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HomeMy WebLinkAboutRESO 5936" • • s~ .... , 'RESOLUTION NO. 5936 __ 'Gl~ 1'.f.L RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO './~L ESTABLISHING A REVOLVING LOAN ACCOUNT PROGRAM FROM PART OF THE NON-PROFIT FACILITY REHABILITATION PROGRAM AS ADOPTED BY RESOLUTION NO. 5858 WHEREAS, on December 8, 1980, the City Council approved the 1981-1982 Community Development Block Grant Program by adoptiug Resolution No. 5858: and WHEREAS, the NQn-Profit Facility Rehabilitation Program was funded for $50,000 as part of that action in order to prQvide funds to meet various rehabilitation needs of non-profit organizations which serve low and moderate income persons or elderly and disabled members of the cormnunity: and WHEREAS, the City Council finds that the provision of low interest loans by the City to meet the various rehabilitation needs of such organizations serves a public and municipal purpose: NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: Section 1. The Council of the City of Palo Alto approves the establishment of a revolving loan account to provide low interest loans to non-profit organizations for facility rehabilitation under the guidelines set forth in Attachment "A". Section 2. The Counci 1 finds that this project is cateyorTCally exempt from environmental review under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODl!CED AND PASSED: July 6, 1981 AYES : Bechtel, Eyerly, Fazzino, FletchP_r, Herrlerson, Klein, I2vy, Witherspc:on NOES: None ABSTENTIONS: None ABSENT: Renz el ·' DESCRIPTION EXHIBIT A CITYWIDE NON-PROFIT FACILITY REHABILITATION PROGRAM GUIDELINES This program will establish a revolving loan fund to meet various rehabilitation needs of non-profit crganizations throughout the program year. The funds will be loaned to eligible organizations at 3% interest with either a fully amortized or deferred payment. The 1111.?thod of repayment will be detennined by the organizations ability to repay the loan. Review of loan applications and loan decisions will be made by a City Manager appointed Loan C011111ittee. This Conrnittee will be comprised of the existing three-persor1 Housing Improvement Program Loan COtllllittee plus an additional_ fourth member designated by the City Manager. ELIGIBILITY OF NON-PROFIT ORGANIZATION Non-profit organizations with l or more years of existence who serve primarily low and moderate income persons (80% of county median), or elderly and disabled members of the conmunity. The organization must own or have the right to encumber the property to be rehabilitated. ELIGIBLE LOAN USES A. Code conditions or code work requiring inmediate correction to prevent rapid deterioration of this structure. B. Code correction necessary to correct inmediate health and safety danger to building occupants. C. Code problems identified by a Building Department inspection that left uncorrected could jeopardize continued operation or use of the facility. LOAN TERMS AND CONDITIONS A. The maximum loan amount shall be $10,000. B. Program funds will provide 3% interest loans for a maximum tenn of 10 years. Payment of the loan may be deferred for up to 10 years on both interest and principle. This repayment may be extended if the organiza- tion still meets program guidelines, and is unable to refinance the loan, without adverse impact to program services. C. Upon sale or transfer of the property the loan shall be due and payable with the funds returned to the Non-Profit Facility Rehabilitation Account, to be used for additional loans. D. All loans will be secured by a Deed of Trust. E. 1001 of the rehabilitation loan must be used to cover code deficiencies. REHABILITATION PROCESS 1. Non-profit organizations will be encouraged to submit loan applications throughout the year. 2. Upon receipt of an application, the rehabilitation program staff will inspect the property to prepare a scope of rehabilitation and accurate cost estimate. ., ' ' . . " • 3. A report describing the improvements required to bring the property up to code will be presented to the organization. 4. Staff will prepare work write-up specifying the work to be done. 5. Competitive bids will be received via the Cityts P~rchasfng Services Procedures. All applicable federal Labor Standards and Contract Compliance procedures will be followed. 6. The program manager will prepare and present the loan application based upon the accepted bid and proper verifications to the Loan Corrmittee. 7. Upon approval by the Loan Cormiittee9 the program manager will execute the necessary documents with the owner. 8. Progress and final payments based upon work completed and inspected will be paid from the loan escrow account by the City Controller only upon written approval of the owner and the improvements advisor. 9. The progra111 staff will prepare required federal r-Eports for funds df sbursed.