R2022-83 Resolution Authorizing the City Manager to Enter into an Agreement with Land of Lincoln Credit Union for Property Rehabilitation Program Services

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Program Goals and Outcomes: 1. To remove unhealthy or hazardous housing conditions in low and moderate income areas. 2. To use American Rescue Plan (ARP) funds as a catalyst to encourage residents of low and moderate-income neighborhoods to improve their homes and community. 3. To revitalize and preserve the existing housing stock. 4. To enable low and moderate-income families to rehabilitate their homes. 5. To reduce utility costs of low and moderate-income families, by incorporating energy conservation systems into housing rehabilitation programs. 6. To preserve and increase the property values in low and moderate-income neighborhoods. 7. To encourage employment and training opportunities for residents and minority persons through the opportunity to bid on housing rehabilitation programs. 8. To create sustainable mixed-income neighborhoods in the urban core. Home Improvement Loan Fund:The Home Improvement Fund will provide access to capital for landlords, which in many cases, are unable to get a traditional loan for home improvements due to the value of the home (asset) being less than the loan amount needed for rehabilitation. The general terms of the home improvement loan fund are as follow: • Landlord will submit an application, scope of work and cost estimate for work to be performed for one address at a time(maximum of two properties per Landlord) to the Neighborhood Revitalization division; Approval of second property is subject to completion of the first property. • The cost estimate must list separately the price of materials and the price of labor. • Once project has been approved by the Neighborhood Revitalization division, Landlord must open a savings and checking account with Land of Lincoln Credit Union before loan approval. • Landlord will be offered a flat interest rate at 3.25%; no minimum credit score required. • Landlord will pay 1%administration fee which is based on the total project cost. • Terms of the loan will be up to 72 months. • The program will become a revolving loan fund to be used for future home improvement projects. • Once the project is complete and all inspections have passed, the landlord can draw the balance of the loan. • if the landlord defaults on the home improvement loan fund, Land of Lincoln will place a lien and foreclose on said property and sell said property to the City of