME - the owner(s) of such unit(s) must agree to participate in the Section 8 HOME Investment Partnerships Program and abide by all contracts and program regulations. C. Income/Housing Expenses: The applicant must meet both of the following conditions: 1. Household adjusted annual gross income must be less than the following amounts (NOTE: Income guidelines of Section 8, Title 2 of the Housing Act of 1974, as most recently published by the Department of Housing and Community Development): 1 person $19,150 2 persons $21,900 3 persons $24,600 4 persons $27,350 5 persons $29,550 6 persons $31,750 7 persons $33,950 8 or more $36,100 2. The ratio of housing expense to adjusted gross income shall be not more than 25 percent, except for applicants that qualify otherwise 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 specific exceptions set forth hereinafter. 1. The 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. V City of Redding Rehabilitation Loan Policy Page - 6 - c. A full-time student under age 22. 2. The annual amounts paid for child support will be excluded from gross annual income provided that: a. The child support is required by court order. b. The child support payments required must be paid and received regularly. 3. Foster care payments. 4. Relocation payments made pursuant to Title II of the Federal Uniform Relocation and Real Property Assistance Policies Act of 1970. 5. Payments under the G.I. Bill. 6. $300 for each dependent child. E. Use: A rehabilitation loan shall be used to correct code violations and to make general improvements to the dwelling unit as defined in the Housing Rehabilitation Standards and Section 5 of this policy. That portion of an Amortized Rehabilitation Loan used for General Property Improvement, as specified in Section 5B, shall not exceed 40 percent of that total loan. F. Housing Expense: To determine the ratio set forth in C2 above, the following expenses shall be included in housing expense: 1. Mortgage payments, including principal and interest. 2. Mortgage insurance premium. 3. Service charges. 4. Hazard insurance. 5. Real estate taxes and special assessments. 6. Maintenance and repairs. 7. Utilities G. Credit: A rehabilitation loan will be approved only if the applicant's credit record does not show substantial disregard for former or existing obligations. H. Equity: The applicant must have not less than a 10 percent equity in the property being rehabilitated. a a City of Redding Rehabilitation Loan Policy Page - 7- I. Assets: In order to qualify for a rehabilitation loan, the applicant must not be able to accomplish rehabilitation through conventional financing or use of his or her own assets as determined by the Loan Committee. J. Assurance of Completion: In some cases, the rehabilitation costs may exceed the amount of a rehabilitation loan. In such instances a rehabilitation loan will not be made unless the applicant can provide whatever additional amount is needed to assure completion of the work so that the property will at least meet minimum city codes on the portions which are to be rehabilitated. If the owner is to provide funds in addition to the rehabilitation loan amount to complete the total rehabilitation, satisfactory evidence of such funds must be presented to the City of Redding before 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. SECTION 4 - DESCRIPTION OF LOAN PROGRAMS A. Amortized Loans: 1. Puryose. The purpose of an Amortized Rehabilitation Loan is to pay the costs of rehabilitation in those cases where applicant's income is adequate to meet the increased monthly housing expense of a rehabilitation loan payment. 2. Eligibility. In order to qualify for an Amortized Rehabilitation Loan, the applicant must meet all general eligibility requirements. 3. Ability to Repay. The applicant's total indebtedness should not exceed three times the applicant's gross yearly income, and 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. $23,000 for homeowners and $31,624.00 to $62,596.00 per unit (depending on bedroom size) for investor/owners under the HOME Investment Partnerships Program. c. The loan amount may be increased up to a maximum of$32,000 on homeowner loans in those cases where the cost to repair the code violations exceed the $23,000 loan limit. These loans are for code items and do not include general property improvements. d. 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. e. These limits also apply to the Partially-Deferred Payment Loans and Deferred Payment Loans for Elderly and/or Disabled. City of Redding Rehabilitation Loan Policy Page - 8 - 5. Repayment: a. Homeowner: A rehabilitation loan shall be repaid. However, the borrower shall not be required to pay housing expenses including rehabilitation loan payments in excess of 25 percent of family income. If not repaid earlier, the loan shall become due and payable at the time of a property transfer, or at the end of the loan term, whichever first occurs. b. Investor/Owner: A rehabilitation loan will become due and payable at the end of the loan term or when the HOME Investment Partnerships Program Contract is terminated. The loan may be assumed provided that the applicable contract remains in effect. 6. Terms and Conditions: a. Homeowner: A rehabilitation loan shall be amortized for not more than 15 years and shall bear interest at two(2%)per-eew above ekiffent pFifae r-me as indiemed by the U.S. Feder-&! ReseFye Beate five percent (5%) simple interest. b. Investor/Owner-HOME Investment Partnerships Program: A rehabilitation loan shall be amortized for not more than 15 years and shall bear interest at a maximum of 5 percent and a minimum of 3 percent simple interest(interest rate is determined by needs of project and/or term of affordability of units). c. A rehabilitation 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 which secures the loan supplied to the City for the value of the property at the time of approval of the loan. 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. The City shall obtain annual verification of paid taxes and effective fire insurance. f. Installments shall be due monthly. g. The loan may be prepaid in whole or in part at any time without prepayment penalty. B. HOME Investment Partnerships Program Loans: 1. Purpose. The purpose of a HOME Program Loan is to assist the participating owner-investor with financing on the acquisition or rehabilitation of rental property for low-income tenants. 2. Eli ib�. In order to qualify for a HOME Program Loan, the, applicant must be in the process of acquiring a property in need of rehabilitation or have site control of the property in need of rehabilitation; and must demonstrate the ability and financial capacity to secure, manage, and maintain the property upon completion of the rehabilitation. A minimum of 10 percent in cash of the cost of rehabilitation work must also be provided by the borrower. City of Redding Rehabilitation Loan Policy Page - 9 - 3. Ability to Repay. The applicant must demonstrate the property's ability to have 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 $31,624 1-Bedroom $36,250 2-Bedroom $44,081 3-Bedroom $57,025 4-Bedroom + $62,596 5. Loan-to-Value Ratio: a. The loan-to-value ratio of a project having less than 12 units shall not exceed 90 percent. b. The loan-to-value ratio for projects having more than 12 units cannot exceed 80 percent of the completed 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 5 percent simple interest; the minimum rate shall be 3 percent. (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 which secures the loan supplied by the City for the value of the property at the time of approval of the loan. e. The borrower shall maintain current payments on fire insurance. The minimum amount of fire insurance must cover all trust deeds on the property. The borrower shall meet all HOME program conditions including, but not limited to affordability and occupancy. C. Partially-Deferred Payment Loans: 1. Certification. An applicant for an Amortized Loan may have a portion of his or her monthly loan payment deferred. If housing expenses including the loan payments exceed 25 percent of tT; � e City of Redding Rehabilitation Loan Policy Page - 10 - gross income, the amount of the loan which causes this excess shall be considered a Deferred Payment Loan, but in no event shall the borrower be permitted to defer more than 90 percent of such loan. 2. Purpose. The purpose of a Partially-Deferred Payment Loan is to make possible the rehabilitation of the property and improvements of the neighborhood in those situations where the applicant cannot qualify for an Amortized Loan. 3. Repayment. A Partially-Deferred Payment loan shall be repaid. The non-amortized portion of the loan shall fall due and become payable upon transfer of title to the property securing the loan. 4. Conversion. When the borrower's circumstance is substantially changed, at the borrower's option, the loan may be converted to a straight Amortized Loan. 5. Terms and Conditions: a. The entire amount of a Partially-Deferred Payment Loan shall become due and payable if the borrower sells the property, or when title is transferred. b. A Partially-Deferred Payment Loan shall be secured by a note and a deed of trust on the property. c. There shall be a title insurance policy on the property which secured the loan supplied to the City. d. 