HomeMy WebLinkAbout1982 Ordinance No. 010... ,.. .
ORDINANCE NO. / 0
SERIES OF 1982
BY AUTHORITY
COUNCIL BILL NO. 9
INTRODUCED BY COUNCIL
MEMBER BRADSHAW
AN ORDINANCE AMENDING AN AGREEMENT BETWEEN THE CITY OF ENGLEWOOD
AND THE ENGLEWOOD HOUSING AUTHORITY FOR ADMINISTRATION OF THE HOME
REHABILITATION PROGRAM .
WHEREAS, after audit of the City of Englewood's Community
Development Block Grant Program, it was determined by HUD that
the City of Englewood does not have sufficient authority for a
lump sum drawdown; and
WHEREAS, HUD , the City, the Englewood Housing Authority ,
and Continental National Bank -First Interstate Bank of
Englewood have come to a common understanding concerning "lump
sum drawdowns"; and
WHEREAS, by Ordinance No . 33, Series of 1981, an a g reement
currently exists concerning this general matter and it is the
desire of the parties to amend said agreement.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ENGLEWOOD, COLORADO:
Section 1. That the City of Englewood agrees to amend 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 And Grant
Program Of The Englewood Housing Authority" consisting of eight
(8) typewritten pages, attached hereto and incorporated herein by
reference. Said agreement is amended as follows:
Page 1.
1. The Authority, throug h its personnel , or the
personnel of the City , with the approval of the City
Manager, shall be responsibl e for the execution of the
Housing Rehabilitation Loan and Grant Program, herein
called "the Program", in accordance with Community
Development Block Grant (CDBG) regulations.
The Englewood Housing Authority (EHA) shall
turn over any unused CDBG funds to the City at the end
of the agreement or if HUD demands the money in
accordance with CFR 24, 570.910(b). (Attachment A)
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with the foregoing are hereby repealed and expressly repealed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 .
S ection 3. The City Manager is authorized t o execute those
documents necessary to carry out this ordinance.
Section 4 . The City Council 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 5 . 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
1st day of February, 1982 .
Published as a Bill for an Ordinance on the 3rd day of
February , 1982 .
Read by title and passed on final reading on the 16th day
of February , 1982 .
Published by title as Ordinance No. /0 , Series of 1982,
on the 17th day of February , 1982.
Attest :
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
passed on final reading and published by title as Ordinance
No . /0 , Series of 1982 .
C.
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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 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 Rehabilitation Loan and Grant Program, herein called
the Program, in accordance with Community Development Block Gr a nt (CDBG)
regulations.
The Englewood Housing Authority (EHA) shall turn over any
unused CDBG funds to the City at the end of the agreement or if HUD demands
the money in accordance with CFR 24, 57O.91O(b). (Attachment A)
2. Application for assistance shall be first submitted to and approved
by the Authority under procedures adopted by the Authority.
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-
standard.
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. Prepare and verify a social and economic profile of the
applicant which shall include: family composition,
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 E! all reports and analyses required El. this
agreement, and in approving loan and/or grant applications, the following
policies shall apply and be followed El. the Authority:
11/13/81
I
T. n_se and Pnrpose.
J.<janE: and qrant:.; ai:e rnc:tde c\vailablc~ for the purpose of
(.>8 rrnanent .improvements, additions, or: ot.her housing
rehabilitation and ma y only be used for:
1-,. Repcd.r:=; an<l improvements to meet City Code Standards.
13. Eneryy conservation improvements.
C . Elimination of incipient violations of the City Code.
D. General pzoperty improvements.
il . El.ig~ili ty for Loans.
7\.. 1.ni9).ble Horrowers. Loans shall be made only to
natural persons who own the property on which the
improvements will be ruade.
B. Eligible ~roperties. Loans shall be made only for
residential properties containing four dwelling
units or less located in the City of Englewood .
. Ul. EligihiJ..ity f or Grants.
A. E~gjble Grantees. Grants shall be made only to
natural persons who own and reside in the property on
Hhich 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. Eligible Properties. Grants shall be made only for
residentjal properties located in priority neig-hbor-
hoocl s listed in the agreement.
