HomeMy WebLinkAboutR-1992-D6112 Banks / Loans / Multi-FamilyRESOLUTION NO. D 6112
A RESOLUTION authorizing the Director of Community and Economic Development
of the City of Yakima to enter into an agreement with eight lending
institutions of Washington for implementation of a multi -family loan
program.
WHEREAS, the City of Yakima currently administers United States Department
of Housing and Urban Development (HUD) funds for redevelopment of substandard
housing including multi -family landlord -owned units, and
WHEREAS, the following lending institutions, Yakima Valley Bank, Pioneer
National Bank, U.S. Bank, Seattle -First National Bank, First Interstate Bank, First
Savings Bank, and Yakima Federal Savings & Loan of Washington, will participate in
that program upon execution by the City of the attached agreement documents; and
the City Council deems it to be in the best interests of the City that the agreement be
executed by the City, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The Director of Community and Economic Development and the City Clerk are hereby
authorized and directed to execute the agreement with these lending institutions of
Washington for the purpose mentioned above, an example of the agreement is
attached and by this reference made a part hereof.
ADOPTED BY THE CITY COUNCIL this 114 day of MX , 1992.
ATTEST:
City Clerk
ayor
YAKIMA, WASHINGTON
AGENDA STATEMENT
ITEM NO. I
FOR MEETING OF MAY 12, 1992
ITEM TITLE: Multi -Family Rehabilitation Agreements
SUBMITTED BY: Glenn K. Rice, Director of Community & Economic
Development
CONTACT PERSON/TELEPHONE: Dixie Kracht, Block Grant Manager, 575-6101
SUMMARY EXPLANATION:
The Office of Housing and Neighborhood Conservation has completed negotiations
with private lending institutuons for continuation of the rental rehabilitation program.
Eight lending institutions have made a combined financial commitment of $1,525,000
to match public monies from the State Rental Rehabilitation Program and the
Community Development Block Grant allocations.
This successful program has been a model for other cities in the respect of
public/private partnerships.
The attached resolution and sample agreements (one for Banks and one for Savings
and Loan) will continue the multi -family program under the existing program.
Participating Lenders:
Yakima Valley Bank
First Savings Bank
Yakima Federal Savings and Loan
Pioneer National Bank
First Interstate Bank
U.S. Bank
*Security Pacific
*Seattle -First Bank
*Authorization of both Seattle -First and Security Pacific will remain separate even with
the most recent merger.
EXHIBITS
_X
_Resolutions Ordinance Contract Minutes Plan/Map
Notification List _X_Other (Specify) Example Agreements/Bank/S&L
APPROVED FOR SUBMITTAL:
CITY MANAGER
STAFF RECOMMENDATION:
Approve and authorize the continuation of the program.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution No. D-6112
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of:
10
August 11. 1992
ITEM TITLE: Washington State Housing Assistance Program Funding
SUBMITTED BY: Glenn K. Rice, Assistant City Manager tit4_
CONTACT PERSON/TELEPHONE: Dixie Kracht, Block Grant Manager - 575-6101
SUMMARY EXPLANATION:
The State of Washington Department of Community Development is offering funding for three financial
programs to assist communities in addressing housing needs.
It is the intent of the Office of Housing and Neighborhood Conservation to make application for these funds
to address three underserved areas of housing in our community. They are as follows:
A. Owner -Occupied Rehabilitation - A request of $500,000 that will match local private funding of the
esuablished homeownership program.
B. Rental Rehabilitation - A request of $500,000 that will be matched with funds from private lenders
to rehabilitate rental units and vacant, used buildings for additional rentals.
C. New Construction - A request of $1 million to match private lender funds toconstruct large family units
for lower income families.
This total request of $2,000,000 from the State of Washington will leverage an additional $2,860,500 from
local private markets. These projects combined and administered by the Office of Housing and Neighbor-
hood Conservation in 1993 will make 115 units available at an affordable cost to families, or approximately
500 individuals.
Resolution X (1) Ordinance Contract Other (Specify)
Funding Source
Program Income, Federal Home Loan Bank, Private Lenders
APPROVED FOR SUBMITTAL:
k -s‘
City Manager
STAFF RECOMMENDATION: Approve the three resolutions.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: ,S
- & J c C/
RESOLUTION N ° 1 6 8
A RESOLUTION authorizing and directing the City Manager of the City of
Yakima to file and application with the Washington State
Department of Community Development for funding for an
Owner -Occupied Rehabilitation Program.
WHEREAS, the City of Yakima contemplates an Owner -Occupied
Rehabilitation Program for which funding is available from the Washington State
Department of Community Development, and
WHEREAS, the City Council of the City of Yakima deems it to be in the best
interests of the City that an application be filed for funding for the purpose
mentioned above, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
R.A. Zais, Jr., City Manager of the City of Yakima, is hereby authorized and
directed to execute and file the attached application documents, including all
understandings and assurances contained therein, with the Washington State
Department of Community Development for funding for the purpose mentioned
above; and he further is hereby designated as the official representative of the
City to act in connection with that grant request and to provide such additional
information as may be required.
ADOPTED BY THE CITY COUNCIL this 11141 day of
1992. SI PATRICIA k BERNDT
Mayor
ATTEST: is! KAREN S. ROBERTS, CMC
City Clerk
Check here if McKinney
WASHINGTON STATE Check here if LIHTC
HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM
PRE -APPLICATION
City of Yakima Office of
Applicant:Housing and Neighborhood Conservation Contact: Dixie Kracht, Block Grant Manager
Address: 112 South 8th Street Address: 112 South 8th Street
Yakima. WA 98901 Yakima WA 98901
Telephone: (509) 575-6101
Tax I.D. #: 91-6001293
Type of Applicant:
Project Category:
Property Status:
Telephone: (509) 575-6101
Project Name- Owner-Occupirii Rehabilitation
Local Government
Public Housing Authority
Nonprofit Organization
Tribal Housing Organization
X
Rental Housing Acquisition
Owner -Occupied Rehabilitation X
Homeless Shelter New Construction
Other (describe)
Privately Owned X
Publicly Owned
Vacant Structure
Vacant Property
Project Location/Address: Project Legislative District: -14
Target Area:
East of 16th Avenue, within City Limits
Target Population Income Level:
# of Units:
At or below 80% of Median 30 Special Needs Population:
At or below 50% of Median
No income
Other (describe)
Total Units
Length of Commitment to Serve Target Population: 30 Years
Proposed Project Budget:
HAP/AHP/HOME $ 500,000
Other State $ -0-
Federal $ _a
Local Public $ -0-
Applicant $ 29,000
Private $ L110.500
Total $ 1,610,500
Approval of Authorized Offical:
Signature Title City Manager
Name R.A. Zais, Jr. Date August 4. 1992
Page 1 (0/0)
• Briefly describe your project, detailing the use of, and need for, HAP/AHP/
HOME dollars.
The owner -occupied rehabilitation project will offer homeownership opportunities and reha-
bilitation loans to low/moderate income first-time homebuyers at an affordable costs. This
program will rehabilitate 30 homes at an approximate cost of $17,000 per unit.
Federal Home than Bank will provide 20% of the cost for acquisition and closing fees. Yakima
Federal Savings and Loan will provide the remaining funds for acquisition. State of
Washington (HOME) dollars will provide rehabilitation monies, and the Office of Housing and
Neighborhood Conservation (OHNC) will provide administration and soft costs for each
project. The OHNC will prescreen each applicant family, provide counseling on housing
affordability and package the loan for Yakima Federal Savings and Loan. Upon acceptance, the
subsidy will be determined and the title company will close the loan. OHNC will inspect,
prepare specifications and drawings, bid the project and monitor construction.
The proposed applicant family will be responsible for 1% of the home purchase price and the
first year of homeowners insurance. The seller of the property will pay 2% of the selling price
to the OHNC for administration. Title companies will close all loans at no cost.
The monthly payment amount of the first mortgage, including property taxes and insurance, will
be determined at 29% of the families' income and repaid to Yakima Federal Savings and Loan.
