HomeMy WebLinkAbout1984 Ordinance No. 045I
ORIJINMCE l'KJ . 4 :,
51:RIES OF 198_4 __ --
BY AU'I'hORJ 'fY
COUOC !L BIL~ NO . 46
INTRODOCED BY COUOC IL
MEMBER BRADSHAW
AN ORDINAOCE GRANT I NG 'fO '!1-tE Er-KiLEWOOD HOUSING AU1l-lORI'rY $250 ,000
FOR THE Er-KiLEWOOD IIOME REHABILITATION PROGRAM AND AMENDING AN
AGRE EMENT BE'IWEEN TIJE :::r•ry OF Er-KiLEWOOO AND TH E Er-KiL!:WOOO HOUSING
AUTiiORIT Y FOR Ail'IINI5'TRATION OF TH E lffiE REHABI LITATION PROJRAM,
WHERE/IS , the City of Ellg lewood has rece i .,ed a '!Wo Hu ndred
Fif t y '!housa nd Dolla r ($2 50 ,000 ) grant fro:n COiorado State
Department o[ Local Af f airs t o opera t e a housing r ehdbi l itation
proyran ; and
WHERJ::AS , i is n~ess.:iry to ffil end and clarify the agreanent
be lween the Housin, AJ t ho rity and the City of EllylewooJ concerning
t he Hou.d ig Reh abi ii t a t ion Pr ogram ;
NCH , THEREFORE , BE 11' ORDAINED BY THE C!'rY COUOC!L OF TH E
C!1'Y OF E.'GLEJ.-1000 , C:OLORAOO :
Sect ion 1. '!hat the City of EllglewooJ shall anend the
agreenent unde r Ordi nance NO . 27 , Series of 1983 , wi th the Housing
Au t ho ri ty titled "An 11,)r ee,,ent Betwee n '!he Ci ty Of Engle ""' -1 And
The Englewood HO usi ng Auth ority Reg a r ding '!h e POl i cies n ing
The Ho usi ng Rehabi li tation LO a n and Gr a nt Program of ,ig l ewood
Housing Authodty (4 /83) ." So.11d anended agree,,e nt is Jt tached
her e to and incor:pora t ed he r e in by re ference.
Section 2 . 'I'n•e City of Englewood he reby grdnts to the Englewood
HousfiigAuthority t he sun of 'IwO Hu ndred Fifty 'Ih ousnncl Dol :.a r s
(S25U ,OOO) t o be us ed in accordance with Appli cat i on Gr a nt Number
04-440 under Ti tle I o[ t i1e Housiny Developnent Act of 1974 and the
Agr ,enent desc r i bed in Seel i on 1 her'2u f.
Sec t ion 3 . Al l ..J t<limrnces anLl r~solutions in confli ct with the
f'cii;;-jolng are he reby repealed .
Secuon 4. Th e City Council of t he City of Eng lewood , COl orado ,
he"re'5y.JL!t horizes the M:lyor anU th e ex vf(1 c io Ci ty Cl e rk-Trea sur e r
to si,Jn a~:l at test sa id arn e nded ag r.,..n-,nt on !:>,ha lf a[ tne City o[
Eng l ~wo od nd City Counc 11.
I ncro.Juced , r~ctd 111 fJLl , and pJs sed on f trst rcud i ng on tne
1s t .l a y o[ 0:: ob,e r , 19 84 .
Publi shed as a Bi 11 for a n Ordina oce on the )rd day o(
October , 1984 .
Read by titl e and passed on final read ing on lhe 15th day o f
October , 1984 .
Pub l ished by title as Or dinaoce I '· 45 , series of 1984, on
the 17th day of October, 19 84 , ---
Attest :
1 , Gary R. Hig bee , ex officio City Cle rk-T reasure r of the City
of Ellg lewood , Colorado , here b y cert i fy that the a bove and foregoi ng
is a tr ue , acc ur a t e a nd canpl ete copy of the Or dinance passed on
final re.,d ing a.nd published by titl e as ord inanc e NO . 4 5 , series
o f 1984 , --
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AJ'. AGR EEME NT BET IICEN TB •. CI TY OF ENGLEW OOD AND TII E EN GI.E\/OOIJ IIO US l NG
J.'.ITHORIT', REGA Rll rnG TII E PO LI CIES GOV ERNIN G TH E HOU SI NG REIIADJLITATJO N
W AN ANll GRANT PkOGRAM OF TII E EN GLEWO OD ll OU SJ NG AU'J'IIOH J'J'V (4 /83 ),
Th e Ci t y and t h e Au t ho ri ty agree as follol./s:
I . Th ~ t::ng l cwoc,cJ !lo u s i ng Autho ri t y , h c r l!i n -.;;J])l!c.l Ll 1L! 11AuL1 1o r i Ly "
thro ugh its per sonnel, or th e personnel of the City of Englew o od , herein
calle d t he "City ", with the ap proval of the City Ma nager , sha ll be respon-
oible fo r t h e e xe cution o f t he Ho using Rehab ilitation Loan and Gra nt Pr ogra m,
herein c a lle d the 11Prog rem11
, i n acc ordanc e with Co mmunity De v e lo pme nt Bl ock
Grant (CDBG) r e g u l at ion s .
