Terms and Conditions
under which Rehabilitation Loans are Made
Program
Goals
1. All financing and planning
assistance through the City of Springfield's Housing Rehabilitation
Loan Program must further the goals of the program, which
are to:
---a. Help low-to-moderate-income
persons achieve safe, decent, affordable housing.
---b.
Help revitalize neighborhoods by eliminating blight conditions.
2.
In view of these goals, loan applications may not be approved
if the applicants are:
---a. Mainly interested
in cosmetic or non-housing improvements to the property
or in fixing up the property for resale.
---b. Not willing
to address all the substandard conditions on the property.
Loan
Committee Approval
3. Program funds and
staff time are limited, so financing and planning assistance
may not be offered to every qualified applicant. Each proposal
is also screened by the Loan Committee for practical and
financial feasibility. Decisions of the Loan Committee may
be appealed to the Land Clearance for Redevelopment Authority
(LCRA) Board, as provided in Chapter 7 of the program rules
and regulations.
No Bonus, Commission, or Fee
4.
An applicant may not pay any bonus, commission, or fee for
the purpose of obtaining City planning or financing assistance.
No
Conflict of Interest
5. City loans cannot
be made to City employees, Council members, salaried officers,
or members of City boards or commissions, or in similar
situations that would be in violation of City Charter provisions
or federal regulations related to conflict of interest.
Historic
Preservation Review
6. An applicant must
agree to abide by the directives of the State Division of
Parks and Historic Preservation regarding alteration of
the appearance of a building in the course of rehabilitation
if it is determined to be a historic building that is architecturally
significant.
Loan Security
7. Each
borrower must sign a promissory note and a deed of trust
granting the lender a security interest in the rehabilitated
property until the loan principal has been repaid.
Home
Ownership Training
8. To ensure that
properties are properly maintained after rehabilitation,
recipients of City loans are generally required to enroll
in a home ownership training course offered by Ozark Technical
Community College, which covers home maintenance and financial
management, as well as basic home ownership responsibilities.
Civil
Rights
9. A borrower must comply with
Title VI of the Civil Rights Act of 1964 not to discriminate
on the basis of race, color, creed, sex, age, religion,
national origin or ancestry, handicap, or political opinion
or affiliation in contracting for rehabilitation work or
in the sale, lease, rental, use, or occupancy of the subject
property.
Ineligible Contractors
10.
The applicant may not knowingly award any contract for rehabilitation
work to be paid for in whole or in part with the proceeds
of a City loan to any contractor who, at the time, is ineligible
under the provisions of any applicable regulations issued
by the Secretary of Labor, United States Department of Labor,
to receive an award of such contract.
HOME Projects
11.
See HOME Program
rules and regulations for additional requirements concerning
prevailing wages, rent controls, and affirmative marketing
that may apply in rental rehabilitation projects.
Cancellation
of Loan
12. If a loan is cancelled before
the rehabilitation work is started, loan proceeds must be
returned to the City with no right, interest or claim in
the proceeds.
Proper Use of Loan Proceeds
13.
The proceeds from a City loan may be used only to pay for
services and materials necessary to carry out an approved
rehabilitation plan, as described by the final version of
the Required Work List and properly executed Contract Change
Orders.
Inspection
14. A borrower
must allow the City or its representative to check the rehabilitation
work and all contracts, materials, equipment, payrolls,
and conditions of employment pertaining to the work.
Records
15.
A borrower must keep such records as may be required by
the City with respect to the rehabilitation work.
Completion
of the Work
16. A borrower must ensure,
through a written agreement with a general contractor or
individual contractors, that the project will be completed
on time, within budget, and according to specifications.
An
applicant who is cleared by the Loan Committee to do some
or all of the rehabilitation work himself must agree to
complete the project promptly, efficiently, and according
to the City-approved rehabilitation plan.
Loan Payoff
17.
When ownership of the property rehabilitated is sold or
transferred or ceases to be owner-occupied, the full amount
of the loan balance must be paid to the City at the time
of loan closing or transfer.
For further details about
terms and conditions for City loans, see Chapter 4 of the
program Rules and Regulations.
* * * * * * * * *
* * * * *
