HomeMy Public PortalAbout86-014 (02-18-86)RESOLUTION NO. 86-14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LYNWOOD REVISING THE CITY'S REHABILITATION
REGULATIONS PROGRAM MANUAL FOR THE RESIDENTIAL
AND COMMERCIAL REHABILITATION LOAN PROGRAMS
WHEREAS, on May 3, 1983, Council approved and adopted the
City's Rehabilitation Program Regulations Manual establishing
administration guidelines for the residential and commercial
rehabilitation programs.
WHEREAS, said regulations require prior Council approval of
all revisions;
WHEREAS, due to a change in the approved lending institution
and program expansion there is a need to revise the City's
current Rehabilitation Program Regulations Manual;
NOW, THEREFORE, the City Council of the City of Lynwood does
hereby find, determine, order and resolve as follows:
SECTION 1. Separate and revise the Commercial Rehabilitation
Program regulations component into a separate manual incorporating
the following revisions:
a. Change description of type of Bank loan from colleteri-
lized to interest subsidy at 6% interest per Council
approval on February 4, 1986;
b. Add the following definitions:
1. Dependent 3. Family size
2. Existing debt 4. Absentee owner
c. Update Authority to Administer to include Council action
taken on manual revisions since May 3, 1983.
d. Incorporate commercial loan limit of $50,000 per approved
agreement with Bank of America.
SECTION 2. Revise the Residential Rehabilitation Program
Regulations component as follows:
a. Change lending institution from Bank of America to
Security Pacific Bank and incorporate new interest rates
of 3%, 7% and 9% per Council approval November 5, 1985.
b. Add the following definitions:
1. Dependent
2. Existing debt
3. Family size
{ c. Add the following components:
1. Emergency Housing Assistance Program
Background and Guidelines per Council approval
March 5, 1985.
2. Eligible Improvements
a. Various code violations as required by Code
Enforcement and/or City Prosecutor office.
3. Section 2.03 C Income Limits
a. Applicants with total debt ratio (encumbrances)
above 80i of their income will not qualify due
to potential risk to the City.
4. Section 7.0 Truth In Lending Requirements
a. Use of contingency and/or liquidated damages
funds.
5. Fair Housing Program Guidelines
d. Update Authority to Administer to include Council
action taken on manual revision since May 3, 1983. ~
e. Delete Section 1.05 Eligible Improvements and Costs
regarding demolition, clearance and site preparation
where a unit is determined not suitable for rehabili-
tation and replacement house plans have been approved
and funded.
f. Review Section 2.05 Eligible Improvements and Cost to
incorporate the approved $25,000 maximum deferred pay-
ment loan where a room addition is needed and $15,000
where general rehabilitation work is performed for
owner-occupied single family dwellings.
SECTION 3. This Resolution shall take effect immediately
upon its adoption.
PASSED, APPROVED, and ADOPTED this 18th day of Februar,~_
1986.
~~~
ROBERT HENNING, ayor
ATTEST: City of Lynwoo
ANDREA L. HOOPER, City lerk
City of Lynwood APPROVED AS TO CONTENT:
APPROVED AS TO FORM:
~ '"'~ L"
City Attorney
V-DENTE L. S, Acting Director
Community Development Department
Accou ing Manager