HomeMy WebLinkAbout1979 Ordinance No. 054• 1
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ORDINANCE NO . ,£'4
SERIES OF 197 9
BY AUTHORITY
COUNCIL BILL NO. 56
INTRODUCED BY
COUNCILMAN CLAYTON
AN ORDINANCE GRANTING TO THE ENGLEWOOD HOUSING AUTHORITY $226,000
FOR THE ENGL EWOOD HOME REHABILITATION PROGRAM AND AMENDING AN
AGREEMENT BE TWEEN THE CITY OF ENGLEWOOD AND THE ENGLEWOOD HOUSING
AUTHORITY FOR ADMINISTRATION OF THE HOME REHABILITATION PROGRAM.
WHEREA S, the City of Enqlewood has received a One Hundred
Nine ty Tnouaand Five Hundred Dollar ($190,500) grant from the United
S tates Depar tment of Houaing and Urban Development to operate a
Hou s ing Rehab i litation Program; and
WHEREA S, the City has received Thirty-five Thousand Five
Hundre d Dollars ($35,500) for general administration of the Housing
Rehabilitation Program; and
WHEREAS , it is necessary to amend and clarify the agreement
between the Housing Authority and the City of Englewood concerning
the Housing Rehabilitation Program.
• NOW, THE REFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
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CITY OF ENGLE WOOD, COLORADO, AS FOLLOWS:
Section 1. That the City of Englewood shall enter into an agree-
ment 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 Program Of
The Englewood Housing Authority" consisting of seven (7) typewritten
pages attached hereto and incorporated by reference. Said Agreement
generally prov i des as follows:
1 . That the Housing Authority and the City shall be responsi-
ble for the execut i on of the Hous i ng Rehabilitation Program.
2. The a pplication and approval procedure for obtaining a
loan from the Housing Rehabilitation Loan Program.
3. Establ i shment of policies and priorities based on the
use and purpose of the loan eligibility, income, neighborhood, loan
limits, liens, credit factors, loans on rental property, and repay-
ment.
4. Requirement of supervision of any improvement.
5. Estab lishment of repayment provisions •
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S ection 2 .
A. That the City of E n glewood h e reby grants to the Englewood
Housing Aut hority the s um o f One Hundred Ninety Thousand Five Hundred
Dollars ($19 0,500) to be us ed in accorda nce with Application Grant
Numbe r B-79 -05-08 -0002 und er Title I of the Housing Development
Act of 197 4 and the Agre em ent descr ibed in Section 1 hereof.
B. That the City of Englewood further grants to the Englewood
Housing Autho r i ty Thirty -fiv e Thou s a nd Five Hundred Dollars ($35,500)
for general adm inistrative expen s e s in accordance with said grant
which shall be charged b y t he City from time to time to pay adminis-
trative e x pe nses of the Ci t y admi nistering said grant with the
approval of the City Manager or hi s designee.
S ectio n 3 . That all ord i na nces and resolutions in conflict with
the foregoi n g are hereby r epealed and expressly repealed are all
p r ior Rehabil i t ation Loan P r o g r am Agreements.
S ection 4 . The Ci t y Counc il of the City of Englewood, Colorado,
her eby autho r i zes the Ma y or o f the City of Englewood, Colorado, to
s ubscr ibe his name to said Agreeme nt, for and in behalf of the City
Council and the City of Englewood , Colorado, and that the Director
of Financ e , e x officio City Clerk-Treasurer attest the same .
In t rodu ced, read i n full and passed on first reading on the
3 r d day o f December, 1979 .
Publi s he d as a Bill fo r an Ordinance on the 5th day of
Dec ember , 1979 .
Re a d by title a n d passed on fi nal reading on the 18th day
o f De cembe r, 1979 .
~'-~ Published by title as Ordinance No. ~ ~ , Series of 1979,
on the /qt:/1 day of December , 197 . --------
Mayor
Atte s t :
~?ud ~ 0ad!t~ De uty City c'tei'k ,~ I , Jan ice L . Watkins , Deputy Ci ty Clerk of the City of Englewood,
Co lo r ado, do hereby certify that the above and foregoing is a true,
accu r ate and comp l e t e copy of the Ordina n c J,Lpassed on final reading
and publis hed by t i t l e as Ordinanc e N o.~ , Series of 1979 .
