APPENDIX VIII.
REHABILITATION LOAN REFINANCING POLICY

RESOLUTION NO. 1224

A RESOLUTION ESTABLISHING A REHABILITATION LOAN REFINANCING POLICY

WHEREAS, the Rehabilitation Loan Program Policies of 1981 stipulates that no loan superior to the lien of the City shall be permitted subsequent to the date of the rehabilitation loan; and

WHEREAS, the City Council desires that a policy exist to guide them in evaluating a request to refinance without repaying the rehabilitation loan, or to making an exception to the prior policies;

NOW, THEREFORE, BE IT RESOLVED that the following policy is set forth governing a request from a Northwest Neighborhood owner to refinance their home without repaying the rehabilitation loan due the City.

1.    The rehabilitation loan plus accrued interest shall be repaid unless the owner can provide proof that a fiscal hardship exists.

a.    The owner shall submit such evidence to the City that documents household monthly/yearly income from all sources.

b.    The owner shall submit such evidence to the City that documents total household monthly/yearly expenses.

c.    The owner shall submit all details concerning the refinancing.

d.    The owner shall provide an estimate of the change in income/expenses due to the refinancing.

2.    If a fiscal hardship has been established, then repayment will not be necessary with the following condition: interest shall begin accruing on the rehabilitation loan principal at 3% per year until the loan has been repaid.

a.    The City shall prepare documents that will amend the mortgage for deferred payment loan and the promissory note, that will be duly recorded with Lane County.

b.    All conditions between the City and the borrower set out previously are unchanged.

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR THIS 24TH DAY OF JANUARY, 1994.

ATTEST:	APPROVED
__________________________	__________________________
Joan Hoehn - City Recorder	Jean Sinclair - Mayor