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