Chapter 11.24 — TERMS OF STANDARD RAP LOANS

Section 11.24.010 Eligibility for loans. 11.24.020 Maximum repayment period for loan. 11.24.030 Interest rate. 11.24.040 Prepayment penalties. 11.24.050 Security for loan. 11.24.060 Insurance. 11.24.070 Impound account. 11.24.080 Transfer of loans. 11.24.090 Loan charges. 11.24.100 Non-discrimination. 11.24.110 Enforcement of loan provisions.

Each owner of property located within a neighborhood conservation area is eligible for a standard RAP loan, subject to loan fund availability, provided the owner demonstrates to the satisfaction of the Loan Committee the ability to repay such a loan, applies for the loan within a time period to be designated by the City Manager and meets the other requirements of this title. A standard RAP loan may be made to investor/owners and owner-occupants having an income above 80% of median income for Tulare County. The property owner shall agree to all conditions of the loan agreement as a prerequisite to obtaining a loan. No elective officer of the state or any of its subdivisions shall be eligible to receive a loan under the provisions of this title. (1995 Code, § 11.24.010) (Ord. 97-1800, passed - -1997)

The maximum repayment period shall be 20 years. (1995 Code, § 11.24.020) (Ord. 97-1800, passed - -1997)

The interest rate for the standard RAP loan is established at 3% simple per annum. (1995 Code, § 11.24.030) (Ord. 97-1800, passed - -1997)

There shall be no penalty assessed for prepayment of any standard loan. (1995 Code, § 11.24.040) (Ord. 97-1800, passed - -1997)

Each RAP loan shall be secured by a deed of trust, which may be other than a first deed of trust, naming the city as beneficiary of the trust. (1995 Code, § 11.24.050) (Ord. 97-1800, passed - -1997)

All RAP loan agreements shall provide that so long as the loan or any portion of it is outstanding, the owner of the property subject to the loan shall carry adequate property insurance and provide duplicate copies of insurance policies to the city. The City Manager shall establish standards for determining what amount of property insurance is adequate. (1995 Code, § 11.24.060) (Ord. 97-1800, passed - -1997)

If the City Manager deems it desirable and necessary to effectuate the purposes of the program that an impound account

be required to assure timely payment of taxes, insurance or a maintenance reserve, he or she may, unless precluded from doing so by state or federal law, include such a requirement in any RAP loan agreement. (1995 Code, § 11.24.070) (Ord. 97-1800, passed - -1997)

The unpaid balance of a standard RAP loan shall be declared due and payable upon sale or transfer of the ownership of the property, except in the case where a single-family dwelling unit is sold to a low-income purchaser who will be the owner- occupant, then the loan may convert to a deferred/shared appreciation loan in accordance with the terms and eligibility requirements of Chapter 11.28 of this title. In the event of the death of one or more of the mortgagors, transfer of the loan may be made to a spouse or heir who occupied the property at the time of mortgagor’s death and is otherwise eligible for a standard RAP loan. (1995 Code, § 11.24.080) (Ord. 97-1810, passed - -1997; Ord. 97-1800, passed - -1997)

Loan charges for RAP loans shall be established pursuant to the provisions of this title and may include amounts to cover the cost of servicing loan accounts and penalties for late payments. (1995 Code, § 11.24.090) (Ord. 97-1800, passed - -1997)

The RAP program shall be carried out in a nondiscriminatory manner, in compliance with Civil Rights Act provisions in effect and Executive Order No. 11063 pertaining to equal opportunity in housing. (1995 Code, § 11.24.100) (Ord. 97-1800, passed - -1997)

The provisions of this title as they relate to enforcement of nondiscrimination on the basis of race, age, sex, marital status, color, religion, national origin or ancestry are enforceable by the city. Violation of the loan agreement provisions required by this title may result in any outstanding financing obtained pursuant to the loan agreement becoming immediately due and payable. (1995 Code, § 11.24.110) (Ord. 97-1800, passed - -1997)