The Au t ho r i t y sha ll t u rn ove r any Wl use d CDB G f un d s t o the City
at the e nd of the agr ee ment a n d a dmi nister the f unds i n acc o=d a n ce with the
State De partment o f Local Af fa irs p r o cedur es .
2. App lica tion f o r a s s i s t a nce s h a ll b e fi rst s u bmi tt ed t o and approve d
by t he Autho r i ty un d e r p o l ic i es ucJo p tcd by the Auth o ri t y .
3 . Upon r ec eipt o f an ap pl ica tion , t h e Au t ho r i ty s h a ll cause e n i n-
s pe c tion to b e ma de o f t he app lican t 's r e s i d e nce a nd, i f d e e med n ecessa r y ,
s ha ll:
a . Cause a d e t aile d l ist and explanat ion t o be ma rle o f
all ac tions a n d work requ i red t o el im in a t e or re pa ir
t he c ond itions o f the r es id en ce whi ch ma ke i t sub-
standa r d.
b. Ca u s e an e s tima t e o f the c o s t o f such r e pa i r s to
be l!lBde •
,:. Ob ta i n s uf f icient documen t at i o n t ha t the a pp licant had
goo d t i tl e t o s a i d r es i dence .
d. Ma ke an es t i ma t e of t he va l ue o f t he app lica n t 's
e q u ity i n s a i d r es i dence .
e . Pre par e and verif y a socia l e nd economic profil e o f
t he a pp licant which sha ll i n c lu de : Fa mi l y compo s ition ,
fami l y i ncom e , p lac e of e mp loymen t , if a ny , o f a ll
family mem be rs , a pp r ox i ma t e d a t e o f pur cha s e of r es i -
d ence, an d e xis t ing i n d e b ted nes s s ecur e d by sa id
r eside nce,
f . Pre pare a prell mi na ry ana l y sis of ap plican t 's a b il ity
t o r e pa y any fun ds mad e: avail ab le t o a pp lic a n t under
t he pr og r am.
4. l!! the pre pa r a ti on £!_ .!!.!..! _E e por t s pnd ana l yses r equ ired £Y. th i s
Ag r eeme nt, end.!!! .:1p p r ov i ng l oans ond/or g runt ap p l ic ations ,~ f ol l ow ing
po licie s s hal l ~ a nd ~ followed £Y. t he Au Lho r lty,
4 /83
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III .
II P II
Ut:.t: 011U Pu rput>(:
Loan s and g ranl s are mad e a vail abl e for the purpose of permanent
1m pr ovemen t 6 , oc.ltlit i o ns, or other ho usinc r c hahilit o tlou :iml 111:iy
on l y Lt; u~~d f or:
A. Repa irs and i mproveme n ts to meet City Cod e sr,ndards.
B. Handica p relrofitting.
C. En e rgy cc..,1servation 1.mprovemen t s .
D .. Elimina ti o n of incip i en t violations o f the City Cod ~.
E. Gene ral proper ty i mp rovemen t s .
Eligib ility f o r Loan s
A. El igi bl~ Bo r rowers . Loans shall be mad e only to persons
who own t he pr opert y .Qn which the im pr o vements will be ma d e ,
B, Elig i ble P r oper ti es, Loans sha ll be mad e onl y for resident i a l
propertie s cont ainin g four dw el ling unit s or le s s locat ed in
t he City o f En g lewood.
Elig ibili t y for Grants
A. Eli g i ble ~-Gr ants sha l l be made o nly to nat ural persons
....no own and r eside in the p roperty on wh i ch the improvemen ts
will be made . Grantees must meet the t he n current income and
asset e l igi b ility limits as set forth by the fun ding agency .
B. Eligible Prope rti es. Gr ants sha ll be made only for resi de ntia l
propertie s loc ated in elig 1.ble neighbo rhoods .
IV Pr ior it ies
/\. Pr i o rity tl e .1ghbo rhoods . At lea s t once each ye ar the Authority
will determine Priori t y Neighborhoods . The Priority Ne ighborhood
"''i ll be designated in the applicable fun ding p roposals to t he
Sta t e or the Ci · y a s approp ri a te .
B. Chr onol ogical Prio r i t y. Upon r eceipt o f an .pplico tiun fo r o
loa:-i and /or gr ant t he staff shal l n ote date and time of receipt
oc the applica tion f o r m. All such ap pl ica t i on s s hall b e acted
u;;o n in t he same order in wh i ch they ha ve been r eceived.
