Loading...
HomeMy WebLinkAbout1981 Ordinance No. 033... . ,. • • ORDINANCE NO. '1.3 SERIES OF 1981 BY AUTHORITY COUNCIL BILL NO. 37 INTRODUCED BY COUNCIL MEMBER FITZPATRICK AN ORDINANCE AMENDING AN AGREEMENT BETWEEN THE CITY OF ENGLEWOOD AND THE ENGLEWOOD HOUSING AUTHORITY FOR ADMINISTRATION OF THE HOME REHABILITATION PROGRAM AND DECLARING AN EMERGENCY. WHEREAS, it is necessary to amend and clarify the agreement between the Housing Authority and the City of Englewood concern- ing the Housing Rehabilitation Program. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO: Section 1. That the City of Englewood shall enter into an agreement with the Housing Authority titled "An Agreement Between The City Of Englewood And The Englewood Housing Authority Regarding The Policies Governing The Housing Rehabilitation Loan And Grant Program Of The Englewood Housing Authority", consisting of eight (8) typewritten pages, attached hereto and incorporated herein by reference. Said agreement generally provides as follows: 1) Responsibility for the execution of the Housing Rehabilita- tion Program with Housing Authority and City. 2) Application and approval procedure for obtaining loan and/or grant from Housing Rehabilitation Loan and/or Grant Program. 3) Establishment of policies and priorities based on use and purpose of loan and/or grant eligibility, income, neighborhood, loan limits, grant limits, grant requirements, liens, credit factors, loans on rental property, and repayment. 4) Requirement of supervision of any improvement. 5) Establishment of repayment provisions. Section 2. That all ordinances and resolutions in conflict with the foregoing are hereby repealed and expressly repealed are all prior Rehabilitation Loan/Grant Program Agreements. Section 3. The City Coun c il of the City of Englewood, Colorado, hereby authorizes the Mayor of the City of Englewood, Colorado, to subscribe his name to said Agreement for and in behalf of the City Council and the City of Englewood, Colorado, and that the Director of Finance, ex officio City Clerk-Treasurer attest the same. • Section 4. An emergency is hereby declared requiring immediate passage of this ordinance by reason of need to repair substandard '( • • • housing by issuing loans and grants to citizens of the City of Englewood in target areas meeting the requirements of the program. Introduced, read in full, and passed on first reading on the 16th day of March, 1981. Published as a Bill for an Ordinance on the 18th day of March, 1981. Read by title and passed on final reading on the 30th day of March, 1981. Published by title as Ordinance No."~ , Series of 1981, on the 1st day of April, 1981. ~~7/:~ Eugene JI.I. Otis, Mayor Attest: e~c~({c~er I, Gary R. Higbee, ex officio City Clerk-Treasurer of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true, accurate and complete copy of the Ordinance pass.edjln final reading and published by title as Ordinance No. ~..,,!j_ , Series of 1981. (¢1~-~· ryR. Hr ee -2- • • • AN AGREEMENT BETWEEN THE CITY OF ENGLEWOOD AND THE ENGLEWOOD HOUSING AUTHORITY REGARDING THE POLICIES GOVERNING THE HOUSING REHABILITATION LOAN AND GRANT PROGRAM OF THE ENGLEWOOD HOUSING AUTHORITY. The City and the Author i ty agr ee as follows: 1 . The Authority , through its personnel, or the personnel of the City, with the approval of the City Manager, shall be responsible for the execution of the Housing Rehabilitation Loan and Grant Program, herein called the Program. 2 . Application for assistance shall be first submitted to and app roved by the Authority under procedures adopted by the Aut h o ri ty. 3. Upon receipt of an application, the Authority shall cause an inspection to be made of the applicant's residence and, if deemed necessary, shall: a. Cause a detailed list and explanation to be made of all actions and work required to eliminate or repair the conditions of the residence which make it sub- standars. b. Cause an estimate of the cost of such repairs to be made. c. Obtain sufficient documentation that the applicant had good title to said residence. d. Make an estimate of the value of the applicant's equity in said residence. e. Pre p are and verify a social and economic profile of the applicant which shall include: family composi- tion, family income, place of employment, if any, of all family members, approximate date of purchase of residence, and existing indebtedness secured by said residence. f. Prepare a preliminary analysis of applicant's ability to repay any funds made available to applicant under the program. 