HomeMy WebLinkAboutAgenda Packet - February 17, 1977 - CC ! E
' DE February 17, 1977
AGENDA ITEM
TO: Mayor and City Council
FROM: City Administrator
RE: Rehabilitation Loan Program
The following is a list of the guidelines that the City staff and Urban Futures
compiled for Azusa's Loan Program.
1. Code Enforcement: The City will not force owners to make improve-
ments beyond those they wish. If the applicant withdraws his loan
request, the City will take no action on any Code deficiencies, ids
tkey-pose a-.seri®ie--t-hreat to_pub`Iic lieaTttr-a -s-afety. t" /; .,-� ,,
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2. Loan Limit: $3, 000. 00 for pilot programs.
3. Maximum Number of Loans Per Family: One (1) per year and only
owner-occupied residences are eligible.
4. Marketing: Newspaper advertising and meetings in selected areas.
5. Interest Rate: Council to set rate at(4% ) 5% or 6%. Example:
Interest Monthly Payment
$3, 000 loan for 10 years: 4% $30. 37
5% $31. 82
6% $33. 31
6. Rental Loans: None during pilot program.
7. Loan Security: Second Trust Deed required on any loan over $1, 000. 00.
8. Deferred Loans: No payments, loan and interest due on transfer of
title — none during pilot program.
9. Loan Qualifications: Use established limits for low end. No income
restrictions for acquiring loans.
10. Loan Servicing: Use bid procedure and contact all financial institutions
within the City.
11. Renovation Work: City to compile list of qualified contractors to
submit bids on work. Qualified individuals may do their own repair
work with the permission of the Building Inspector. All work shall
be signer' ff by the Building Inspector before payments are made to
the contractor.
12. Loan Committee: Three member committee: one staff member, one
representative from the financial institution servicing the loans, and
one member at large. r',
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�a City Council February 17, 1977
,ehabilitation Loan Program Page 2
We feel that these are the basic guidelines to get the pilot program into
open ation.
Respectfully submitted,
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OI3N R. DAFT LEIS,
City Administrator
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