~??<&-X?L.l~_)
Janice L. Watkins
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AN AGR EE ENT BETWEEN THE CITY OF ENGLEWOOD AND 'l'HE ENGLEWOOD
HOUSING AUTH ORl'fY REGARDING 'l'HE POLICIES GOVERNING 'l'UE HOUSING
REHABILITAT ION LOAN PROGRAM OF THE ENGLEWOOD HOUSING AU'l'llORI'l'Y •
The City and the Authority agree 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 rehabilita-
tion l oan program, herein called the program.
2 . Application f or assistance shall be first submitted to
and approved by the Authority under procedures adopted
by the Authority.
3. Upon recei p t o f an application, the Authority shall cause
an inspec t ion to be made o f the applicant's residence and,
if deeme d necessary, shall:
(a) Cause a de t ailed l i st and explanation to be made of
al l ac t ions and work required to eliminate or repair
the conditions of the residence which make it sub-
sta ndar d.
(b) Ca use an estimate of the cost of such repairs to be
made •
(c) Obt ain su f ficient documentation that the applicant
ha d good title to said residence.
(d) Make an estimate o f the value of the applicant's
equity in said residence.
\e) Prepar e and veri f y a social and economic profile of
the applicant , which shall include: family composi-
tion , fa mily income , place of employment, if any, of
all me mber s o f t h e f amily, approximate date of pur-
chase o f t he residence, and existing indebtedness
secure d by said r es ide nce.
(f) Prepare a pre liminar y analysis of ·applicant's ability
to repay any f unds made available to applicant under
the pro g ram. ·
4. In ~he prepa r ation o f a ll re ports and analyses required
by .?aragraph 6 hereto f ore, and in approving loan applica-
ticns ,. t h e f ollowing policies shill apply and be followed
by the Au t hority :·
11/26/79
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Use nnd Purpose.
Loans are made available for the purpose of permanent
improvements, additions, or other housing rehabilita-
tion and may only be used for:
A. Repairs and improvements to meet City Code
Standards.
B. Energy conservation improvements.
C. Elimination of incipient violations of the City
Code.
D. General property improvements.
II. Eligibility.
III .
A. Eligible Borrowers. Loans shall be made only to
natural persons who own the property on which the
improvements will be made.
B. Eligible Properties. Loans shall be made only
for residential properties containing four
dwelling units or less located in the City of
Englewood.
Priorities.
A. General Priorities. To be approved, an applica-
tion must meet all other applicable policies and
represent three (3) priority points, computed as
follows (income is computed by using then-current
HUD guidelines):
Points
(1) Very low income
(2) Low income
(3) Priority neighborhood
(4) Eligible investor (See VIII)
(5) owner occupied
(6) Elderly
B. Priority Neighborhoods: Following are the
initial priority neighborhoods.
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(1) Area 1: The entire residential area in
Northwest Englewood bounded on the north
by 'the Evans/Adriatic alley, on the east
by South Tejon Street, on the south by
West Vassar Avenue and on the west by
South Zuni Street •
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(2) Area 2: Begi1111in~ at the intorsoctiou o.r
West Yale Avenue with the Broadway/Acoma
alley, thence west along West Yale Avenue
to the Delaware/Elati alley, thence south
along the Delaware/Elati alley to West ,
Bates Avenue, thence west a long 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
Eastman 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 'he Sherman/Grant alley,
thence north along the Sherman/Grant alley
to the point of beginning.
(6) Area 6: An area bounded on the north by
West Union Avenue, on the east by the
Broadway/Acoma alley, on the south by West
Layton Avenue and on the west by South
Huron Street.
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C. Chronolo~icnl Priority. Upon receipt of an np-·
plication eligible for a loan pursuant to III A,
the staff shall notify the Authority, and the
Authority shall earmark (but not appropriate)
funds in the amount applied for until the applica-
tion is acted upon or withdrawnQ All such ap-
plications shall be acted upon in the same order
in which they have been received.
IV. Priorities for Use of Loan Funds.
Within each application further priorities are here-
by identified to determi~e the amount of the loan
usable for each purpose: first priority -funds re-
quired to bring property to City Code Standards;
second priority -funds for energy conservation im-
provements; third priority -funds to cure incipient
violations of the Code; fourth priority -general
property improvements.
v. Loan Limits.
