HomeMy WebLinkAbout1989 Ordinance No. 026aUlltwaNO.dJ.-0
SERIES CF 1989--
CWNCIL BILL NO. 29
INmOOUCED BY OXJNCIL
MEl>1BER KOLTAY
AN aUlINl\NCE APPBOVING 'IWINSFER OF FUNDS APPROVED BY THE STATE DEPl\R'Il>IENr OF
ux:J\L AFFAIRS Fell fflE CITY OF DG.&OJO, FRC»I 'I'liE CITl! 'ro ffiGl..ao:>D HOUSm:;
AIJI'IDUTY Fa\ l\l:'l'lINIS'I'RATICll OF 'll!E CCNI'Th'Uilli HOUSING REl!l\Bll.I TJ\'.l'IOO PRCGRJ\M
PURSUJ\lrr ro AGRm!ENI'.
\·;HERF.AS, the State Departr.ent of Local Affairs has ootified the City of
&iglewood that $300,000 was approved for City housing rehabilitation and
aaninistratior. under the Rehabilitation Loan Program; and
ll'l!ERE!IS, the City and &iqle-,A:X>d Housing Authority previously entered
into an am-aernent for transfer and acninh,tratioh of funds received for the
housing rehabilitation p-:cx::ram ; .md
~n!EREJ\S, it is necessary for the City to transfer the fun•Js recently
approved for the City of Dtglewood for this purpose to the Englt>ICUd Housing
Authority;
Na-I, THEREFCRE, BE IT ClUll\INfD BY 'll!E CITY CXXJNCIL OF 'll!E Cl'!'lC OF
~, COLCJWlO, Tlll\T:
Section l. City Council hereby approves transfer of the $300,000 the
City istci'"receive frcm the State Departrrent of Local Affairs to the &iglewood
Homing Authority for its housing rehabilitation program w:der oo,:<'E'!Tlent
between t he City and Englewood Housing Authority.
Introduced, r ead in full , and passed on first reading on the 10th day of
July, 1989.
Published as a Bill for an Ordinance on the 13th day of July, 1989.
Read by title and passed on final reading on the 7th day of l\ugust,
1989.
Pu,,l i ;hed by title a s Ordinance No.~, Series of 1989, on the 10th day
of August, .989.
~«&~ll4J
Patricia H. era,, City Clerk
I, Patricia H. era.,, City Clerk of the City of Dtglewood, Colorado,
hereby certify that the foregoing is a true copy of the_ o,;dinance passed on
final reading and J?Jblished by title as Ordin~Series of 1989 •
. . _,1,/2/.~
Patricia H. crow
-l -
~TTD
rt£ l .NULEWlllJO HIIUfllNI R£tWIILITATIUN LOAN nuAHIIEN1
Th• City ot Engl..aod •nd th• E.nQI.WODd uou•lno A11thar1Ly .&Q rUC
•• folio•••
1. Th• EnQI...OOd Hnu•lnQ Author i ty, h•rnln callnd th■
.. Author•tv • through It• p ■raonne l, or th ■ p ■rtlonnel ot
thll cuv of Enul..«JOd, nor ■ln calhtd th" "ClLy ", •ilh th ■ approv•l of the GUY N•MQ ■r, ,ahall bM r ■-,ponslblc
tor th• muacutl on of tho Hau&inQ Rafl•b1l1tation Lu.in
Proor .. , h ■r ·■ln c •lled th• "Progr•••·
11. Af1pl1 c •t i Dfl tur .v.-.11ot. ... nc• sh•iJ I be t11t.,\. tiiU h ■1LL~tl ~II
and approvltd by th ■ Authority und ■r pollclH, •dopt ■d by
th• Authority.
111. Upon rocel11t of •n appllc.:at,on, th ■ l'uthor1ty .tlall
cauH an •~ectton to b ■ ■adu or th ■ •P11l 1cant '•
r11a 1d■oc 1t and s.ha 11 I
A. t. tUGU a d ■tai tad l isl and 9,tpl,uu1iUon to b o ■ad• of all actlont. and wor-k r ■qutrad to
ol 1 ■in.-U1 or ntpa,r th• conch tlons nf the
rea\denc:• ...tilch uke l t aub ■tand.rd.
e. Co1u•• an ••t•■•t• o r the cast of suc h rL-p•i rs.
to he ud•-
C . Obtain sufflc.lant. fio c.u-ntatlon th•t the
APPi i,can\ h•d QOOd tttl• to ••id ro s \denc ■.
o. Nako an au ti•ate of the Y•luu of tho
appllr . .ant'• equity ln ■.aid re&ldence .
