(a) Agreements. MOHCD shall prepare standard form Loan agreements, which will be subject to negotiation as deemed appropriate by the MOHCD Director.
(b) Funding Disbursement. MOHCD shall be responsible for approving the disbursement of Loan proceeds and monitoring the performance of Borrowers under this Chapter 117 and enforcing the applicable agreements. MOHCD shall establish commercially reasonable protocols to oversee the use and expenditure of Loan proceeds.
(c) Loan Servicing. MOHCD shall collect revenues due and owing under Loans, maintain records of all such revenues, and maintain annual statements of such accounts. Loan repayments shall be deposited into the applicable Fund in accordance with Program Regulations.
(d) Fees for Services. MOHCD may charge reasonable fees, including Loan origination and monitoring fees, and such other necessary fees of consultants and agents retained to administer the Program. MOHCD shall include a statement of the fees in the Program Regulations for the Program.
(e) Refinance and Loan Workouts. To preserve and maintain any Cooperative Housing, the Director is authorized to refinance, restructure, modify, or extend the term of any Loan and any related agreements, provided that a new Declaration of Restrictions is recorded against the Property.
(f) Monitoring and Enforcement.
(1) DPH shall monitor Contractor compliance with Program Regulations related to delivery of services and enrollment of tenants who meet eligibility criteria. DPH shall establish annual reporting requirements for Contractors and shall report annually to the Board of Supervisors on the number and types of Cooperative Living units established and maintained under the Program. DPH may take such actions as may be reasonably necessary to enforce the terms of any contracts or grants entered into with Contractors for the delivery of services to Eligible Persons as part of the Program.
(2) MOHCD may take such actions as may be reasonably necessary to enforce Loan requirements and collect on any security, including the foreclosure of any deed of trust, possession of rents and other revenues, or the demand and collection under any guaranty or other security instrument.
(3) MOHCD may also take action to protect its security or its interest in a Property, including curing a default under a senior loan or acquiring property at a tax sale, foreclosure, through a deed in lieu of foreclosure, or through a judicial process. The Board authorizes and delegates to the MOHCD Director, following consultation by the MOHCD Director with the DPH Director, the Director of Property, and the City Attorney, the right to accept a deed or other security or interest in property as part of any remedy or as may be needed to preserve any Cooperative Housing.
(Added by Ord. 163-19, File No. 190573, App. 7/26/2019, Eff. 8/26/2019)