HomeMy WebLinkAboutORD 79-04 ORDINANCE NO. ..
ENTITLED AN ORDINANCE CREATING A
REHABILITATION LOAN AGENCY; AUTHO-
RIZING SUCH AGENCY TO MAKE LOANS TO
CERTAIN PERSONS FOR REHABILITATION
OF CERTAIN STRUCTURES; ESTABLISHING
A REHABILITATION LOAN FUND; ESTAB-
LISHING A LOAN ADVISORY BOARD; ESTAB-
LISHING CRITERIA FOR REHABILITATION
LOANS; REQUIRING THE PROMULGATION OF
ADMINISTRATIVE RULES; REQUIRING THE
EXECUTION OF SECURITY INSTRUMENTS;
AUTHORIZING THE EXERCISE OF LEGAL
REMEDIES UPON DEFAULT; PROVIDING
FOR SEVERABILITY.
BE IT ORDAINED BY THE CITY OF BEAUMONT:
Section 1.
The following words and terms when used in this
ordinance shall, for the purpose of this ordinance, have the
following meanings:
A. Project area - an area designated to receive
community development block grant funds according to criteria
established by the Housing and Community Development Act of
1974 , as amended, and regulations promulgated pursuant thereto.
B. Rehabilitation - the restoration of deteriorated
structures to minimum housing standards as established by law,
including repair, renovation, conversion or remodeling.
C. Dwelling unit - a house, apartment, room or
group of rooms occupied or intended for occupancy as separate
living quarters by a single family, one person living alone,
two or more families living together or any other group of
persons who share living accommodations.
D. Remaining economic life - length of time a
structure can reasonably be expected to remain a viable dwelling
unit with ordinary maintenance.
Section 2 .
There is hereby created a rehabilitation loan agency
of the City of Beaumont which shall be under the direction of
the City Manager or his designee.
Section 3.
The agency shall make loans to qualified persons for
the rehabilitation and financing of dwelling units. Loans may
also be made for refinancing existing purchase money mortgages
or purchase contracts, deferred payments, grant subsidies, and
rehabilitation loans for investor-owned residential property.
Section 4 .
There is hereby created a rehabilitation loan fund
to be funded with community development block grant funds to
make loans to owners of dwelling units in project areas who
are unable to secure or qualify for funds from conventional
sources for the purpose of refinancing or rehabilitation of
such property to meet or exceed minimum housing standards
established by law.
Section 5.
A rehabilitation loan shall not be made to improve
property which is not located within a project area.
Section 6.
There is hereby created a loan advisory board to which
loan applications shall be submitted for approval. The loan
advisory board shall be composed of one member from each of the
project areas and five members appointed at large, with an
effort being made to include representation from local lending
institutions and the real estate and insurance communities as
well as state and federal agencies concerned with human re-
sources and old age assistance. Members of the loan advisory
board shall be appointed by the City Council for two year terms
and shall serve without compensation.
Section 7.
Rehabilitation loans may be made for the following
purposes only:
A. To remedy violations of the Southern Standard
Building Code and the Beaumont Minimum Housing Code.
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B. General property improvements including shutters,
blinds, awnings, fences, patios, outdoor electric lighting,
landscaping, light fixtures, smoke detectors, burglar alarms,
central air conditioning, built-in kitchen appliances, partial
remodeling, and special fixtures necessary for the benefit of
elderly or handicapped persons.
C. Refinancing of existing indebtedness which relates
directly to the property.
D. Closing costs.
Section 8 .
The loan advisory board shall not approve any loan
the term of which exceeds seventy-five (75%) percent of the
remaining economic life of the property to be improved. The
term of any loan shall not exceed the following schedule:
Remaining Economic Life Maximum Term
30 years or more 20 years
26 - 29 years 19 years
20 - 25 years 15 years
15 - 19 years 11 years
No loan shall be approved if the remaining economic life of
the property to be improved is less than fifteen (15) years.
Section 9 .
The loan advisory board shall promulgate reasonable
rules and regulations governing the administration of the
rehabilitation loan program created herein, complete and
current copies of which shall be maintained on file in the
office of the City Clerk.
Section 10 .
Rehabilitation loans shall be evidenced by a promis-
sory note in favor of the City of Beaumont and secured by a
mechanic' s and materialmen' s lien or a deed of trust, which-
ever is applicable.
Section 11.
The City shall have the authority to collect delinquent
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loans through any reasonable means permitted by law, including
foreclosure and sale, upon the direction of the City Manager.
Section 12 .
If any section, subsection, sentence, clause or
phrase of this ordinance, or the application of same to a
particular set of persons or circumstances, should for any
reason be held invalid, such invalidity shall not affect the
remaining portions of this ordinance, and to such end the
various portions and provisions of this ordinance are declared
to be severable.
PASSED BY THE CITY COUNCIL of the City of Beaumont
this the day of _ � � 1979 ,
Mayor -
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