§ 11.09.080. Deferment of rehabilitation loan.

Rehabilitation loans shall only be issued to applicants who are eligible for deferment of the rehabilitation loan pursuant to this section. An applicant may be eligible for deferment if the applicant shows good cause that the applicant is unable to repay a rehabilitation loan until sale or other transfer of the property, by demonstrating that the applicant's gross household income is at or below eighty percent of median income, adjusted for family size, and who is paying more than thirty percent of gross monthly household income for housing expenses.

(a)

Deferment of the rehabilitation loan shall commence from the time that the board approves the rehabilitation loan.

(b)

The maximum amount of deferment shall not exceed twenty thousand dollars. However, where the extreme deteriorated condition of the home warrants additional work, the maximum amount of deferment may be up to twenty-four thousand nine hundred ninety-nine dollars.

(c)

The loan shall be deferred until the date of sale or other transfer of the property.

(1)

If deferment is continued to the time of sale of the property, the borrower shall repay the rehabilitation loan out of the proceeds of sale of the property immediately after closing of sale.

(2)

If the property is transferred other than through a sale, the entire balance of the loan shall become immediately due and payable at the time of such transfer unless the new owner of the property applies and is eligible for deferment as provided in this chapter.

(d)

Interest shall not accrue during the period of deferment.

(Ord. 2262 § 1 (part), 1999)