§ 11.09.050. Loan criteria and procedures.

(a) In order to qualify for consideration for a rehabilitation loan, an applicant must:

(1)

Be an individual, group of individuals or a family; a corporation or other artificial entity is not eligible to apply for a loan pursuant to this chapter;

(2)

Own and occupy the property which shall be situated within the unincorporated area of the county and within the designated neighborhood preservation area;

(3)

Demonstrate that household gross income does not exceed eighty percent of the median gross income for households of the same size within the unincorporated areas of the county;

(4)

Own and reside on, or rent to tenants who qualify per income guidelines provided in this chapter, for residential purposes only, the property for which the loan is sought;

(5)

Have marketable title to the property and liquidity to meet existing household needs;

(6)

Demonstrate that the applicant is paying more than thirty percent of gross monthly household income for housing expenses or demonstrate to the satisfaction of the board that the applicant has shown good cause that the applicant is unable to make payments on a rehabilitation loan such that a deferred rehabilitation loan is necessary in order to finance the rehabilitation work;

(7)

Have the ability to complete the rehabilitation within a reasonable time and maintain the property in a decent, safe and sanitary condition;

(8)

Provide evidence of no past due property taxes;

(9)

Not have household liquid assets in excess of twenty-five thousand dollars, or thirty thousand dollars for households which include a member who is fifty-five years of age or older, excluding the value of two automobiles, the subject property and its furniture and fixtures;

(10)

Agree to obtain homeowner's, fire, and extended coverage insurance which will adequately cover the rehabilitation loan amount, agree to allow a county lien on the property, and agree to name the county as an additional insured on the required insurance policies;

(11)

Agree to take an active role in selecting a contractor and approving the work to be done;

(12)

Agree to have the blood of at-risk occupants (as defined by the United States Department of Housing and Urban Development) tested for the presence of lead if the property was built prior to 1978;

(13)

Agree to comply with any additional requirements which may be imposed by state or federal laws or regulations as a condition of receipt of federal or state funds.

(b)

Priority Rating of Applicants. If at any time the aggregate amount represented by pending applications from qualified applicants for loans exceeds the amount available in the fund, the Board will give preference, and the division shall prioritize applications to be presented to the board, based upon the following conditions, in order of preference:

(1)

To applicants who are members of households having a gross income that is fifty percent or less of the median gross income for households of the same size in Clark County;

(2)

Rehabilitation work is necessary to eliminate a condition which would amount to a fire, health or safety hazard under any provisions of the Clark County Codes;

(3)

The applicant or a member of the household is a person with a disability;

(4)

The applicant or a member of the household is fifty-five years of age or older;

(5)

The applicant is a single head of a household with dependent children.

(c)

Rehabilitation loans may only be issued for properties which:

(1)

Are entirely situated within the unincorporated area of the county;

(2)

Are capable of rehabilitation to bring the property up to code with the resources available from a rehabilitation loan in combination with any other public or private resources which will be committed to rehabilitation of the property;

(3)

Are subject to not more than two encumbrances;

(4)

Require a minimum of five thousand dollars of code related rehabilitation to bring the property up to code or to bring the property up to the following minimum standards:

(A)

Reasonably free from fire and other hazards,

(B)

Comfortable, healthy and well-ventilated,

(C)

Decent appearing inside and out,

(D)

Inexpensive to heat and maintain,

(E)

Solid structurally and weather tight, or

(F)

Reasonably equipped for current occupants with disabilities;

(5)

Are within the designated neighborhood preservation area.

(d)

The division may impose additional qualifications on applicants or properties when necessary to comply with conditions placed upon the receipt of federal or state funds into the fund for rehabilitation.

(e)

The maximum amount of any rehabilitation loan shall be twenty thousand dollars. However, where the extreme deteriorated condition of the home warrants additional work, the maximum amount of the loan may be increased to twenty-four thousand nine hundred ninety-nine dollars.

(f)

Upon receiving an application for a loan for the rehabilitation of residential property, the division shall:

(1)

Inspect the property to determine if rehabilitation of the property is feasible and if the property satisfies the criteria for eligibility for a loan;

(2)

Determine the amount of the loan that the condition of the property justifies;

(3)

Interview the applicant to determine if the applicant satisfies the criteria for eligibility for a loan;

(4)

If the applicant and the property satisfy the criteria for eligibility for a loan, determine the amount, terms and conditions of the loan to be recommended to the board;

(5)

If enough money is available in the fund for a rehabilitation loan and other applicants with a higher priority rating under Section 11.09.050(b) are not estimated to exhaust the fund, recommend to the board the amount of the loan, if any, and the terms and conditions of the loan.

(g)

Upon receipt of the recommendation of the division, the board may approve the loan, deny the loan, or approve the loan upon different terms and conditions, in its sole discretion.

(1)

The board shall specify the following minimum terms and conditions for any approved rehabilitation loan:

(A)

Amount of the loan; and

(B)

Term of the loan.

(h)

In the event the board approves a rehabilitation loan, the manager of the division may sign any paperwork or agreements necessary to process the loan or carry out rehabilitation of the property.

(i)

All economic data provided by an applicant to the division pursuant to this chapter must be less than six months old.

(Ord. 2262 § 1 (part), 1999)

(Ord. No. 3986, § 5, 10-4-2011)