The amount of rehabilitation as a second mortgage will be determined on applicant's monthly
affordability and repaid to OHNC.
The program will secure $500,000 from the state and will repay the amount at a level of $25,000
per year for 20 years starting at year-end 1994. Any other revenue will be retained by the OHNC
to provide assistance to other owner -occupied applicants.
This program will rehabilitate 30 homes for families that have received assistance through the
first time home buyer's program.
• Provide the projected schedule for your project's implementation.
Date Artivity
January thru October 1992
November thru December 1992
January thru December 1992
Home purchases set up and closed for applicant
families.
State contract signed, applicant families start reha-
bilitation verification process.
Rehabilitation started and completed on 30 homes,
approximately three to four per month.
Home maintenance and financial responsibility workshops will be heldon a quarterly basis with
families that have completed housing rehabilitation thoughout 1993.
Page 2 (OK))
HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM
Sources and Uses Statement
Fund Sources:
Committed Conditional Tentative
State HAP/AHP/ $ $ $ 500,000
HOME Program
Other State
$ $ $
$ $ $
Federal
CDBG $ 29,000 $ $
Local Government $ $ $
Applicant $ $ $
Private $ 1,081,500 $ $
Subtotals $ 1,110,500 $ 4- $ 500,000
TOTAL PROJECT COST : $ 1,610,500
Uses of Financing:
Acquisition $ 1,050,000
Pre -Development $ 10,500
New Construction $ -0-
Rehabilitation $ 500,000
Project Management $ 21,000
Development Costs $ 29,000
Services $ -0-
Operating $ -0-
Other $
TOTAL PROJECT COST : $ 1,610,500
Page 3 (0/0)
WASHINGTON STATE
HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOMPROGRAM
Housing Operad Budget
Name of Organization; Owner-Occuped on Applicable)_
sear 1 Year 5,
Residential Income.
Unit Type/Number/Rent x 12
capss Potential income
Less Vacancy Rate ( %)
Other Revue (Describg,1
E_ffective Gross Income
Qurating Exnene
Insurance
Heat
Electric
Water and Sewer
Garbage Removal
Repairs
Maintenance
Replacement Reserve
Operating Reserve
Management
Services
Other —
Total Operatiing Costs
Real Estate Taxes
Net Operating Income
Jbt Service ( % on
Tor years,
Cash Flow_b;r Year
Page 4 (0/0)
Year IQ
RESOLUTION NO.
61
A RESOLUTION authorizing and directing the City Manager of the City of
Yakima to file an application with the Washington State
Department of Community Development for funding for a
Rental Rehabilitation Program.
WHEREAS, the City of Yakima contemplates a Rental Rehabilitation
Program for which funding is available from the Washington State Department of
Community Development, and
WHEREAS, the City Council of the City of Yakima deems it to be in the best
interests of the City that an application be filed for funding for the purpose
mentioned above, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
R.A. Zais, Jr., City Manager of the City of Yakima, is hereby authorized and
directed to execute and file the attached application documents, including all
understandings and assurances contained therein, with the Washington State
Department of Community Development for funding for the purpose mentioned
above; and he further is hereby designated as the official representative of the
City to act in connection with that grant request and to provide such additional
information as may be required.
ADOPTED BY THE CITY COUNCIL this V " ` day of
1992.
ATTEST:
KAREN S. 'RTS
City Clerk
S/ PATRICIA A. BMR 7
Mayor
Check here if McKinney
WASHINGTON STATE Check here if LIHTC
HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM
PRE -APPLICATION
City of Yakima Office of
Applicant:Housing and Neighborhood Conservation Contact: Dixie Kracht, Block Grant Manager
Address: 112 South 8th Street Address: 112 South 8th Street
Yakima WA 98901 Yakima, WA 9R901
Telephone: (509) 575-6101 Telephone: (509) 575-6101
Rental Rehabilitation
Tax I.D #• 91-6001291
Project Name:
Type of Applicant: Local Government X
Public Housing Authority
Nonprofit Organization
Tribal Housing Organization
Project Category: Rental Housing X Acquisition
Owner -Occupied Rehabilitation
Homeless Shelter New Construction
Other (describe)
Property Status: Privately Owned X
Publicly Owned
Vacant Structure
Vacant Property
X
Project Location/Address: Project Legislative District:
Target Area:
East of 16th Avenue, within City Limits
Target Population Income Level:
# of Units:
At or below 80% of Median Special Needs Population:
At or below 50% of Median
No income
Other (describe) 60% Median in
Total Units
Length of Commitment to Serve Target Population: 30 Years
Proposed Project Budget:
HAP/AHP/HOME $ 500,000
Other State $ -0-
Federal $ -0-
Local Public $ -0-
Applicant $ 50,000
Private $ 500.000
Total $ 1,050,000
Approval of Authorized Offical:
Signature Title City Manager
Name R.A. Zais, Jr. Date August 4, 1992
Page 1 (R/R)
_j4
• Briefly describe your project, detailing the use of, and need for, HAP/AHP/
HOME dollars.
The Rental Rehabilitation Program will offer rehabilitation loans to investors to both improve
and/or establish rental units from vacant, abandoned buildings for low-income residents at or
below 60% of the federal median income limits.
The program will take investor applications for rehabilitation funding requests and calculate the
affordability of the project by subtracting operating expenses from predetermined rent structure
for deterrnining cash flow. Cash flow will determine loan affordability. The difference between
loan affordability and rehabilitation need will determine the subsidy required, but will not
exceed 50% of loan amount.
Eight private lenders have made a commitment to the program exceeding 1 million dollars and
have agreed to lend at 5, 10 or 15 year terms at 1.5 - 2.0 points over prime with no charge for
closing costs.
The program will assist investors on an established waiting list with the Office of Housing and
Neighborhood Conservation (OHNC) and work with owners of vacant, dilapidated buildings
for additional units. OHNC will process, inspect, monitor construction and package the loans
for private lenders. Investors will operate and maintain rentals through their tenant selection and
management firms.
Rents will be established at loan closing to be affordable to families whose income does not
exceed 60% of the federal median income guidelines. Annual rent adjustments can be made
based on either actual operating increases or median income adjustments. No rent shall exceed
the fair market rents, as determined by the Yakima Housing Authority. Agreements will be
established to encumber the property for a 30 year time period for affordability of this program.
This program will match the requested $500,000 with private financing of $500,000 for a total
of $1 million to rehabilitate 50 rental units at an approximate cost of $20,000 per unit.
® Provide the projected schedule for your project's implementation.
Activity
November 1992
December 1992
January thru December 1993
Loans packaaged January thru May
Loans approved February thru July
Construction 90 days March thru December
State contract signed.
Notification to investors for loan application.
Three loans packaged (10 units) each month ..
Loan approval in 30 days with construction taking
a maximum 90 days.
Page 2 (R/R)
HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM
Sources and Uses Statement
Fund Sources:
Committed
State HAP/AHP/ $
HOME Program
Other State
Conditional
$
Tentative
$ 500,000
$ $ $
$ $ $
Federal
$ $ $
Local Govemment $ $ $
Applicant Program Income$ $ 50,000 $
Private $ 500,000 $ $
Subtotals $ 500,000 $ 50,000 $ 500,000
TOTAL PROJECT COST : $ 1,050,000
Uses of Financing:
Acquisition $ -0-
Pre-Development $ 10,000
New Construction $ -0-
Rehabilitation $ 1,000,000
Project Management $ -0-
Development Costs $ -0-
Services $ 40,000
Operating $ -0-
Other $ -0-
TOTAL PROJECT COST : $ 1,050,000
Page 3 (R/R)
WASHINGTON STATE
HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOM'ROGRAM
Housing Operating Budget
Name of Organization' Rental RehabilitationjNon Applicable)
Year 1 Year 5,
Residential Income
Unit Type/Nurnber/Rent x 12
Qss Potential ][pcome
Less Vacancy Rate ( %)
Qther Revenue (Describe)
Effective Groy s Income
gyrating Expo
Insurance.