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 obtain annual verification of paid taxes and effective fire insurance. e. This loan shall bear interest at the eeffent prime we as indieated by the U.S. Fed ReseF#ze-Beam three percent (3%) simple interest. D. Deferred Payment Loans For Elderly and/or Disabled: 1. Purpose. The purpose of a Deferred Payment Rehabilitation Loan for the Elderly and/or Disabled is to pay the costs of rehabilitation without increasing current monthly housing expenses of those families on fixed incomes, particularly the elderly and disabled. 2. Eligibility._ To qualify for a Deferred Payment Loan for the Elderly and/or Disabled, the applicant must meet all of the general eligibility requirements, except his or her monthly housing expense need not exceed 25 percent of gross income, and the applicant must meet one of the following requirements: 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 the lesser of: f City of Redding Rehabilitation Loan Policy Page - 11 - a. The actual (and approved) cost of all necessary repairs, eligible improvements, and allowable loan costs. b. A maximum of $23,000. C. The loan amount may be increased up to a maximum of$32,000 on loans in those cases where the cost to repair the code violations exceed the $23,000 loan limit. These loans are for code items only and shall not include general property improvements. 4. Repayment. If not repaid earlier, the loan shall become due and payable at the time of a property transfer, death of owner(s), or at a date specified in the loan documents, whichever first occurs. 5. Terms and Conditions: a. The entire amount of a Deferred Payment Loan for the Elderly and/or Disabled shall be secured by a note and a deed of trust on the property. b. There shall be a title insurance policy supplied to the City on the property which secures the loan. 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 obtain annual verification of paid taxes and effective fire insurance. d. This loan shall bear interest at the suFfeat p6me Fate as indieated by the U.S. Fed ReseFve-Beathree percent (3%) simple interest. E. Water and Sewer Loans: 1. Purpose. The purpose of a Water and Sewer Loan is to pay the water and sewer hook-up, whether or not the applicant is applying for a rehabilitation loan. 2. Eligibility. 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 of 15 years for those applicants meeting the eligibility requirements for Amortized Loans defined in Section 4A. Installments shall be due monthly. or City of Redding Rehabilitation Loan Policy Page - 12 - (2) A loan term that will be due and payable upon transfer of title to the property securing the loan for those applicants meeting the eligibility requirements for deferred-payment loans defined in Section 4C. b. A Water and Sewer Loan shall be secured by a note and a deed of trust on the property in the amount of the loan. c. The loan may be prepaid in whole or in part at any time without prepayment penalty. In consideration of the minimal amount of the loan for water and sewer connection, it will not be necessary to secure termite inspection reports, appraisals, credit reports, a title search and title insurance, or evidence of insurance. It will be required that staff document the owner's equity in the property and verify mortgage balances on the property. F. Deferred Payment Loans - Non-Profit Corporations: 1. Purpose. The purpose of a Deferred Payment Loan to a Non-Profit Corporation is to assist with the cost of the rehabilitation of residential units to be occupied at an affordable rate by lower-income households on a transitional or permanent basis. 2. Eli ibg ility. In order to qualify for a Deferred Payment Loan, the applicant must be a non-profit corporation which owns or is buying residential units for the purpose of establishing a transitional housing facility or for renting as permanent residential units. All residents of the transitional housing facility units or permanent residential units assisted under this program must meet HUD lower-income requirements, as stated in Section 3C1 of this Policy. The rents charged plus any required utility payments must not exceed 30 percent of the gross monthly income of the resident household . 3. Amount. Non-profits shall not exceed: (1) the actual (and approved) cost of repairs and improvements; or (2) $10,000 per assisted unit, whichever is less. The maximum number of assisted units per project will be determined according to the following formula: Projects of 1 - 6 units: 100% of the units Projects of 7 - 20 units: 50% of the units Projects of 21 + units: 25% of the units 4. Terms and Conditions: a. The full amount of a Deferred Payment Loan under this section shall be secured by a note and a deed of trust recorded on the property. b. The loan shall be for a term not to exceed 20 years and shall bear interest at the rate of three percent (3%) simple interest per year. Repayment of loans under this section shall be according to the following schedule: City of Redding Rehabilitation Loan Policy Page - 13 - (1) Year 0 - 5 Principal and interest payments deferred; (2) Year 6 - 10 Annual payment of accrued interest required; (3) Year 11 - 20 Remaining loan balance plus accrued interest, if any, to be amortized; Monthly payments of principal plus interest required. c. The entire amount of the loan may be repaid early without any penalties. d. The entire amount of a Deferred Payment 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 policy of title insurance issued to the City at the time of loan closing securing the City for the full amount of the loan. f. The borrower shall maintain current payments on all liens, property taxes, and fire insurance on the property. The minimum of amount of fire insurance must coverall trust deeds on the property. The borrower shall provide annual verification of paid taxes and fire insurance coverage. g. The deed of trust securing the Deferred Payment Loan under this section shall be recorded in the first or primary position on the subject property. A subordinate position is acceptable only if sufficient equity exists above the principal balances on all trust deeds superior to the City loan to cover the full amount of the City loan with 10 percent equity unencumbered. SECTION 5 - ELIGIBLE COSTS A. Code and Rehabilitation Requirements: A rehabilitation loan shall be made to cover the cost of rehabilitation necessary to make the dwelling conform to Property Rehabilitation Standards. Rehabilitation activities for those units to be leased under the Section 8 Moderate Rehabilitation Program shall be in accordance with Property Rehabilitation Standards subject to limitations of the Section 8 Moderate Rehabilitation Program Regulations and Section 6. It shall correct hazards to health and safety, halt deterioration of the structure, and correct incipient code violations. After rehabilitation, the property shall, as a minimum, be a safe and habitable dwelling. B. Limited Assistance. In special cases where it is not feasible to perform all necessary repairs due to financial limitations of the applicant or overall cost of recommended repairs, the minimum repairs required shall include those repairs necessary to bring the structure into conformance