V. Prior1ties f or Use of Loan and/or Gran t Fun ds
1/i t hin each a ppl ica t i o n fu rth e r prio ri ties ore her eb y i d e ntified
to dL:t <:rcint.: the amo un t of th e loan u a:.able for e oc h p u r po s e: first
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VI.
priority -fund• requir e d to b ,ing prope rty to City Code StanJanl,.;
i;c.,con t.l pr'1 or1ty -!um.lb for handicop rc:tro fittingj lldnl pri u ri l y -
f und s for energy conservation improvement s ; fourth prior i ty -fu nd&
to cur e incipient violations of the Code; fifth priority -general
property improvements.
Lo an Limits
A, Monetary Loa n .h!!!!!.ll· At least once a year the Autho rity will
determine th e loon limit s.
B, Limits Based£!!. App raisal. Not,,;ithst anding the a bove, a l oan
sec ured by a first deed of trust shall not exceed 90t of the
appr a isal val ue of t h e property a& determined by a qualifie d
apprais er. ·1 f the loon is !ec ured by a second deed of trust,
th e total of the first loan · a nd the property rehabilitation
loan shall not exc eed 90% of the appraised va lue of the propert y
U ti dete rmin e d by a qualified ap praiser. Loanb s ec ur <:<.J by u
t hird or fou rth dee<l of tru st s ha ll no t exceed 8 0% of the ap-
p r ai sed va l ue of the prope rty e a determined by a qua l if i ed
ap p ra i ser .
VII. Grant Limits
~/83
At l ea s t onc e a year the Au thority will de termine t he max i ruu n: gr an t
amount .
A. Loo ns will b.a secured by a deed of t rus t.
B. Pr o perty i mpr oved by a g rant sha l l be secur e d wit h a lien the reon.
Re payme nt of t he grant in the event of pa y off, s a l e , conveyance
o r othe r tran s f er of the prope rt y exc ludin g de ath, or i f the hous -
i n g un it 1• used other than a s the grante e(&) p rimary h o usin g un it,
gra ntee (s) agree to the follo1,1i ng repayment c ond itions:
(J) Gran tee (s ) s hall r e pay l00X of t he grant should the pro pert y
be sold , c onvey ed, t r ansferred or de livered during the ~ irs t
tw e lve mot th s, in c l usive , of ter sign ing of the Grant Agreement.
(2 ) Gran t e e(•) shall re pay 80% o f the g rant shou ld t he pr operty
be s ol d, co1 veyed , transfer red or delive r ed d ,""ing t he fo l-
l o1,1 in g per icd of time : 13th th r o ugh 24 t h month af t e r signing
of t he Gr ant Ag r e emen t.
(3) Grantee (s) sha ll r e pay 6 0% o f the g rant s ho u ld the pro perty
be sold , con11ey e d , transferr ed or deli v e r ed during t hi: fol-
l o1,1ing pe r iod o f time : 25th through 3 6 th mon th a[t e r s i gn -
i ng o f th e Gran t Ag r eeme nt .
(4) Grant e e(&) sha ll re pay 40% of the g rant s ho ul d th e pro perty
be sold, c onvey ed, tra nsfe rr e d or de live r ed during th e f o l-
lowing period of time: 37 th through 46,h month after sign ing
o f the Gra nt Ag reemen t ,
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(5) Griinttc(s) Mh all r cvny 20% or tht: g runt bhoultl LIit: pru1,l'rl Y
be sold , c nvcycd , tronsfe rr ccl or d cl1 11 e rc d dur :1n l: t he foJ-
lowing pcri u t.l: '49 L1 1 throu i;l1 60th monll 1 uf tcr bl~nlng Lile
Grant Ag r eement .
(6) Crootec(s) sha ll not be r e qu ired to r croy t he ~rnnt shoul <l
th<.! properly be solt.l, con v cycU, Lront:ifcrrcU or Uc.1.ivt:rcU
following the 60th month a£t e r signing of the Grant Agreeme n t.
Repaymen t sha ll be made to the Program account.
LX . Credit Factors for Loan
x .
XII ,
4/83
A, Ability !£ .!'.!..t · All credit d ecisions shall be b ased only on t he
a pplican t's a bility to r:epay the loan. Action on loans shall
not b e based on. or i nfl u enced by, the racl!, creed , c olor,
national origin, marital status, eex or age of the applicant .
e. No r ma l Ra t e Loans . The normal int eres t r ate shall be t he
Authority's c"urrent borrowing r a t e for funds for propert y
rehabilitation purposes , plus a 1% serv ice and admin i str ative
fe e .