Heat
Electric
Water and Sewer
Garbage Removal
Repairs
Maintenance
Replacement Reserve
Operating Reserve
Management
Services
Other _
Total Operating Costs
Real Estate Taxes
Net Operating Income
Debt Service ( % _p,
years)
Lash Flow Per Year
Page 4 (R/R)
Year 10
RESOLUTION NO. 0 6170
A RESOLUTION authorizing and directing the City Manager of the City of
Yakima to file an *- application with the Washington State
Department of Community Development for funding for a
New Construction Program.
WHEREAS, the City of Yakima contemplates a New Construction Program
for which funding is available from the Washington State Department of
Community Development, and
WHEREAS, the City Council of the City of Yakima deems it to be in the best
interests of the City that an application be filed for funding for the purpose
mentioned above, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
R.A. Zais, Jr., City Manager of the City of Yakima, is hereby authorized and
directed to execute and file the attached application documents, including all
understandings and assurances contained therein, with the Washington State
Department of Community Development for funding for the purpose mentioned
above; and he further is hereby designated as the official representative of the
City to act in connection with that grant request and to provide such additional
information as may be required.
ADOPTED BY THE CITY COUNCIL this � day of
1992.
ATTEST: is/ KA S. ROBERTS, DMS
City Clerk
Oi Pyr, T RIC A A. BERNDT
Mayor
Check here if McKinney
WASHINGTON STATE Check here if LIHTC
HOUSLNG ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM
PRE -APPLICATION
City of Yakima Office of
Applicant:Housing and Neighborhood Conservation Contact: Dixie Kracht, Block Grant Manager
Address: 112 South 8th Street Address: 112 South 8th Street
Yakima, WA 98901 YakimsWA 98901
Telephone: (509) 575-6101 Telephone: (509) 575-6101
Tax LD. #: 91-6001291 Project Name: New
Type of Applicant:
Project Category:
Property Status:
(`onctructinn
Local Government X
Public Housing Authority
Nonprofit Organization
Tribal Housing Organization
Rental Housing X Acquisition
Owner -Occupied Rehabilitation
Homeless Shelter New Construction
Other (describe)
Privately Owned X
Publicly Owned
Vacant Structure X
Vacant Property
Project Location/Address:
Target Area:
East of 16th Avenue, within City Limits
Target Population Income Level:
# of Units:
At or below 80% of Median
At or below 50% of Median �5
No income
Other (describe)
Total Units
Project Legislative District:
Special Needs Population:
Large Family
Length of Commitment to Serve Target Population: 30 Years
Proposed Project Budget:
HAP/AHP/HOME $ 1,000,000
Other State $ -0-
Federal $ -0-
Local Public $ -0-
Applicant $ 46,000
Private $ 1.154.000
Total $ 2,200,000
Approval of Authorized Offical:
Signature Title City Manager
Name R.A. Zais, Jr. Date August 4. 1992
Page 1(N/C)
14
• Briefly describe your project, detailing the use of, and need for, HAP/AHP/
HOME dollars.
This project will financially assist private developers in reducing capital construction costs of
larger units for affordable rent to families at 50% of federal median income levels.
The project will accept proposals from developers on the current waiting list who have site
control and will build three bedroom units. The project will require the owner to purchase the
development site. The private lender will finance: 50% of the capital construction costs, and the
project will finance the other 50%. Only units that house families at 50% median income will
be subsidized, but mixed usage will be encouraged.
The Office of Housing and Neighborhood Conservation (OHNC) will prepare and package the
loans, monitor construction and assist the investor in tenancy occupancy.
The investor will continue to rent to very low income families for the term of the loan. Annual
increases are allowed based on increases in median income levels.
This project would use $1 million in subsidy to match the $1 million in private financing to
develop a minimum of 35 three bedroom units. This match and site control makes the
established rent structure affordable (30%) to families that are at 50% of the federal median
income. These rents are well below the Yakima Housing Authority's determined fair market
rents and utility costs.
The OHNC has made the annual commitment to monitor the project for compliance throughout
the term of the mortgage. Each development will have encumbered titles for balloon repayment,
upon non compliance.
o Provide. the projected schedule for your project's implementation.
Activity
November 1992 State contract signed.
December 1992 Investors selected.
January thru February 1993 Loan packages sent to lender.
April 1993 Construction starts.
May thru November 1993 Construction in progress.
December 1993 Occupancy prescreened and established.
Page 2 (N/C)
HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOME PROGRAM
Sources and Uses Statement
Fund Sources:
Committed Conditional Tentative
State HAP/AHP/ $ $ $ 1,000,000
HOME Program
Other State
$ $ $
$ $ $
Federal
$ $ $
Local Govemment $ $ $
Applicant $ $ 46,000 $
Private $ 1,154,000 $ $
Subtotals $ 1,154,000 $ 46,000 $ 1,000,000
TOTAL PROJECT COST : $ 2,200,000
Uses of Financing:
Acquisition $ 144,000
Pre -Development $ 10,000
New Construction $ 2,000,000
Rehabilitation $ -0-
Project Management $ 20,000
Development Costs $ 10,000
Services $ -0-
Operating $ -0-
Other Monitor $ 16,000
TOTAL PROJECT COST : $ 2,200,000
Page 3 (N/C)
WASHINGTON STATE
HOUSING ASSISTANCE PROGRAM/AFFORDABLE HOUSING PROGRAM/HOM'ROGRAM
Housingerating Budget
Name of Organizatiorr____New Construction (Non Applicable
Residential Income,
Unit Type/Nurnber/Rent x 12
Gross Potential 'income
Less Vacancy Rate ( %®}
Qher Revenue (Describe}
Effective Gros Income
DatraiimIusans
Insurance
Heat
Electric
Water and Sewer
Garbage Removal
Repairs
Maintenance
Replacement Reserve
Operating Reserve
Managernent
Services
Other
]tai Operatiing Costs
Real Estate Tgxes,
Net Operating. Income
DOA Service (
is r
Cash Flow Per Year
% on
Pearl
fterlailsOMOIMIBMINE
Page 4 (N/rC)
Year 5, Year 10
meliminale
effemalmasmess
AGREEMENT
I. PARTIES
1.1 OFFICE OF HOUSING AND NEIGHBORHOOD
CONSERVATION, a division of the Department of Community and
Economic Development of the City of Yakima, a municipal
corporation of the State of Washington ("OHNC" herein).
1.2 The undersigned bank (Yakima Valley Bank) ("bank" herein)
II. RECITALS
2.1 OHNC receives funds from the United States Department of Housing
and Urban Development (HUD), and other sources, which it will use
for building improvement loans and for loan subsidies to various
qualified owners of rental units.
2.2 OHNC desires to refer qualified borrowers to the bank in order to
have a loan written and funded by the bank.
2.3 OHNC desires to have bank administer and handle the details with
regard to the writing and repayment of the loans, recognizing that
the bank is qualified and experienced in such administration.
2.4 bank agrees to handle such administration without charging OHNC a
fee therefore, provided, that such administration shall be subject to
the terms and condition of this agreement.
2.5 Both parties understand that OHNC intends to enter into similar
agreements with other bank(s), as well as the bank herein.
2.6 Both parties understand that this agreement will be used in
conjunction with the Rental Rehabilitation Program's policy and
procedures dated September 20, 1983, amended August 1988,
hereinafter called policy and procedures, a copy of which is
attached hereto and incorporated herein.
III. AGREEMENT
3.1 Applications: OHNC shall take applications from investors for
loans to fund the rehabilitation of rental units. Application shall
include a credit report, preliminary title report, a profit and loss
statement of the subject property and applicant's employment
verification and last two years of federal tax returns. All costs
incurred by this application shall be assumed by OHNC.
3.2 Jnspections: OHNC shall inspect the property applying the HUD
Minimum Property Standard for One and Two Dwellings, and make
a deficiency list for the owner. The owner shall be required to
accept bids from licensed and bonded contractors and submit them to
the OHNC for review and cost verification.
