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Home My WebLink About1977-09 CRA - . . . . , REL:rs 5-17-77 RESOLUTION NO. 77-~ A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE EXECUTIVE DIRECTOR OF THE AGENCY TO EN- TER INTO EMERGENCY HOME REPAIR LOAN AGREEMENTS WHEREAS, the City Council of the City of Santa Ana has allocated Community Redevelopment funds to the Santa Ana Redevelopment Agency for the purpose of conducting an emergency home repair loan program for owners of property located between First, Third, Van Ness and Flower Streets in the City of Santa Ana. NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City of Santa Ana as follows: 1. The Executive Director of the Community Redevelopment Agency of the City of Santa Ana is authorized to enter into loan agreements with and to loan funds to owners of residential prop- erty located within the abovesaid area for the purpose of allowing such owners to make repairs which in the opinion of the Executive Director are necessary to correct serious health and safety defi- ciencies in order to make such property habitable until its acqui- sition by the Community Redevelopment Agency. 2. No more than one thousand dollars ($1,000.00) shall be loaned for the repair of anyone residential unit. 3. Each loan agreement shall be in the form set forth in Exhibit A, attached hereto and incorporated herein, and all loans shall be made in accordance with the terms thereof. 4. No more than seven thousand dollars ($7,000.00) in aggregate shall be loaned pursuant to the authority hereby granted. ADOPTED, this 24th day of the following vote, to wit: ,1977, by May AYES, MEMBERS: Brandt, Ward, Garthe, Evans, Yamamoto, Bricken, Ortiz NOES, MEMBERS: None ABSENT, MEMBERS: None ATTEST: ~~ RICHARD E. GOBLIRSCH, Executive Director and Recording Secretary ~AS¡~ KEITH L. GOW Agency Legal Counsel .. . . . . . , DL:nr 5/17/77 COMMUNITY REDEVELOPMENT AGENCY EMERGENCY HOME IMPROVEMENT LOAN AGREEMENT This Agreement, made and entered into this 24th day of May , 19I!., between the Community Redevelop- ment Agency of the City of Santa Ana, a public body, corporate and politic, hereinafter referred to as "Agency," and , hereinafter referred to as "Owner". WITNESSETH Recitals: A. Owner is the owner of that certain real property situated in the City of Santa Ana, County of Orange, State of California, hereinafter referred to as the "subject premises," located by street address at , Santa Ana, California, and more specifically described on Exhibit A, attached hereto and incorporated herein by this reference. B. The purpose of this Agreement is to provide an emer- gency low-interest loan to Owner for the purpose of correcting serious adverse health and safety conditions existing on the sub- ject premises by the construction of certain home improvements ..... as sp~cif~ Exhibit B, attached hereto and incorporated herein by this reference. WHEREFORE, in consideration of their mutual covenants and agreements hereinafter contained, and subject to the terms and conditions hereof, the parties hereto do hereby agree as follows: EXHIBIT A I , .. . . . . 1. Amount of loan. Owner agrees to borrow and Agency dollars agrees to lend ($ ) on the terms hereinafter set forth. (herein- after referred to as "the loan"). 2. Promissory note. Prior to any disbursement of the loan proceeds, owner shall execute and deliver to Agency a promissory note in the above said principal amount as evidence of the loan, containing the following provisions: (1) The loan shall be repaid with interest at the rate of three per cent (3%) per annum from a date months following execution of the note. (2) Principal and interest shall be payable in install- dollars ments of ($ ) or more on the day of each month month following execution of beginning on the the note and continuing until said principal and interest have been paid. (3) Each payment shall be credited first on interest due and the remainder on principal; and interest shall thereupon cease upon the principal so credited. (4) Should default be made in payment of any installment when due the whole sum of principal and interest shall become imme- diately due at the option of the holder of the note. 3. Security. The promissory note shall be secured by a deed of trust on the subject premises executed and delivered to Agency by Owner concurrently with execution of the promissory note. Agency shall be responsible for recordation of the deed of trust. 4. Prepayinent. Owner ,shall have the right to repay the indebtedness evidenced by the promissory note in whole or 2. '.., ::c", ',:. '..' -"-' :n--.'," .,."