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HomeMy WebLinkAboutCity Council Resolution 887 RESOLUTION NO. 887 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA CONCERNING AMENDMENTS AND UPDATES TO THE SARATOGA HOUSING ASSISTANCE AND REHABILITATION PROGRAM (SHARP) WHEREAS, the City Council of the City of Saratoga has previously entered into a cooperative agreement with the County of Santa Clara to participate in the Housing and Community Development Act (HCDA) of 1974, as amended; and WHEREAS, the SHARP is a component of the current (1978-79) and subsequent years (1979-82) City of Saratoga Connnunity Development Plan, which plan comprises the HCDA request for Community Development Block Grant funding from the Department of Housing and Urban Develop- ment; and WHEREAS, the City Council of the City of Saratoga propsoes to amend and update certain components of the SHARP: NOW, THEREFORE, BE IT RESOLVED that the City of Saratoga amends and updates the SHARP by adopting the following; 1. The maximum SHARP/HCDA loan amount available to program participants shall be $15,000 per single family unit. 2o The SHARP Loan Schedule is amended to provide: a) zero interest, minimum payment, deferred loans to those homeowner residents of low income (low income is defined as zero to 50% of the current Santa Clara County median income, as determined by HUD as of January, 1978, and as may be adjusted in subsequent years, including an adjustment for family size). b) Five (5) percent APR, loans for those homeowner residents of moderate income (moderate income is defined as 50.1% to 80% of the Santa Clara County median income). c) Seven (7) percent APR loans for those homeowner residents whose income(s) do not exceed the Santa Clara County median of $19,900 for a family of four (80.1% to 100% of County Median). d) No SHARP/HCDA below market interest rate loans to be extended to those whose income(s) exceed 100% of the County of Santa Clara Median. 3. Extension of 7% APR Loans to those non-resident owner, SHARP participants who agree and commit to the following: a) Any increase in rent charged for the subject unit, subsequent to that units rehabilitation under the SHARP shall be limited to (1) the actual increased cost(s) of operating theunit due to its rehabilitation;(2) increases in property taxes resulting directly from the rehabilitation activity; and (3) in no event shall the rental costs of the subject unit exceed the then current Section 8 Fair Market Rents for existing housing. b) Rental of the rehabilitated unit shall be to a low-to-moderate income family or individual. c) Commitment of the unit to Section 8 Fair Market Rents for existing housing should the current rental price of the subject unit exceed those rents. Section 8 commitment to be maintained for the duration of the loan (maximum 15 years) or in the event of early loan re-payment, a period of time not to be less than 24 months. The above agreements/commitments to be included as requirements to be met by the non-resident owner in order to receive a SHARP/HCDA loan. Should any of the above applicable requirements cease to be met, the full amount of the loan, including all accumulated interest, shall become immediately due and payable at the request of the City. 4. Payment of fees required by the City when structural additions to an existing residence in excess of 50% of that existing are proposed by a SHARP participant to be paid with HCDA funds and re-payment deferred until such time as the subject property is sold or title is transferred. 5. SHARP incentive grants ($250 maximum) for frontal, facade and/or certain landscaping improvements to be extended to those of low-to-moderate income as previously defined. Incentive grants to program participants above moderate income shall require a 3:1 match ($750 to be spent by homeowner to receive a $250 incentive grant). The above and foregoing resolution was passed and adopted at a regular meeting of the City Council of the City of Saratoga held on the 3rd day of January, 1979, by the following vote: AYES: Councilmen Katb, Matteoni, CalZon, Kraus & Corr NOES: None //4/I ABSENT: Nor~ ' ~ (j ~R /