3.3 Loan Referral: OHNC shall prepare the following documents and
submit them to the bank for loan acceptance:
a. Preliminary title report,
1 REV. 3/92
b. Subsidy amount,
c. OHNC note and deed of trust,
d. Credit report of owner,
e. Profit and loss statement of property,
f. Deficiency list,
g. Bids for rehabilitation of project,
h. Formal appraisal indicating fair market value prior to
rehabilitation, with an estimate value after rehabilitation,
i. Existing loan(s) and balances on property,
j. Owner's financial statement,
k. Owner's employment verification and/or two years of IRS
statements.
3.4 ,Loan Term: The banks loan to the owner shall be a minimum of
$2,000.00 and be a maximum fixed term of 180 months, as listed
below:
$2,000 - $5,000 60 months
5,001 - 10,000 120 months
10,001 - over 180 months
3.5 Jnterest Rate: The percentage rate of interest for loans less than
five years shall be determined on the day of closing at 1.5% over the
quoted prime interest rate as printed in the Wall Street Journal for
that day, and 2% over the quoted prime interest rate on loans over a
five year term.
3.6 Loan position: All bank loans shall be afforded a first or second
priority . All OHNC loans shall be in second or third priority,
immediately junior to bank loans.
3.7 Maximum Loan: Total indebtedness shall not exceed 80% of the
appraised value of the subject property after rehabilitation unless
funds equal to the amount over 80% are deposited by OHNC with
the bank as a loan guarantee. In such event total indebtedness shall
not exceed 95% of the appraised value of subject property after
rehabilitation. The loan guarantee funds shall be released back to
OHNC by the bank when the principal of the total indebtedness
reaches a level of 75% of appraised value of subject property
excluding the City's subsidy. The date of this release shall be
predetermined at date of loan closing. The bank shall place loan
guarantee funds in market interest bearing accounts and shall pay all
accrued interest by OHNC upon date of release of the guarantee.
3.8 Bank Loan: The bank shall write the loan and obtain the
borrower's signature on the note and deed of trust to OHNC. All
title documents shall be recorded with OHNC being placed in a
junior position. All loans shall have title insurance for coverage of
the entire encumbered amount. A copy of the bank loan closing
statement will be forwarded to OHNC after closing, as authorized by
the applicant in writing.
All loans requested in the amount of $50,000.00 or less must be
reviewed within ten working days from receipt of a complete loan
package and 20 working days for all loans exceeding $50,000.00.
Any loan application that is not approved by the bank shall be
returned to OHNC at 112 South 8th St., Yakima, Washington 98901
2 REV. 3/92
stating the reason for the disapproval.
3.9 Completion: OHNC shall be responsible for doing progress and
final inspections, as requested by the bank, with a report of the
rehabilitation work given to the bank.
3.10 Payment: It shall be the Owner's responsibility to request OHNC
for construction inspection for payment certification. This
certification is approved by the bank and a check made to the owner
and contractor with a copy sent to OHNC. Upon request and receipt
of final payment, all lien releases must be submitted.
3.11 Indemnity: It is understood that the bank shall retain sole and
exclusive control and responsibility for determining such matters as
eligibility of its borrowers, the actual loans to be made and the
terms, conditions and closing thereof, the actual improvements to be
made and the extent and quality thereof and the right of the suppliers
and laborers to be paid. It is the intent hereof that the normal
responsibilities and obligations of the bank shall not in any manner
be enlarged or extended by reason of the fact that OHNC is and will
be making subsidized loans from government -derived funds.
3.12 Termination: This agreement shall remain in effect from date
hereof until either party gives at least 90 days written notice of
termination to the other.
DATED this ) day of ire ,19 22
Office of Housing and
Neighborhood Conservation
B y : ��—✓
Dir ctor of Community and
Economic Development
Dated:
ATTEST:
17<cuz--Q-1,-
Yakima Valley Bank
By:
(Bank)
Title
ti lqca-- By:
City Clerk
Title:
By:
Title:
3 REV. 3/92
AGREEMENT
I. PARTIES
1.1 OFFICE OF HOUSING AND NEIGHBORHOOD
CONSERVATION, a division of the Department of Community and
Economic Development of the City of Yakima, a municipal
corporation of the State of Washington ("OHNC" herein).
1.2 The undersigned S & L (First Savings Bank of Washington)
("S & L" herein)
II. RECITALS
2.1 OHNC receives funds from the United States Department of Housing
and Urban Development (HUD), and other sources, which it will use
for building improvement loans and for loan subsidies to various
qualified owners of rental units.
2.2 OHNC desires to refer qualified borrowers to the S & L in order to
have a loan written and funded by the S & L.
2.3 OHNC desires to have S & L administer and handle the details with
regard to the writing and repayment of the loans, recognizing that
the S & L is qualified and experienced in such administration.
2.4 S & L agrees to handle such administration without charging OHNC
a fee therefore, provided, that such administration shall be subject to
the terms and condition of this agreement.
2.5 Both parties understand that OHNC intends to enter into similar
agreements with other S & L(s), as well as the S & L herein.
2.6 Both parties understand that this agreement will be used in
conjunction with the Rental Rehabilitation Program's policy and
procedures dated September 20, 1983, amended August 1988,
hereinafter called policy and procedures, a copy of which is
attached hereto and incorporated herein.
III. AGREEMENT
3.1 Applications: OHNC shall take applications from investors for
loans to fund the rehabilitation of rental units. Application shall
include a credit report, preliminary title report, a profit and loss
statement of the subject property and applicant's employment
verification and last two years of federal tax returns. All costs
incurred by this application shall be assumed by OHNC.
3.2 Inspections: OHNC shall inspect the property applying the HUD
Minimum Property Standard for One and Two Dwellings, and make
a deficiency list for the owner. The owner shall be required to
accept bids from licensed and bonded contractors and submit them to
the OHNC for review and cost verification.
3.3 Loan Referral: OHNC shall prepare the following documents and
submit them to the S & L for loan acceptance:
1 REV. 3/92
a. Preliminary title report,
b. Subsidy amount,
c. OHNC note and deed of trust,
d. Credit report of owner,
e. Profit and loss statement of property,
f. Deficiency list,
g. Bids for rehabilitation of project,
h. The S & L will appraise or issue a policy statement of value on
the properties at a cost determined by like -kind appraisals
issued by the S & L. This cost will be included in the loan to
the investor.
i. Existing loan(s) and balances on property,
j. Owner's financial statement,
k. Owner's employment verification and/or two years of IRS
statements.
3.4 Loan Term: The S & Ls loan to the owner shall be a minimum of
$2,000.00 and be a maximum fixed term of 180 months, as listed
below:
$2,000 - $5,000 60 months
5,001 - 10,000 120 months
10,001 - over 180 months
3.5 Interest Rate: The percentage rate of interest for loans less than
five years shall be determined on the day of closing at 1.5% over the
quoted prime interest rate as printed in the Wall Street Journal for
that day, and 2% over the quoted prime interest rate on loans over a
five year term. The S & L at its discretion, and under the same
terms and conditions, may substitute the "national average cost of
funds to FSLC insured savings and loan association" index for the
quoted prime interest rate printed in the Wall Street Journal.
3.6 Loan Position: All S & L loans shall be afforded a first or second
priority . All OHNC loans shall be in second or third priority,
immediately junior to S & L loans.
3.7 Maximum Loan: Total indebtedness shall not exceed 80% of the
appraised value of the subject property after rehabilitation unless
funds equal to the amount over 80% are deposited by OHNC with
the S & L as a loan guarantee. In such event total indebtedness shall
not exceed 95% of the appraised value of subject property after
rehabilitation. The loan guarantee funds shall be released back to
OHNC by the S & L when the principal of the total indebtedness
reaches a level of 75% of appraised value of subject property
excluding the City's subsidy. The date of this release shall be
predetermined at date of loan closing. The S & L shall place loan
guarantee funds in market interest bearing accounts and shall pay all
accrued interest by OHNC upon date of release of the guarantee.
