SEC. 32.66. TRANSFER OF LOANS.

   (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)

SEC. 32.67. INTEREST RATES AND OTHER LOAN CHARGES.

   The interest rate and any other charges for a conventional RAP loan shall be established pursuant to the provisions of Sections 32.13 and 32.23, and may include:

   (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)

SEC. 32.68. VARIABLE INTEREST RATE.

   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)

SEC. 32.69. TENANT MOVING COSTS AND RIGHT OF FIRST REFUSAL.

   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)

SEC. 32.70. OPEN HOUSING.

   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)