CC Resolution 10733
Resolution No. 10733
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AMENDING SECTION 13 HOUSING & COMMUNITY DEVELOPMENT
REHABILITATION LOAN COMMITTEE POLICIES & PROCEDURES
WHEREAS, Campbell has operated a Housing Rehabilitation Loan Program since 1979
for individuals and families earning less than 80% of the Santa Clara County median;
and
WHEREAS, the City Council has periodically updated the Housing Rehabilitation Loan
Program guidelines and policies based on changes in program priorities and required
Federal and County mandates; and
WHEREAS, the City of Campbell continues to support a housing rehabilitation loan
program for individuals and families who need to make repairs to their homes.
NOW, THEREFORE, be it resolved that the City Council of the City of Campbell hereby
amends Section 13 Housing & Community Development Rehabilitation Loan Committee
Policies & Procedures.
PASSED AND ADOPTED, this 6th day of February, 2007 by the following vote:
AYES:
NOES:
ABSENT:
Councilmembers:
Councilmembers:
Councilmembers:
Kennedy, Hernandez, Low, Burr, Furtado
None
None
APPROVED:
~ ~~ iJ-Jr
Daniel E. Furtado, Mayor
ATTEST:
a~
Anne Bybee, City Clerk
Attachment 2
SECTION 13
CITY OF CAMPBELL
HOUSING AND COMMUNITY DEVELOPMENT
REHABILITATION LOAN COMMITTEE
POLICIES AND PROCEDURES
Purpose
The purpose of the City of Campbell Housing and Community Development (HCD)
Loan Committee is to evaluate loan and/or grant applications and approve loan terms.
Committee Membership and Terms of Service
The Loan Committee is composed of three (3) voting members; a City Council member,
a staff representative from Finance, and the City Clerk's Office. A non-voting member
from a local financial institution will serve in an advisory capacity with the Committee.
Two of the three voting members must be present to form a quorum. There is no limit
to the length of tenure in the position and the members serve at the discretion of the
City Council. The desired expertise for committee membership includes awareness of
local affordable housing needs and financial procedures in real estate transactions.
Meetinqs
The HCD Loan Committee meets on an as-needed basis. The meeting will be noticed
at least 24 hours prior in accord with the Brown Act.
Committee Decision Makinq Process
All Loan Committee decisions will be reached by majority vote.
Committee Minutes
Regular minutes will be maintained regarding the actions of each Loan Committee
meeting. HCD staff will be responsible for transcribing and typing the meeting minutes
and distributing them to the Loan Committee members.
Committee Staffinq
HCD staff provides technical assistance and staff support to the Loan Committee.
Specific HCD staff support members are the Community Development Director and
HCD Coordinator. HCD Coordinator. HCD staff presents each loantwam application;
provides a staff recommendation for consideration; and records minutes of each
meeting.
IA-tlie case of urgent home repair emergencies, HCD staff has the authority to issue a
~fant with a maximum amount of $10,000 for seniors and a maximum $5,000 for 10'."1
iAcome families. Emergencies include repairs such as a water heater, repair of broken
water pipes, electrical circuit breakers, 'Nail heater. ,A,S soon as practical, the
emergency grant will be brought to the attention of the Loan Committee.
HCD Loan Committee Procedures
Page 2
Committee Objectives
1. Review and approve/reject all applications for rehabilitation loans and/or gr~mts in a
timely manner.
2. Provide housing rehabilitation loans 3nd/or grants to clients most In need of
assistance.
3. Approve loan, grants, or combin3tion of loans gr3nts; 103n/gr3nt amount; and terms
of loans.
4. In special circumstances, on a case by case basis, the Committee also has the
authority to modify loan terms. For example, the Loan Committee may decide to
forgive a loan or change an amortized loan to a deferred loan.
5. Assure that all loans approved are in conformance with all appropriate Federal,
State, or local requirements.
Steps To Review Loan/Gr3nt Application
1. To evaluate the reasonableness presented on the 10antg.Fam applications and
assure the appropriate use of funds. Set terms and conditions for loans/grants.
2. Approve/reject specific 10antg.Fam applications and set repayment terms, due dates,
and interest rates.
3. Present an annual report to the City Council summarizing allloantg.Fam activity.
Applicant Loan Process
1. Loan and/or gfaffi applicants must submit a completed, signed application.
2. Loan and/or gr3nt applicant must submit verification of income.
3. Credit and title reports are secured by City staff for loan applicants.
4. If sufficient equity is in doubt, an appraisal or market study will be conducted to
determine market price of home, rental, or mobile home.
5. Loan applicant must sign a statement agreeing to pay for any fees incurred during
the loan review process if the applicant voluntarily withdraws his/her application.
Basic Loan Policies
1. All loan applications and requests will be considered on a first-come first-serve
basis. However, priorities will be considered in cases of great need or urgency.
2. All loans will be distributed in a manner assuring 100% lower income benefit.
BCD Loan Committee Procedures
Page 3
3. a) All loans to single family homeowners will have a maximum $40,000 limit;
show sufficient equity; the City loan will be secured by a recorded deed of trust. All
loans to mobile homeowners will have a maximum $15,000 limit; show sufficient
equity in coach; if there are other liens the loan amount will be less to ensure
enough equity; the City loan will be recorded on title with the State.
b) All loans to rental property owners, with renters below 80% of the County
median, will have a maximum of $20,000 per rental unit; show sufficient equity in
property; the City loan will be secured by a recorded deed of trust.
4. Amortized loans shall have an interest rate of 3% to 6% depending upon household
income and a loan term of fifteen years. Deferred loans for seniors will have an
interest rate of 6% simple interest and are due upon sale of the property or change
in title.
5. In the case of a reversed mortgage, loans will be reviewed every five years to
evaluate equity in the property. The loan may become due if equity becomes an
Issue.
6. Other loans/grants shall also be considered for non-profit organizations that provide
affordable housing to persons at or below 80% of the County median.
February 2007