..-- .qm~rr , A I . . . :. . part without penalty or premium at any time. 5. Purchase of the subject premises by ARency. In the event that, prior to repayment of the loan in full, an escrow is opened for the purchase of the subject property by Agency, the whole unpaid sum of principal and interest shall become iDmle- diately due at the close of said escrow. Agency, in addition to its rights as trustee under any deed of trust on the subject pre- mises, shall have the right to apply toward satisfaction of such indebtedness any portion of the purchase price otherwise due to Owner. the event that outstanding obligations secured by the In subject premises operate to preclude any payment to Owner from the purchase money, Agency may cancel any unpaid portion of the loan, provided Agency's Redevelopment CoDmlission has first reviewed Owner's performance under this Agreement and other pertinent facts and recoDmlended cancellation of the remaining indebtedness on grounds of hardship. 6. (a) Disbursement of loan proceeds. Except as provided in subsection (b), loan pro- ceeds shall be disbursed by Agency only upon the following condi- tions: (1) The work on all or any part of the improvements specified in Exhibit B shall have been performed to the satisfac- tion of the Director of Building Safety of the City of Santa Ana (hereinafter referred to as "the Director"). The Director may cer- tify such improvements as satisfactory although the resulting con- dition is not in complete compliance with Municipal Code standards if he determines that such resulting condition is substantially more beneficial to the health or safety of the residents 'than the prior existing condition. (2) Owner shall submit billings received from contrac- tors performing the improvement work to the Director. In the nRmtt A ..,._"_.,,,.,..,...,,~,,_.,'y-- ~.~",' -- I . . . . . event that any billing from any such contractor exceeds $250.00 in amount, Owner shall also submit proof of estimates for the work performed received from at least two contractors demonstra- ting that he'~tained the services of the contractor offering performance at least expense. Upon compliance with the above conditiom, Agency may disburse loan proceeds either by direct payment of billings to the contractors submitting the same or, if billings have been paid by Owner, by delivery of the amount of such billings to Owner; provided no disbursements shall be made in excess of the amount of the loan. (b) Owner, as an alternative to proceeding under sub- section (a), may give written authorization to Agency to cause all or any designated part of the improvements specified in Exhi- bit B to be made on the subject premises. In such event Agency may contract directly with contractors for the improvement work and payment by Agency to such contractors for performance thereof shall constitute disbursement of loan proceeds; provided, however, Agency shall not enter into contracts which in the aggregate ex- ceed the amount of the loan. 7. Termination of disbursements. At such time as no further disbursements may be made without exceeding the amount of the loan, or the improvements specified in Exhibit B have been completed, or if written notice is sooner received by Agency from . Owner of his intent to terminaæconstruction of improvements on the subject premises, no further disbursements shall be made, and the excess, if any, of the amount of the loan over the aggregate amount of disbursements made. shall be credited to Owner's re- payment of the loan. 8. Effect of sale to third party. No disbursements 4. EXHIBIT A I . . . . . shall be made to any successor-in-interest of Owner in the sub- ject property unless such successor-in-interest has, with Agency's consent, assumed the obligations of this Agreement by separate instrument in writing. In the absence of such assumption, dis- bursements shall be terminated in the manner set forth in Section 7. 9. Covenant regarding rent increase. Owner covenants that, during the term of this Agreement, no rent increases shall be charged by him to lessees of the subject premises excepting only such increases as will reimburse owner for monthly interest payments to Agency on the emergency home improvement loan which is the subject of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. APPROVED AS TO FORM: IS;::¡ I. ~ COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA R::~~ Executive Director KEITH L. GOW Agency Legal Counsel OWNER: 5. EXHIBIT A