R2006-24 AUTHORIZING AGREEMENTS - Laserfiche WebLink

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t following geographic boundaries: Pershing Road to the north, Lake Shore Drive to the south, Brush College Road to the west, and Summit Avenue to the west. The purchase price of a home financed through the Program shall not exceed $80,000. 5. Once the applicant identifies a home and produces a signed real estate purchase contract, the Financial Institution shall order an appraisal. If the appraisal justifies the purchase, the Financial Institution shall forward the appraisal, purchase agreement, and . notification of commitment of mortgage financing to the City Department of�conomic and Urban,Development. 6. Upon receipt of a complete application file and purchase agreement from the Financial Institution, the City shall conduct the necessary inspections of the property, and shall determine whether such applicant shall be approved for a home mortgage loan under the Program. If the inspection reveals the presence of any chipped or peeling paint or other evidence of a possible lead hazard, the City shall make all arrangements for, and cover all costs of, a lead- based paint clearance examination. Any health and safety code violations identified in the inspection must be corrected by the seller or applicant prior to closing, in order for the City to give final approval to the application. 7. If the Financial Institution and the City approve the application for a loan under the Program,the City shall provide 25%of the funds necessary to finance the purchase of the described property or$14,500,whichever is less. The City shall loan said funds to the successful applicant and shall obtain a second priority mortgage on said property. The City's loan shall be at a 1%interest rate for a 20 year term. Depending upon the applicant's qualifications, the City may provide the first $5,000 of its portion as a 5-year deferred, forgivable loan through the ADDI program. This portion shall be a third priority mortgage on the property. The ADDI 3