HomeMy WebLinkAboutRDA AG PKT 2003-04-28 #B AGENDA REPORT
DATE: April 28, 2003
TO: Chairperson and Members of the Redevelopment Agency
THRU: John B. Bahorski, Executive Director
FROM: Lee Whittenberg, Director of Development Services
SUBJECT: AUTHORIZATION TO UTILIZE "OWNER- OCCUPIED
HOME IMPROVEMENT LOAN PROGRAM" TO
ASSIST AN OWNER- OCCUPIED PROPERTY HAVING
RENTAL UNITS ON SAME LOT
SUMMARY OF REQUEST:
Authorize staff to utilize the "Owner- Occupied Home Improvement Loan Program" to
assist in the removal of Code violations at a specified property address within the City,
with a maximum loan amount of $50,000.00.
BACKGROUND:
The following program was approved and authorized for implementation by the Agency at
the May 28, 2002 Agency meeting:
A. Owner- Occupied Home Improvement Loan Program:
❑ The loan program structure has eliminated the monthly loan payment. The
loan is deferred until the homeowner sells or refinances the property or a
change in title occurs. After 10 years, 1 /10th of the principal and interest is
forgiven each year until it is entirely forgiven.
❑ The Owner- Occupied Home Improvement Loan Program is funded entirely
by Housing Set -Aside Funds and offers a very low interest rate of 2% to all
income - qualified program participants, which will be more attractive to the
higher income households.
❑ The maximum available loan amount is $50,000, which will allow for more
substantial home improvements.
❑ Owner occupied single- family residences, mobile homes, and condominiums
will qualify for this program.
Agenda Item 3
C:\Documents and Settings \LWhittenberg\My Documents \RDA\Home Improvement Assistance Authorization.RDA Staff
Report.doc \LW\04 -23 -03
Authorization to Utilize Owner - Occupied Loan Program
For Code Violation Corrections on Owner- Occupied Property with Rental Units
• Redevelopment Agency Staff Report
Apri128, 2003
This program is only available for non - substantial levels of rehabilitation (less
than 25% of the after -rehab value). Substantial rehabilitation requires a
different set of loan terms and criteria.
This program was established to assist owner - occupied single - family residences, mobile
homes, and condominiums. The City has been dealing with a code enforcement action at
a certain property in town that comprises of an owner- occupied residence and two
additional rental units on the same property. The owner is not financially capable of
completing the repairs necessary to resolve the Code violations utilizing his available
funds and the allowable $10,000 owner —occupied rehab grant program that the City also
offers.
The above described "Owner- Occupied Home Improvement Loan Program" is eligible
for use for the owner's occupied unit, but not for the 2 rental units also located on the
property and the subject of the majority of the Code violations. •
Staff is requesting authorization to utilize the "Owner- Occupied Home Improvement
Loan Program" in this particular instance in order to resolve the Code violations in a
reasonable and timely manner, without undertaking legal actions that could result in the
displacement of the rental unit occupants.
Staff has been working with this particular Code violation situation since 2001, and this
seems to be a reasoned approach to resolving the Code violations while allowing the
current owner and tenants to remain in their living units.
If this approach is determined not appropriate by the Agency, the other avenues to
resolve the Code violations would involve declaring the property a public nuisance and
proceeding with either an abatement procedure or a receivership process to resolve the
Code violation issues. Either of these processes could become time - consuming and
costly for the appropriate legal procedures and determinations to be made and
implemented.
FISCAL IMPACT:
Future obligation of programmed loan assistance funds in an amount not to exceed
$50,000.00.
RECOMMENDATION:
Authorize staff to utilize the "Owner- Occupied Home Improvement Loan Program" to
assist in the removal of Code violations at a specified property address within the City,
with a maximum loan amount of $50,000.00.
Home Improvement Assistance Authorization.RDA Staff Report 2
1
Authorization to Utilize Owner- Occupied Loan Program
For Code Violation Corrections on Owner- Occupied Property with Rental Units
Redevelopment Agency Staff Report
April 28, 2003
NOTE ' ► PROV
fr ,e, •
/e Whittenberg John B ahorski, Executive Director
Director of Development Servic t : Rede =1 opment Agency
Home Improvement Assistance Authonzation.RDA Staff Report 3