with HUD Section 8 Housing Quality Standards(HQS). In no case shall a limited assistance loan include more repairs than necessary to meet HQS unless approved by the Loan Committee. C. Cost Effective Energy Standards. All properties being rehabilitated must meet Cost Effective Energy Standards (as set forth in 24 CFR Part 39). The Cost Effective Energy Standards set forth energy conservation and efficiency standards which must be met, as long as the modifications are financially feasible and do not require work on elements that would not ordinarily become exposed during the rehabilitation. The cost associated with meeting these standards may be included in a rehabilitation loan. City of Redding Rehabilitation Loan Policy Page - 14 - D. Historic Preservation Standards. For all properties being rehabilitated, it shall be ascertained if the property is on the State Historic Places Register, National Register of Historic Places, or eligible for inclusion on the National Register of Historic Places. If so, the rehabilitation must be done in accordance with the standards set by the State or U.S. Secretary of the Interior as applicable. The rehabilitation costs associated with meeting these standards may be included in the rehabilitation loan. E. Rehabilitation Objectives: In addition to compliance with code and rehabilitation requirements set forth in the Property Rehabilitation Standards of the City of Redding, certain objectives are encouraged. Objectives are not mandatory provisions, they have been included as desirable improvements to properties. After the property has been rehabilitated to conform with the Property Rehabilitation Standards, additional loan money not to exceed 40 percent of the total loan may be used for the following General Property Improvements: 1. Walks and steps should be provided for all-weather access to the building and constructed so as to provide safety, reasonable durability, and economy of maintenance. Where needed, driveways, garage floors, or vehicle parking areas shall have asphalt, concrete, or compacted (aggregate) surfaces presenting level, unbroken planes, free from ruts, mud holes or obstructions of any kind. 2. Exterior doors should have safe locks. 3. Each living unit should have a minimum of eight linear feet of kitchen work-counter space including the sink. Minimum areas of kitchen storage should be: a. Total shelving in wall and base cabinets, 20 square feet. b. Drawer area, two square feet. c. All one-bedroom and efficiency units should have not less than one-half of the above requirements. 4. Each dwelling unit should have at least 100 cubic feet of enclosed general storage on the property. All bedrooms should have closet space that is either a built-in or portable enclosure ensuring adequate private clothes storage for occupants. Closets should provide a minimum of four square feet of area per bedroom, not less than two feet deep, and, if not contained within the bedroom, should be reasonably accessible to it. 5. Each habitable room should have three or four supplied convenience wall outlets and one supplied electric light fixture. Each bathroom should have one supplied convenience outlet and one supplied electric light fixture. 6. The topmost ceilings of all dwellings should be provided with a minimum of four inches of fire- resistant insulation. The sidewalls and open attic spaces of boxed-in attic rooms should also be provided with fire-resistant insulation. 7. Facilities for the handicapped should be provided as necessary. These include ramps, railings, supports, locksets and doors, and larger door openings as appropriate for the safety and convenience of such persons. City of Redding Rehabilitation Loan Policy Page - 15 - 8. Drain tiling should be provided to public streets; alleys, or storm sewers. 9. To improve the visual quality of the neighborhood environment, landscaping of a similar quality and quantity to the rest of the neighborhood should be provided. 10. Floors in kitchens and bathrooms should be of durable, waterproof, non-absorptive materials, such as asphalt, vinyl asbestos, vinyl plastic, rubber or ceramic tile, or linoleum. Wood finish flooring should not be used in these rooms. 11. Walls and ceilings should be painted, papered, or have other appropriately finished surface. Kitchens and bathrooms should be painted or papered to provide a waterproof and washable finish surface. 12. A room addition may be built, altered, or improved in special cases where the absence poses a serious hardship for the family. 13. Minor remodeling may be done in order to make a dwelling more functional or attractive. 14. An adequate cooling system should be provided for each dwelling to an extent deemed appropriate by the City. 15. Insect screens for windows and screen doors may be provided. 16. Each dwelling should be provided with adequate electrical service where existing electrical service is inadequate. 17. The repair/replacement or new installation of free-standing stove appliances,garbage disposals, refrigerators, and dishwashers may be provided if compliance with HUD regulations are met. 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. Termite inspection report. B City of Redding Rehabilitation Loan Policy Page - 16 - 8. Other fees as may be required. The City will advance funds as necessary for 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. H. Refinancing: A rehabilitation loan may include the refinancing of secured, existing debt on a single- family, owner-occupied unit when lending HOME program funds to rehabilitate the unit, if overall housing costs of the borrower will be reduced and made more affordable. SECTION 6 - INELIGIBLE COSTS The following costs are not eligible costs for a rehabilitation loan: A. New construction, substantial reconstruction, expansion of the structure, or the finishing of unfinished spaces unless otherwise stated in this text. B. Materials, fixtures, equipment or landscaping of a type and quality which exceeds adequate service or that is not customarily used for properties of the same general type. C. Acquisition of land. D. Purchase, installation or repair of furnishings or trade fixtures. E. Appliances including refrigerators. F. Credit reports. G. Refinancing the existing debt on property excluding back taxes. (CDBG only) SECTION 7 - PROCESSING A LOAN The following offers a brief outline of the steps necessary to process a loan. It is not intended to detail all the mechanics of the process: A. Interview applicant and determine basic eligibility. B. Perform on-site inspection of property. C. Prepare work write-up and cost estimate based on property inspection. D. Obtain.credit check, verifications and appraisal (if needed). E. Obtain staff Loan Committee approval or denial. F. Prepare all applicable loan documents, perform loan closing and arrange for disbursement of loan proceeds. City of Redding Rehabilitation Loan Policy Page - 17- G. The loan applicant will be informed in writing if a loan application is turned down. The applicant may correct or exhibit a valid explanation of these disqualifications and resubmit the application. Upon resubmission, the application will be re-evaluated by the staff Loan Committee. r. l _ City of Redding Rehabilitation Loan Policy Page - 18 - SECTION 8 - COMPLETING A HOME REHABILITATION Once a loan has been processed and approved, the following activities will take place. Again, this is not intended to detail the process of completing a home rehabilitation, it 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 (self-help, contractor, Self-Help Home Improvement Project or combination) and prepare contracts with family and contractor or other. 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 and record documents required to cancel note and deed of trust. SECTION 9 - GENERAL CONDITIONS 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 11246 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 by the City or its designee of the property, the rehabilitation work and all contract materials, equipment, payrolls and conditions of employment pertaining to the work. 