Los Angeles County Municipal Code Ch. 5.75 Relocation Incentives

A.

For purposes of recruiting and retaining county executives and employees in other classifications designated by the chief administrative officer as suffering from a manpower shortage, the board of supervisors may authorize advances in accordance with this section. As part of the compensation of an employee designated pursuant to subsection D of this section, the board of supervisors may authorize an advance to assist with the downpayment on the purchase of a personal residence by such employee. Fee title to the residence so purchased shall be held by the employee individually or in joint tenancy with such employee's spouse.

B.

Each advance authorized under this section shall constitute a shared appreciation loan to the employee, subject to repayment as provided in subsection C of this section. Each such advance shall be secured by a first or second deed of trust on the residence and the employee's repayment obligation shall be expressed in an employment agreement signed by the employee at the time of hire. The employee shall be required to fund not less than 10 percent of the purchase price of the residence, and the amount advanced by the county pursuant to this section may not exceed 30 percent of the purchase price. The employee shall be required to fund the remaining 60 percent in cash or through a loan from a county-approved lender secured by a deed of trust. For purposes of this section, the "purchase price of a residence" shall be the actual contract price paid by the purchaser to the seller, exclusive of all fees and costs paid by the purchaser including, but not limited to, escrow fees, loan fees, loan origination fees, loan application fees, inspection fees, appraisal fees, commissions, the prorated portion of taxes and other expenses prepaid by the seller, and any other costs commonly referred to as "points."

C.

Upon the sale or refinancing of a residence purchased pursuant to this section or termination of county service, or at such other time as may be agreed between the county and the employee, the employee must repay to the county the amount advanced plus contingent deferred interest calculated in accordance with the next sentence. The amount of contingent deferred interest shall equal the product of (1) the percentage of the purchase price of the residence advance to the employee pursuant to this section, times (2) the sales price (in the case of a sale) or the appraised value (in the case of a refinancing) of the residence less the original purchase price. For purposes of this section, the sales price of a residence shall be the actual contract price paid by the purchaser to the seller, without reduction for fees and costs paid by the seller including, but not limited to, escrow fees, inspection fees, fumigation expenses, commissions, and the prorated portion of taxes and other expenses which are to be paid by the purchaser but which relate to periods prior to the transfer of title; provided, that such sales price may be reduced, at the option of the county, by all or a portion of the amount of capital improvements to the residence paid for by the employee.

D.

The board of supervisors shall designate executives and employees who are eligible for assistance under this section. The chief administrative officer, or his designee, is authorized to execute and deliver any and all related documents in the name

and on behalf of the county. The treasurer and tax collector and county counsel shall perform the necessary duties to carry out this program.

(Ord. 90-0136 § 1, 1990.)