3.8 S & L Loan: The S & L shall write the loan and obtain the
borrower's signature on the note and deed of trust to OHNC. All
title documents shall be recorded with OHNC being placed in a
junior position. All loans shall have title insurance for coverage of
the entire encumbered amount. A copy of the S & L loan closing
statement will be forwarded to OHNC after closing, as authorized by
the applicant in writing.
2 REV. 3/92
All loans requested in the amount of $50,000.00 or less must be
reviewed within ten working days from receipt of a complete loan
package and 20 working days for all loans exceeding $50,000.00.
Any loan application that is not approved by the S & L shall be
returned to OHNC at 112 South 8th Street, Yakima, Washington
98901 stating the reason for the disapproval.
3.9 Completion: OHNC shall be responsible for doing progress and
final inspections, as requested by the S & L, with a report of the
rehabilitation work given to the S & L. The S & L, at its option,
reserves the right to make the progress and final inspections in
which case loan disbursements will be based upon the S & L
inspection.
3.10 Payment: It shall be the Owner's responsibility to request OHNC
for construction inspection for payment certification. This
certification is approved by the S & L and a check made to the
owner and contractor with a copy sent to OHNC. Upon request and
receipt of final payment, all lien releases must be submitted.
3.11 indemnity: It is understood that the S & L shall retain sole and
exclusive control and responsibility for determining such matters as
eligibility of its borrowers, the actual loans to be made and the
terms, conditions and closing thereof, the actual improvements to be
made and the extent and quality thereof and the right of the suppliers
and laborers to be paid. It is the intent hereof that the normal
responsibilities and obligations of the S & L shall not in any manner
be enlarged or extended by reason of the fact that OHNC is and will
be making subsidized loans from government -derived funds.
3.12 Termination: This agreement shall remain in effect from date
hereof until either party gives at least 90 days written notice of
termination to the other.
DATED this day of ,19 92
Office of Housing and
Neighborhood Conservation
By:
rector of o unity and
Economic Development
Dated: a-pL--L- ' a l /9 c --
ATTEST:
City Clerk
3
First Savings Bank of Washington
(S & L)
By:
Michael K. Larsen
Title:Snior Vice President
%.
By: ,"i 4rid-!//
David Atkins
Title:vice President
By:
Title:
REV. 3/92
AGREEMENT
I. PARTIES
1.1 OFFICE OF HOUSING AND NEIGHBORHOOD
CONSERVATION, a division of the Department of Community and
Economic Development of the City of Yakima, a municipal
corporation of the State of Washington ("OHNC" herein).
1.2 The undersigned S & L (Yakima Federal Savings and Loan
Association) ("S & L" herein)
II. RECITALS
2.1 OHNC receives funds from the United States Department of Housing
and Urban Development (HUD), and other sources, which it will use
for building improvement loans and for loan subsidies to various
qualified owners of rental units.
2.2 OHNC desires to refer qualified borrowers to the S & L in order to
have a loan written and funded by the S & L.
2.3 OHNC desires to have S & L administer and handle the details with
regard to the writing and repayment of the loans, recognizing that
the S & L is qualified and experienced in such administration.
2.4 S & L agrees to handle such administration without charging OHNC
a fee therefore, provided, that such administration shall be subject to
the terms and condition of this agreement.
2.5 Both parties understand that OHNC intends to enter into similar
agreements with other S & L(s), as well as the S & L herein.
2.6 Both parties understand that this agreement will be used in
conjunction with the Rental Rehabilitation Program's policy and
procedures dated September 20, 1983, amended August 1988,
hereinafter called policy and procedures, a copy of which is
attached hereto and incorporated herein.
III. AGREEMENT
3.1 Applications: OHNC shall take applications from investors for
loans to fund the rehabilitation of rental units. Application shall
include a credit report, preliminary title report, a profit and loss
statement of the subject property and applicant's employment
verification and last two years of federal tax returns. All costs
incurred by this application shall be assumed by OHNC.
3.2 Inspections: OHNC shall inspect the property applying the HUD
Minimum Property Standard for One and Two Dwellings, and make
a deficiency list for the owner. The owner shall be required to
accept bids from licensed and bonded contractors and submit them to
the OHNC for review and cost verification.
3.3 Loan Referral: OHNC shall prepare the following documents and
submit them to the S & L for loan acceptance:
1 REV. 3/92
a. Preliminary title report,
b. Subsidy amount,
c. ()HNC note and deed of trust,
d. Credit report of owner,
e. Profit and loss statement of property,
f. Deficiency list,
g. Bids for rehabilitation of project,
h. The S & L will appraise or issue a policy statement of value on
the properties at a cost determined by like -kind appraisals
issued by the S & L. This cost will be included in the loan to
the investor.
i. Existing loan(s) and balances on property,
j. Owner's financial statement,
k. Owner's employment verification and/or two years of IRS
statements.
3.4 Loan Term: The S & Ls loan to the owner shall be a minimum of
$2,000.00 and be a maximum fixed term of 180 months, as listed
below:
$2,000 - $5,000 60 months
5,001 - 10,000 120 months
10,001 - over 180 months
3.5 Interest Rate: The percentage rate of interest for loans less than
five years shall be determined on the day of closing at 1.5% over the
quoted prime interest rate as printed in the Wall Street Journal for
that day, and 2% over the quoted prime interest rate on loans over a
five year term. The S & L at its discretion, and under the same
terms and conditions, may substitute the "national average cost of
funds to FSLC insured savings and loan association" index for the
quoted prime interest rate printed in the Wall Street Journal.
3.6 Loan position: All S & L loans shall be afforded a first or second
priority . All OHNC loans shall be in second or third priority,
immediately junior to S & L loans.
3.7 Maximum Loan: Total indebtedness shall not exceed 80% of the
appraised value of the subject property after rehabilitation unless
funds equal to the amount over 80% are deposited by OHNC with
the S & L as a loan guarantee. In such event total indebtedness shall
not exceed 95% of the appraised value of subject property after
rehabilitation. The loan guarantee funds shall be released back to
OHNC by the S & L when the principal of the total indebtedness
reaches a level of 75% of appraised value of subject property
excluding the City's subsidy. The date of this release shall be
predetermined at date of loan closing. The S & L shall place loan
guarantee funds in market interest bearing accounts and shall pay all
accrued interest by OHNC upon date of release of the guarantee.
3.8 S & L L o an : The S & L shall write the loan and obtain the
borrower's signature on the note and deed of trust to OHNC. All
title documents shall be recorded with OHNC being placed in a
junior position. All loans shall have title insurance for coverage of
the entire encumbered amount. A copy of the S & L loan closing
statement will be forwarded to OHNC after closing, as authorized by
the applicant in writing.
2 REV. 3/92
All loans requested in the amount of $50,000.00 or less must be
reviewed within ten working days from receipt of a complete loan
package and 20 working days for all loans exceeding $50,000.00.
Any loan application that is not approved by the S & L shall be
returned to OHNC at 112 South 8th Street, Yakima, Washington
98901 stating the reason for the disapproval.
3.9 Completion: OHNC shall be responsible for doing progress and
final inspections, as requested by the S & L, with a report of the
rehabilitation work given to the S & L. The S & L, at its option,
reserves the right to make the progress and final inspections in
which case loan disbursements will be based upon the S & L
inspection.
3.10 Payment: It shall be the Owner's responsibility to request OHNC
for construction inspection for payment certification. This
certification is approved by the S & L and a check made to the
owner and contractor with a copy sent to OHNC. Upon request and
receipt of final payment, all lien releases must be submitted.
3.11 Indemnity: It is understood that the S & L shall retain sole and
exclusive control and responsibility for determining such matters as
eligibility of its borrowers, the actual loans to be made and the
terms, conditions and closing thereof, the actual improvements to be
made and the extent and quality thereof and the right of the suppliers
and laborers to be paid. It is the intent hereof that the normal
responsibilities and obligations of the S & L shall not in any manner
be enlarged or extended by reason of the fact that OHNC is and will
be making subsidized loans from government -derived funds.