4. In the preparation of all reports and analyses required ~ this agreement, and in approving loan andZQr grant a~plications, the following policieS shall apply and be followed by t e Authority: .. . 1 • • • I . U s ~ and Purpose. Loans and grant s are ma de available for the purpose of permanent impro vement s , additions, or other housing rehabilitat i on and ma y only be used for: A. Repairs and i mprovements to meet City Code Standards. B . Energ y con serv at ion improvements. c. El i mi nation of incipient violations of the City Code. D . General property improvements. II . E ~igibilit y for Loans. A . Eligible Borrowers. Loans shall be made only to natural persons who own the property on which the improvements will be made. B. Eli~ible Properties. Loans shall be made only for residential properties containing four dwelling units or less located in the City of Englewood. I II. Eligibility for Grants . A. Eligible Grantees. Grants shall be made only to natural persons who own and reside in the property on which the improvements will be made. Grantees must meet the then current income eligibility limits for the HUD Section 8 income limits for subsidized housing. B. Eli~ible Properties. Grants shall be made only for residential properties located in priority neighbor- hoods listed in the agreement. IV . Priorities . A . General Priorities . To be approved, an application must meet all other applicable policies and repr esent three (3) priority points, computed as follows (income is computed by using then-current HUD guidelines): (1) Very low income (2) Low income (3) Priority neighborhood (4) Eligible investor (See X) (5) Owner occupied (6) Elderly Points 3 3 3 1 1 1 B. P riority Ne ighb orhoods: F ollowin g are the priority neighborhoods. (1) Area L: The entire residential area in Northwest Englewood bounded on the north by the Evans/Adriatic alley, on the east by -2- ·~ • • • South Te j on Street, on the south by West Vassar Avenue , and on the west by South Zuni Street. (2) Area 2: Be ginning at the intersection of West Yale Avenue with the B·roadway /Acoma alley, then c e wes t along West Yale Avenue to the Delawa re /Elati alley, thence south along the Delaware/Elati alley to West· Bates Avenue, thence west along West Bates Avenue to the Elati/Fox alley, thence south along the Elati/Fox alley to West Cornell Avenue, thence west along West Cornell Avenue to the Galapago/Huron alley, thence south along the Galapago/Huron alley to West Dartmouth Avenue, thence east along West Dartmouth Avenue to the Broadway/Acoma alley, thence north along the Broadway/Acoma alley to the point of beginning. (3) Area 3: Beginning at the intersection of East Yale Avenue with the Lincoln/Sherman alley, thence west along East Yale Avenue to the Broadway/Lincoln alley, thence south along the Broadway/Lincoln alley to East Eastman Avenue, thence east along East Eastmen Avenue to the Sherman/Grant alley, thence north along the Sherman/Grant alley to East Cornell Avenue, thence east along East Cornell Avenue to the Grant/Logan alley, thence north along the Grant/ Logan alley to East Amherst Avenue , thence west along East Amherst Avenue to the Lincoln/ Sherman alley, thence north along the Lincoln/ Sherman alley to the point of beginning. (4) Area 4: An area bounded on the north by West Mansfield Avenue, on the east by the Broadway/ Acoma alley, on the south by West Oxford Avenue and on the west by the Elati/Fox alley. (5) Area 5: Beginning at the intersection of East Mansfield Avenue with the Sherman/Grant alley, thence west along East Mansfield Avenue to the Broadway/Lincoln alley, thence south along the Broadway/Lincoln alley to East Princeton Avenue, thence east along East Princeton Avenue to South Grant Street, thence north along South Grant Street to East Oxford Avenue, thence west along East Oxford Avenue to the Sherman/Grant alley, thence north along the Sherman/Grant alley to the point of beginning . -3- .. • • (6) Area 6: An area bounded on the north by West Union Avnue, on the east by the Broadway/Acoma alley, on the south by West Layton Avenue and on the west by South