SEC. 32.53. REFINANCING.

   (a)   A loan may be made to refinance an existing indebtedness on a residence if the cost of meeting rehabilitation standards and correcting incipient violations thereof for the residence equals at least 20 percent of the principal amount of the loan; and

      (1)   If the sum of the monthly principal and interest payments on the proposed loan for rehabilitation and the monthly payments on existing debt secured by the property, plus property taxes and insurance, would result in total monthly payments that would exceed 20 percent of the applicant's total monthly income; or

      (2)   If the Loan Committee recommends approval of refinancing and the recommendation is accepted by the Chief Administrative Officer;

   (b)   If the Chief Administrative Officer does not accept the recommendation of the Loan Committee regarding refinancing, he or she shall give written reasons for the refusal to accept such recommendation.

   (c)   In deciding whether to recommend that refinancing be made available to any particular applicant, the Loan Committee shall adhere to guidelines for refinancing which shall be adopted by the Chief Administrative Officer. In developing guidelines for refinancing, the Chief Administrative Officer shall take into consideration the availability of funds for financing residential rehabilitation, the need to prevent significant rent increases which would result in a hardship for tenants, and the need to prevent speculators from profiting from the use of residential rehabilitation financing.

(Amended by Ord. 116-77, App. 4/1/77)

SEC. 32.54. LIMITATION BASED ON FAIR MARKET VALUE OF WORK.

   (a)   Prior to the granting of any loan over $20,000 under this Chapter, a qualified estimator will make an on-premises inspection of the applicant's property and certify, in writing, that the estimated cost of the recommended work, as detailed in the job specifications, is not more than 10 percent above fair market value. No loan will be granted in an amount exceeding 10 percent of fair market value for the work specified or higher than the lowest bid received, whichever is less, without the approval of the Chief Administrative Officer

   (b)   Where loan is under $20,000 and low bid exceeds estimate of building inspector by 10 percent, the Real Estate Department will hire an estimator to certify the fair market value of the job specifications.

   (c)   A qualified estimator is a person:

      (1)   Who is not a City employee; but

      (2)   Who is selected by the Chief Administrative Officer because he or she is qualified and experienced in the area of residential rehabilitation.

   The estimator shall operate under the direction of the Director of the Real Estate Department.

   (d)   A property owner wishing to challenge the low bid or the estimator's value may hire a licensed estimator if he or she so desires.

   (e)   The Chief Administrative Officer shall, semi-annually, direct a report to the Board of Supervisors setting forth a list of the loans which were in excess of 10 percent of the estimated fair market value pursuant to the provisions of Paragraph (a) giving the reasons for approval in each case.

(Amended by Ord. 274-78, App. 6/9/78)

ARTICLE VII: TERMS OF CONVENTIONAL RAP LOANS

Sec. 32.60.	Eligibility for Loans.
Sec. 32.61.	Maximum Repayment Period for Loan; Initiation of Payments After Rehabilitation.
Sec. 32.62.	Prepayment Penalties.
Sec. 32.63.	Security for Loan.
Sec. 32.64.	Insurance.
Sec. 32.65.	Impound Account.
Sec. 32.66.	Transfer of Loans.
Sec. 32.67.	Interest Rates and Other Loan Charges.
Sec. 32.68.	Variable Interest Rate.
Sec. 32.69.	Tenant Moving Costs and Right of First Refusal.
Sec. 32.70.	Open Housing.
Sec. 32.71.	Equal Employment Opportunity.
Sec. 32.71-1.	Performance of Work by Licensed General Building Contractor.
Sec. 32.72.	Enforcement of Loan Provisions.
Sec. 32.73.	Rent Increase Limitations for Areas Designated Prior to July 1, 1977.
Sec. 32.73-1.	Rent Increase Limitations for Areas Designated on or After July 1, 1977.
Sec. 32.74.	Rent Increase Protest Procedures.
Sec. 32.75.	Sanctions for Violation of Rent Increase Limitations.
Sec. 32.75-1.	Evictions.

 

SEC. 32.60. ELIGIBILITY FOR LOANS.

   (a)   Each owner of property located within a residential rehabilitation area is eligible for a conventional RAP loan, provided the owner demonstrates to the satisfaction of the Chief Administrative Officer the ability to repay such a loan; applies for the loan within a time period to be designated by the Chief Administrative Officer; and can meet the other requirements of this Chapter. The property owner shall agree to all conditions of the loan agreement as a prerequisite to obtaining a loan. No elective officer of the state or any of its subdivisions shall be eligible to receive a loan under the provisions of this Chapter.

   (b)   Any owner who is denied a loan by the Chief Administrative Officer on the grounds that the owner does not meet eligibility requirements may appeal the decision to the Loan Committee. The Loan Committee shall review the application for a loan and make a recommendation regarding approval or denial to the Chief Administrative Officer. In reviewing the application, the Loan Committee shall give due consideration to the need for the loan to be made in order to accomplish the purposes of the program, the risks to the City and County of granting the loan, and the ability of the property to support the loan as well as to the reasons for denial of the application by the Chief Administrative Officer. If the Chief Administrative Officer does not accept the recommendations of the Loan Committee, he or she shall give written reasons for the refusal to approve the loan.

(Added by Ord. 23-74, App. 1/9/74)

SEC. 32.61. MAXIMUM REPAYMENT PERIOD FOR LOAN; INITIATION OF PAYMENTS AFTER REHABILITATION.

   (a)   The maximum repayment period for a conventional RAP loan shall be 20 years or ¾ of the economic life of the property, whichever is less.

   (b)   Subject to budgetary and fiscal limitations, payments on a conventional RAP loan shall not be required to commence prior to completion of the improvements for which such loan is made; provided that payments shall begin no later than six months after an initial disbursement from proceeds of the loan. The monthly payment due under the loan shall be adjusted to insure repayment of the principal and interest due on the loan within the time required by paragraph (a) of this Section.

(Added by Ord. 23-74, App. 1/9/74)

SEC. 32.62. PREPAYMENT PENALTIES.

   There shall be no penalty assessed for prepayment of any conventional RAP loan.

(Added by Ord. 23-74, App. 1/9/74)