T V • J> r: j_ o C .i t i C ~:; •
t\. <:,•1lf 'J...i ·1 1•1·.ior.i t:i.cr;. 'l'o h<.! approved, an applicut.ion mus t.:
i11 c<:!t. ·au.·· o"t:l°ier···ili_jplical..>le policies and rcprcs<.!nt thrcu
(3) priority points, computed as follows (income is
computed by using then-current HUD guidelines):
(].) Very low inc on~
( 2) Low inc.:orne
(3) Priority neighborhood
(4) Eligible investor (See X)
(5) Owner occupied
(6) Eld0rly
Points
3
3
3
1
1
1
11. P,:ioci.l.y Ni~iqhl iorlioocls: Pollowing are the priority
i·1i!T9hi:iu·,~11 c)<>d s -~----·· ·-···· ...... .
(1 ) Area L: The entire residential area in
Northwest Englewood l>vunded on the north by
1·l w 1::vans/l\clr.iat.ic alley, on the cast by
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Sout.1', 'l'e:jon 8 treet, on the south by West Vassar
Avenue, and on the west by South Zuni Street.
(2) Area 2: Beginning at the intersection of West
Yale Avenue:! with the B-roadway/Acoma alley ,
thence west along West Yale Avenue to the
Delaware/~lati alley, thence south along the
Delaware/El~ti alley to Wes~ Bates Avenue,
thence west along West Bates Avenue to the
Elati/Fox alley, thence south along the Elati/Fox
alJ.cy 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 7\venue 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/
She rman alley, thence north along the Lincoln/
Sherman alley to the point of beginning.
(4) Ar~a 4: An area bounded on the north by West
Mansfield Aven ue, on the east by the Broadway/
J\coma alley, on the south by West Oxford Avenue
,rn<'I on the west by the Elati/Pox alley.
(5) Area 5: Beginning at the intersection of East
Ma nsfield Avenue with the Sherman/Grant alley,
thence west along East Mansfield Avenue to the
Broadway/L i ncoln alley, thence south along the
nror1 dway/I.incoln alley to East Princeton Avenue,
Llll~nc.;e east ,,long East Princeton Avenue to South
Grnnt Street, thence north along South Grant
Street to East Oxford Avenue, thence west along
Ec:1:; t Oxford 1\vonuc to the Sherman/Grant c.1lley,
thunce north along the Sherman/Grant alley to
the point of beginning.
¥-----~----------.....
(6 ) Ar ~a 6: An a r Ga bounde d on the north b y Wes t
Union i\vnue, on the east by the Broadway /Acoma
alle y, on t h e south by West Layton Avenue and
on the west by South Huron Street.
C. Ch~oi:io lo_sr i c al _P r io:c :i.ty. Up on rece ipt of an ap pJ.icution
c l.1.g .1.bl c tor a loan and/or grant pursuant to I V .A. ,
the staff shall no tify the Authority, and the Authority
shall earmark (but not appropriate) funds in the amount
appli~d f or until the application is acted upon or
withd rawn. All such applications shall be acted upon
in the same order in which they have been received.
V . Prio ritie s EO~ Us~ of Loan and/or Grant Funds.
With i n each ap pl:i.ca~ion further priorities are hereby
ident:i.Eied 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 -
f unds to cure incipient violations of the Code; fourth
priority -general property improvements.
~I. Lo a n Llmits.
I\. Mon e tary Loan Limits . 'l'he following monetary limits
wil.l a pp ly: (Limits will be reviewed annually by
the Authority)
(1) $1 5 ,000 per dwelling uni t .
(2) $~0,000 per borrower.
n . ~:'..~-"~~-~:s !!~_1_!~~~~-~!~. ~P.P..E_~_i-~_a _l_. Notwithstanding the above,
a loan secured by a first deed of trust shall not
exceed 90 % of the appraisal value of the property as
d e t e rmined by a qualified appraiser . If the loan
i s sec ure d by a s e cond deed of trust, the total of
the fi rst loan and the property rehabilitation loan
~-;hall no t C!xceed 90 i of the appraised value of the
prope rty a s determined by a qualified appraiser.