Huron Street. C. Chronological Priority. Upon receipt of an application eligible for a loan and/or grant pursuant to IV.A., the staff shall notify the Authority, and the Authority shall earmark (but not appropriate) funds in the amount appli e d for until the application is acted upon or withdrawn. All such applications shall be acted upon in the same order in which they have been received. v. Priorities for Use of Loan and/or Grant Funds. Within each application further priorities are hereby identified to determine the amount of the loan usable for each purpose: first priority -funds required to bring property to City Code Standards; second priority -funds for energy conservation improvements; third priority - funds to cure incipient violations of the Code; fourth priority -general property improvements. VI. Loan Limits • A. Monetary Loan Limits. The following monetary limits will apply: (Limits will be reviewed annually by the Authority) (1) $15,000 per dwelling unit. (2} $40,000 per borrower. B. Limits Based ~Appraisal. Notwithstanding the above, a loan secured by a first deed of trust shall not exceed 90% of the appraisal value of the property as determined by a qualified appraiser. If the loan is secured by a second deed of trust, the total of the first loan and the property rehabilitation loan shall not exceed 90% of the appraised value of the property as determined by a qualified appraiser. VII. Grant Limits. Maximum grant amount shall be $15,000 per Grantee. VIII. Liens. A. Loans will be secured by a first or second deed of trust; no third liens will be approved. • -4- ·~ • • • B . Property improved by a grant shall be secured with a lien thereon. Should said property be sold, conveyed, trans ferred or delivered, repayment of the grant shall be made as follows: (1) Grantee shall repay 100% of the grant should the property be sold , conveyed, transferred or delivered during the first twelve months, inclusive, after signing of· the Grant Agreement. (2) Grantee shall repay 80% of the grant should the property be sold, conveyed, transferred or delivered during the following period of time: 13th through 24th month after signing of the Grant Agreement. (3) Grantee shall repay 60% of the grant should the property be sold, conveyed, transferred or delivered during the following period of time: 25th through 36th month after signing of the Grant Agreement. (4) Grantee shall repay 40% of the grant sho u ld the property be sold, conveyed, transferred or delivered during ··.tbe following period to time: 37th through the 48th month after signing of the Grant Agreement . (5) Grantee shall repay 20% of the grant should the property be sold, conveyed, transferred or delivered during the following period: 49th through 60th month after signing of the Grant Agreement. (6 ) Grantee shall not be required to repay the grant should the property be sold, conveyed, transferred or delivered following the 60th month after signing of the Grant Agreement. Repayment shall be made to the Program account. IX. Credit Factors for Loan. -- A. Ability to Pay. All credit decisions shall be based on!y on tlie applicant's ability to repay the loan. Action on loans shall not be based on, or influenced by, the race, creed, color, national original, marital status, sex or age of the applicant. B. Normal Rate Loans. The normal interest rate shall be the Authority's current borrowing rate for funds for property rehabilitation purposes, plus a 1% service and administrative fee. -5- ... • • • x . XI. C. Less Than Norma l Rate Loan. If the applicant is a "low income" or "very low income" person pursuant to IV.A., and the application meets all other policies a n d, in the opin i on of the Authority, the applicant could repay the loan applied for but not the loan and the normal interest , the Authority may approve the l oan at less than the normal interest rate. Loans fo r Rental P roperty. Loans coverinq property where the owner is not a resident of the property shall be issued only upon satisfactory ahowinq that his or her application for a loan, which is substantially similar in terms of purpose and principal aJnOunt to the property rehabilitation loan applied for, h as been rejected by two qualified financial institutions which regularl y make improvement or real estate loans . If t he application is