The following limitations shall only apply to loans made pursuant to § 6-26.3(a)(1).
(a) Loans shall be made in the name of the City and County of Honolulu to an eligible applicant who is an owner or lessee of a parcel of land containing one or more structures which is situated in an approved urban renewal, concentrated code enforcement, or rehabilitation project area or are owners or lessees of a parcel of land that have been cited for local code violations from departments of the city, or has need of rehabilitation or general property improvements.
(b) The amount of each loan, together with other existing liens, shall not exceed 90 percent of the appraised value of the fee property or leasehold property after rehabilitation.
(c) If there are rental units situated on properties under this loan program, priority shall be given by the property owner or lessee to low-income and moderate-income families.
(d) All loans shall be adequately secured as determined by the department.
(e) All loans shall bear interest on the outstanding balance thereof at an annual interest rate to be determined by the department; provided that the department may forego interest for loan leveraging purposes, or if such interest poses a hardship on a low-income applicant.
(f) Monthly payments shall be made on all loans. The department may defer the payments for such periods as deemed appropriate and necessary upon its determination that the applicant is unable to meet these payments because of limited income, unemployment, or for any other valid reason.
(g) The term of each loan shall not exceed three-fourths of the remaining economic life of the structure after rehabilitation or the remaining period of a leasehold property, whichever is the lesser.
(h) The department may require that the loan be paid in full should the owner-occupant or lessee-occupant borrower cease to be an occupant of the property or if title or lease to the property is transferred before the maturity date, unless the succeeding titleholder or leaseholder meets the eligibility requirements established by the department for the loan.
(i) If there are rental units on the subject parcel of land, the loan shall be paid in full if it is found that the property owner is in violation of the loan agreements as set by the department.
(j) The department may prescribe such charges, fees, and other costs as may be related to each loan.
(k) All loans shall be periodically reviewed to assure compliance with the above limitations.
(Sec. 5-33.4, R.O. 1978 (1983 Ed.)) (1990 Code, Ch. 6, Art. 26, § 6-26.4) (Am. Ord. 04-22)