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. .J o • City of Redding Rehabilitation Loan Policy Page - 19 - Maximum Term: The maximum terms for a rehabilitation loan shall be fifteen years. Loans may be repaid in full at any time without any penalties. Maximum Term - Deferred Payment Loans to Non-Profit Corporations: The maximum terms for a rehabilitation loan to a non-profit agency shall be twenty years. Loans may be repaid in full at any time without any penalties. Conflict of Interest: The general rule is that no person who is an employee, agent, consultant, officer, or elected (or appointed) official who exercise or have exercised any functions or responsibilities with respect to City Housing program activities, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from a City Housing activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. Loan Subordinations: Subordination of a City Rehabilitation Loan may be approved by the Housing Loan Committee if the new fust mortgage does not exceed the balance remaining on the original first mortgage, plus reasonable costs related to the financing; if the equity position of the loan is not decreased; and if the borrower is not receiving cash out of the transaction. The monthly financial savings must be a substantial amount in order to justify approval. If the current market value of the home indicates that there is sufficient equity to pay off the City loan when refinancing a superior loan, and if the borrower's subsequent housing expense is not increased beyond program guidelines, then the subordination request shall be denied. Special consideration may be given to families experiencing undue hardship or that have had a drastic change in circumstances which necessitate certain financial adjustments. The Housing Loan Committee may take appropriate action under these circumstances subject to protection of the City's interest. SECTION 10 - SPECIAL PROGRAMS A. Loans to Eliminate Serious Health and Safety Hazards: The Housing Loan Committee may approve loans in areas other than the designated neighborhood strategy areas in those cases where it is determined that a serious health or safety hazard exists. B. Relocation Grants and Advisory Services: Relocation grants and advisory services shall be provided to individuals or families who must move from their dwelling during the course of rehabilitation under the City of Redding Loan program or the HOME Investment Partnerships program. These services shall consist of: 1. Actual moving and storage costs. 2. Actual rent and deposits for temporary replacement housing. 3. Relocation advisory service. City of Redding Rehabilitation Loan Policy Page - 20 - All requests for relocation payments shall be reviewed and approved or denied by the Loan Committee at the time the rehabilitation loan or grant is considered by the Committee. Rental projects must be in compliance with regulations of the Tenant Assistance Policy under the Rental Rehabilitation Grant program. C. Emergency Deferred Loans: Deferred loans will be made available in designated rehabilitation loan areas to those persons who are unable to make a monthly loan payment but 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, 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. 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. SECTION 11 - ELIGIBLE AREAS The following areas are eligible for City of Redding Housing Rehabilitation Loans: Homeowner and Non-Profit Corporations: Residentially zoned areas within the city limits of the City of Redding. Investor/Owner - Rental Rehabilitation: Residentially zoned areas within the city limits of the City of Redding. dAd\policy.cor CITY OF REDDING MOBILEHOME REPAIR PROGRAM POLICY Prepared by: Department of Planning & Community Development Housing Division Amended December 1993 EXHIBIT "B" MOBILEHOME REPAIR PROGRAM (MRP) TABLE OF CONTENTS SECTION PAGE 1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3. DESCRIPTION OF LOAN PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4. DESCRIPTION OF GRANT PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5. GENERAL ELIGIBILITY REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6. ELIGIBLE REPAIRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7. INELIGIBLE REPAIRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8. PROCEDURES (LOAN) Financial Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Rehabilitation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 9. PROCEDURES (GRANT) Financial Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Rehabilitation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 i City of Redding Mobilehome Repair Program (MRP) Page - 1 - SECT/ON 1 - INTRODUCTION There are over 2,241 mobile homes in the City of Redding (1990 census). Typically, 75% to 85% of these are older, and half are occupied by low-income persons, many of whom are elderly. Most, if not all, of the older units fail to meet minimum health and safety standards. Market-lending rates are cost prohibitive for low-income families as a means of financing repairs in the mobilehome market. Local housing programs are typically unable to provide adequate financial assistance to address mobilehome repair needs, often because of difficulties in securing notes against the property or insufficient equity. The Mobilehome Repair Program (MRP) has been designed to provide low-interest loans to low-income mobile home owners in the City of Redding who are elderly, on a fixed income, or needy. The program will assist those families who are owner-occupants of mobile homes, and are unable to obtain rehabilitation funding resources. This program offers a maximum $4,000.00 loan to eligible households on a one-time basis to meet rehabilitation needs and eliminate basic health and safety problems. In those cases where it is determined that an emergency or serious health and/or safety hazard exists, the City reserves the right to consider a previous applicant's further request for assistance. Provision of a grant (up to $500) to eligible participants, who are in need of handicapped accessibility improvements or immediate health/safety repairs, is also available in cases where provision of a loan is not feasible or cost effective. In order to administer this program, the City of Redding shall utilize Housing Division staff to manage and carry out day-to-day functions of the loan program. It should be recognized that it may be necessary to make adjustments to the program as experience dictates. As the community continues to grow, it is recognized that the importance of a mobile home as a principal residence for lower-income households also increases. This fact supports the consideration that the mobile home is part of the community's permanent housing stock and should be included in the overall effort to provide decent, affordable housing. It is the intention of this program to utilize a loan as the primary funding mechanism except under special circumstances warranting a grant. It is also hoped that the program will be liberal enough in scope and terms to help families and individuals of lower income, yet conservative enough to ensure the security of the City's investment and be acceptable to a broad cross-section of the community. SECT/ON 2 -DEFINITIONS The following definitions shall apply to this document unless another meaning is clearly apparent from the context: ADJUSTED GROSS ANNUAL INCOME shall mean the applicant's gross income less allowable exclusions. AMORTIZED LOAN shall mean a loan liquidated on an installment basis. ASSETS shall mean the entire property of all sorts belonging to an applicant. BORROWER shall mean the recipient of a loan. CDBG shall mean the Community Development Block Grant Program as set forth in the Housing and Community Development Act of 1.974. City of Redding Mobilehome Repair Program (MRP) Page - 2 - THE CITY shall mean the City of Redding, California, Department of Planning and Community Development. CITY COUNCIL shall mean the City Council of the City of Redding. CODE VIOLATIONS shall mean infractions against the applicable codes contained in the Housing Rehabilitation Standards. CREDIT shall mean financial or commercial trustworthiness, as determined by the applicant's previous performance of the payment of debts. DEFERRED PAYMENT LOAN shall mean a loan which is not liquidated on an installment basis. EMERGENCY REPAIRS shall address those conditions which pose a serious and immediate health/safety threat to the inhabitants of a dwelling. These conditions shall