HomeMy WebLinkAbout1989 Ordinance No. 001(IU)IlWO !'¥). I
SERIES OF ¼!118 1989
BY AlfflDII'lY
$e ea../so 9 <•>
Ord . Alo . 2~, 19tP'l
<nJNCn. BILL NJ. 4 7
INmOOOCED BY OXH:n.
MEl"8ER KOZACEK
AN CIU>INAICE APPROVm'.l AN l\MElO!ENl' 'IO 'l1IE AGRmlENI' ~ 'l1IE CI'lY OF
m:iLEHXXl J\ND 'l1IE aG.EH:XD IDJSim Al1l'IDII'lY AND GRANl'Im 'IO E2Q.m:JOO
IOJSJN:; AlmDU'lY $190,000 FCR Aa-lINISTRATICN OF 'l1IE IUJSIN:; REHABll.ITATICN
PRl:GRAM.
l"IIIEREAS, the State Departlrent of Local Affairs has notified the City of
Englewood that $190,000 of Camlunity Develo1mmt Block Grant (CDBG) funds was
approved for EnglE!\,UQ< .lOUSing rehahilitl\tion and adninistration under the
Rehabilitation Loan Program;
NCM, 'JllEREliCIIE, BE IT ORDAINED BY TIIE CI'lY <nJNCll. OF 'l1IE CI'lY OF
EN:iLEJ,O'.D, COLaWlO, THAT:
section 1. '.nlE! Agreeirent between the City of Englewood and the
Englewood Housing Authority is hereby an-ended authorizing transfer of funds
for adninistration of the Housing Rehabilitation Program for a 12-flDnth
oontract (CDB3 Contract No. 88-907 £ran Septerrber 16, 1988 through Septeniler
30, 1989) fran the City of Enc;lewood to the Englewood Housing Authority in the
amount of $190,000, pursuant to Section 24-32-70~ C.R.S.
Section 2. 'l1le Mayor and City Cle rk are hereby authorized to sign and
attest, respectively, said /\menclrrent to 'l.11e Engle1,ood Housing R<ehabilitation
r_.oan Agreerrent for and on behal f of the City Council and the City of
EIV)lewood.
Introduced, r ead in full, and passed on first reading on the 12th day of
Oece:rber, 1988.
Published as a Bill for an Ordinance on the 14th day of Decen-ber , 1988.
Rea d by title and passed v n fina l reading on the 3rd day of January,
1989 .
Published by t itle as Ordinance No . _j_, Series of 1989, on the 4th day
o f January, 1989.
At.~~t: . . /}
L tt.'ii,t u1v~-{;lt<-f.u,...
Patricia H. craw, City Clerk
-(~--(/4_
~-Van--o,-yk;.e-,=Ma-y"'o==i;c......,,-:...:::,,,.. __
{
I, Patricia H. c.ro.-i, City Clerk for the City of Englewood, Cn~orado,
hereby certify the above and foP,going i s a t. ,te copy of the Ordinancl! passed
on final r eading and published by •.itle as Or tinance No. _j__, Series of 1989.
Utur/4 ✓/✓ ~.c
Pac.ricia H. craw
I\HE'NDHENT TO
nlE ENGLEUOOD HDUSIN13 REHABILITATION LOAN AGREEKENT
Th• City of' Enolewood and the Enol~ood Housing Authority a.Qr••
n• f'ol lowst
I. The Enol ■wood Houc lrq Authority, her-ein called the
•Authority• throuQh it• par'!lionnal, or the p1rrconnel of
the C\ty of Englewoorl, hwr ■in called the •city", with
the approval of the Cl ty Nanage,-, shal 1 be respom;ibJe
ft1r th• ••l!cuti on t1f' the HousinQ R•hahilita ttDn Loan
Pro9ra11, hC!t"■ln ca 1 lrd th• •Proor•••.
1 I . Appl lc•tlon for a'!lsistance •h•I 1 b1t f'ir'!lit •ubmi tted to
and approved hy the Authority undor policle. adc,pted by
the Authority.
III. Upon receipt of' an appJicati.on, th& Authority ~hall
cause an tnspectiPn to bl!' ••d• of' the applicant's
reti ldence and shill I:
A. Cause a detailed li !S t and 1?)(p\anation to be
aade of al 1 actions 11nd work r~irod to
eJ \•i~t• or repair the c onditions of' the
residence --.hich m.ikP. i t s ub'!ltandard .
8. Cau!le .i.n e'!itimate of th• cost of -s uch reopair,s
to b• ■.adc.
