79-217 - Laserfiche WebLink

Home Browse Search

RESOLUTION NO. 79-217 PAGE SIX Go PURCHASE OF RESIDENCE 1. Pursuant to Section 37912 of the Act, the City Council hereby authorizes financing or refinancing the cost incurred by a participating party in acquiring real property for the purpose of residential rehabilitation, including infill construction, and financing the acquisition of residences within the residential rehabilitation area which have been previously rehabilitated or constructed with financing under the Act as an integral part of this residential rehabilitation. 2. The guidelines for financing the purchases of residences previously rehabilitated or constructed with financing under the Act shall be subject to the following limitations: a. Purchasers of single family dwellings eligible to receive such financing shall be persons or families of low or moderate income. b. Ail rental dwelling units in the residence financed shall be committed for the period during which the loan is outstanding for occupancy by persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code. Upon recordation of the deed, other instrument of conveyance, lease, or instrument of financing in the office of the County Recorder of Orange County, the rental dwelling units reserved for occupancy for persons of low income shall remain for such occupancy for not less than thirty (30), nor more than fifty-five (55), years. Such recorded agreement shall be binding upon successors in interest. c. 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 to be acquired shall not exceed eighty percent (80%) of the value of the property, except that the City Council may authorize loans, which are neither insured nor guaranteed, of up to ninety percent (90%) of the value of the property if such loans are made for the purpose of financing residences containing two or more dwelling units. A nonprofit corporation incorporated pursuant to, or otherwise made subject to the provisions of, Part II (commencing with Section 5110) of Division 2 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 value of the property, if the dwelling units within the residence 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. d. The maximum repayment period for acquisition loans shall be forty (40) years or four-fifths (4/5) of the economic life of the property, whichever is less.