3.12 Termination: This agreement shall remain in effect from date
hereof until either party gives at least 90 days written notice of
termination to the other.
DATED this Y j day of ,G ,19 92
Office of Housing and
Neighborhood Conservation
By:
Yakima Federal
Savings & Loan Association
By
D rector of Community and Ka . Kime
Economic Development Title: esident
0
(S : L)
Dated: a 1, /°/cif
t- B
ATTEST:
City Clerk
t
Ja'es - owan
Vice Pxesidertt
By: arry M
Title: Vice President
3 REV. 3/92
AGREEMENT
I. PARTIES
1.1 OFFICE OF HOUSING AND NEIGHBORHOOD
CONSERVATION, a division of the Department of Community and
Economic Development of the City of Yakima, a municipal
corporation of the State of Washington ("OHNC" herein).
1.2 The undersigned bank (Pioneer National Bank) ("bank" herein)
II. RECITALS
2.1 OHNC receives funds from the United States Department of Housing
and Urban Development (HUD), and other sources, which it will use
for building improvement loans and for loan subsidies to various
qualified owners of rental units.
2.2 OHNC desires to refer qualified borrowers to the bank in order to
have a loan written and funded by the bank.
2.3 OHNC desires to have bank administer and handle the details with
regard to the writing and repayment of the loans, recognizing that
the bank is qualified and experienced in such administration.
2.4 bank agrees to handle such administration without charging OHNC a
fee therefore, provided, that such administration shall be subject to
the terms and condition of this agreement.
2.5 Both parties understand that OHNC intends to enter into similar
agreements with other bank(s), as well as the bank herein.
2.6 Both parties understand that this agreement will be used in
conjunction with the Rental Rehabilitation Program's policy and
procedures dated September 20, 1983, amended August 1988,
hereinafter called policy and procedures, a copy of which is
attached hereto and incorporated herein.
III. AGREEMENT
3.1 Applications: OHNC shall take applications from investors for
loans to fund the rehabilitation of rental units. Application shall
include a credit report, preliminary title report, a profit and loss
statement of the subject property and applicant's employment
verification and last two years of federal tax returns. All costs
incurred by this application shall be assumed by OHNC.
3.2 Inspections: OHNC shall inspect the property applying the HUD
Minimum Property Standard for One and Two Dwellings, and make
a deficiency list for the owner. The owner shall be required to
accept bids from licensed and bonded contractors and submit them to
the OHNC for review and cost verification.
3.3 Loan Referral: OHNC shall prepare the following documents and
submit them to the bank for loan acceptance:
a. Preliminary title report,
1 REV. 3/92
b. Subsidy amount,
c. OHNC note and deed of trust,
d. Credit report of owner,
e. Profit and loss statement of property,
f. Deficiency list,
g. Bids for rehabilitation of project,
h. Formal appraisal indicating fair market value prior to
rehabilitation, with an estimate value after rehabilitation,
i. Existing loan(s) and balances on property,
j. Owner's financial statement,
k. Owner's employment verification and/or two years of IRS
statements.
3.4 Loan Term: The banks loan to the owner shall be a minimum of
$2,000.00 and be a maximum fixed term of 180 months, as listed
below:
$2,000 - $5,000 60 months
5,001 - 10,000 120 months
10,001 - over 180 months
3.5 Jnterest Rate: The percentage rate of interest for loans less than
five years shall be determined on the day of closing at 1.5% over the
quoted prime interest rate as printed in the Wall Street Journal for
that day, and 2% over the quoted prime interest rate on loans over a
five year term.
3.6 Loan Position: All bank loans shall be afforded a first or second
priority . All OHNC loans shall be in second or third priority,
immediately junior to bank loans.
3.7 Maximum Loan: Total indebtedness shall not exceed 80% of the
appraised value of the subject property after rehabilitation unless
funds equal to the amount over 80% are deposited by OHNC with
the bank as a loan guarantee. In such event total indebtedness shall
not exceed 95% of the appraised value of subject property after
rehabilitation. The loan guarantee funds shall be released back to
OHNC by the bank when the principal of the total indebtedness
reaches a level of 75% of appraised value of subject property
excluding the City's subsidy. The date of this release shall be
predetermined at date of loan closing. The bank shall place loan
guarantee funds in market interest bearing accounts and shall pay all
accrued interest by OHNC upon date of release of the guarantee.
3.8 Bank Loan: The bank shall write the loan and obtain the
borrower's signature on the note and deed of trust to OHNC. All
title documents shall be recorded with OHNC being placed in a
junior position. All loans shall have title insurance for coverage of
the entire encumbered amount. A copy of the bank loan closing
statement will be forwarded to OHNC after closing, as authorized by
the applicant in writing.
All loans requested in the amount of $50,000.00 or less must be
reviewed within ten working days from receipt of a complete loan
package and 20 working days for all loans exceeding $50,000.00.
Any loan application that is not approved by the bank shall be
retumed to OHNC at 112 South 8th St., Yakima, Washington 98901
2 REV. 3/92
stating the reason for the disapproval.
3.9 Completion: OHNC shall be responsible for doing progress and
final inspections, as requested by the bank, with a report of the
rehabilitation work given to the bank.
3.10 Payment: It shall be the Owner's responsibility to request OHNC
for construction inspection for payment certification. This
certification is approved by the bank and a check made to the owner
and contractor with a copy sent to OHNC. Upon request and receipt
of final payment, all lien releases must be submitted.
3.11 Indemnity: It is understood that the bank shall retain sole and
exclusive control and responsibility for determining such matters as
eligibility of its borrowers, the actual loans to be made and the
terms, conditions and closing thereof, the actual improvements to be
made and the extent and quality thereof and the right of the suppliers
and laborers to be paid. It is the intent hereof that the normal
responsibilities and obligations of the bank shall not in any manner
be enlarged or extended by reason of the fact that OHNC is and will
be making subsidized loans from government -derived funds.
3.12 Termination: This agreement shall remain in effect from date
hereof until either party gives at least 90 days written notice of
termination to the other.
DATED this / day of,19 92
Office of Housing and
Neighborhood Conservation Pioneer National Bank
(Bank)
By:
amu'' P
By:
Director of Community and
Economic Development
Dated:
ATTEST:
Title:
/67 By
vS3- i i z Title:
By:
City Clerk
Sy?
Title:
3 REV. 3/92
AGREEMENT
I. PARTIES
1.1 OFFICE OF HOUSING AND NEIGHBORHOOD
CONSERVATION, a division of the Department of Community and
Economic Development of the City of Yakima, a municipal
corporation of the State of Washington ("OHNC" herein).
1.2 The undersigned bank (First Interstate Bank of Washington)
("bank" herein)
II. RECITALS
2.1 OHNC receives funds from the United States Department of Housing
and Urban Development (HUD), and other sources, which it will use
for building improvement loans and for loan subsidies to various
qualified owners of rental units.
2.2 OHNC desires to refer qualified borrowers to the bank in order to
have a loan written and funded by the bank.
2.3 OHNC desires to have bank administer and handle the details with
regard to the writing and repayment of the loans, recognizing that
the bank is qualified and experienced in such administration.
2.4 bank agrees to handle such administration without charging OHNC a
fee therefore, provided, that such administration shall be subject to
the terms and condition of this agreement.
2.5 Both parties understand that OHNC intends to enter into similar
agreements with other bank(s), as well as the bank herein.
2.6 Both parties understand that this agreement will be used in
conjunction with the Rental Rehabilitation Program's policy and
procedures dated September 20, 1983, amended August 1988,
hereinafter called policy and procedures, a copy of which is
Attached hereto and incorporated herein.
III. AGREEMENT
3.1 Applications: OHNC shall take applications from investors for
loans to fund the rehabilitation of rental units. Application shall
include a credit report, preliminary title report, a profit and loss
statement of the subject property and applicant's employment
verification and last two years of federal tax returns. All costs
incurred by this application shall be assumed by OHNC.