C. Obtain sufficient docu11:entatl.on that the
applicant had good titJi, to said res l dencea
O. Kake an e ~ti1111ate of the value o'f the
applicant's eqt1ity in s.iid re"l i dence.
E. Prepare and verify a s 011:ial and econoinic
prciftle c,f th<!' applicant which ,shall i nclude,
but not be licnited to : Fa ■ily composition,
'fa ■ily income, e-.ploysent of all family
1'1!'ffben1, 1 iqu it1 a s<s ets, stocks and /or bonds,
value o f other CI Nned real ~tate, date ('If
purchase Cl'f s a id r~i dence, and exi s!inQ
i n d ebtednes5 s ecured by said residence.
F . Prepare a preliminary analysi!i of" applicant's
ability to repay any fund s ffiade available to
applicant under the Proqram
IV . ln the preparation of all reports and o,nalyses required
by this AgreCfflent, and in approving loa n applica.tions,
the following poli cie!i ,:;h a ll apply and br-f'olto...ed by
the Authority:
n. U5e amt P U!:J!Q!i.,_of _Loan_Fund'!i.
Three ba!>i c typi,s o-f loans are available -( t l
noraal rate loans; (2) deferred loans; and C3)
al trrnative relocation loans a Loans a re aade
ava l lab le f'or the purpo5e o f' per111an ent
i11prov .. ent!>, addition,, or other hous i ng
rehabllltation and m.ay only b• u«ed f'or the
-fol lowinq1
l. Eial_tJ:1RC11:v..: -R.,,alr• •nd l ■proV'9fflVnts ~o
.... t Section 9 Hour.tnq Cual\tv Bt•nd•rds (HQSl
••• ■ln\llUM cod• •
.:.. Iblcd_eclgrlh: -Eneroy Cons•rv11tion.
4. ERY!:l!J __ e:ci2clU -El \,.lnat\on of' lnclpient
violations of the S.C-Uon 8 t«)S.
:s. Elftb ___ fci2c11~ O.nerat property
\aprov-ents. S.n.,-af prop..-ty laprov...,..ts
c11n only be f'inancN through noraal r•te lo•n■•
If th• property iG ident\fled •• ln•pproprlot•
for r•hab due to excr.1•lve co11ts, the •ppl leant
aay apply for an alternative n,toc.atton loan.
J. lillG.ltll.L~cr:et!C~ -Loan• shall b• , .. de only
to persons who own tht.' prl.'\p..-ty on Mhich th•
iaprov...,nts w\11 be ••tt•.
Borrowers who are owrwrr/occupants c•nnot hav•
their \ncoma exceed lOO'X; of th• -.dia.n inca.e
as dl!flned by t«JD. Borrcwcr'!i who nre im,eittoro
have no income r•qulreinents.
2. ~glt!lL-er.m!~11~! -Loans shall be •ad■ only
for re.id•nUal prcpertl., contalnlno four
d"lellinQ units or 1 .. s locatad ,dthln the Ctty
o"f Englewood and not locatod in a d.,.lgn.-ted
flood plain area.
Upon receipt of a Prel Lai nary Loan Appl ic;'\tion, the
5taff shall note t he date and time of receipt on the-
for•. Thi s notation wi 11 dete r•lne the ordtw of°
proceo;;;sl o.'] of 1:?ach .,ppl\cation ui thl n eac h of" the
fol lc,.,.lnq priori ti.es~
1 . First _fciqrlt~ -ES1er9encies .-ihtch threaten the
irw•dlate health and/or safety c,f the
owner/occup11.nt or tenant.
2. §!M;:2'Q!!_fci12tl!Y -Al I owner/occupants below '50 ',(
o f the, HUD ~dlan lnr:oioe.
3. I1.:!ir.d. __ e:c12:tl 1Y -All o"'ner/occupim t. •ho .are
~1.nqle headis of hou•aholds b9tlk!ttn 501 and SOX
of' the t-t.JO tM?dian incor:te .
4. ~Ytl~--et:12ti1Y -All OMl'Wr/occupant!I •ho arc
t"'°'-parent households brt.-.n 50,C and OO't of
the HUD median incoN?.
Appl l catic,ns wi J l be accepted continuously f'ro.i
all owner/occupants betwe9n BM atld lOOX of' the
tt.JO t:\edh1n Income and from inv~tors .a s long as
normal ro\te loans are avallabht .and a5 long a5
thm-e lg no dl!Mland for nor..al r.ate lo•l'K 'from
owner/occupant<s bli!lo"' BOX l.'\f the lhe'd\an lnco~.