E. Pr~•,• a nd verity a 5ocl•I .and ucuno••c
pruf\1• at thu applicant which ahiil ll tncludu,
11ut out. be l1M lt1!d t.UI F a•lly c u-inJ•,I Lion, fa ■lly lncoae, eaploya■nt of •11 f•1u l y
•~.tlu, s , 1 iquid o1 t1t s ■ts, s tuck!i Jnd lor bunds,
Y•lue of ot.h1tr ownod re.al est.ate , daLe nf
lJUl"ChaSI! of Si,1,111 re".Jldencl!, J nd 1!1tl s tltMJ
1ndebte dnt!S.U secured by saad r1P sl den..:e .
F , Prc,p•r~ a prella .nary analy~is of ,1pp l 1c JnL 's
•bllit.y to ,·epay •ny funds ••de ava1l•ble t.u
appl i caut unde1· t.h A Progra•
IV . Jn tlle pr-,pa1·at1on of •11 r e ports and ,analySP"-requ lra d
by thi s Aqree-,nt, and in ,;approvi ng loa n ,1ppl i La L1ons ,
thu fol lowlnQ pol 1cles s h .a ll app t V ,and be fol lowed by
t.htt Authorit y ,
A, Usu _•nd _Pur·e,o se of Loan f unds .
Looln funtJ • WI 11 b f!' USL'<I for-three •PP• UY ~•·
proJec t.s : c1• tho West:Y\L-.. AJdit.ion
Neiqhb111t1oud Oe velupaent lWANDI weiu;h will
n ,•h•b rent.al housi ng; (2) the AlternatlY~
Reloc.at.ton project loc •tod in th r-ee ~RE, Jnc .
aoblle ho-p•rk~I and l3) t.he t.raditlon•l
clty-wl de Rehab JJroor••·
ThrN b••lc typ•s of lo•ns ara ,;avd l•ble --Cl)
nor .. l riat• loo1n•1 C2J def ■rrltd ln•n•; .and (3)
•• tern•tlY• r•loc•tion lo•ns. Lo•n• ar• ■ade
,ay .. l tab I• for the purpose of per .. nent
1-s,rov...,nt»! •dditlont., or other hou&lno
ret1abil i tilt l on and .. y only b ■ used fur t.he
fol lOM inQI
I.
e.
9.
:!::'· .Z!r:~1\1i .~u•~=-~=.~~ ~-::~:~":~~
•• • ■lnlau• code.
&e-cond Pr ,or lt:'t -Handicap r•trof Ut.tny .
'fh\rd PrlurttY. -EnerQy Con••rvaUon.
Fe_urth __ f'rio.-L!'t -Ell ■lnat i an of tnciphmt
viul4L1uu• at' J 4,,1 ~U on 8 HOS.
s. Fl flh _____ Prlor Hy 0•nera 1 prap•rty
laprovu..,nta. Genara I prop•rty t,11su·ov•-nl.•
can only be financ•d throuvh nor .. 1 r"ate Joana .
If" th• property la J.dentiflltd •• inappropriate
for r.tlab due ta •Mc••■lve cost ■, the .appl leant
••V apply ror an alternative relocation loan.
B. Ellglbllity for_Loana
I. El tglble_ BnrroMtt r -Loan■ aha l. . ••d• only
to person■ Mho 01i1n thv property on which th•
h1prav ... nt ■ •l l l be Made.
Borrower ■ Nho are D N ~r/occupant ■ cannot have
th&lr lnco-••c•~ lOOX of the, ■9dlan lnco-
•• def i n.d by HUD. Borrowar ■ who are inv ■stor•
hav• na inc:o-r•quir ... nt•.
