92-052 Ordinance - Laserfiche WebLink

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-3- Secti.on 6. The No.rth Olmsted Housing Council is hereby aut.horized and directed (i) t:o make annual recommendations to Council concerning the eligibility criteria for interest subsidies, which criteria shall be established by Council by separate ordinance, (ii) to recommend procedural rules and regulations for approval by Council, (iii) to create application forms and review applications, and (iv) take ail other related actions necessary to implement the Home Improvement Loan Interest Subsidy Program which are consistent with this Ordinance and the eligibility criteria and procedural rules and regulations to be approved by Council. Ser.tion 7. The Mayor and the Director of Finance are hereby authori.zed to enter into an agreement or agreements with any lending institution which has an office or branch office in tlie City of North Olmsted, for i:he purpose of implementing this Home Improvement Loan Interest Subsidy Program. Each such agreement shall be signed by the Mayor and the Director of Finance and approved by the Director of Law and shall contain, at a mini_mum, provisions to the following effect which sYiall be binding upon the lending institution and the City: (a) The lending institut.ion shall make such loans for the purpose of rehabilitating, remodeling or otherwise improving single-family or two-family residences, or resi- dential condominium units witYiin the City and shall make such loans to the resident owner or owners of record of such residential property. (b) The lending institution shall agree to lend to each el.igible owner of record who meets its lending criteria at a reduced interest rate for the principal amount with respect to wliicY) the City has approved an interest subsidy, which int.erest rate (i) for the period with respect to which the City provides the interest subsidy (ttie "Reduced Rate Period") shall be below the then existing borrowing rate app.licable to that owner by an amount equal to the subsidy appioved by the City and (ii) for the remaining term of the loan, if any, shall be equal to such borrowing rate and shall not be increased due to the reduced rate during the Reduced Rate Period. (c) The City shall agree to pay the lending institution during tYie Reduced Rate Period, an amount equal to the difference between (i) interest on the principal amount of the loan with respect to which the City has approved an interest subsidy at the borrowing rate applicable to that borrower at the time of loan approval as certified by the lending institution to the City and (ii) interest on the principai amount with respect to which the City has approved an interest stibsidy at the reduced rate to be paid by the owner of record during the Reduced Rate Period. (d) The lending i.nstitution shall not be entitled to any interest subsidy under this Home Improvement Loan Interest Subsidy Program unless, prior to the closing of the