-2-
1, t!Q.DU:IC'L-~Oi!D--1:.1\!,l\.l -At ~-•t once ••ch ye•r
the Authorl ty w\ l l d•t• h l'.D the aonet•ry
tt•\t11 for th• nnr.,.1 rat ... ', def,-rr.,d, af'>d
•lt•rnatlvc r•locatton loans .
2. 1.lllllL-IIHII-QO_()Q g_c•lHl -Notwlth•tondlnQ the
above, a nor-Ml rat• or def'errad loan .ecur.d
by a Ortit d .. ~ of' trust -:hat 1 not •MCIHtd CJO~
of th• app r •\sat value r'J'f the property ,,u :
det•r•\nad by a quat \-fl•d apprat. .. r. If the
loan is sec:urad bV • second d.-d of tr ust, the
total of" the f t r s t loan and the prop11rtv
rtthab\lltatt.on loan shall not exclHd CJOI of" th•
appral•ad valu• of' \:h ■ prop•rtv •• det•r11\ned
by • quailifl•d appra\Mt", Jf' th• loan hi
••curad by a third or fourth deed of tru•t, the
tot•l of al 1 ■enlor to•~ and th ■ prop•rty
reh•b1 t l tatton lo•n •hal 1 no'. ■xcaad BO~ o f' the
appra\sttcl va,luo of the property •• d■t ■r•\,-d
by a, qual \fl.d appral•er-For deferred loan•
only, on a cav •-by-case ba,sl s, th• E .. ,c:utlve
Olractor e hall haV1t thn d\.c:r•tlon to ••c•.ci
the --•\alml al \o'"'4td p..,.c•ntag ■ of' the appraised
value of tho prop•rt,• llllh•n tnsufftclent aqu\ t y
ewi•tn, b ut lif~-threatenlnQ haz.ard ts
prnarmt.
E. \.l@ll!!
Nonnal ratr, d 4 f erred, a nd a lte,·native r•lC\c.atlon
lofln~ wi 11 b e-'!l ecurnd by a pr Cl ■l.Gso ry note a nd deed
of trus t n led on thr proper ty.
1 . at!i lit~-tQ __ e~¥ -Ill l c redl t deci-s\on'!I -shal 1 be
ba,.rd on ly o n the app l icant•~ a bility t o repAy
the> loa n , Actlon on loans s h::tl l n o t be bi'1 ~ed
on, or influrncl!'d by, the! rac•, crt!'l!'d , cC'lor ..
religion, N'loti on.tl o r i g in , madtal sta tus, -s c ,c .,
handic ap or .,ge of t he a pplicant.
2 . N2r.aal _R•t~--'=2aru; -For r&gular rehab. ,the
normal i nterm:t rate ~ha.1 l be th~ Authc-.ri t y •s
current borrow i ng ra te f or funds f or proper ty
rehabilitation purpo r.eti, plus a l~ per annum
ser-.,ice and ad 11 ini s tr.1tivc fP.C ,
3. lm!£CC.ffl1 __ l.2~~ -Fo,-regular r P.ho1b, if thl!'
appl\cant its an owner/appJ\cant and i s less
than 50,t of the ml!dl11n incoae •s d ef\ned by
t-1.JD, and the appl \catio n 11eets al l other
pol \cies , tt'l en the appl leant wi 11 be offered a
defe rred lC1 an at a O'.( par annua tnte rt!'&t n ,te.
4 . ~2!!b.i..n!:ll2n_\:2i!m -For regular rll!'hab., i f the
a ppl leant \ti an 0111nl!'r/occupant a nd ls bet.-en
~o ,c a nd BO'l of the -..dian incoM •• deflnrd by
HUD, "nd the appl \cati on -ts all other
policle•, theon the applicant Mill be offered a
co,ablnatton n,r•a l r a t e /def'arred loan bawad on th ■' ratto of' th• f'anl ty 's actual t.nco ■-to th•
tt..rD tledlan tnco•• 'for the same faelly s!.ze.
-3-
Tho tnterest rat ■ on the norMal l"oA.~11 lo11n
port ton of the Joan wit l b >'t '5et a n prcsr.::r lb r.d
In F .2. abov■• Tho interest ratn f r,r the,
d•f•rrttd portion 11d 11 ha at • OY. r nr ann u~
lnt ■r••t -r at•. lf th• appl\cant dol!W n o t h ,,1,1c
th• •bill ~y to r ■p'.y • c oab lnatlon hum , but
has an tdentlfl ■d hal'•rd, th■n the ,,ppl k.1nt
wt 11 be off■r ■d a d.-f ■rr ■d loan at .,. 5,C p er
annu• lnt ■r ■•t rat ■ only t o cover th ■ co~ts of
corr ■ctlnQ th• ha~ard.
