HomeMy WebLinkAboutReso. 1988-019 - Approving amendment to the rehabilitation loan policy 411 .
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING AN AMENDMENT TO THE REHABILITATION LOAN POLICY
ADOPTED BY CITY COUNCIL RESOLUTION NO. 75-86.
WHEREAS, the City of Redding has adopted a Rehabilitation
Loan Policy by City Council Resolution No. 75-86 and amended it
by Resolution Nos. 76-36, 77-135, 77-189 , 78-223 , 78-235 , 78-240 ,
79-46, 79-106 , 80-240 , 83-52, 84-79 , 84-233 , and 86-134 ; and
WHEREAS, the City Council deems it to be in the best
interest of the citizens of the City of Redding that the
Rehabilitation Loan Policy be further amended as set forth in
Exhibit "A" attached hereto; and
WHEREAS, it has been determined that this matter is
categorically exempt from the provisions of CEQA;
NOW, THEREFORE, BE IT RESOLVED that the amendments to the
Rehabilitation Loan Policy attached hereto as Exhibit "A" are
hereby approved and adopted.
I HEREBY CERTIFY that the foregoing resolution was intro-
duced and read at a regular meeting of the City Council of the
City of Redding on the 19th day of January , 1988, and
was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Fulton , Gard , Johannessen , & Carter
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Dahl
ABSTAIN: COUNCIL MEMBERS: None W
e'& 4411t
SCOTT CARTER, Vice Mayor
City of Redding
ATTEST: 7 e;
ETHEL A. NICHOLS, City Clerk
FORM PPROVED:
L?!,r
RANDALL A. HAY , C' ty Attorney
EXHIBIT "A"
Amendment No. 18 to City of Redding Rehabilitation Loan Policy.
Section 1 - Introduction, Page 1, Paragraph 2
Amend: The program will offer four types of loans:
Add: B. Construction Loan: A loan having a term that is the lesser of
the actual term of rehabilitation plus 60 days or 1 year for
investor/owners participating in the Rental Rehabilitation
Program.
Section 2 - Definitions, Page 3
Add: 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.
Section 4 - Description of Loan Programs, Page 10
Add: B. Construction Loans
1. Purpose. The purpose of a Construction Loan is to cover
the owner's share of the cost of rehabilitation under the
Rental Rehabilitation Grant Program in those cases where
financing is not available from other resources prior to
rehab.
2. Eligibility. In order to qualify for a Construction Loan,
the applicant must be an investor/owner participating in
the Rental Rehabilitation Program; must meet all general
eligibility requirements; and must provide evidence that
permanent financing is not available on the subject
property prior to rehabilitation.
3. Ability to Repay. Prior to City loan approval, applicant
must submit a written commitment of funding that will
insure permanent financing after the rehabilitation work
is completed. This commitment of funding must contain the
specific date that funding will be provided.
4. Amount. The amount of a Construction Loan shall not
exceed the investor/owner's share of the actual (and
approved) cost of repairs and improvements under the
Rental Rehabilitation Grant Program.
5. Repayment. A Construction Loan plus accrued interest will
become due and payable at the end of the loan term. The
loan may not be assumed.
411 •
6. Terms and Conditions
a. A Construction Loan shall bear interest at the
current market rate, plus 1/2 percent for second
mortgages, as established by FNMA on non-owner
occupied properties.
b. The term of a Construction Loan shall be the lesser
of:
(1) The actual term of rehabilitation plus 60 days.
(2) 1 year.
c. A Construction 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 fire
insurance. The minimum amount of fire insurance must
cover all trust deeds on the property.
f. No monthly installments shall be required.