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ORDINANCE NO. 78- $
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<br />? INTRODUCED BY: cCouncil 'as a Whole
<br />ADT EbIERGENCY ORDINANCE REGULATING PRACTICES OF
<br />HOME PURCHASE CONTRACTORS AND HOME CONSTRUCTION
<br />CONTRACTORS WITHIN THE VILLAGE.
<br />BE IT ORDAINED BY THE COUNCIL OF D4AYFIELD VILLAGE, OHIO, THAT:
<br />Section 1. Definitions: As used in this ordinance:
<br />(a) "Home Construction Contract" means a contract entered
<br />into between an original contractor and an owner, part owner
<br />or lessee for the building, construction, repair, replacement,
<br />remodeling, alteration, conversion, modernization or improve-
<br />ment of any single or double family dwelling or portion of the
<br />dwelling or a residential unit of any condominium property that
<br />has been submitted to the provisions of Chapter 5311 of the
<br />Ohio Revised Code; an addition to any land; or the construction,
<br />replacement, installation, or improvement of driveways, side-
<br />walks, swimming pools, porches, garages, carports, landscaping,
<br />fences, fallout shelters, siding, roofing, storm windows,
<br />awni-ngs and other improvements that are adjacent to single or
<br />double £amily dwellings or upon lands that are adjacent to
<br />. single or double family dwellings or residential units of
<br />condominium property, if the dwelling, residential unit of
<br />condominium property, or land is used or intended to be used
<br />as a personal residence by the owner, part owner, or lessee.
<br />(b) "HOme Purchase Contract" means a contract for the pur-
<br />chase of any single or double family dwelling or residential
<br />unit of a condominium property that has been subjected to the
<br />provisions of Chapter 5311 of the Ohio Revised Code if the
<br />purchaser uses or intends to use the dwelling, a unit of a
<br />double family dwelling, or the condominium unit as his personal
<br />residence.
<br />(c) "Leriding Institution" means any person who enters into
<br />a contract with the owner, part owner, purchaser or lessee to
<br />prov?de financing for a home construction contract or a home
<br />purchase cor_tract, which financing is secured in whole or in part
<br />by a nortgage on the real estate upon which the improvements con-
<br />templated by the home construction contract are to be made or
<br />upon the property that is the subject of the home purchase contract,
<br />and that makes direct disbursements under the contract to any
<br />original confractor or the owner, part owner, purchaser or lessee.
<br />(d) "Original Contractor" includes any person with whom the
<br />owner, part owner, lessee or purchaser under a home purchase
<br />contract has directly contracted.
<br />Section 2. No original contractor shall do either of the
<br />following:
<br />(a) Knowingly supply a false affidavit to a lending institu-
<br />tion, owner, part owner, or lessee for the purpose of obtaining
<br />?•. payment under any home construction contract or under a home
<br />purchase contract.
<br />(b) Obtain payment from an owner, part owner, lessee or
<br />lending institution under a home purchase contract or for work
<br />done pursuant to a home construction contract when the original
<br />contractor is aware that such payment is based on the assumption
<br />of a material fact which the payer considers to be true and which
<br />the original contractor knows or should know is false, or when
<br />the original contractor has made, eicher directly or indirecLiy -
<br />to the payer a statement of material fact which is false, under
<br />circumstances in which the original contractor knew or should
<br />have known that such statement xvas false, or when the original
<br />contractor makes the statement without knowing whether it is true
<br />or false. For purposes of this subsection, a material fact is
<br />one on which a reasonable man would form a decision as to whether
<br />to make or withnold payment.
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