5 . 8llttMt1Ytt_B:!lRk!li2D-~2J:OI -If th• app I tc•nt
l• an owner /occup•nt and ta •t or b•low OO'l of
th• .. dtan i ncoae and Mho .e, r~ldence h • 1 b••n
ldl!ntlf·t•d as l nappropriat■ for r•hab, then the
a pplicant wlll be of'f•r ■d a coab t nat ion ncir,wl
rat ■/d■ferr ■d loa n b n•■d on th• ratio or thP.
1"a ■ily 's actu.:11 i nco.. to tOO'l 01" t h e H...m
Median lncolM." for the S UIC!' family •iH!. The
lntere•t rat■ .. , 11 be a s prescribed in F ·'*•
above.
If thv appl icant c ~nnot qu;a l i fy for a not·a.t
rat ■ lo&n, and i • at or b ■low 50X 01" thn 1Md ie.-,
i nco•■, th ■n the applicant wl 11 be of"f■red a
spech1l non-bank loan at a 1% p•r annua
tnt.r,-,,s t r ate . tf the appl leant c.annc.,t qu.al lfy
for a nor,aal r ate loan an::S l• bet...,.n !';OX .and
BOX of th ■ •11d lan tnco-., then the applicant
w\ 11 be of-f■r ■d a •p ■c ial non--tu,nk loan at a :s,;
per a nnw11 i ntercst rat•.
Loam covering proptl'r ty where the 0 11ner \.5 not a
rl!!stdent of the property s hat 1 be •ade i n accordanr.e
with po l ic\es 'Se t by the Author i ty. Ir the
application \s approv1c"d 1 the 0 111ner !ihal l agree, for
a period of ten years to : < l J n o t convert
rehabilitated uni t s t o CC'ndo nii n iu• o wr,,.;ruhip aftpr
t he projec t h• coapleted; <2 ) flClt dl •cri r.i nate
agaln.t prospective tenants on the basis of their
rece i pt of". or e ligibil i ty for, housing a s s :stance
under any o'ederal • 5 tate or Joc a l housl.nlJ c'l s !i i s tance
progr.a• or Co xcept f"or a r .>J.ct f or hou5lng e lder ly
persons) on the ba~i ~ th<&,· the tenants h ave a mino r-
child Mho wi 11 be resid \ng with them; a nd C3l
pa.rt ic\pate in the Af"fira,1tive 1'1ar•:cti ng Procedures
of the Authority f"o l l o wing the closing of the ll'.:1n.
H. Construc t io n
Work done wi t h t h e proceeds of ,1 loa n s hat 1 be
.:1cco111plished by a HUD a pp r oved licensed gener a l
c ontractor .
1 . 8mA'L~n!_pf_!:2;;m ~
t. N~r•i.l_Rate __ LQan -Repay.ent ter~s -s hal I not
exceed 20 y e 3 r s . Loans sha l l be repa y a b le i n
equal insta.l lflents of p rincipal and l.nte r PSt o n
or before the f irst of each month.
2. 0.ferc.:?d_!i.oan -Repayaent ,~ due in ful 1 i n the
event of payo1"f", •al•, conveyanc:a, death, or
other trams-fer o f the property, or if the
housi ng un\t \s u-.;ed othl!r than as the owner'5
pri•ary housing •Jnit. Repa yw.ent s halt be aade
to t h~ proor a111 account .
3. runo111n ___ Btrll1,i!H21!---~~-D -R"l'•y-nt of
•Pttelal non-bank lo•n.. •hall b• ••d• \n 1tqual
1M>nthly tnetal J•ent• of prlnclpal and \nter•!it:
du• on or h•forr th• flrst of oach 11\0nth .
Rep•y-nt eha 11 b• aade to the progra• account.
Th• -,nthly \nst•ll-nts l'llll be ba,.c:t on an
approw\ .. tely t ... nt:y-yrNr tl!r• and th11t
appllcant'• ablllty to repay the lo•"• The
flOnthly ln•t ■ll-ntn Nill not e,r;c .. d th• St!ctlon
B E,:\'6UnQ quldr.11NP11 i ~,r rent deter•lnatlon.
V. Th• Authority or designated o'(f\cla '. ;hat I then •~••hvt and
avalu ■t• th ■ appl \cation, toe-~i't•r •lth alt r9qulred
n"Port• and finding•, and •lth•r .approv■, r■Jrct, or eodlfy
.and approve such appl\c•tlon. ll'I• d.clulon of" tho
Authority shall b■ final .and blndlnQ upon th• appl\cant.
