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)

SEC. 32.63. SECURITY FOR LOAN.

   Unless provided otherwise in any bond resolution issued pursuant to the provisions of this Chapter, every conventional RAP loan shall be secured by a deed of trust naming the City and County as beneficiary of the trust.

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

SEC. 32.64. INSURANCE.

   All conventional RAP loan agreements shall provide that so long as the loan or any portion of it is outstanding, the owner of the property subject to the loan shall carry adequate property insurance. The Chief Administrative Officer shall establish standards for determining when property insurance is adequate.

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

SEC. 32.65. IMPOUND ACCOUNT.

   If the Chief Administrative Officer deems it desirable and necessary to effectuate the purposes of the program that an impound account be required to assure taxes, insurance, or a maintenance reserve, he or she may include such a requirement in any conventional RAP loan agreement.

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