San Francisco County Municipal Code Art. VI Limitations on Amount of Loan

Sec. 32.50. Maximum Indebtedness on Property. Sec. 32.51. Maximum Amount of Loan. Sec. 32.52. Limitations on Use of Loan for General Property Improvements. Sec. 32.53. Refinancing. Sec. 32.54. Limitation Based on Fair Market Value of Work.

Outstanding loans on the property to be rehabilitated, including the amount of the loan for rehabilitation, shall not exceed 80 percent of the anticipated after-rehabilitation value of the property to be rehabilitated, as determined by the Chief Administrative Officer, except that the Chief Administrative Officer may authorize loans of up to 95 percent of the anticipated after-rehabilitation value of the property if: (a) Such loans are made for the purpose of rehabilitating the property for residential purposes; (b) There is demonstrated need for such higher limit; and (c) There is a high probability that the value of the property will not be impaired during the term of the loan. (Added by Ord. 23-74, App. 1/9/74)

The maximum loan for rehabilitation shall be as follows: single family, $30,000; twounits, $10,000 per unit; four or more units, $7,500; commercial, $5,000 per unit; guest rooms, as defined in Section 203.7 of the Housing Code, $2,500 per unit.

The Chief Administrative Officer may approve a loan in excess of these amounts following guidelines established by the Chief Administrative Officer; provided, that in no case may the loan exceed $17,500 per unit for dwelling units other than in single family dwellings and $11,500 per unit for guest rooms. (Amended by Ord. 30-78, App. 1/13/78)

No more than 20 percent of any loan for residential rehabilitation shall be used for general property improvements except that in the case of owner-occupied, one-to-four dwelling unit properties, up to 40 percent of the loan may be used for general property improvements. (Added by Ord. 23-74, App. 1/9/74)

(a) A loan may be made to refinance an existing indebtedness on a residence if the cost of meeting rehabilitation standards and correcting incipient violations thereof for the residence equals at least 20 percent of the principal amount of the loan; and (1) If the sum of the monthly principal and interest payments on the proposed loan for rehabilitation and the monthly payments on existing debt secured by the property, plus property taxes and insurance, would result in total monthly payments that would exceed 20 percent of the applicant's total monthly income; or (2) If the Loan Committee recommends approval of refinancing and the recommendation is accepted by the Chief Administrative Officer; (b) If the Chief Administrative Officer does not accept the recommendation of the Loan Committee regarding refinancing, he or she shall give written reasons for the refusal to accept such recommendation. (c) In deciding whether to recommend that refinancing be made available to any particular applicant, the Loan Committee shall adhere to guidelines for refinancing which shall be adopted by the Chief Administrative Officer. In developing guidelines for refinancing, the Chief Administrative Officer shall take into consideration the availability of funds for financing residential rehabilitation, the need to prevent significant rent increases which would result in a hardship for tenants, and the need to prevent speculators from profiting from the use of residential rehabilitation financing. (Amended by Ord. 116-77, App. 4/1/77)

(a) Prior to the granting of any loan over $20,000 under this Chapter, a qualified estimator will make an on-premises inspection of the applicant's property and certify, in writing, that the estimated cost of the recommended work, as detailed in the job specifications, is not more than 10 percent above fair market value. No loan will be granted in an amount exceeding 10 percent of fair market value for the work specified or higher than the lowest bid received, whichever is less, without the approval of the Chief Administrative Officer (b) Where loan is under $20,000 and low bid exceeds estimate of building inspector by 10 percent, the Real Estate Department will hire an estimator to certify the fair market value of the job specifications. (c) A qualified estimator is a person: (1) Who is not a City employee; but (2) Who is selected by the Chief Administrative Officer because he or she is qualified and experienced in the area of residential rehabilitation. The estimator shall operate under the direction of the Director of the Real Estate Department. (d) A property owner wishing to challenge the low bid or the estimator's value may hire a licensed estimator if he or she so desires. (e) The Chief Administrative Officer shall, semi-annually, direct a report to the Board of Supervisors setting forth a list of the loans which were in excess of 10 percent of the estimated fair market value pursuant to the provisions of Paragraph (a) giving the reasons for approval in each case. (Amended by Ord. 274-78, App. 6/9/78)