San Jose Municipal Code Part 6 Authority of City Manager

The city manager is authorized to execute loans and grants consistent with the general parameters set forth in Section 5.06.215 for specific affordable housing developments and other grant programs administered by the department of housing, as long as the following criteria are met:

A. The total loan interest rate does not exceed five (5) percent.

B. The loan repayment term does not extend the loan term beyond the term of the affordability restriction.

C. The repayment term maintains at a least a fifty (50) percent share of residual receipts, unless a lower percentage is required in the loans from other public lenders.

D. The city's lien priority does not jeopardize the loan or grant security or project affordability, in the judgment of the city manager.

E. The term of the affordability restriction is consistent with applicable state and federal regulations.

F. The loan conditions continue to protect the loan or grant security, or leverage additional non-city funding, or accelerate loan repayment to the city.

(Ords. 26657, 28067.)