include either hazardous wiring, plumbing, mechanical,structural or sanitation problems as detailed in Chapter 10 of the current Uniform Housing Code. EQUITY shall mean the value of a property in excess of claims or liens against it. FAMILY shall mean all individuals who reside in a dwelling unit related by blood, marriage, or kinship. FAMILY INCOME shall mean adjusted gross income of all family members. GENERAL PROPERTY IMPROVEMENTS shall mean improvements other than code violations, incipient code violations, and required items which are eligible for rehabilitation loan funds. GRANT shall mean a financial contribution for the particular purpose of rehabilitating property through the Mobilehome Repair Program. GRANTEE shall mean that owner of record receiving the financial contribution for the purpose of rehabilitating his/her property through the Mobilehome Repair Program. GRANTOR shall mean the provider of the financial contribution to rehabilitate said property through the Mobilehome Repair Program. HOUSEHOLD shall mean all individuals who reside in or have an ownership interest in a dwelling unit regardless of family ties. HOUSING QUALITY STANDARDS shall mean those HUD regulations set forth in the HUD Section 8 Rental Assistance Program which details a basic level of acceptable housing. INCOME/HOUSING EXPENSES shall mean the ratio of adjusted gross income to housing expenses. INTEREST shall mean a charge for borrowed money repaid along with the amount of the loan. LIEN shall mean a form of encumbrance which usually makes property secure over the time of payment of a debt or discharge of an obligation. Example: judgments, taxes, mortgages, deeds of trust. LOAN COMMITTEE shall mean a committee consisting of three members of the City Staff, derived from the 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 Loan Committee shall be charged with approving or disapproving loan and grant applications consistent with the policies of the Mobilehome Repair Program. City of Redding Mobilehome Repair Program (MRP) Page - 3 - LOW INCOME shall mean those incomes which do not exceed 60 percent of the Redding area-wide median income as established by the latest published guidelines from the Metropolitan Statistical Area. MOBILE HOME shall mean a transportable dwelling that is not self-contained and that is used as a permanent residence, connected to utilities, with or without a permanent foundation. MODERATE INCOME shall mean those incomes which exceed 80 percent but less than 120 percent of the median income as established by the U.S. Department of Housing and Urban Development. MONTHLY HOUSING EXPENSES shall mean those expenses allowable as legitimate housing expenses. MORTGAGE shall mean an instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation; procedure for foreclosure in event of default is established by statute. OWNER-OCCUPANT shall mean an individual or family who occupies and owns or who is buying a unit of residential property and will occupy such residence. PROMISSORY NOTE shall mean a written promise to pay or repay a specified sum of money at a stated time or on demand. REHABILITATION COST shall mean the total cost of repairs and improvements and other costs for rehabilitation to be incurred by the applicant that are eligible for inclusion in a rehabilitation loan. UTILITIES shall mean gas, electricity, water, sewage disposal and refuse collection. SECT/ON 3- DESCRIPTION OF LOAN PROGRAM A. Deferred Payment Loans For Elderly and/or Disabled: 1. Purnose. The purpose of a Deferred Payment Rehabilitation Loan for the Elderly and/or Disabled is to pay the costs of rehabilitation without increasing current monthly housing expenses of those families on fixed incomes, particularly the elderly and disabled. 2. Eligibility. To qualify for a Deferred Payment Loan for the Elderly and/or Disabled in the Mobilehome Repair Program, the applicant must meet all of the general eligibility requirements,except his/her monthly housing expense need not exceed 25%of gross income and must meet one of the following requirements: 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 the lesser of: a. The actual land approved) cost of all necessary repairs and allowable loan costs. b. A maximum of $4,000.00 c. The loan amount may be increased up to a maximum of $6,000 in those cases where the cost to repair one of the unit's major systems (i.e., roof, heating/cooling, etc.) causes the project to exceed the $4,000 loan limit while addressing health and safety violations. City of Redding Mobilehome Repair Program (MRP) Page - 4 - 4. Repayment. If not repaid earlier, the loan shall become due and payable at the time of a property transfer, death of owner(s), or at a date specified in the loan documents, whichever first occurs. 5. Terms and Conditions: a. The entire amount of a Deferred Payment Loan for the Elderly and/or Disabled shall be secured by a note and a security agreement on the property. b. The borrower shall maintain current payments on hazard insurance. The minimum amount of hazard insurance must cover all liens on the property and shall name the City of Redding as loss payee on the property. The City shall obtain annual verification of paid taxes and effective hazard insurance. c. A Deferred Payment Loan shall bear interest at the rate of three percent (3%) simple interest per year. d. A Deferred Payment Loan shall be deferred for the lifetime of the borrower, unless otherwise specified in the loan documents, provided that if the property is used for rental income, then the deferred loan shall be due and payable. If this occurs, the City has the right to foreclose on the loan. e. As part of the administration of the Program, the applicant will be required to pay for loan costs. These costs may be funded from the loan proceeds or paid directly by the borrower and are as follows: - Pest Control Report Fees, if applicable - Title Investigation Fees - Credit Report Fees - Lender Processing Fees B. Deferred Payment Loans 1. Purpose. The purpose of a Deferred Payment Rehabilitation Loan is to pay the costs of rehabilitation without increasing current monthly housing expenses of low- and fixed-income households. 2. Eligibility. In order to qualify for a Deferred Payment Loan in the Mobilehome Repair Program, the applicant must meet all of the general eligibility requirements detailed in Section 4 of this document. 3. Amount. The amount of a Deferred Payment Loan shall not exceed the lesser of: a. The actual (and approved) cost of all necessary repairs and allowable loan costs. b. A maximum of $4,000.00 c. The loan amount may be increased up to a maximum of $6,000 in those cases where the cost to repair one of the unit's major systems (i.e., roof, heating/cooling, etc.) causes the project to exceed the $4,000 loan limit while addressing health and safety violations. 4. Repavment. If not repaid earlier, the loan shall become due and payable at the time of a property transfer, death of owner(s), or at a date specified in the loan documents (up to 15 r c City of Redding Mobilehome Repair Program (MRP) Page - 5 - years), whichever first occurs. 5. Terms and Conditions: a. The entire amount of a Deferred Payment Loan shall be secured by a note and a security agreement on the property. b. The borrower shall maintain current payments on hazard insurance. The minimum amount of hazard insurance must cover all liens on the property and shall name the City of Redding as loss payee on the property. The City shall obtain annual verification of paid taxes and effective hazard insurance. c. A Deferred Payment Loan shall bear interest at the rate of three percent (3%) simple interest per year. d. A Deferred Payment Loan shall be deferred for the lifetime of the borrower, unless otherwise specified in the loan documents, provided that if the property is used for rental income, then the deferred loan shall be due and payable. If this occurs, the City has the right to foreclose on the loan. e. As part of the administration of the Program, the applicant will be required to pay for loan costs. These costs may be funded from the loan proceeds or paid directly by the borrower and are as follows: - Pest Control Report Fees, if applicable - Title Investigation Fees - Credit Report Fees - Lender Processing Fees SECT/ON 4 -DESCRIPTION OF GRANT PROGRAM A. Grant Features 1. Purpose. The purpose of the Grant Program is to provide lower-income owner-occupants of mobile homes with a grant to rehabilitate the structures in order to eliminate health and safety hazards, when provisions of a loan is not feasible or cost effective. 