A. Monetary Loan Limits. The following monetary
limits will apply:
(1) $15,000 per dwelling unit.
(2) $60,000 per borrower.
(3) These limits shall be reviewed annually •
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 re-
habilitation loan shall not exceed 90% of the ap-
praised value of the property as determined by a
qualified appraiser.
VI . Liens .
Loans will be secured by a first or second deed of
trust; no third liens will be approved.
VII . Credit Factors.
A. Ability to Pay. All credit decisions shall be
based only on the applicant's ability to repay
the loan. Action on loans shall not be based
on, or influenced by, the race, creed, color,
national origin, marital status, sex or age of
the applicant .
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VIII.
IX.
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B. Normal Rate Loans. The normal interest rate i:;hall
be the Authority's current borrowing rate for
funds for property rehabilitation purposes, plus
a 1% service and administrative fee.
C. Less than Normal Rate Loans. If the applicant
is a "low income" or "very low income" person
pursuant to III A, and the application meets all
other policies, and in the opinion of the Authority
the applicant could repay the loan applied for
but not the loan and the normal interest, the
Authority may approve the loan at less than the
normal interest rate.
Loans for Rental Property.
Loans covering property where the owner is not a
resident of the property shall be issued only upon
satisfactory showing that his or her application for
a loan which is substantially similar in terms of
purpose and principal amount to the property rehabilita-
tion loan applied for has been rejected by two qualified
financi al institutions which regularly make improve-
ment or real estate loans. If the application is
approved, the owner shall agree to enter into a con-
tract with the Authority to keep rents within the
reach of low and moderate income families, and/or
make the property eligible for Federal Section 8
Housing Assistance Payments. Loans for the purposes
set forth in I D, to absentee owners of rental property
sha ll be limited to 30 per cent of the total of the
loan approved for the purposes set forth in I A, B,
and c.
Construction.
Work done with the proceeds of the loans shall be
accomplished by either the owner or a licensed con-
tractor .
X . Repayment.
Repayment terms shall not exceed 20 years.
shall be repayable in equal installments of
and interest, due on or before the fifth of
month .
Loans
principal
each
5 . Th<· Authority shall then examine and evaluate the applica-
tion, together with all reports and findings required by
Paragraphs 5 and 6 hereof, and either approve, reject,
o r modify and approve such application. The decision of
the Authority shall be final and binding upon the applicant •
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6.
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The Author ity shall require any applicant to repay all
of the fu nds borrowed under this program. Elderly appli-
cants and those receiving a no-interest loan may select
one of the following methods of repayment:
I. Time· payments made· on a monthly, quarterly, or
annual basis.
II. F\111 repayment shall become due upon the sale and/or
conveyance of property or upon removal of the appli-
cant from the real property.
III. The entire amount of the rehabilitation loan shall
fal l due and payable as a claim against the estate
of the applicant, and 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 insure that the loan is protected by a lien on
the real property, depending upon the way in which
the property is titled.
7. i .11 funds repaid by applicants shall be used only for
similar loans o f housing rehabilitation assistance to
applicants approved by the Authority.
8 . The Authority shall approve all loans 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 and suffi-
cient equity therein to justify said loan.
II. 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.
III. That said residence after rehabilitation and repairs
wil l be maintained in a satisfactory manner.
IV. Except for emergency loans, that the applicant does
not have an outstanding housing rehabilitation loan
under the program hereby established.
9. All persons and entities entering into contracts with
applicants f or repairs and rehabilitation of any sub-
standard residence, shall be an equal· opportunity em-
ployer and shall .comply with all applicable Federal, City
and State codes, statutes and ordinances •
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10. The Authority shall ~enerally su~ervise all repair and
rehabilitat ion 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 fulfill the provisions of this
agreement.
12. The Authority shall prepare administrative p~ocedures 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.
EXECUTED at Englewood, Colorado this
, A. D., 1979.
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day of
ATTEST:
Director of Finance
City of Englewood, Colorado
A Municipal Corporation
Ex o ficio City Clerk-Treasurer
APPROVED AS TO FORM:
City Attorney
ENGLEWOOD HOUSING AUTHORITY
ATTEST:
Executive Director