V i :L . Gran t Limits .
V i r ·,.
M<1.:d rnum ~1r c1 nt. a mount s hali. be $15,000 per Grant e e .
r.ic•os.
/\. Loun!'; wi l l b e! s e:c;urcd by a f irs t oi: second dcc:!d uf
trus t; uo third liens will be approved.
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r1 • J.'1:-ope rty improved by a grant shall be secured with a
lien thereon. Should said property be sold, conv~yed,
1.-.r.-rnsfe n :ed o:c clelivered, repayment of the gra nt shall
he made as fol lows:
(:Lj GranteE: shall repcly 100!7; of the gran-t should th~
property be sold , conveyed, transferred or deliv ~red
during the first twelve months, inclusive, after
signing o.f the Grant Agreement.
(2) Grantee shall repay 80~ of the grant should the
property be sold, conveyed, transferred or deliverl:d
during the followinq period of time: 13th through
24th month after signing of the Grant Agreement.
(1) Grantee shall repay 6 01 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 should the property
be sold, conveyed, transferred or delivered during ··.tae
followi n g period to time: 37th through the 48th month
after signing of the Grant Agreement .
( '.J) G.can tee ~;Iii.\ 1 1 repuy 2 o i of the g rant should the
property be sold, conveyed, transferred or delivered
during the following period: 49th through 60th
month afte r signing of the Grant Agreement.
(6 ) Grantee shall not he required to repay the grant should
t.he property be sold , conveyed, transferred or delivered
following the: 60th month after signing of the Grant
/\g rcemc.:n t .
Hcpay11w:nt shall be made to t.he Program account.
IX. Credit F actors for Loan .
A . nhj_Jity to Pay. All credit decisions shall b e based
t.111:(y-·on th1:-app licanl:.'s ability to repay the loan.
Action on loans shall not be based on, or influenced
hy , the race , creed, color, national original, marital
status, sex or age of the applicant.
D. 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 admjnis trati v e fee .
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C . ~~,e s o _ 'l'ha n Ho:.·rn,~J. n.a ·::r~ Loan. If ttte applic:,mt :Ls a
"low income II or "very low inco1tte II person pursu,:i ni; to
P.J .A., and the ctpplication meets all other policies
c:md, in the op:i.nion of the Authority, the applicant
could repay the loan applied £or but not th~ l oan und
the nor 11tal interest, the Authority may approv e the
:..oan at. less than die normal interest r u.te .
L owu; cove.riri.g property where the owner is not a re:.:::.ideni:
of •i:.he property shall be issued only upon satisfactory
showing that his or h~r application for a loan, which is
!:;Ub.st.a1~tially similar in terms of purpose and principal
.::..monn-L to the property rehabilitation loan applied for,
b at: been rejected by t:.wo qualified financial institutions
v1J1ich regularly make improvement or real estate loans.
If the application is approved, the owner shall agree
b> e nter into a contract with the Authority to keep r~nts
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
l .D., t o abs entee owners of rental property shall be
l imited to 30 percent of the total of the loan approved
for the purpo~cs set forth in I.A., n., and C.
·,: .i. . Cu 11 s t r n c t.:i on .
v\fo:.c:k d o n e wlth the pro c eeds of the loan or combination loan
ar,d g-rant s h a l l be accomplished by either the owner or a
lit:ensed contractor. Work done with 100% grant funds shall
bl! c.1 ccompl i she d by a lice nsed contractor.
i ~.L l • He paymen t o :f Loan.
R~pay mcn t terms s hall not exceed 20 years. Loans shall
!Je r<;;paya b le i n equal installments of principal and i.ntcre:::.t
due on or b e fore the fifth of each month.