2. Eligibility. In order to qualify for a grant, the applicant must meet all General Eligibility Requirements referred to in Section 5. 3. Amount. The maximum amount allowed for rehabilitation needs shall be $500 for a single- family dwelling. 4. Terms and Conditions Grant amounts shall be used towards the cost of rehabilitation of the mobile home as it relates to handicapped accessibility improvements and Housing Quality Standards (HQS) detailed in Section 6. (a) Mobile home owners shall be responsible for securing bids from licensed contractors based on deficiency reports and cost estimates provided by City staff. (b) Mobile home owners shall be responsible for executing contracts for work with licensed contractors. City of Redding Mobilehome Repair Program (MRP) Page - 6 - (c) Mobile home owners shall be responsible for acceptance of contract work and payment to contractors. (d) Contract work shall be completed in an expedient manner (typically, 30 days). (e) The City shall provide assistance in carrying out the above items in those cases where the owner is unable to perform the tasks due to a handicap or other incapacity. (f) Completion of the contract work by a licensed contractor may be waived by the Grantee. SECTION 5- GENERAL ELIGIBILITY REQUIREMENTS A. Location Mobile homes must be located within Redding city limits in order to be eligible, and be located within an area designated as Residential on the Redding General Plan. B. Characteristics of Recipient 1. Mobile home owners shall meet income guidelines as defined below. 2. Mobile units must demonstrate a definite need for rehabilitation as detailed by City staff on the DWELLING UNIT INSPECTION REPORT. 3. Mobile home owners may be selected and prioritized for approval based on applicant's need. C. Income Guidelines The income of a mobile home owner shall not exceed the 60% low-income range of the Redding area-wide median income as per the latest published guidelines from the Metropolitan Statistical Area. D. Determination of Adjusted Gross Income 1. When calculating the adjusted gross income of an applicant, the guidelines outlined in the City of Redding Rehabilitation Loan Policy under Section 3 shall be followed. SECTION 6- ELIGIBLE REPAIRS The following repairs are eligible costs for a rehabilitation loan under the Mobilehome Repair Program when the listed conditions are deemed to be substandard to an extent that endangers the life, limb, health, property, safety or welfare of the public or occupants thereof: 1. LEAKY ROOFS. All roof systems shall be weathertight and free from unsound or hazardous conditions. 2. DAMAGED OR DETERIORATED WINDOWS. All windows shall be openable and meet applicable egress, light and ventilation standards. Missing or broken panes shall be replaced. Serious drafts or moisture entry shall be eliminated. 3. PLUMBING. All mobile homes must have hot and cold running water and a properly working sewer system. Any serious leaks at fixtures or within the plumbing system shall be repaired. 4. PEELING PAINT ON EXTERIOR AND INTERIOR SURFACES. All exterior and interior surfaces shall City of Redding Mobilehome Repair Program (MRP) Page - 7 - be free from cracking, scaling, peeling, chipping, and loose paint,or adequately treated,or covered to prevent exposure to lead-based paint hazards. 5. ELECTRICAL HAZARDS. Examples of electrical hazards include: Broken or frayed electrical wiring; bare wires not covered by rubber or plastic insulation; loose or improper wire connections to outlets; light fixtures hanging from electric wire with no other firm support; missing or cracked cover plates on switches or outlets; exposed fuse box connections; overloaded circuits evidenced by frequently "blown" fuses. Any rubber or plastic coated-electrical wiring (romex) in a room or on the exterior that is accessible to possible physical abuse or wear shall be considered an electrical hazard. Such wiring should be enclosed in flexible conduit, EMT (encased metal tube), liquid-tight conduit, or other approved material. 6. SECURITY. All exterior windows and doors shall have operable locks or security devices. 7. DEFECTIVE STOVE, RANGE, OR REFRIGERATOR. Both an oven and a stove (or range) with top burners must be present and working. Microwave appliances are acceptable substitutes for a non- working oven. The repair/replacement or new installation of a refrigerator is eligible when undertaken to eliminate a substandard condition. 8. ABSENCE OF TEMPERATURE-PRESSURE RELIEF (POP-OFF) VALVE AND DISCHARGE LINE ON WATER HEATER. All water heaters must have a temperature-pressure relief valve which will operate when the temperature or the pressure in the tank is too high. The discharge line shall be constructed of 3/4-inch galvanized steel or copper pipe and shall be piped to the outside of the structure as per code. 9. DAMAGED OR DETERIORATED FLOORING. All carpeting,sheet vinyl and tile flooring shall be free of holes, cracks, tears, or missing sections that represent a tripping hazard or unsafe condition. 10. IMPROPER WEATHERSEAL. All exterior doors, air conditioning and cooler-vent openings, walls, floors and ceilings, shall be weathertight. Any cracks, holes, gaps, or openings that allow air or moisture infiltration into a living space shall be eliminated. 11. UNSAFE HANDRAILS, STAIRS AND PORCHES. All stairs, rails, porches and balconies shall be sound and free from hazards. Any section(s) with missing steps, broken or rotting material or absence of handrails shall be repaired. 12. SUBSTANDARD HEATING/COOLING. All mobile units shall provide adequate heating and cooling to meet the Uniform Housing Code and City of Redding Rehabilitation Standards. 13. ADAPTABLE HOUSING REPAIRS. Adaptable housing repairs (such as grab bars, modified counters, doorways, fixtures and facilities) may be eligible modifications for handicapped or disabled mobile home occupants. SECT/ON 7 -INELIGIBLE REPAIRS The following repairs are not eligible costs for rehabilitation work under the Mobilehome Repair Program. 1. New construction, substantial reconstruction, expansion of the structure, or the finishing of unfinished spaces unless otherwise stated in this policy. 2. Materials, fixtures, equipment or landscaping of a type and quality which exceeds adequate service or that is not customarily used for properties of the same general type. ® � J City of Redding Mobilehome Repair Program (MRP) Page - 8 - 3. Refinancing the existing debt on property or back taxes. 4. A rehabilitation loan shall not be used to finance or obtain any of the following items: - Barbecue pit - Bathhouse - Burglar alarm - Fire extinguisher - Greenhouse - Hot tub/spa - Kennel - Photo mural - Swimming pool - Television antenna - Tennis court - Valance or cornice board 5. Other "luxury" items. SECT/ON 8 - PROCEDURES(LOAN) FINANCIAL PROCESS - LOAN Process Procedures Initial Contact: Advise applicant of general objectives and benefits of the program. Get information from applicant (Use Initial Telephone Survey, Form No. MRPA). - Live in city limits? - Live in residential zoning? - Owner-occupied? - Applicant's income. - Any assets that would disqualify applicant? - Elderly or disabled? If yes, applicant may need adaptable housing products or aids. - Who is owner of record? Application: Assist owner in completing all necessary forms. - City of Redding MRP Loan Application, Form No. MRP.2. - Copy of current mobile home registration. - Copy of most recent property tax statement. City of Redding Mobilehome Repair Program (MRP) Page - 9 - - Medical verification of need (as required). - Verification of SSI-SSP. Request Initial Inspection Deficiency List With Cost Estimate: Request inspection by Rehab Inspector (SEE REHAB PROCEDURES SECTION) when all verifications return and all applicant forms are completed. Assemble Loan File: Assemble loan file and evaluate for completeness. - Completed applications. - Formal title search through DMV or State HCD office. - Current mobile home registration. - Credit report. - Property tax statement. - Income verification