VI. All fund• rapald by aprltcant• shall be u11ed only 'far
al•l lar loans of housin~ r•habi l \t.a.tion asfti9.tance to
appltcants •pprov!Rd "iy the Authority.
vr1t. Th• Authority or doo:;lQnated o'ffici•l Mall Approv• •11
lo•n~ undl!r t~ ss p r ograa by appropri.a.te act;\on 1i4hcn
satil!lfactory ev\c.en..:e c,f the f'ol loMLng has bl!'en ~b•l ttt!'d
to the Authorityt
Applicant h as g ood titl e to the residence.
B. Loan appl lc•nt& shat I h a ve su'ffi c\ent equity there in
to Justify said loan.
c . Applicant h•s •nterffd into a Wf'"l tten contract on form5
to be arJprc.wed by the Authority Mith a pr.r •o•i or
e ntity l icen'!H~d to perf'orlft and conplrto repa\r~
requ i ~·ed to r e-hab l l \tatc the resldenc-c .
o. That s aid r esidcn ... e , after r,,t,ab i litation and repairs,
will bo mainta inr.d in a sa tisfactory mann"!r .
E. Loan appl icant'!i -r.hould i,rove ~n abt 1 1 ty to rrp,1y the
loi\n.
IX. All persons and cntltt~ en t ering into contri\ctis M!th
appl\cant5 'for repa irs and rehab\ litat i on of' ,1ny
s ub~tanrlard residerce 5 hal 1 be an equal opportunity
e,nployer af\CI !iha ll cor.p ly with all applicablr. 'ff"dP.ral,
c ity, and -s t ate codes, s tAtutes and ordinance5,
l(. The Authority -:;ha ll a c t a'S a d\~bur"Ser o f fund s and !a.hall
author\zr. p ay111Cnt f o r repair and r.-habi litftt lon
c onstruction ~en ~ubs tanti.al ly p er f orfM!d in acc(lrdance
with the construct ion contract entered into by the
Applicant and the qent:'rill con trac tor a nd approved by
Autho rity
'(J. The Authority 11ay establi'!;;h ttio"Se accounts and a lJoc ate
those fund".i nec~sar y t o fulfi 1 1 the provi~ion'!i "f t h1'S
aqree111ent,
Xl J. The aothority ~ha ll prepare adinini!1trative procedures t o
\fflp l1un•nt the int .ent of t hl5 contract and Authod ty
Pol\cie'I.
Xltt. The Authority 5hall s ubS1it an annual rrport to the City
Council regarding the perfort1M1,nce of' the progra ■•
-5-
UV. Thl• Aqre ... n t .tlal 1 be blncHnq upon th• parUar1 hereto And
the l r aucc .. aor ■•
)CV . Thl ■ aor•-nt ■uper ■•d•• and r ■phc._ all o thn r •or••-nt ■
bet.,...n the parU•• rehtlno to t h• Hou■lnQ Rtahablllta ti on
Loan proor••·
IN WITNESS WHEREOF, thh AQre ... nt ha ■ be ■n e >e ec:ut.ct .at
Englewood, Colorado, thl ■ ______ day of' _______ , 198 __
ATTEST 1
Approv.c:I •• to For.11
ATTEST :
P .aul Nal l now aki
EM ■CU t i VII' D l r vc tor
CITY OF ENGLEWOOD
A P'lunlclpal Corpora tlon
ENGLEWOOD HOUS ING AUTHORITY
By: __________ _
Thollfta & J . Bu rn•
L'h alrtn .an
DATE
Decemb er 12, 1988
INITIATED BY
ACTION PROPOSED
COUNCIL COKKUNIGATION
AGENDA ITEK
ll(a)
SUBJECT
Community Development
Ptoposed Bill for
Ordinanc e
Approve a Bill for an Ordinance granting the Englewood
Housing Authority $190,000 for the Housing Rehabilitation Program.
BACKGROUND
The City of Englewood was recently notified that the $190,000 Coll'.munity Deve lopraent
-
Block Grant (CDBG) was approved for Housing Rehabilitation and Admini stration from
the State Department of Loc a l Affairs. The attached Bill for an Ordinance au-
thorizes this transfer of funds and assigns the respons!.b!.lity for administration of
t he program to the Englewood Housing Authority.
A rev ised Ag reement between the City and Englewood Hou s '...ng Authority for the ad-
ministration of the Housing Rehabilitation Program is also submitted for approval by
the Clty Co un cll. The Agreement is the same as approved ln 1987.
RECOKKENDATION
It is J ~c ommended that the City Council approve the revision of ::he Agreement
between the Englewoo d Housing Authority and the City for the administration of the
lo using Rehabilitation Pr ogram and authorize the transfer of funds .