•;. ·1'l1e 1\1ti..h ority s h .:.tl J. l;h u n u x am.i.n e and evaluate the: a pp liccJ.tion,
1.c ,<J<~ i_11;, r. 111.i. l:h all repo rts and £ indings required by paragraphs 5 nod
ti iH.!rL.:ui , c.1 od either a pprove, reject, or modify and approve:: such
c1 ppU c;, t i o n. 'l'he d e c i sion of the Authority shall be final and
li.in rUn~i upon the a pp licant.
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(;.
01'i10 l\nU1ori ty Ghall requi:ce a ny applicant to rep.-:iy al l of
the f i rnd~.: borrow ed under this prograrn . Elderly applicr.mts a nd
l:bo!;u J."'-!ceiving a no-interes t loan 1nay select one of the 1:ollowing
1,113 tlied 1:.i of repayment;
I. 'l'iine µayments Ji1ade on a monthly, q uarte:i;ly, or
a1mw.1.l. l.>.:.t~ls.
11. Full repayment shall become clue upon ·che sale and/o r
convey ance of p:i:oper-c.y or upon re~oval of the appli-
cnnt from the real property.
1:i:r. 'l'he entire arnount o f the rehabilitation loan shall fall
due and payable as a claim against the estate of th~
appl icant and shall become a lien on the real property
of. t h e said applicant. upon his or her demjse.
IV. 'l.'he Authority shall apply administrative guidelines
to insure that the loan is protected b y a lien on the
real p roperty, depending upon the way in which the
property is titled.
7. All funds repaid by applicants shall be used only for
simila~ loans o r grants of housing rehabilitation assistance to
applic~nts approve<l by the Authority.
U. 'l'he Authority shall approve all loans and/or grants under
U1is p r og r a m by ap propriate action when satisfactory evidence of
the f ollowing has been subir.itted to the Authority:
J • /\ppl.icw1 L Jws good ti Lle to the residence .
. LL. 1,o an uppJ.icants shall have suf ficient equity tlwrc:in
to justify said loan .
lII . l\ppJ.icc:1nt has entered into a written contract on
forms to be approved by the Authority with a person
or e ntity qualified to perform and complete repairs
required to rehabilitate the residence.
IV. That said residence,after rehabilitation and repairs,
will be md.i.n tained in a satisfactory manner.
V. ~xc.:ept .l:o J~ erner<Je111.~y loans and/or grants, t.:l1at the.::
appl i cant does not have an outstanding housing
rehabilitation loan and/or grant under the prograw
ill.!1:cby c t, t:ablishcd.
VI. I.oc'.!1 dppU.canti, should prove an ability t.o .cE:pc1y the
loan.
'1 . /\ t l persow, and cn titic!:i e n tering into contract::. with
"l.-Jl I .i (;i_1J1ts for repa.i.rs and rehabilitation of any substandard
n1si.d,::nC;e ~h all be an equal opportunity e111ployer and shall comply -..,i 1·11 -1 ·1 ·1 .. pp ·1 jc.ihl,i l•',.•,l cr.n), City and State codes, stalutt~8 and
,·, nl.i n,,nc:ctc..
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10. The Authority shall _ generally supervise all repair and
rehabilitation construction and shall authorize payment for same
when substantially performed in accordance with the construction
contract entered i nto 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. 'l'he Authority shall prepare administrative p.i:ocedures to
.i mplement the intent o~ this contract.
13. The Authority shall submit an annual report to the City
Council regarding the performance of the program.
14. •rhis Agreement shall be binding upon the parties hereto
and their successors.
15. This Agreement supersedes and replaces all other agree-
men ts between the parties relating to the program.
IN WITNESS WHEREOF, this Agreement has been executed at
Englewood, Colorado, this ___ day of __________ , 1981.
Attest:
Gary R . Higbee, Director of
Finance, ex officio City
Clerk-Treasurer
Approved as to Form :
Rlck DeWitt, City Attorney
Attest :
Frances Buck Jonas
Executive Director
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CITY OF ENGLEWOOD, COLORADO
a Municipal Corporation
By _____ _
Eugene L. Ot1s, Mayor
ENGLEWOOD HOUSING AUTHORITY
By Tnomas J. Burns, Chnlrm·_a_n __
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