2. El lGlble_ PruP.■rtl ■• -Loan• ahal 1 b• ••d• unly
for r ■sid ■ntlal prop ■rtl ■• cont •i nlnQ four
d-■lllnQ unit• or I••• local~ w ithln th ■ City
of Engl ■woud ilnd not loc a t ■d ln a d ■.,lQnat ■d
flood plain •rea.
C. Ap_e.lh.:ation Priority
Upon rec ■lpt uf • Pr ■li ■inary La•n Appllc•t i an, th ■
•tAff •hal I n o te th• dat ■ •nd t l•• uf r ■ceipt on th ■
fur ■• Th i • not.-t.ion wl 11 d ■t ■r ■lne th ■ ord ■,: of
procu••i nv of ■•ch application wl thin ■ach of the
fol lowino 5ir· tor, tl ■s 1
I. Finot_ Priur i tt -E--■rQ•nci ■w. which th r e•t ■n thw
i ..r.diat ■ health ,md/or ••fvty of the
owner/occupant or t ■n•nt.
2 . S.c-ond_ PrtoritV -All ownar/occup,1,nts b wlow ~'l
of th ■ HUD -dlan I nca ...
3. Third _Priority -All owner/occupant• who are
s l ntJle haad'li of hou•ehold• bet ..... n ~'l and 80"
of th ■ t«.ID -di •n tnco ■e.
4 . Fourth_ Prlorltv. -All owner/occupants who •re
two-p•rent hou•cholds betwa ■n 50X •nd BOX of
th ■ ti.JD -■di•n Inca ■■•
Ap11l lcat ion• Ni 11 be accepted contlnuou•l v fro•
Al I owner/occupants bet~n 801 and IOOX of t he
JUD ■ediun i nco-and froa h1v■s tor• •• lnnQ ••
nor .. 1 r•t• loan• •r• •v•l lab I ■ and •• long ••
th ■r ■ i s no d-And for nor ■al rat ■ lo•m. fro•
own■r/occupants b ■lo• 901 of th ■ -■dian Inca-.
-2-
o. lrH!.'-l,!!'H!
l • !!'l!!!l!t't--~2-t!! __ ~L!U.1 -I'-\, l•••t once ••1:h v••r
lh ■ Aut.hnr 1 L'f 1111111 J det ■r•lrw the ac>Mt.ary
l l•l t• for th ■ nar .. l ret•, def ■rrH, •nd
alt ■rnaUvu ruloc.aUnn lo•n ■•
e. LJ ■lta _Baaed on Aperalaal -Not11tltha\a1WlnQ t.h ■
above, • nor••• r•L• or d ■f ■rred loan aecur ■d
by o1 ftr •' dlflfd of truat •h•I I not ••c-d 901'
of th■ •ppralaal valu ■ of th ■ p r up ■rty ••
det.■r•1nad by • qualified apprai..ar. If Lh ■
loan la aecurltd by • avconcl d-.c:I or truat, th11
total of the Urat loan and th ■ property
rlthabl l Uo1t1on loan ah•J l not ■11c-.d 90,c of th ■
appralaed ¥alu ■ of th ■ prop ■rtv •• deL ■raln4td
by • qualifiad appraiser. Jf th ■ loan 1•
..C:1Jr ■d by • thl,r •t or 'fourth d.-d of Lrulit, th ■
total of a) 1 ••nior t:,ana and the property
rahabilltntton luan ■h ~,1 1 not ■IIIC ■■d BOX of the
appr•1ud value of t :-. property a• d•t•r•tned
by • qual if lad appr•l ·· f'or d•t•rr•d loan•
nnly, on a c•••-by .••• ba•t•, th• ENKUt.lve
Dlrec.1.ar •hall hav• th• diacr•tlori to 1u,ceud
th• ••Nl•u• al lo ... d parc•nt•o• of th• appr•l•R
value of th• prop•rty 111h ■n lnsufflcient •quity
■Nl•t•. but a lJf•-thr•at ■nlnc;, h•zard l•
pr••vnt.
Nor .. 1 rate, dwf .. rrctd, .and •lt•rnatlv• reloc•tlon
loans wl 11 ba s.curud by a pro•lssary not• and d .. d
of trust ft l.c.1 on the prop•rty.