approved, the owner shall agree to e n~er into a contract with the Authority to keep rents wit hin the reach of low and moderate income families and/or make the property eligible for Federal Section 8 Housing As sistance Payments. Loans for the purposes set forth in I .D., to absentee owners of rental property shall be limited to 30 percent of the total of the loan approved f or the purposes set forth in I.A., B., and C. Con struction. Work done with the proceeds of the loan or combination l oan and grant shall be accomplished by either the owner or a licensed contractor. Work done with 100% grant funds sha ll be accomplished by a licensed contractor. XII. Rep ayment of Loan. Re p a y ment terms shall not exceed 20 years. Loans shall be repayable in equal i nstallments of principal and interest due on or before the fifth of each month. 5 . The Authority sh a l l then examine and evaluate the app lica tion, toge t h e r wit h all re p orts a nd findings required by paragraphs 5 and 6 he reof, and either approve, reject, or modify and approve such application . The decision of the Authority shall be final and binding up on the applicant . -6- ... . . • • • 6. The Authority shall require any the funds borrowed under this program. those receiving a no-interest loan may methods of repayment: applicant to repay all of Elderly applicants and select one of the following I. Time payments made on a monthly, quarte~ly, o r annual basis . II. Full repayment shall become due upon the sale and/or conveyanc~ of property or upon removal of the appli- cant from the real property. III . The entire amount of the rehabilitation loan shall fall due and payable as a claim against the estate of the appli c ant an d shall become a lien on the real property of the said applicant upon his or her demise. IV. The Authority shall apply administrative guidelines to i nsure that the loan is protected by a lien on the real property, depending upon the way in which the property is titled. 7. All funds repaid by applicants shall be used only for similar loans or grants of housing rehabilitation assistance to applicants approved by the Authority • 8. The Authority shall approve allloans and/or grants under this program by appropriate action when satisfactory evidence of the following has been submitted to the Authority: I. Applicant has good title to the residence. II. Loan applicants shall have sufficient equity therein to justify said loan. III. Applicant has entered into a written contract on forms to be approved by the Authority with a person or entity qualified to perform and complete repairs required to rehabilitate the residence. IV. That said residence, after rehabilitation and repairs, will be maintained in a satisfactory manner. V. Except for emergency loans and/or grants, that the applicant does not have an outstanding housing re habilitation loan and/or grant under the program hereby established. VI. Loan applicants should prove an ability to re pay the loan. 9. All persons and entities entering into contracts with applicants for repairs and rehabilitation of any substandard res idence shall be an equal opportunity employer and shall comply with all ap plica L l~ Federal, City ~nd State codes, statutes and ordinancea. -7- .... . • • • -, 10. The Authority shall ge nerally supervise all repair and rehabilitation construction and shall authorize payment for same when substantially performed in accordance with the construction contract entered into by applicant and approved by Authority. 11. The Authority may establish those accounts and allocate those funds necessary to fu lfill the provisions of this agreement. 12. The Authority shall prepare administrative procedures to implement the intent of this contract. 13. The Authority shall submit an annual report to the City Council regarding the performance of the program. 14. This Agreement shall be binding upon the parties hereto and their successors. 15. This Agreement supersedes and replaces all other agree- ments between the parties relating to the program. IN WITNESS WHEREOF, this Agreemenh£;s been executed at Englewood, Colorado, thi~()t"J.. day of Ct;,/:J . , 1981. Attest: ~ VA-~~2?~ of Attest: s~J <0 . ances Jonas Executive Di rector -8- CITY OF ENGLEWOOD, COLORADO a Municipal Corporation ~&~ E-ugene:otiS , Mayor By ENGLEWOOD HOUSING AUTHORITY -