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RESOLUTION NO. 79-217 PAGE FIVE e. Loans shall not be made for the purpose of refinancing the outstanding indebtedness of a participating party with respect to property which is subject to residential rehabilitation, or for financing the acquisition of property which has been, or is to be subject to residential re- habilitation, unless the cost, including in such cost any amounts previously expended for residential rehabilitation of that property by a participating party, within a residential rehabilitation area or a redevelopment project area established at the time of such expenditure, of meeting the rehabilitation standards is at least twenty percent (20%) of the principal amount of the loan. F. RESIDENTIAL INFILL CONSTRUCTION 1. The City Council hereby authorizes new construction in the form of residential infill construction as defined in said Act as an integral part of this Residential Rehabilitation Financing Program. 2. The guidelines for financing infill construction shall be subject to the limitations: residential following a. unless insured or guaranteed in whole or in part by an instrumentality of the United States or the State of California or by a person licensed to insure loans in this state, outstanding loans on the property, including the amount of the loans for residential infill construction, shall not exceed eighty percent (80%) of the anticipated value of the property, following completion of the construction, except that the City Council may authorize loans, which are neither insured nor guaranteed, of up to ninety percent (90%) of the anticipated value of the property following completion of the construction, if such loans are made for the purpose of con- struction residences containing two or more dwelling units. A nonprofit corporation in- corporated pursuant to Part I (commencing with Section 9000) of Division II of Title I of the Corporation's Code or a cooperative housing corporation, as defined in Subdivision (a) of Section 17265 of the Revenue and Taxation Code, may be authorized a loan not exceeding one hundred percent (100%) of the estimated value of the property following completion of con- struction, if the dwelling units constructed with financing under the Act are committed for the period during which the loan is outstanding for occupancy by persons or families who are eligible for financial assistance specifically provided by a governmental agency for the benefit of occupants of the residence. b. The maximum repayment period for loans for residential infill construction shall be forty (40) years or four-fifths (4/5) of the economic life of the structure, whichever is less.