San Francisco County Municipal Code Art. VIII Hardship Loans

Sec. 32.80. Use of Hardship Loans. Sec. 32.81. Maximum Amount of Loan and Eligibility. Sec. 32.82. Term of Hardship Loan. Sec. 32.83. Transferability of Hardship Loan. Sec. 32.84. Use in Conjunction with the Conventional Rehabilitation Assistance Program Loan. Sec. 32.85. Security. Sec. 32.86. Additional Loan Terms. Sec. 32.87. Source of Funds.

Hardship loans are to be used only for meeting rehabilitation standards and incipient violations thereof. (Amended by Ord. 116-77, App. 4/1/77)

(a) A hardship loan of up to $7,500 can be made to a low-income applicant who is the owner-occupant of a one-to-four dwelling unit building. (b) To be eligible for a hardship loan the applicant must demonstrate to the satisfaction of the Chief Administrative Officer that: (1) the applicant's income does not exceed 80 percent of the median family income of the San Francisco-Oakland Standard Metropolitan Statistical Area as determined by the United States Department of Housing and Urban Development (HUD); and (2) that the applicant does not have other assets to correct housing code violations without jeopardizing the ability to be self supporting. (c) An applicant whose income exceeds the standards promulgated by HUD, as described in Section (b) above, may appeal to the Loan Committee for approval of a hardship loan when age, health, physical handicap or size of family require unusual expenditures by applicant. (Amended by Ord. 31-81, App. 1/9/81)

A hardship loan shall be due and payable at the time of sale or transfer of property unless the hardship loan is transferred pursuant to Section 32.83.

(Amended by Ord. 410-77, App. 9/16/77)

(a) Upon conveyance of property subject to a hardship loan, the hardship loan may be converted to a conventional RAP loan and assigned to the transferee of the property under the same circumstances and upon the same terms as are applicable to the transfer of a conventional RAP loan as provided in Section 32.66. The total remaining period of the loan may not extend beyond 20 years from the date of the original loan. (b) Upon transfer of property subject to a hardship loan, or an interest therein, to a spouse or heir who is otherwise eligible for a hardship loan, if the spouse or heir so chooses, the hardship loan shall be transferred to the spouse or heir. If the owner of property subject to a hardship loan dies, and the hardship loan is not repaid or transferred to another person within one year of the owner's death, the loan shall as of one year from the date of the owner's death, bear interest at the then current interest rate charged for conventional RAP loans which were made in the same year as the hardship loan. (Added by Ord. 23-74, App. 1/9/74)

PROGRAM LOAN. A conventional rehabilitation assistance loan may be used to supplement a hardship loan provided the property owner otherwise qualifies for a conventional RAP loan. (Added by Ord. 23-74, App. 1/9/74)

Unless provided otherwise in any bond resolution issued pursuant to the provisions of this Chapter, hardship loans shall be secured by a deed of trust naming the City and County as beneficiary of the trust. (Added by Ord. 23-74, App. 1/9/74)

Each provision required to be contained in a conventional RAP loan agreement pursuant to Section 32.69 through 32.75-1 shall also be contained in each hardship loan agreement. (Amended by Ord. 269-82, App. 6/10/82)

Any funds given to received by the City and County specifically for the purpose of establishing a hardship loan fund may be accepted by the Chief Administrative Officer and may be accepted by that purpose. In addition, the Board of Supervisors may, from time to time, appropriate funds for a hardship loan fund. (Added by Ord. 23-74, App. 1/9/74)