The Mayor and the Director of Finance are hereby authorized to enter into an agreement or agreements with any lending institution which has an office or branch office in the City, for the purpose of implementing this Home Improvement Loan Interest Subsidy Program. Each such agreement shall be signed by the Mayor and the Director of Finance and approved by the Director of Law and shall contain, at a minimum, provisions to the following effect which shall be binding upon the lending institution and the City:
(a) The lending institution shall make such loans for the purpose of rehabilitating, remodeling or otherwise improving single-family or two-family residences, or residential condominium units within the City and shall make such loans to the resident owner or owners of record of such residential property.
(b) The lending institution shall agree to lend to each eligible owner of record who meets its lending criteria at a reduced interest rate for the principal amount with respect to which the City has approved an interest subsidy, which interest rate:
(1) For the period with respect to which the City provides the interest subsidy (the "reduced rate period") shall be below the then existing borrowing rate applicable to that owner by an amount equal to the subsidy approved by the City; and
(2) For the remaining term of the loan, if any, shall be equal to such borrowing rate and shall not be increased due to the reduced rate during the reduced rate period.
(c) The City shall agree to pay the lending institution during the reduced rate period, an amount equal to the difference between:
(1) Interest on the principal amount of the loan with respect to which the City has approved an interest subsidy at the borrowing rate applicable to that borrower at the time of loan approval as certified by the lending institution to the City; and
(2) Interest on the principal amount with respect to which the City has approved an interest subsidy at the reduced rate to be paid by the owner of record during the reduced rate period.
(d) The lending institution shall not be entitled to any interest subsidy under this Home Improvement Loan Interest Subsidy Program unless, prior to the closing of the loan, the owner of record has first received approval of his application for participation in the Home Improvement Loan Interest Subsidy Program from the Director of Finance and Housing Officer of the City.
(e) The lending institution shall not sell, assign or otherwise transfer any loan made to an owner of record who is a participant in the Home Improvement Loan Interest Subsidy Program during the reduced rate period applicable to that loan.
(f) In making loans for which an interest subsidy will be provided under this Program, the lending institution shall not discriminate against families with children or encourage, contribute to or participate in any unlawful discriminatory practice under Ohio R.C. 4112.02(H), as amended from time to time. A copy of Ohio R.C. 4112.02(H), as it exists at the time the agreement is entered into, may be attached to the agreement.
(g) The City shall not be liable to any lending institution in any manner for the payment of the principal or interest (other than the interest subsidy described above) on any loan for which an interest subsidy has been approved by the City under the Home Improvement Loan Interest Subsidy Program, and any delay in payment or default on the part of any borrower shall not in any manner affect the agreement between the lending institution and the City.
(h) The City's obligations under this agreement:
(1) Shall be paid only from moneys which do not constitute moneys raised by taxation; and
(2) Are not and do not constitute a general obligation of the City or a pledge of the full faith and credit of the City; provided that such provision need not be included in the agreement if the City has complied with the requirements set forth in Ohio R.C. 176.04 for the City to issue general obligations or expend moneys raised by taxation to provide, or assist in providing, housing pursuant to Article VIII, Section 16 of the Ohio Constitution.
(Ord. 92-52. Passed 5-19-92.)