C, Less Tha,i No r mal Rate Loan. If the applican t s are a 11 mo dcr. Le ",
'toi,.,11 or1ivery low"incoinefamily , a nd the ap p lication meets all
o ther polic i es the Authority will appr ove the loan ot l ess tlwn
the norm a l inte r es t r ote,
Loans for Rental Pro perty
Loans covering property where the O'wnc r is not a r esident of the
property sha ll be in accordance with policies F'?t forth by Autho r ity .
If the a ppl ica tion is approved , th e own e r shall agree to en ter i nto
a con t ru ct with t he Aut horit y to keep rents -..dth in t he r each of low
o r moder ate incomf' f a mil i es a nd /or make the proper t y eligible f o r
Federal Se c tion 8 Huusing Assistance Payments . Loans for the purposes
of gene ral p rop erty i mprovements s h all b e l imited t o JO X of t he total
of the loan ap pr oved .
Co nstru c ti on
Work d on e with t he proceed s of a loan and /o r g r ant shall be accom-
plished by a licen sed genera l contrac tor.
Repa ymen t of Lo a n
Repayment terms shall not excee d 20 yea r s. Loans shall be re paya ble
in e qual i n s ta l lm en ts o f p r incipal and interest du e on or b ef ore
t he fir st of each month .
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~. The Autho riL y or d c t;iguntcd offic io] ~ha ll Lh c 11 t 1~a11d 111 • :mil t ·v.,1 -
uaLe t h<! opplicOtion, Logt!Lh ~r with oll require d r <:po r ts ,mt.I !in<lings , tmJ
cith&:r approve, r e j ect , or modif y on d o pprov<! s uch opplicu t i on , Tiu J c cl tdon
of t he Aut hor ity shall be u ~a l and binding upo n the applicant.
6 . The Authority shall require repayment of loans and /or grants as
set for th in established policies.
7. All funds re paid by a p plicant s sha ll be used only for similar
loans or gran ts of housing reha bilitr.tion assistance to a pp licants approved
by t he Authority.
8 . The Au thorit y or de s i gnat ed official s h al l a p p r ove a ll loans ond/u r
grants under this program by app r op riate a c tion wh e n s a tis fa c tory evidenc e c,f
the f ollowi ng h as bee n submitted to the Authority:
a. App lican t has good title to t he r e s i de nc e,
b. Loan app lican t s shall have s ufficient equit y t h e rein t o
justify said loan a nd/or g rant .
c . App l ican t has e ntered int o a writ.ten contract on forms to be
a ppr oved by the Aut ho r i t y with a person o r e ntity l icensed
t o p erform and comple t e r e p a i r s requi r ed to reha bi l ita te the
res i dence .
d , Tha t said r e sidence, a f t er rehab i l it a tion an d re pa irs, wil l
b e mainta i ned in a satis facto r y ma nner .
e. Loan a p pllc ant & sho u ld pro ve an ab ility to re pay the loan .
9 . All persons a n d e nt ities e n tering into con tra c t s wi t h applic a nts
for repairs a nd r ehabilita tion of any substand a r d r es id en ce s h a l l b e a n c q u u l
opp o rtun ity e mp loyer and shall comply 1o1ith all app licable Fed e r al , Cit y and
St at e coc!es, sta tutes a nd ordina nce s .
10 . Th e Author i t y shall ge nerally s upe rvise all
tion cons truction and s ha ll a u thorize payment f o r same
per f orme d in a ccordance with t h e cons truc tion cont ract
can t a nd approved by Auth o rity .
r cp1 ir a nd r eha bi lit a -
whc n s ubstan t i a lly
e n te r ed in to by ap pli-
11 . Th e Authority may estab lish those a c c o un t s and allocate thos e funds
nec e ssary to f u l fi l l the provi sion s of thi s agreemen t .
12. The Autho r it y shu ll prt:pare admin i s tr utiv t pr<Jce dur es t o i mplemen L
t he int en t o f this contrac t a nd Au t ho rity polic ie s .
13 . The Aut h o rit y s h oll subm it an annu a l r eport Lo the Ci t y Counci l
r tgerdin g t he pe rf o r mance o f t he prog ram.
14 . This Agr eemen t shall be b i nding u pon t he partie s h ereto a nd the ir
successor s .
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15. This Agreement supersedes and repl , ... i!s all other agreements betwee n
the parties relating to the program •
IN WITNES S WHEREOF , this Agreement h as been e xecuted at Englewood ,
Co lorado, th is day of _______ , 1984 .
Attest:
Gary R. Higbee , Director of
Fi nanc e , ex officio City Cle rk-
Treasurer
Approved as to Form:
John R. Ol sen , City Attorney
Attest:
France s Buck Jonas
Exe c u ti ve Di r ector
CITY OF ENGLEWOO D, COLORADO
a Municipal Corporation
By ____________ _
Euge ne L. •Oti s , Ma yor
ENGLE:WOOD HOUS ING AUTHORITY
By __________________ _
Thoma s J . Burns , Chairman