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HomeMy WebLinkAbout1891 ResolutionPASr/E•y the City Council of the City of Pasco this /‘ d ay of e _4,41`-c,k- _.e.„.., , 1989 RESOLUTION NO 1891 A RESOLUTION amending the Housing Rehabilitation Loan Program WHEREAS, the city has long operated a Housing Rehabilitation Loan Program with Community Development Block Grant funds to improve the housing standards enjoyed by lower-income, owner-occupant households in the community without adding to the monthly mortgage burden of such households, and WHEREAS, the requirement to repay the Rehabilitation Loan upon transfer of the property does not prevent difficulty to such households under typical inflationary real estate trends but, due to the unusual and significant downturn in real estate values experienced throughout the Pasco and greater Tr-Cities area over the past several years, some of the households who used the Rehabilitation Loan Program and desire and/or need to sell their homes find the current market price insufficient to retire their mortgage as well as the Rehabilitation Loan, and WHEREAS, the City Council finds, upon recommendation of staff, that the Rehabilitation Loan Program rules should be modified to permit those housing units to be transferred without placing the household effectively in financial bondage, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO That the Housing Rehabilitation Loan Program rules be modified to include the following provisions and modify any conflicting rules so as to accommodate the following provision LOAN PAYMENT All deferred loans provided under this program, including accrued interest, must be paid upon the actual transfer, sale, or conveyance, voluntarily or involuntarily, including by operation of law or upon the death of the owner (where ownership is joint, or in common, upon the death of the survivor having an interest at the time the Rehabilitation Loan was provided) of the property involved in the rehabilitation work Provided, however, rehabilitation loan obligations may transfer to another party if all of the following conditions are met 1) The purchaser has to qualify under the low income guidelines and the parties must certify no profit is being realized by the seller as a result of the sale 2) Any funds received in excess of those required to retire the outstanding bank mortgage and appropriate property transfer fees will be applied first to the outstanding principal balance of the Rehabilitation Loan and then to the outstanding interest balance of the loan The remaining unpaid interest balance, if any, shall be waived and forgiven 3) In the event the full outstanding principal balance of the Rehabilitation Loan cannot be retired, then that portion remaining unpaid principal balance must be assumed by the buyer by executing a new promissory note and deed of trust ATTEST ED HENDLER, Mayor APPROVED AS TO FORM LLS, City Clerk GREG \:.)UBSTELLO, City Attsirney