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HomeMy WebLinkAbout1992-05 CRA . . . REL:5/6/92 RESOLUTION NO. 92- 5 A RESOLUTION OF THE COMMUNITY REDEVELOP- MENT AGENCY OF THE CITY OF SANTA ANA ADOPTING THE RESIDENTIAL LOAN PROGRAMS APPROVED BY THE CITY COUNCIL AND AUTHORIZING THE EXECUTIVE DIRECTOR TO IMPLEMENT SUCH PROGRAMS AND TO TAKE APPROPRIATE ACTION TO PROTECT THE AGENCY'S SECURITY FOR THE REPAYMENT OF RESIDENTIAL LOANS MADE BY THE AGENCY WHEREAS, the City Council of the city of Santa Ana has approved loan programs to promote and preserve the supply of housing affordable to persons and families of low and moderate income, whereby loans are made to owners of residential property; and WHEREAS, such programs are in large part carried out by the Community Redevelopment Agency of the city of Santa Ana using tax increment revenues set aside for low and moderate income housing purposes pursuant to the Community Redevelopment Law; and WHEREAS, the obligation to repay such a loan is evidenced by a promissory note and secured by a deed of trust on the property which is often subordinate to one or more other deeds of trust or liens securing other indebtedness of th~ property owner; and WHEREAS, it is necessary that the Agency have the ability, in appropriate circumstances, to protect the security for its loans in the event of foreclosure on senior deeds of trust or other senior liens or in the event of default under Agency notes or trust deeds; NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AS FOLLOWS: 1. Those residential loan programs previously approved by the City Council of the City of Santa Ana, including the Residential Rehabilitation Loan Program, the Infill New Construction Loan Program, the Hardship Loan Program, the Residential Rebate Program, and the Multifamily Rehabilitation Loan Program, are hereby approved and adopted by the Community Redevelopment Agency of the City of Santa Ana as programs of the said Agency, subject to the terms and conditions which have been established by the city Council, as they may be from time to time revised by the City Council. 2. The Executive Director of the Agency, or his or her designated representative, is hereby authorized to implement said residential loan programs. The actions hereby authorized include, 1 . . . but are not limited to, the following: a. Approval or disapproval of loan applicants. b. Execution, on behalf of the Agency, of loan agreements, loan escrow instructions, acceptances of deeds of trust, loan disbursement authorizations, amendments to loan agreements and promissory notes, and other documents pertaining to such loans. 3. The Executive Director of the Agency, or his or her designated representative, is further authorized to take such action on behalf of the Agency as the said Executive Director deems appropriate to protect the Agency's security for its housing loans in the event of foreclosure of senior deeds of trust or other liens, or in the event of default on a promissory note or deed of trust to the Agency as beneficiary. The actions hereby authorized include, but are not limited to, the following: a. Initiating foreclosure proceedings; b. Bidding at a foreclosure sale in an amount sufficient to protect the Agency's security interest; c. Purchasing a senior note and deed of trust or other lien; d. Acquiring property through foreclosure or deed in lieu of foreclosure; provided, however, the Executive Director may determine not to take any of the above actions when in the Executive Director's opinion such actions would be financially infeasible or would be counter productive to the interests or objectives of the Agency. 4. The Executive Director, or his or her designated representative, is further authorized to provide reasonable relocation assistance to persons who are required to vacate premises due to the acquisition of property by the Agency through actions taking by the Executive Director pursuant to section 3 hereinabove, on terms and conditions designed to assure such property is vacated. Nothing herein shall be construed to provide such persons with a claim for relocation benefits not otherwise available to them under state law. 5. The expenditure of Agency funds herein authorized is limited to those funds which have been duly appropriated for the implementation of the Agency's residential loan programs. 6. All previous actions of the Executive Director and his or her designated representatives in the implementation of the residential loan programs are hereby approved and ratified. 2 . . . ADOPTED this following vote: 19th AYES: Members NOES: Members ABSENT: Members ABSTENTIONS: Members ATTEST: ~~~ Cy thia J elson Executive Director APPROVED AS TO FORM: ~~ Edward J. op Agency Legal unsel day of May , 1992, by the Acosta, Griset, McGuigan, Norton, Pulido, Richardson Young ~~ Daniel H. Young Chairman 3