I. Abl Ii ty __ to __ P•y -All credit decisions shat I be
ba••d unly on Lhe •ppllc•nt •• •bllity to r1rp•v
the lo•n. Action on lo•n• sh•I 1 not b• b•sed
on, or influenclltd by, th• r•ce, creed, color,
religion, nation•I origin, •arit•l st•tus, u~N,
handicap or aoe 01' th• ,"lpplicilnt.
2. Nor••• RAtf? Loans -For reQul•r rehall.,thv
uor•&1l interv~t rat• sh•ll be tha Authority 's
current. borru,,dnc;, rate for funds for prop•rty
, .tiab i l I tat ion purpo•••• pluG a l X p~r annu•
••rvice and •d•lnlat,·•1.lve fe~.
3. Deferred Loanli -For reQular r•hab, if tha
applicant ls an 0111ner/appllc.ant a,ld I s less
than 50X of th• ,..d 1 an 1 nca•• •• def hwd by
Ill.JO, and th• iappl ic•tion -.e•h. ,al I other
policies, the n th• applicant will be offered •
deferred loan at • OX per annu• inter•st rate.
4. Coablnation Loanli -For regular rehab., If the
applicant l• an u111ner/occupant and i s butWlten
501 •nd 801 of th ■ INtdl•n lnco ■■ •s defined by
HUD, •rwl t.he .appl icat.ion aeet• 11l l othe-
policiaa, th•n th• •pplicant 111111 b• off•r•d a
coabination nor .. 1 r•t ■/def•rred loan based on
th• r·•Uo o,. th ■ faal ly's actual inco-to thv
HUD aedhn 1,-·o• for the ••-fa ■lly 5lz ■•
The lnter .. t r•,e on the nor••I rate l a •n
portion of th• Joan wil l be••'•• pre ■c rl beCI
an F .2. above. lh• h1tur•■t r•L• fa't h•
def'errH porUon wl l l bu •' • o• per •nnu •
lnt ■r ■•t rate. If th ■ appl 1c.ent do•• not have
the •bl li ty to r-s,ay • callban•Uan loan, but
ha• an 1d ■nt1flad hJz.,d, then the <11ppl leant
wl l J be of f ■r ■d • d ■f•rr•d la•n •L a :SX per
•nnu■ 1nter11■t r•t• onlv to cover tho c111't ■ nf
corr ■c.:tlno ,he hu•rd.
:I. Alter naLlve R■locatlon Loan■ -If th• •ftpl leant
i ■ an owner/occupAnt and '" at nr br.)uw 801' uf
the •••B•n lnco-and who•• r ■11 i d ■f'C ■ hau b■en
ld■ntifled a ■ tn.pproprl•t• f u r rehab, then th•
•ppl lc:ant wt 11 be offered • cuablnatlon nor•••
r.1t ■/d ■f1,r•rH loan ba5 ■d on tho r•tao of thu
f•■IIV '• •clual ,nco.., to 1001' of the HUD
MNhan tnco-for th• •a• f••I iv ■i.e. rh1t
lnl ■r••l r•t• will be•• pre ■r.rlb•d an F.'•
•hov"•
If the applicant r..annnt qu•llfv for• rKlr ■•I
rate loan, and 1 ■ at nr helow :50X of the ••dhn
Inca..,, then the appl lc•nt wl 11 be offervd ,.
■p c.:t:lal non-b,ank lo•n at • 11' per a n.nu"
lntftr ■■t rate. Jf the appl lc•nt c•nnot quill lfy
for· • nor••I rate loan and •• bet..,.n ~OX and eo• of' th ■ aedlan lncort1■, tl1 ■n the •PPI leant
wll 1 be off ered • ■p ■c:1al nnn-bank loMn •t ~ !iX
per annu• lnt■r ■■t ratR.