of SSI-SSP (or other). - Equity verification (utilize Bluebook or consult with real estate service specializing in the mobile home market). - Deficiency List and Cost Estimate. - Obtain Project Loan No. from Finance Department. Request Contract and Bid: Request contract and bid from mobile home owner. (Owner to have solicited bid from contractor of his/her choice.) (SEE REHAB PROCEDURES SECTION) City Loan Committee Review and Approval: Submit loan package and photo of mobile home to Housing Rehab Supervisor for review and approval by City Housing Loan Committee. Rehab Finance Specialist will prepare Rehab Loan Narrative for Loan Committee. Assemble Loan Documents: Assemble and prepare loan documents. This includes the following: Security Agreement. - Statement of Understanding - Promissory Note Notice of Right to Rescind Loan Disclosure Statement Tax Service Order • i City of Redding Mobilehome Repair Program (MRP) Page - 10 - - Memo to Finance Department - Terms and Conditions - Letter to Insurance Company - Letter to Title Company Loan Settlement: Arrange appointment for all signatory parties to sign loan documents and review construction procedures. - Review all loan documents with applicant. - Obtain signatures of applicant(s) for all appropriate forms with notarization as required. - Provide applicant with copy of all documents. - Indicate to applicant that funding is secured for the rehab work and that he/she may now sign an agreement with the contractor and commence work. - Indicate to applicant that it is the responsibility of the contractor to facilitate and complete the permit process with the State HCD office (Housing and Community Development, 405 Redcliff Drive, Redding, California 96002, (916) 224- 4815). Letter to Insurance Company: Prepare letter to owner's insurance company requesting an endorsement and that the City be listed as additional insured. Utilize Form No. 100.23. Send out after loan settlement. Memo to Finance: (SEE APPENDIX FOR INSTRUCTIONS FOR MEMO TO FINANCE DEPARTMENT) Work Underway: (SEE REHAB PROCEDURES SECTION) Construction Contract: The construction contract is the responsibility of the contractor and shall be provided and explained to the mobile home owner prior to Loan Committee. Completion of Construction: (SEE REHAB PROCEDURES SECTION) Disbursement of Funds: Upon acceptance of the completed work by the mobile home owner, City staff may release the check for the approved loan amount to said owner. Notice of Completion: (if applicable) It shall be the responsibility of the mobile home owner to complete and record a notice of completion with the Shasta County Recorder if he/she desires to obtain verification of material supplier or subcontractor payments by the general contractor. Final Approval by the City of Redding Mobilehome Repair Program (MRP) Page - 11 - State HCD Office: On those rehab projects requiring a permit with the State Housing and Community Development Department, it is the responsibility of the contractor to obtain final approval for the completed work. Completing the File: Upon disbursal of all funds, the Housing Staff shall complete all necessary documents to close out the file. Final Letter to Mobile home Owner: Send letter with statement of disposition of funds, notifying applicant of completion date and call-back procedures. REHABILITATION PROCESS- LOAN Process Procedures Receive Request for Initial Inspection: Upon receiving a request for property inspection from the Rehab Finance Specialist, set up owner file: - Attach file checklist. - Obtain copy of Assessor's Parcel Map (confirm location of property within city limits). Arrange appointment for Initial Inspection: Make appointment with owner to inspect property. Initial Inspection: Explain mobile repair program and process. Conduct inspection of property utilizing SECTION 8-DWELLING UNIT INSPECTION REPORT to record deficiencies. Deficiency List and Cost Estimate: Finish deficiency list and cost estimate for mobile home owner complete with letter of explanation. Give copy of deficiency list and cost estimate to Rehab Finance Specialist. Send letter of explanation to property owner. Review Deficiency List with Owner. Review repair items and any significant problems concerning the project. Review bid process with owner and present him/her with Contractors List if requested. Note: Owner is responsible for securing bid from licensed contractor to perform the work. Owner is also responsible for communicating the Mobilehome Repair Program process to the contractor(explanation sheet will be provided). Loan Approval Process: Put rehab file in order while awaiting approval by the Loan o • City of Redding Mobilehome Repair Program (MRP) Page - 12 - Committee. Complete HISTORIC AND ARCHITECTURAL ASSESSMENT FORM. Loan Settlement: Upon signing the loan documents, the mobile home owner is now ready to sign the construction contract with the contractor. Work may now commence. Work Underway: Owner/contractor responsibility. Completion of Construction: Owner/contractor responsibility. Final Approval by the State HCD Office: Owner/contractor responsibility. Final approval by the City of Redding Building Division: Owner/contractor responsibility. Final Approval by the Housing Division: Owner shall contact the Housing Division for final approval. SECTION 9 - PROCEDURES(GRANT) FINANCIAL PROCESS- GRANT Process Procedures Initial Contact: Advise applicant of general objectives and benefits of the program. Get information from applicant (Use Initial Telephone Survey, Form No. MRPA). - Live in city limits? - Live in residential zoning? - Owner-occupied? - Applicant's income. - Any assets that would disqualify applicant? - Elderly or disabled? If yes, applicant may need adaptable housing products or aids. - Who is owner of record? Application: Assist owner in completing all necessary forms. - City of Redding MRP Grant Application, Form No. MRP.2. - Copy of current mobile home registration. - Copy of most recent property tax statement. City of Redding Mobilehome Repair Program (MRP) Page - 13 - - Medical verification of need (as required). - Verification of SSI-SSP. • • City of Redding Mobilehome Repair Program (MRP) Page - 14 - Request Initial Inspection Deficiency List With Cost Estimate: Request inspection by Rehab Inspector (SEE REHAB PROCEDURES SECTION) when all verifications return and all applicant forms are completed. Assemble Grant File: Assemble grant file and evaluate for completeness. - Completed applications. - Current mobile home registration. - Property tax statement. - Income verification of SSI-SSP (or other). - Deficiency List and Cost Estimate. - Obtain Project Grant No. from Finance Department. Request Contract and Bid: Request contract and bid from mobile home owner. (Owner to have solicited bid from contractor of his/her choice.) (SEE REHAB PROCEDURES SECTION) City Loan Committee Review and Approval: Submit grant package and photo of mobile home to Housing Rehab Supervisor for review and approval by City Housing Loan Committee. - Rehab Finance Specialist will prepare Rehab Grant Narrative for Loan Committee. Assemble Grant Documents: Assemble and prepare grant documents. This includes the following: Grant Agreement. Statement of Understanding Grant Settlement: Arrange appointment for all signatory parties to sign grant documents and review construction procedures. - Review Grant Agreement and Statement of Understanding with applicant. - Obtain signatures of applicant(s) for all appropriate forms with notarization as required. - Provide applicant with copy of all documents. - Indicate to applicant that funding is secured for the rehab work and that he/she may now sign an agreement with the 1 City of Redding Mobilehome Repair Program (MRP) Page - 15 - contractor and commence work. Indicate to applicant that it is the responsibility of the contractor to facilitate and complete the permit process with the State HCD office (Housing and Community Development, 405 Redcliff Drive, Redding, California 96002, (916) 224- 4815). Work Underway: (SEE REHAB PROCEDURES SECTION) Construction Contract: The construction contract is the responsibility of the contractor and shall be provided and explained to the mobile home owner prior to Loan Committee. Completion of Construction: (SEE REHAB PROCEDURES SECTION) Disbursement of