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(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)
(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)
Eligibility for Loans. | |
Maximum Repayment Period for Loan; Initiation of Payments After Rehabilitation. | |
Prepayment Penalties. | |
Security for Loan. | |
Insurance. | |
Impound Account. | |
Transfer of Loans. | |
Interest Rates and Other Loan Charges. | |
Variable Interest Rate. | |
Tenant Moving Costs and Right of First Refusal. | |
Open Housing. | |
Equal Employment Opportunity. | |
Performance of Work by Licensed General Building Contractor. | |
Enforcement of Loan Provisions. | |
Rent Increase Limitations for Areas Designated Prior to July 1, 1977. | |
Rent Increase Limitations for Areas Designated on or After July 1, 1977. | |
Rent Increase Protest Procedures. | |
Sanctions for Violation of Rent Increase Limitations. | |
Evictions. | |
(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)
(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)
In connection with a conventional RAP loan, the loan agreement may provide for a variable interest rate. If the loan agreement does provide for a variable interest rate, the terms of the loan agreement and any change in the interest rate or other charges shall conform to the requirements of Sections 37917 of the Health and Safety Code of the State of California relating to the use of variable interest rates in connection with financing residential rehabilitation.
(Added by Ord. 23-74, App. 1/9/74)
All conventional RAP loan agreements shall provide that, in the case of dwelling units which must be vacated because of residential rehabilitation to be performed on the structures where they are located:
(a) A tenant who must vacate a dwelling unit shall have the right of first refusal to occupy that unit at a rent adjusted in accordance with the San Francisco Administrative Code when rehabilitation of the property is completed;
(b) The property owner shall give each tenant affected written notice 30 days prior to the date the tenant must vacate of the following:
(1) That the tenant has the right to first refusal to reoccupy the unit vacated when rehabilitation of the property is completed;
(2) That relocation assistance may be available and that relocation information may be obtained from the Chief Administrative Officer, Room 289, City Hall, San Francisco; and
(3) That the tenant may be subject to certain protections under the Rent Ordinance and that information concerning such protection is available from the Rent Board, 170 Fell Street, Room 16, San Francisco.
(c) A copy of the notice specified in clause (b) shall be forwarded to the Rent Board.
(Amended by Ord. 112-83, App. 3/11/83)
All conventional RAP loan agreements shall provide that so long as the loan or any portion of it is outstanding the property shall be open upon sale or rental of all or any portion thereof, to all persons regardless of race, color, religion, national origin or ancestry.
(Added by Ord. 23-74, App. 1/9/74)
All conventional RAP loan agreements shall provide that all contracts and subcontracts let for residential rehabilitation financed under this Chapter are to be let without regard to the race, sex, marital status, color, religion, national origin or ancestry of the contractor or subcontractor. Further, all conventional RAP loan agreements shall provide that any contractor or subcontractor engaged in residential rehabilitation financed under this Chapter must agree to provide equal opportunity for employment without regard to race, sex, marital status, color, religion, national origin or ancestry.
(Added by Ord. 23-74, App. 1/9/74)
A licensed general building contractor having in his or her contract more than two unrelated building trades or crafts may do or superintend the whole or any part of residential rehabilitation without regard to the provisions of Section E I of the Plumbing Code or Section 41 of the Electrical Code.
(Added by Ord. 23-74, App. 1/9/74)
The provisions of Section 32.70 and the provisions of Section 32.71 is they relate to enforcement of nondiscrimination on the basis of race, sex, marital status, color, religion, national origin or ancestry, are enforceable by the Human Rights Commission. The enforcement powers, responsibilities and procedures of the Human Rights Commission set forth in Chapter 12A of the San Francisco Administrative Code and of the San Francisco Labor and Employment Code shall be applicable to carry out the Commission’s responsibilities under this Chapter. In addition, pursuant to rules to be adopted by the Chief Administrative Officer, violation of the loan agreement provisions required by Sections 32.69, 32.70, and 32.71 may result in any outstanding financing obtained pursuant to the loan agreement becoming immediately due and payable.
(Added by Ord. 23-74, App. 1/9/74)
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