G. Loan ■ for _R■ntal_Proettrtr
Loan ■ coverlTIQ prop ■rty wh ■r• th• owner i ■ not •
r•■1,t ■nt of th• property shal 1 be ■a da 1n •cc1.1 rdance,
"Ith policies set by th• Authority . If th■
•PPllcatlon i• .;;,pprov■d. Lhe ()W nf!r v h•ll o1or eu •0 for
• p•rlod of ten ye•r• to1 f 1) n,1t c onvert
rtthJbilit•t:ed units to c ondo ■1~1 ua o .. nm s hip ilft ■r
th• project is coaplete:i; l f not di ■cri ■in•t e
a.g•lnwt prospective tonants on LhQ b••l• of their
rec•lpt of, or el iQibl l i ►.y for, hou ■tnQ •••i ■tonc•
under any f,•deral, stat ■ nr local housing as■ist1mL1t
progr•• or f ■Nc-s,t fur • projttct for hou■i no ·•d•rly
per\iOn•> on the ba si ■ tho11t the t ■nant ■ h•v• • ainor
cM Id .,ho wi 11 b• r ■shJinQ wt th th■-1 •nd (3)
participate in the Afflraat:iv• f'lark ■tino P,ocedur ■c.
of th• Authority ' .. 1 lowino the cloliolng of thu loan.
Work dollft with the proc.~d• of • Joa n t.h.Jl ! be
•ccoapl lsh•d bV • HUD •p prov■d I icen■e d gener•l
contr•c tor.
1. Noraal_ R•te_ Lo•n -R-s,o11y..,nt ter•• ■h•l 1 not
etotce.d eo ye•r ■• Loans s hall be repayable in
equal ln■tall-■nt• of princip•l and inter ■st on
or b•for ■ th• fir•t of each ■onth.
e. Defarr.-d Loan -Rep•y-nl l ■ due in full in th•
•v•nt of payoff, •al•, r.onv■vanc ■, d••th, or
other transfer of th• property, or if the
hou•inQ unit 111 u s .-d othsr th•n 11 ■ th• o#n■r '•
prlaary houatn; unit. R-s,avattnt sh•ll be ••d•
to th• prograa account .
• 3. :::~ ~ U ~!u-b::: nc~ !!::---~=~~ b; ::::y~n ~qu: ~
aonlhly lnet•ll-nt• of prlnclpal •nd lnl.•r••t
due an or b•fortt th• farwt uf ••ch aanth •
Aap•y•nt ah• l l be .. de to the progr•• •ccaunt.
The •nthly ln•tal 1-ntY wl 11 be baaud un
approldaatetv '1 tw ■ntv-v••r t ■r• and th ■
app I leant;'• •bl Ii ty to repay •• , loou. T11■
aanthly ln•t•I 1 .. nta wl 1 l r .... ...,t not \o ■•ceud
thw S.Ctlon B EllllatlnQ QUld ■l Ina>• for r ■nt
det ■r ■lnatton.
v. The Authr,·lty or de■i gnat ■d official ahall then ••••Ina .and
■valuate th., appl icotion, tog ■th■r with al I r■qulr1td
raport ■ and flnd l uoo, and •lth11r •pprov11• r ■J..:t, u r .adlfy
and .pprov ■ auch .ppllcatton. Th ■ d ■clalon o f" th ■
Authority ...... b ■ fanal and blndlnc., upon th ■ appllCtlnt .
VI. All fund ■ repaid by applicant• ■hall be ua■d only for
•l•l l•r loans of hou•lnQ r•habl 11 tatlon •••l•t•,.c:• to
appl l e ant• approvud by th• Author I ty.
VIII. lhe Authority or d••lijnat•d offlcla1 ahall approv• •11
loan• und•r thl• progra• by appropriate action Mt,•n
••tt ■factory •vldence of the fol lo•dnv ha ■ b .. n •ub ■l tted
to th• Authorl tv•
a. Loan appl leant• ■11al l hav• aufflclent .qui ty th•r•i n
to Ju•U fy u•id loan.
C. Applicant has ent•rwd into a writhm contract on for••
tu h• approvad by the Authur I\',' wl th a penton or
•nti ty ) lc•nt.ed to per for ■ and coapletv ,·apalr s
requlrff to rehabi Ii t•t• the r11s1dwnce .
D. That sa i d resldvnc•, aft•r r•h•blll\ation •nd repairs,
..-1 l l bp .. 1nta!1W>d in • Sol tl~f,;n :tory ••nrwr.
