HomeMy WebLinkAboutR-1994-025 Implementation of a multi-family loan programRESOLUTION NO. R-94-25
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, West One 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 attached and
incorporated agreements with the lending institutions stated therein.
ADOPTED BY THE CITY COUNCIL THIS 15 t &y of March
,1994.
ATTEST:
Assistant Mayor
City Clerk
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) ("bank" herein)
11. 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, and December 1993
hereinafter called policy and procedures, a copy of which is attached
hereto and incorporated herein.
I11. 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,
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 after rehabilitation fair market value,
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 minimum fixed term of 60 months and a maximum
fixed term of 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 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 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== =ems <� - ,1993
Office of Housing and
Neigh.orhood Co servation First Interstate Bank
(Bank)
'rector ommuni y and
onomi •evelop ent Title:
By
Dated: 3-22
-94-
ATTEST: !4 -
ATTEST:
City Clerk
CITY CONTRACT NO: `'
�cr
By:
Title:
By
Title:
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, and December 1993
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,
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 after rehabilitation fair market value,
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 minimum fixed term of 60 months and a maximum
fixed term of 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 bans 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 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 /r day of
Office of Housing and
Neig •orhood Co servation
By: ./ L. / .tAiltt
7-1 irrector of '• ommunit'
congvel pm
and
nt
Dated:
ATTEST:
City Clerk
CITY CONTRACT NO.
By
Title: Pce-se-4—/
,1993
Pioneer National Bank
(Bank)
By: - Lav"L'._��
Title: P
By
Title:
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 (West One Bank) ("bank" herein)
1
F' 4s1--cizAd 04-.10,017.,/,?4,t)
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, and December 1993
hereinafter called policy and procedures, a copy of which is attached
hereto and incorporated herein.
1.,
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,
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 after rehabilitation fair market value,
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 minimum fixed term of 60 months and a maximum
fixed term of 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 L5% 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.
37 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 $50,000.00. Any
loan application that is not approved by the bank shall be returned to
OHNC at 112 South 8th St., Yakima, Washington 98901 stating the
reason for the disapproval.
3.9 Completion: OHNC shall be responsible for doing progress and final
inspections, as requested by the bank, with a report of the rehabilitation
work given to the bank.
3.10 Payment: It shall be the Owner's responsibility to request OHNC for
construction inspection for payment certification. This certification is
approved by the bank and a check made to the owner and contractor
with a copy sent to OHNC. Upon request and receipt of final payment, all
lien releases must be submitted.
3.11 Indemnity: It is understood that the bank shall retain sole and exclusive
control and responsibility for determining such matters as eligibility of its
borrowers, the actual loans to be made and the terms, conditions and
closing thereof, the actual improvements to be made and the extent and
quality thereof and the right of the suppliers and laborers to be paid. It is
the intent hereof that the normal responsibilities and obligations of the
bank shall not in any manner be enlarged or extended by reason of the
fact that OHNC is and will be making subsidized loans from government -
derived funds.
3.12 Termination: This agreement shall remain in effect from date hereof
until either party gives at least 90 days written notice of termination to the
other.
DATED this day of
Office of Housing and
Neighborhood Co servation
,1993
West One Bank) ••tiJ
(Bank) W 4'^',, h
By
iii ector o$ommuni ,
Eononi•-velop andnt Title: 40°
Dated: �` L�-� By:
Title:
By
Title:
ATTEST:
City Clerk
(!"7 n
CITY CONTRACT PIO.
- .X
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 (U. S. 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, and December 1993
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,
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 after rehabilitation fair market value,
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 minimum fixed term of 60 months and a maximum
fixed term of 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 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 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
Office of Housing and
Neighborhood Conservation
ATTEST:
City Clerk
CITY CONTRACT Na
1!\ 1 _�
By
t
Title:
By:
Title: VI'LQ- Qr es, 5.A 144 y/.
By
Title:
U. S. Bank
(Bank)
,1993
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 & Loan) ("S & L"
herein)
11. 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 and December 1993,
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:
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 minimum fixed term of 60 months and a maximum
fixed term of 180 months.
3.5 Interest Rate: The percentage rate of interest for loans Tess 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 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.
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 bans 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 J�
Office of Housing and
Neighborhood Conservation
ATTEST:
City Clerk
carr CONTRACT NO.
B
,1993
Ya ;� a Federal Savings & Loan
(S & L)
Title: -nior Vice President
By: nn Wentz
Title: Assistant Vice President
By
Title:
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 bans 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 and December 1993,
hereinafter called policy and procedures, a copy of which is attached
hereto and incorporated herein.
FII. 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:
a. Preliminary title report,
b. Subsidy amount,
c. OHNC note and deed of trust,
d. Credit report of owner,
e. Profit and Toss 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 minimum fixed term of 60 months and a maximum
fixed term of 180 months.
3.5 Interest Rate: The percentage rate of interest for loans Tess than five
years shall be determined on the day of closing at L5% over the quoted
prime interest rate as printed in the Wal! Street Journal for that day, and
2% over the quoted prime interest rate on bans 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.
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
,1993
Office of Housing and
Neighb+r, ood Conservation First Savings Bank of Washington
(S & L)
ATTEST:
nity and
Ipment
City Clerk
_
CITY CONTRACT N6: S
By
Title: l L✓
By:
Title:
By
Title: �: s
AGREEMENT v''
I. PARTIES
1.1 OFFICE OF HOUSING AND NEIGHS, OOD CONSERVATION, a
division of the Department of CommunrtWattconomic Development of
the City of Yakima, a municipal corporation of the State of Washington
("OHNC" herein).
1.2 The undersigned bank (Seattle First) ("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, and December 1993
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,
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 after rehabilitation fair market value,
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 minimum fixed term of 60 months and a maximum
fixed term of 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 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 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 ,1993
Office of Housing and
Neigh • orhood Conservation
By
'rector of ornmunity%and
Econo ent
Dated:
ATTEST:
City Clerk
t,1TY CONTRACT N0: -
By
Title:
By:
Title: ,
Seattle First
(Bank)
EVP
By
Title: