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HomeMy WebLinkAbout1993 ResolutionRESOLUTION NO. 1993 A RESOLUTION amending the Housing Rehabilitation Program Rules. WHEREAS, the City of Pasco receives an annual grant award from the Department of Housing and Urban Development under the Community Development Block Grant Program; and WHEREAS, a portion of Community Development Block Grant funds are utilized for a Housing Rehabilitation Program; and WHEREAS, the city has developed procedural rules for the Housing Rehabilitation Program to provide consistency in the application and use of rehabilitation funds; and WHEREAS, the City Council finds the Housing Rehabilitation Program requires revision to reflect certain changes that have occurred over the last few years; NOW, THEREFORE, Be it resolved by the City Council of the City of Pasco, that the city's Housing Rehabilitation Program Rules dealing with loan amounts on Page 8 are hereby amended to raise the maximum loan amount to $11,500 and to provide staff with authorization to exceed that amount by $1,500 for unforeseen difficulties. FURTHER, the Housing Rehabilitation Program Rules are amended to delete the household income limits table on page 7 and replaced with language referencing annual income data supplied by H.U.D. PASSED by the City Council of the City of Pasco this 15 day of F 760115CUSILfl) , 1992. •-eL r‘ Felice, Mayor ATTEST: Catherine D Seaman, Deputy City Clerk Greg R bstel o, City Attorney HOUSEHOLD INCOME LIMITS -H-ousehead-S kz-e- LI Household income limits shall be based upon figures provided by the Department of Housing and Urban Development for the Richland-Kennewick-Pasco NSA. 4,--Persen 127288 i97588 -2-Persens 1379ee e72.se -3-Pcrsens-- 157658 RsTese -4-Per-sons- 1474ee 247eee -5-Persons- 187888 297698 -6-Persons--- Re7Ree 917388 -7-Persons— B176ee 3aTese 8 or-Mere-Persons- 227950 347880 ASSET LIMITATION In addition to the income limitations, a household may not possess assets in excess of $7,500. Assets include: real estate (exclusive of equity in primary residence), bonds, saving accounts, certificates of deposits, stocks, other investments, notes receivable, antiques, jewelry, boats, motor homes, and other luxury items of substantial value. ELIGIBLE IMPROVEMENTS The purpose of this program is to correct conditions that constitute code violations and to ensure a safe, decent and sanitary dwelling, in accordance with the Uniform Housing Code adopted by the City of Pasco. Financing under this program is limited to that amount necessary to correct those substandard conditions identified by the City in the detailed work write-up provided by the Community Development Department. - I FINANCING REQUIREMENTS/LIMITATIONS MAXIMUM LOAN AMOUNT The maximum rehabilitation loan amount shall be $11,500, provided, however, in no case shall a rehabilitation loan constitute more than fifty percent (50%) of the current value of the structure to be rehabilitated. "Current value" will be determined by the most recent value assigned by the Franklin County Assessor. Under certain circumstances where unforeseen costs arise after rehabilitation work has commenced the maximum loan amount can be increased to $13,000. ADDITIONAL FINANCING Where rehabilitation costs exceed the maximum available under this program, the Community Development Department, to the extent practicable will coordinate with other appropriate agencies in an effort to obtain additional funds for the balance of the rehabilitation costs identified in the work write-up. When another agency will finance some of the improvements, those improvements must be completed prior to qualification of the structure under this program, or otherwise coordinated with the work write-up in a manner which will insure proper completion of all needed improvements. In those cases which cannot obtain the additional funds necessary to bring the dwelling into conformance with the Uniform Housing Standards, the homeowner may provide the additional financing needed. However, the source and conditions of such funds and their effect on the security position of the City's deed of trust shall be considered in deciding whether or not the application will receive final approval. In those cases where the homeowner will provide the additional financing and the same is approved by the City, such financing must be properly secured prior to execution of a contract for financing under this program. Such securement may be in the form of an escrow account or some other secured form which assures release of the funds in accordance with the rehabilitation contract established under this program. The City Attorney will determine whether or not the proposed form of additional financing is acceptable, on a case-by-case basis. SECURITY OF DEFERRED LOAN Financing provided under this program must be secured in the form of a Promissory Note (see Exhibit ) and a Deed of Trust (see Exhibit ) at the time of contract execution. Repayment of the deferred loan amount is required only in accordance with the provisions of the Promissory Note.