Funds: Upon acceptance of the completed work by the mobile home owner, City staff may release the check for the approved grant amount to said owner. Notice of Completion: (if applicable) It shall be the responsibility of the mobile home owner to complete and record a notice of completion with the Shasta County Recorder if he/she desires to obtain verification of material supplier or subcontractor payments by the general contractor. Final Approval by the State HCD Office: On those rehab projects requiring a permit with the State Housing and Community Development Department, it is the responsibility of the contractor to obtain final approval for the completed work. Completing the File: Upon disbursal of all funds, the Housing Staff shall complete all necessary documents to close out the file. Final Letter to Mobile home Owner: Send letter with statement of disposition of funds, notifying applicant of completion date and call-back procedures. REHABILITATION PROCESS- GRANT Process Procedures Receive Request for Initial Inspection: Upon receiving a request for property inspection from the Rehab Finance Specialist, set up owner file: - Attach file checklist. - Obtain copy of Assessor's Parcel Map (confirm location of property within city limits). Arrange appointment for Initial Inspection: Make appointment with owner to inspect property. 9 City of Redding Mobilehome Repair Program (MRP) Page - 16 - Initial Inspection: Explain mobile repair program and process. Conduct inspection of property utilizing SECTION 8-DWELLING UNIT INSPECTION REPORT to record deficiencies. Deficiency List and Cost Estimate: Finish deficiency list and cost estimate for mobile home owner complete with letter of explanation. Give copy of deficiency list and cost estimate to Rehab Finance Specialist. Send letter of explanation to property owner. Review Deficiency List with Owner: Review repair items and any significant problems concerning the project. Review bid process with owner and present him/her with Contractors List if requested. Note: Owner is responsible for securing bid from licensed contractor to perform the work. Owner is also responsible for communicating the Mobilehome Repair Program process to the contractor (explanation sheet will be provided). Grant Approval Process: Put rehab file in order while awaiting approval by the Loan Committee. Complete HISTORIC AND ARCHITECTURAL ASSESSMENT FORM. Grant Settlement: Upon signing the Grant Agreement, the mobile home owner is now ready to sign the construction contract with the contractor. Work may now commence. Work Underway: Owner/contractor responsibility. Completion of Construction: Owner/contractor responsibility. Final Approval by the State HCD Office: Owner/contractor responsibility. Final approval by the City of Redding Building Division: Owner/contractor responsibility. Final Approval by the Housing Division: Owner shall contact the Housing Division for final approval. dAdlpolicy.mrp qfESOLUTION NO. (?!S-4-7 A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 37TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 94-199 APPROPRIATING$45,000 FOR AN OPTICAL DISK IMAGING SYSTEM. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING: THAT Budget Resolution No. 94-199 be and is hereby amended as follows: FUND DIVISION DESCRIPTION INCREASE DECREASE 111 444 Police -- Services $45,000 THAT account titles and numbers requiring adjustment by this Resolution are as follows: SOURCE USE OF FUNDS OF FUNDS Increase Revenue General Fund A/C No. 111-444-07-4100 Sale of Property $ 45,000 Increase Appropriations: Police -- Services A/C No. 111-444-00-5999 Other Equipment 45,000 45 000 45 000 THAT the purpose is to appropriate $45,000 for an optical disk imaging system. 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 the 21st day of February , 19 95 , and was duly adopted at said meeting by the following vote: AYE: COUNCIL MEMBERS: P. Anderson, Kehoe, McGeorge, Murray and R. Anderson NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None OBERT C. ANDERSON, Mayor ATTEST: FORM APPROVAL: 2tL2�zz--e A"&) h/' CONNIE STROHMAYEIVUiClerk DOUGL4 CALKINS, Interim City Attorney V - 0ESOLUTION NO. q5-49 0 A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING THE 46TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 94-199 APPROPRIATING$27,780 TO REPLACE AN EMERGENCY BACKUP GENERATOR. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDDING: THAT Budget Resolution No. 94-199 be and is hereby amended as follows: FUND DIVISION DESCRIPTION INCREASE DECREASE 111 441 Police -- Administration $27,780 THAT account titles and numbers requiring adjustment by this Resolution are as follows: SOURCE USE OF FUNDS OF FUNDS Decrease Fund Balance General Fund A/C No. 111-000-00-0000 Unappropriated Fund Balance $ 27,780 Increase Appropriations Police -- Administration A/C No. 111-441-00-2444 Operating Materials and Supplies $ 4,940 A/C No. 111-441-00-5874 Generator -- Non Vehicle 22.840 27 780 27 780 THAT the purpose is to appropriate $27,780 to replace an emergency backup generator. 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 the 21 stday of February , 19 95 , and was duly adopted at said meeting by the following vote: AYE: COUNCIL MEMBERS: P. Anderson, Kehoe, McGeorge, Murray and R. Anderson NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None BERT C. ANDERSON, Mayor ATTEST: FORM APPROVAL: 1�bw \� CONNIE ST OHMAYE City Clerk DOUGL4 CALKINS, Interim City Attorney Ch U RESOLUTION NO. 95-_40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING DECLARING THAT AN EMERGENCY SITUATION EXISTS; AUTHORIZING THE BYPASS OF THE FORMAL BIDDING PROCESS; APPROVING THE RENTAL OF A TEMPORARY GENERATOR; AWARDING A CONTRACT TO CUMMINS WEST FOR THE PURCHASE OF A NEW 100-KILOWATT GENERATOR; AND AUTHORIZING THE CITY MANAGER TO SIGN THE NECESSARY DOCUMENTATION. WHEREAS, the Police Department' s electrical generator failed during a power outage on January 9, 1995; and WHEREAS, an emergency exists inasmuch as the generator is an emergency backup power source for the Police, Utilities/Customer Services, Information Systems, and Shasta County Sheriff ' s Departments; and WHEREAS, the City is temporarily renting a replacement generator; and WHEREAS, for the reasons set forth in the attached Report to City Council, it is recommended that the generator be replaced, rather than repaired; and WHEREAS, staff solicited quotations from three vendors for a new 100-kilowatt generator with an integrated fuel system that meets all current regulations; the low bid is from Cummins West in the amount of $20,136 .19; and WHEREAS, pursuant to Redding Municipal Code Section 4. 20. 080 A. 1, staff recommends that a contract be awarded to Cummins West for the purchase of a new 100-kilowatt generator with an integrated fuel system that meets all current regulations in the amount of $20,136. 19; and WHEREAS, the City Council has carefully studied the afore- said matter, and has determined that said recommendation is in the best interests of the City; i NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council as follows: 1. That the foregoing recitals are true and correct. 2. That, pursuant to Redding Municipal Code Section 4 . 20 . 080 A.1, the formal bidding process be bypassed. 3 . That the Council authorizes the rental of a temporary generator in the amount of $4, 940 . 00; the purchase of a new 100-kilowatt generator with an integrated fuel system that meets all current regulations from Cummins West in the amount of $20,136. 19; and the installation costs by City staff of $2,704. 00, for a total appropriation of $27 ,780 . 19 from the General Fund reserves. 4. That the City Manager is authorized to execute the necessary documentation on behalf of the City; and the City Clerk is directed to attest the signature of the City Manager and to affix the seal to the documentation when appropriate. I HEREBY CERTIFY that the foregoing Resolution was introduced, read, and adopted at a regular meeting of the City Council on the 21st day of February, 1995, by the following vote: AYES: COUNCIL MEMBERS: P. Anderson, Kehoe, McGeorge, Murray and R. Anderson NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None �J OBERT C. ANDERSON, Mayor City of Redding ATTEST: FORM APPROVED: ONNIE STR HMAYER DOUGLAS . C INS City Clerk Interim ity Attorney 2