E. Lo•n appli ,t• •hould p r ove •n ablUtv to r epay thl.'
lo~n.
U:. All per•ons. and entities entrrlnQ into cont.r.act" with
•ppllcanta for rttf)alr ■ •nd reh•bll 1 taUon 01· any
aub1'tand•rd r••id•nc• &ha. I be an equa11l oppor t.inl ty
-■ploy•r •nd ah•ll coaply ,"1th all appllco1ble fodaral,
city, and state codes, statute•, •nd ordinances.
X. The Authority shall act•• a disburser of fund• and sh all
i11uthar lr• p•y-nt for n,pair and reh•b• l l '.atlon
con•truct ion lofhen substant lal ly p•rforaed ln accordanc•
..-Ith the construction conlract entered ,nto by lh•
appl leant and th• g•neral contractor •nd approv.ct by
Authority
XI. The l'\uthorlty ■ay establi s h those •ccounts •nd •I local•
thot.e fu.-"'• n.ceasary to fulfill th• provisions of thl a
aor.....,t .
XJ J. The •uthor i ty sh•l 1 prt!f)•r• •d ■i nistra t ive procedures to
1-.,1-nt the lntent of thi s contract ilnd Authority
f'olh:I•••
UJI. Th• Authority shall .ub■it an an..,.•I r.,_.ort !.o the City
Cou nc::11 reQardlnQ the pa,rfor .. nc• of the proor••·
_,,_
UY. Thl• Aqr .... nt: ahal I b• blndlnQ upon th• partt•• h•r•to and
lh•lr .ucc .. .ara.
xv. Thl• •or .... nt aup•r.ed•• and replace• All other •ore ... nt ■
bet.,...n the parU•• n1l•l.lnQ to l.h• Hcn,•lno R .. ,.hlllt•t,an
Laiiln pragr ...
IN WITNESS WHEREOF,
EngleMOod, Colorado, thl ■
ATTEST,
npproved •• to For••
City AU.,rrwv
ATTEST,
Paul-tt.l lnadk! ___ _
E1111acut i ve Diractar
thla Aor ■.,..nt h•• b-ri •••cutvd .at
dAV of --··-----------, 1911 __
C ITV OF EIG.EWOOD
A l'lunlcl1Corporotlon
/ h-_LOL
~~anDyko, ""••D_=:
ENOLEYOOO HOUSING AUTHORrTY
•v• Thous J. Burns ------------
Ch• ir••n
DA'i:2
July 10, 1989
INITIATED BY
STAFF SOUII.CE
CODIICIL COIIKOIIICATION
AQ!NDA IT!II
,',J (a)
SUBJECT
Department of Co1111unlty Development
Propoaed B111 for
Ordlnance: CDBG
Fund Tranafer
Rlchard S . llanuah, Dlrector of Communlty Development
PREVIOUS COUNCIL ACTION
The Clty Councll has recelved Co1111unlty Development Block Grant (CDBG) funds slnc e
1977 for houslng rehahil.ltatlon and we have had an admlnlstratlon relatlonshlp wlth
the Housing Authority s .. nce then , Council has approved all past agreements .
_A ACTION PROPOSED
9' Approve a B111 for Ordlnance transferrlng $300 ,000 to the Englewood Houslng
Authorlty for the Houslng Rehabllltatlon Program .
POSSIBLE EFFECTS
Improvement of ei:lstlng houslng stock through the contlnuatlon of the Houslng
Rehabllltatlon Pc ogram .
BACKGROUN[!
The Clty was ucently notified by the Department of Local .\ffairs that the Community
Development Block Grant application for the Housing Rehabilitation Program was
approved for $300,000. The attached B111 authorizes the transfer of these funds and
assigns responsibility for administration of the program to the Englewood Housing
Authority.
FINANCIAL
Th e City has budgeted $103 ,770 to adm i nlster this program and other houslng relate d
actlvitles in 1989 , and wlll budget a &1111lar amount ln l~.l il.
RECOHIIEIIDATION
Approve the Agreement A adminlstration of the
.funds .
between the Englewood Housing Authority and the Clty for the
Houslng Rehabilitation Progra1t and •ut horize t he t ransfer of