RES 91208 - Laserfiche WebLink

The rate shall be determined at the discretion of the City Manager, guided by the goal of setting the rate to be that which maximizes repayment to the fund while remaining affordable to the applicant. Second loan interest rates and principal amount shall be generally set at a combination which most clearly sets total monthly housing cast at 45 percent of gross monthly income. Loans may be fully amortized. 11. The second loan shall be non-assignable and due and payable upon sale of the unit. 12. The second loan may be reviewed annually by the City, but shall be reviewed no less than once every three years. The interest rate for second loans set at below market rate may be adjusted following such review. In the event that the applicant's household income remains within the "moderate income" category, then no adjustment will be made unless the ratio of total monthly housing cost to gross monthly income has decreased to less than 35 percent. In this event, the interest rate may be increased, not to exceed the fair market rate, such that the ratio of total monthly housing cost to gross monthly income shall not exceed 45 percent. In the event that household income exceeds the "moderate income" category (from income deemed to be continuing as opposed to one-time only), then the interest rate may be increased to the then existing fair market rate or the remaining loan balance, at the discretion of the City Manager, may be made due and payable within 60 days of such determination.