§ 2-519. Powers and duties.

(a)

The mayor's revolving loan fund board shall review the city's use of certain funds obtained from the United States Department of Housing and Urban Development, which funds have been committed to a loan program to benefit citizens of the city as provided in this section.

(b)

The board shall recommend to the city commission specific uses of the loan funds. The city manager may concur or object to the recommendation. Funds shall be disbursed only upon resolution of the city commission.

(c)

The board shall recommend disbursement of available loan funds only as follows:

(1)

To applicants who, by title or leasehold interest, have the right to occupy and improve certain residential or small business properties in the city which, because of the occupant's advanced age or limited income and resources, are in need of improvements reasonably beyond the ordinary financial capabilities of the applicant;

(2)

In an amount which, together with other existing mortgages, liens, and encumbrances on the property, shall not exceed 50 percent of the appraised value of the applicant's fee or leasehold interest after rehabilitation, and which in no event shall exceed $50,000.00 per dwelling unit or business;

(3)

For a term which shall not exceed 20 years, or three-fourths of the remaining economic life of the structure after rehabilitation, or the remaining leasehold period less than two years, whichever is less;

(4)

Upon condition that the loan be repaid in monthly installments or through such other repayment plan as the board may specifically recommend; and

(5)

Upon condition that the loan shall immediately be paid in full if the applicant ceases to occupy the property or transfers or assigns title or the leasehold interest therein; provided however, that a successor in interest meeting the requirements of subsection (c)(1) of this section may, by request and at the discretion of the city commission, assume the benefits and obligations of the loan.

(d)

The board shall submit recommendations for securing the city's interest in the loan funds, which recommendations shall accompany each recommendation for disbursement.

(e)

The board shall recommend such proportionate charges or fees as it finds necessary to recover to the city the costs of the loan program described in this division.

(f)

The board shall review all aspects of the loan program provided by ordinance, including the selection of applicants; the disbursement, security, repayment and recovery of funds; and reasonably related procedures and fiscal results and shall present to the city commission such further recommendations as are consistent with the goals of the program as provided in this division.

(Code 1986, § 23.04; Ord. No. 05-07, § 1, 3-15-2005)