205 Community Block Grant ProgramRESOLUTION N0. 205
OCNMUNITY DEVELOPMENT BLACK GRANT P1~OGRAM
Addendum to Agreement
THIS ApDENDUM made and entered into by and between:
City of Yelm
and
The Housing Authority of Thurston County
W(~REAS, The City and the Authority have cooperated jointly to develop and
maintain the Housing Rehabilitation Program under the State Comrn~nity Development
Block Grant Program, and
WI-~REAS, there is a need to fulfill the obligations and meet the goals of the
current program in completing the rehabilitation of houses, and
WtISREAS, there is a need to update the contract between the CITY and the
AUTHORITY to encourage greater participation by Senior Citizens and owners of
rental property and
THEREFORE, the City and the Authority agree to the following:
Section 1. Senior Citizen Grants.
A. Applicant Eligibility: To be eligible fora Musing rehabilitation
grant, applicants must meet the following requirements;
1. The age of the head of household must be sixty-two (fit)
years or greater.
2. The oss household income including the income of all adult
wage earners shall be equal or less than ei ht ercent (80~)
of the Thurston County median income based on family size.
3. Total cash assets (including securities) must not exceed
$30,000 in current market value. Assets to be included are
as follows:
Cash
Checking and Savings Accounts
Certificates of Deposit
Annuities
Money Market Funds
Mutual Funds
Stocks and Bonds
4. Senior citizen projects, that have been completed prior
to this contract addendum, meeting the eligibility require-
ments at loan closing date, will become grants subject to the
terms and conditions set forth in Resolution No. 205,
B. Pro rt Eli ibiiit To be eligible for a rehabilitation grant,
each property must also meet the following criteria:
1. Must be in ccxr~liance with local zoning ordinances for res-
idential use.
2. Must be a Permanent, habitable structure.
3. Must be located within the incorporated areas of the City
of Yelm and any other target areas as designated by tt-e
City Council.
4. The building must h,we at lc~~~:;t ~~nc major deficiency 1-1~~~1~
presents a threat to the healtl, end safety ol~ lh~ uccuth.,nl.s.
5. Property must be owner-occupied,
C. Type of Assistance: Rehabilitation assistance for senior citizens
meeting the eligibility requirements shall be in the form of a
loan with a five year write-down provision. The balance of the loan
will be decreased by 20 percent per year, and at the end of the fifth
year the loan shall become a 100 grant with no payback required
( i.e., if the owner sells the property after the first year, the
payback would be 80 percent of the original loan amount, the second
year payback would be 60 percent, the third year payback would be
40 percent, the fourth year payback would be 20 percent, and at the
end of the fifth year there would be no payback required). Addition-
ally, the following provisions shall apply:
1. In the event the surviving spouse is unable to remain in
the home or passes on, the write-down provision is dissolved
and the loan becomes a 100$ grant.
2. Grant amounts shall be subject to the maximum grant amounts
stated below.
D. Maximum Grant Amounts: The maximum grant for each property shall
be $16,800. In the event that a property requires rehabilitation
work in excess of $16,800, the additional project costs above $16,800
may be financed through a deferred payment, zero interest loan (see
Owner Occupied Housing under PROGRAM GUIDELINES/DESCRIPTION).
E. Other Requirements: Eligible repairs and priority for processing
shall be as the deferred payment loans (see Owner Occupied Housing
under PROGRAM GUIDELINES/DESCRIPTION).
Section 2. Rental Properties. The loan terms for Rental~~Housing shall be
amended as described below. ALL other terms for rental projects shall re-
main unchanged (see Rental Housing under PROGRAM GUIDELINES/DESCRIPTION).
A. Loan Terms: The Program will offer 100 percent rehabilitation
financing for rental housing occupied by low or moderate income
tenants. The loan terms shall be as follows:
1. Maximum loan term shall be twenty years.
2. Interest shall be charged at the annual rate of 5 percent.
Minimum monthly payments shall be $50.00, including 5g
interest. Higher monthly payments may be required in
order to repay the loan within the maximum twenty year
term.
Section 3. Effective Date. This resolution shall be effective on and after
*.he 14th day of March, 1990.
Passed: March 14, 1990
Approved: March 14, 1990
Published: (by sumnaiy) March 22, 1990
Bert A. Sanders, Mayor of the City of Yelm
ATTEST:
~ ~ r~ ~- ~
Shelly Badge , Ci y Cle
APPROVED:
f~ ~i ~=~-
HATC Chair