3.2 Inspections: OHNC shall inspect the property applying the HUD
Minimum Property Standard for One and Two Dwellings, and make
a deficiency list for the owner. The owner shall be required to
accept bids from licensed and bonded contractors and submit them to
the OHNC for review and cost verification.
3.3 Loan Referral: OHNC shall prepare the following documents and
submit them to the bank for loan acceptance:
1 REV. 3/92
a. Preliminary title report,
b. Subsidy amount,
c. OHNC note and deed of trust,
d. Credit report of owner,
e. Profit and loss statement of property,
f. Deficiency list,
g. Bids for rehabilitation of project,
h. Formal appraisal indicating fair market value prior to
rehabilitation, with an estimate value after rehabilitation,
i. Existing loan(s) and balances on property,
j. Owner's financial statement,
k. Owner's employment verification and/or two years of IRS
statements.
3.4 Loan Term: The banks loan to the owner shall be a minimum of
$2,000.00 and be a maximum fixed term of 180 months, as listed
below:
$2,000 - $5,000 60 months
5,001 - 10,000 120 months
10,001 - over 180 months
3.5 Interest Rate: The percentage rate of interest for loans less than
five years shall be determined on the day of closing at 1.5% over the
quoted prime interest rate as printed in the Wall Street Journal for
that day, and 2% over the quoted prime interest rate on loans over a
five year term.
3.6 Loanposition: All bank loans shall be afforded a first or second
priority . All OHNC loans shall be in second or third priority,
immediately junior to bank loans.
3.7 Maximum Loan: Total indebtedness shall not exceed 80% of the
appraised value of the subject property after rehabilitation unless
funds equal to the amount over 80% are deposited by OHNC with
the bank as a loan guarantee. In such event total indebtedness shall
not exceed 95% of the appraised value of subject property after
rehabilitation. The loan guarantee funds shall be released back to
OHNC by the bank when the principal of the total indebtedness
reaches a level of 75% of appraised value of subject property
excluding the City's subsidy. The date of this release shall be
predetermined at date of loan closing. The bank shall place loan
guarantee funds in market interest bearing accounts and shall pay all
accrued interest by OHNC upon date of release of the guarantee.
3.8 Dank Lulu The bank shall write the loan and obtain the
borrower's signature on the note and deed of trust to OHNC. All
title documents shall be recorded with OHNC being placed in a
junior position. All loans shall have title insurance for coverage of
the entire encumbered amount. A copy of the bank loan closing
statement will be forwarded to OHNC after closing, as authorized by
the applicant in writing.
All loans requested in the amount of $50,000.00 or less must be
reviewed within ten working days from receipt of a complete loan
package and 20 working days for all loans exceeding $50,000.00.
Any loan application that is not approved by the bank shall be
2 REV. 3/92
returned to OHNC at 112 South 8th St., Yakima, Washington 98901
stating the reason for the disapproval.
3.9 Completion: OHNC shall be responsible for doing progress and
final inspections, as requested by the bank, with a report of the
rehabilitation work given to the bank.
3.10 Payment: It shall be the Owner's responsibility to request OHNC
for construction inspection for payment certification. This
certification is approved by the bank and a check made to the owner
and contractor with a copy sent to OHNC. Upon request and receipt
of final payment, all lien releases must be submitted.
3.11 Indemnity: It is understood that the bank shall retain sole and
exclusive control and responsibility for determining such matters as
eligibility of its borrowers, the actual loans to be made and the
terms, conditions and closing thereof, the actual improvements to be
made and the extent and quality thereof and the right of the suppliers
and laborers to be paid. It is the intent hereof that the normal
responsibilities and obligations of the bank shall not in any manner
be enlarged or extended by reason of the fact that OHNC is and will
be making subsidized loans from government -derived funds.
3.12 Termination: This agreement shall remain in effect from date
hereof until either party gives at least 90 days written notice of
termination to the other.
DATED this day of A Y ,19 91
Office of Housing and
Neighborhood Conservation
By: k .
Director of Community and
Economic Development
Dated: Q l; Ci
ATTEST:
City Clerk
First Interstate Bank of Washington
(Bank)
By:
Title:
By:
Title: //
By:
Title:
3 REV. 3/92
AGREEMENT
L PARTIES
1.1 OFFICE OF HOUSING AND NEI . ; OR11O'OD
CONSERVATION, a division of the Department of Co *Tity and
Economic Development of the City of Yakima, a ntinicipal
corporation of the State of Washington ("OHNC" herein).
1.2 The undersigned bank (U. S. Bank of Washington) ("bank"
herein)
II. RECITALS
2.1 OHNC receives funds from the United States Department of Housing
and Urban Development (HUD), and other sources, which it will use
for building improvement loans and for loan subsidies to various
qualified owners of rental units.
2.2 OHNC desires to refer qualified borrowers to the bank in order to
have a loan written and funded by the bank.
2.3 OHNC desires to have bank administer and handle the details with
regard to the writing and repayment of the loans, recognizing that
the bank is qualified and experienced in such administration.
2.4 bank agrees to handle such administration without charging OHNC a
fee therefore, provided, that such administration shall be subject to
the terms and condition of this agreement.
2.5 Both parties understand that OHNC intends to enter into similar
agreements with other bank(s), as well as the bank herein.
2.6 Both parties understand that this agreement will be used in
conjunction with the Rental Rehabilitation Program's policy and
procedures dated September 20, 1983, amended August 1988,
hereinafter called policy and procedures, a copy of which is
attached hereto and incorporated herein.
III. AGREEMENT
3.1 Applications: OHNC shall take applications from investors for
loans to fund the rehabilitation of rental units. Application shall
include a credit report, preliminary title report, a profit and loss
statement of the subject property and applicant's employment
verification and last two years of federal tax returns. All costs
incurred by this application shall be assumed by OHNC.
3.2 Inspections: OHNC shall inspect the property applying the HUD
Minimum Property Standard for One and Two Dwellings, and make
a deficiency list for the owner. The owner shall be required to
accept bids from licensed and bonded contractors and submit them to
the OHNC for review and cost verification.
3.3 Loan Referral: OHNC shall prepare the following documents and
submit them to the bank for loan acceptance:
1 REV. 3/92
a. Preliminary title report,
b. Subsidy amount,
c. OHNC note and deed of trust,
d. Credit report of owner,
e. Profit and loss statement of property,
f. Deficiency list,
g. Bids for rehabilitation of project,
h. Formal appraisal indicating fair market value prior to
rehabilitation, with an estimate value after rehabilitation,
i. Existing loan(s) and balances on property,
j. Owner's financial statement,
k. Owner's employment verification and/or two years of IRS
statements.
3.4 Loan Term: The banks loan to the owner shall be a minimum of
$2,000.00 and be a maximum fixed term of 180 months, as listed
below:
$2,000 - $5,000 60 months
5,001 - 10,000 120 months
10,001 - over 180 months
3.5 Interest Rate: The percentage rate of interest for loans less than
five years shall be determined on the day of closing at 1.5% over the
quoted prime interest rate as printed in the Wall Street Journal for
that day, and 2% over the quoted prime interest rate on loans over a
five year term.
3.6 Loan Position: All bank loans shall be afforded a first or second
priority . All OHNC loans shall be in second or third priority,
immediately junior to bank loans.
3.7 Maximum Loan: Total indebtedness shall not exceed 80% of the
appraised value of the subject property after rehabilitation unless
funds equal to the amount over 80% are deposited by OHNC with
the bank as a loan guarantee. In such event total indebtedness shall
not exceed 95% of the appraised value of subject property after
rehabilitation. The loan guarantee funds shall be released back to
OHNC by the bank when the principal of the total indebtedness
reaches a level of 75% of appraised value of subject property
excluding the City's subsidy. The date of this release shall be
predetermined at date of loan closing. The bank shall place loan
guarantee funds in market interest bearing accounts and shall pay all
accrued interest by OHNC upon date of release of the guarantee.
