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(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)
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)
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)
(a) The unpaid amount of a conventional RAP loan shall be due and payable upon sale or transfer of the ownership of the property, except that assignment of the unpaid amount of such a loan to a purchaser or transferee may be permitted when the Chief Administrative Officer determines that hardship conditions exist and the prospective owner qualifies for a loan on the basis of current loan eligibility standards.
(b) If the holder of a conventional RAP loan is dissatisfied with the Chief Administrative Officer's refusal to permit transfer of the unpaid amount of the loan because of a finding that hardship conditions do not exist, the holder of the loan may request review of the Chief Administrative Officer's determination by the Loan Committee. If the Loan Committee recommends a finding that hardship conditions exist, the Chief Administrative Officer shall either accept that recommendation or give written reasons for the refusal to accept it.
(c) Hardship conditions exist:
(1) When the owner of property subject to a conventional RAP loan is forced to sell the property and the property cannot be sold without a substantial loss of equity unless the loan is transferable;
(2) When the income of a prospective purchaser of property subject to a conventional RAP loan is at or below income standards to be established by the Chief Administrative Officer; or
(3) When the prospective purchaser is unable to obtain financing in the private sector because of age, disability or sex; or
(4) When transfer of the loan is necessary to prevent significant rent increases.
(d) The Chief Administrative Officer shall develop standards which shall be applied in making determinations required under this Section.
(Added by Ord. 23-74, App. 1/9/74)
(a) The interest charged the City and County on funds borrowed to carry out the provisions of this Chapter;
(b) An amount needed to provide for possible defaults on outstanding loans;
(c) An amount to cover the cost of servicing loan accounts;
(d) An amount to cover the cost of making hardship loans (as provided for in Article VIII); and
(e) An amount to cover the costs of issuing bonds.
(Added by Ord. 23-74, App. 1/9/74)
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