Section 26.08.020 Community development block grant program.

1. No-Interest Loan Program. This program is available to lower-income persons who are owner-occupants of the residential property being rehabilitated. It provides up to a maximum of twenty-seven thousand dollars on a twenty-year term for the rehabilitation of each dwelling unit. No lower-income person will be required to pay more than twenty-five percent of their income for housing costs, including the cost to pay back.

2. Conditional Loan Program. This program is available to lower-income persons who are owner-occupants of the residential property being rehabilitated. This program provides up to a maximum of twenty-seven thousand dollars for the rehabilitation of each dwelling unit. Repayment of the loan is required only if title to the real estate is transferred from the person receiving the loan within five years after the rehabilitation is completed. The loan will be secured by a recorded promissory note.

a. Owner-Occupants. This program is available to owner-occupants who are non-lower-income persons for the rehabilitation of residential property. This program provides up to a maximum of twenty-seven thousand dollars for the rehabilitation of each dwelling unit at a three percent interest rate for a maximum of twenty years.

b. Investor Owners. This program is available to investor owners for the rehabilitation of dwelling units.

(1) Property owners who sign an agreement with the city to rent the dwelling units principally to lower-income tenants and to restrict rent increases will be eligible for a loan up to a maximum of twenty-seven thousand dollars for the rehabilitation of each dwelling unit at a three percent interest rate for a maximum of twenty years.

(2) Property owners who are unwilling to agree to control rents and to rent principally to lower-income tenants will be eligible for a loan of up to a maximum of twenty-seven thousand dollars for the rehabilitation of each dwelling unit at an interest rate equal to one-half of the market rate for home improvement loans for a maximum of twenty years.

4. Rehabilitation Leveraging Program. This program provides funds for mortgage guarantees, mortgage insurance and/or interest subsidies for rehabilitation loan mortgages made by lending institutions to property owners for the rehabilitation of dwelling units. (Ord. S-40159, 1980)