3.8 Dank Loan: The bank shall write the loan and obtain the
borrower's signature on the note and deed of trust to OHNC. All
title documents shall be recorded with OHNC being placed in a
junior position. All loans shall have title insurance for coverage of
the entire encumbered amount. A copy of the bank loan closing
statement will be forwarded to OHNC after closing, as authorized by
the applicant in writing.
All loans requested in the amount of $50,000.00 or less must be
reviewed within ten working days from receipt of a complete loan
package and 20 working days for all loans exceeding $50,000.00.
Any loan application that is not approved by the bank shall be
2 REV. 3/92
returned to OHNC at 112 South 8th St., Yakima, Washington 98901
stating the reason for the disapproval.
3.9 Completion: OHNC shall be responsible for doing progress and
final inspections, as requested by the bank, with a report of the
rehabilitation work given to the bank.
3.10 Payment: It shall be the Owner's responsibility to request OHNC
for construction inspection for payment certification. This
certification is approved by the bank and a check made to the owner
and contractor with a copy sent to OHNC. Upon request and receipt
of final payment, all lien releases must be submitted.
3.11 Indemnity: It is understood that the bank shall retain sole and
exclusive control and responsibility for determining such matters as
eligibility of its borrowers, the actual loans to be made and the
terms, conditions and closing thereof, the actual improvements to be
made and the extent and quality thereof and the right of the suppliers
and laborers to be paid. It is the intent hereof that the normal
responsibilities and obligations of the bank shall not in any manner
be enlarged or extended by reason of the fact that OHNC is and will
be making subsidized loans from government -derived funds.
3.12 Termination: This agreement shall remain in effect from date
hereof until either party gives at least 90 days written notice of
termination to the other.
DATED this day of ,19 92
Office of Housing and
Neighborhood Conservation
By:
Director of ommunity and
Economic Development
Dated:
nit 1 a1 ( 9D_
ATTEST:
Ka),„, JeaLe,),
City Clerk
U. S. Bank of Washington
(Bank)
By:,,412/4._
o�.
Title:
Title:r%'��
By:
Title:
3 REV. 3/92
AGREEMENT
I. PARTIES
1.1 OFFICE OF HOUSING AND NEIGHBORHOOD
CONSERVATION, a division of the Department of Community and
Economic Development of the City of Yakima, a municipal
corporation of the State of Washington ("OHNC" herein).
1.2 The undersigned bank (Seattle First National Bank) ("bank"
herein)
II. RECITALS
2.1 OHNC receives funds from the United States Department of Housing
and Urban Development (HUD), and other sources, which it will use
for building improvement loans and for loan subsidies to various
qualified owners of rental units.
2.2 OHNC desires to refer qualified borrowers to the bank in order to
have a loan written and funded by the bank.
2.3 OHNC desires to have bank administer and handle the details with
regard to the writing and repayment of the loans, recognizing that
the bank is qualified and experienced in such administration.
2.4 bank agrees to handle such administration without charging OHNC a
fee therefore, provided, that such administration shall be subject to
the terms and condition of this agreement.
2.5 Both parties understand that OHNC intends to enter into similar
agreements with other bank(s), as well as the bank herein.
2.6 Both parties understand that this agreement will be used in
conjunction with the Rental Rehabilitation Program's policy and
procedures dated September 20, 1983, amended August 1988,
hereinafter called policy and procedures, a copy of which is
attached hereto and incorporated herein.
III. AGREEMENT
3.1 Applications: OHNC shall take applications from investors for
loans to fund the rehabilitation of rental units. Application shall
include a credit report, preliminary title report, a profit and loss
statement of the subject property and applicant's employment
verification and last two years of federal tax returns. All costs
incurred by this application shall be assumed by OHNC.
3.2 Jnspections: OHNC shall inspect the property applying the HUD
Minimum Property Standard for One and Two Dwellings, and make
a deficiency list for the owner. The owner shall be required to
accept bids from licensed and bonded contractors and submit them to
the OHNC for review and cost verification.
3.3 Loan Referral: OHNC shall prepare the following documents and
submit them to the bank for loan acceptance:
1 REV. 3/92
a. Preliminary title report,
b. Subsidy amount,
c. ()HNC note and deed of trust,
d. Credit report of owner,
e. Profit and loss statement of property,
f. Deficiency list,
g. Bids for rehabilitation of project,
h. Formal appraisal indicating fair market value prior to
rehabilitation, with an estimate value after rehabilitation,
i. Existing loan(s) and balances on property,
j. Owner's financial statement,
k. Owner's employment verification and/or two years of IRS
statements.
3.4 Loan Term: The banks loan to the owner shall be a minimum of
$2,000.00 and be a maximum fixed term of 180 months, as listed
below:
$2,000 - $5,000 60 months
5,001 - 10,000 120 months
10,001 - over 180 months
3.5 Interest Rate: The percentage rate of interest for loans less than
five years shall be determined on the day of closing at 1.5% over the
quoted prime interest rate as printed in the Wall Street Journal for
that day, and 2% over the quoted prime interest rate on loans over a
five year term.
3.6 Loan position: All bank loans shall be afforded a first or second
priority . All OHNC loans shall be in second or third priority,
immediately junior to bank loans.
3.7 Maximum Loan: Total indebtedness shall not exceed 80% of the
appraised value of the subject property after rehabilitation unless
funds equal to the amount over 80% are deposited by OHNC with
the bank as a loan guarantee. In such event total indebtedness shall
not exceed 95% of the appraised value of subject property after
rehabilitation. The loan guarantee funds shall be released back to
OHNC by the bank when the principal of the total indebtedness
reaches a level of 75% of appraised value of subject property
excluding the City's subsidy. The date of this release shall be
predetermined at date of loan closing. The bank shall place loan
guarantee funds in market interest bearing accounts and shall pay all
accrued interest by OIINC upon date of release of the guarantee.
3.8 Bank Loan: The bank shall write the loan and obtain the
borrower's signature on the note and deed of trust to OHNC. All
title documents shall be recorded with OHNC being placed in a
junior position. All loans shall have title insurance for coverage of
the entire encumbered amount. A copy of the bank loan closing
statement will be forwarded to OHNC after closing, as authorized by
the applicant in writing.
All loans requested in the amount of $50,000.00 or less must be
reviewed within ten working days from receipt of a complete loan
package and 20 working days for all loans exceeding $50,000.00.
Any loan application that is not approved by the bank shall be
2 REV. 3/92
returned to OHNC at 112 South 8th St., Yakima, Washington 98901
stating the reason for the disapproval.
3.9 Completion: OHNC shall be responsible for doing progress and
final inspections, as requested by the bank, with a report of the
rehabilitation work given to the bank.
3.10 Payment: It shall be the Owner's responsibility to request OHNC
for construction inspection for payment certification. This
certification is approved by the bank and a check made to the owner
and contractor with a copy sent to OHNC. Upon request and receipt
of final payment, all lien releases must be submitted.
3.11 Indemnity: It is understood that the bank shall retain sole and
exclusive control and responsibility for determining such matters as
eligibility of its borrowers, the actual loans to be made and the
terms, conditions and closing thereof, the actual improvements to be
made and the extent and quality thereof and the right of the suppliers
and laborers to be paid. It is the intent hereof that the normal
responsibilities and obligations of the bank shall not in any manner
be enlarged or extended by reason of the fact that OHNC is and will
be making subsidized loans from govemment-derived funds.
3.12 Termination: This agreement shall remain in effect from date
hereof until either party gives at least 90 days written notice of
termination to the other.
DATED this 30 day of March
Office of Housing and
Neighborhood Conservation
By:
Director of ommunity and
Economic Development
Dated:
% til, 19, a_
ATTEST:
&/C—L„
City Clerk
S eattle First Na ional Bank
(Bank)
By:
i
I/
Title: `fit i C- ( t. A U.A.
By:
19,2
-6/l2-- Title: Ufa PISS%,WJr
By:
Title:
3 REV. 3/92