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HomeMy WebLinkAboutReso. 1980 - 240 - Approving amendment to the Rehabilitation Loan Policy adopted by reso 75-86 . - . • RESOLUTION NO. �j q D A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING 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 Resolutions No. 76-36 , No. 77-135 , No. 77-189 , No. 78-223 , No. 78-235 , No. 78-240 , No. 79-46 , No. 79-106 , 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 introduced and read at regular meeting of the City Council of the City of Redding on the 6th day of October , 1980 , and was duly adopted at said meeting by the following vote: AYES : COUNCILMEN : Demsher, Ful ton, Gard, Kirkpatrick, and Pugh NOES: COUNCILMEN: None ABSENT: COUNCILMEN : None ATTEST: MI DDRED L. BRA TOIL, CITY CLERK LRCHER G ay or City tReddin 1-j g FORM APPROVED : tr, RA,:c.DALL • r Yb, UIl 1,A.Ol{NAY Exhibit "A" AMENDMENT NO. 12 TO CITY OF REDDING REHABILITATION LOAN POLICY SECTION 1 - INTRODUCTION AT PAGE 1 Delete: The-feller ig-pregrav-bas-been-designed-te-prev}de-three-peweent leans-Ret-te-exeeed-$15;888-payable-4R-tee-years-te-eewweet bees}Rg-def}ei-eRe}es-few-Tew-te-ved4aR-}Reeve-beveewnews-wbe weed-Ret-Rewval-Ty-be-e140 64e-few-eenventiena4-hove-wepa4r-leaRs- Spee}aT-eeRsi-dewat}eR-w4-}4-be-O von-te-fav}4}es-eR-fixed-}Reeves; parti-eeiariy-the-eider}, -and-disabled- Add: The following program has been designed to provide three percent loans to low and moderate income homeowners and 5 percent loans to investor- owners who agree to participate in the Section 8 Moderate Rehabilitation Program. Loans of up to $15,000 for homeowners and $10,000 for investor owners 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 other- wise be eligible for conventional home repair loans. Special considera- tion will be given to families on fixed incomes , particularly the elderly and disabled. In addition, investor-owner applicants participating in the Section 8 Moderate Rehabilitation Program will agree to provide sub- sidized housing to low income renters for 15 years. Under A, Amortized Loan. Delete: a-three-percent-ieaR-avertized-veRthiy ever-a-peried-Ret-te-exceed-18-years. Add: A three percent loan amortized monthly over a period not to exceed 10 years for homeowners and a five percent loan amortized monthly over a period not to exceed 15 years for Investor-owners.. SECTION 2 - DEFINITIONS AT PAGE 3 Add: 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. 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. . . • • SECTION 3 - GENERAL ELIGIBILITY REQUIREMENTS AT PAGE 4 & 5 Delete: Under B. Owner-9eebpaet7--Te-be-e14064e-fer-a-rehab4}4tat4ee-}nae; the-app44eaet-must-be-ae-4100-daa4-er-4pd40-deals-er-€af4ly whe-ewes-er-i-s ibay}eg-a-heme---Perseus-bey eg-humus-ffider Iaed-eentraets-are-exeleded-fren1-the-4eau-rehab 4i-tat}ee pregraf7-exeepi-ie-these-spee4a4-eases-where-a-land-seetraet *s-he4d-by-the4tate-of-Ea44fern4a-9epartment-ef-Veteran Affa}es---9Re-410-mere-ef-the-appl}eaets-most-res}de-}e-suEh hefe- Add: B. Owner Occupant/Investor Owner. To be eligible for a re- habilitation 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 they 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. The owner(s) of such unit(s) must agree to participate in the Section 8 Mioderate Rehabilitation Program and abide by all contracts and program regulations. Income eligibility requirements as identified in Items C & D do not apply to investor-owner applicants. Investor-owners are not eligible for deferred payment loans or Water and Sewer loans. SECTION 4 - DESCRIPTION OF LOAN PROGRAMS AT PAGE 6 Under 4. Amount. Item b. Add: $15,000 for homeowners and $10,000 for investor-owners. Under 5. Repayment. Add: a. Homeowner: A rehabilitation loan shall be repaid. However, the borrower shall not be required to pay housing expenses including rehabilitation loan pay- ments 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 Section 8 Moderate Rehabilitation Program contract is terminated. The loan may be assumed provided that the Moderate Rehabilitation contract remains in effect. Under 6. Terms and Conditions. Delete: a. A-reha6444tat4en-leae-sba41 be-aferti-zed-}p-met-fere-tbap-tee-years-and-sbal•4-bear-4.eterest at-the-rate-e€-three-pereent. Add: For homeowners , a rehabilitation loan shall be amortized in not more than ten years and shall bear interest at the rate of three percent. For investor owners , a rehabilitation loan shall be amortized in not more than fifteen years and shall bear interest at the rate of five percent. SECTION 5 - ELIGIBLE COSTS AT PAGE 10 Under A. After first sentence add: Rehabilitation activities for those units to be leased under the Section 8 Moderate Rehabilitation Program shall be in accordance with Housing Rehabilitation Standards subject to limitations of the Section 8 Moderate Rehabilitation Program regulations and Section 6.