14 - REPAIR LOAN PROGRAMItem No. 14
memorandum
TO: City Council
FROM: John Godwin, City Manager
SUBJECT: REPAIR LOAN PROGRAM
DATE: June 20, 2016
BACKGROUND: The city has been working in partnership with four local banks for over two
years to help provide low interest loans for property owners with deteriorating homes, and the
council recently re- affirmed its desire to continue the program for another year.
STATUS OF ISSUE: Our bank partners have all also indicated an interest in expanding the
program to try to address deteriorating non - residential buildings in downtown. Loans would be
based on specific criteria described in the attachments that have been reviewed and approved by
all participating parties.
BUDGET: None of the previously allocated funds have been expended, and so remain available.
RECOMMENDATION: Expand the loan program to include downtown buildings as described
in the attached guidelines and application.
DOWNTOWN LOANS FOR REPAIRS: GUIDELINES
PARTICIPATION
All participants must be pre - qualified by the city before going to a participating financial institution.
City will create an application form.
To qualify for a loan, a property must be:
• a primary structure, either residential or non - residential;
• compliant with current zoning;
• within the city's Historic District 1 (Downtown) or 2 (Church Street); and
• a deteriorated, but salvageable, structure.
The client must:
• be the owner of the structure;
• be current on his /her taxes; and
• have no code liens on the property.
City of Paris code enforcement and fire marshal's office staff will proactively seek potential participants.
Referrals to the program are welcome from other city staff, the Building Standards Commission, Historic
Preservation Commission, Main Street advisory board, property owners, civic associations, faith -based
service organizations, concerned citizens, government offices, prospective clients, and family.
REPAIRS
All repairs must be NECESSARY.
Priority for funding shall go to weatherproofing /enclosing the container of the structure and improving
fire and other safety components. Work may include, but is not strictly limited to:
• repairing the roof,
• enclosing holes in exterior walls;
• repairing and replacing windows;
• electrical repairs and upgrades;
• gas repairs and upgrades;
• installation and /or repair of fire sprinklering systems;
• other fire safety repairs or construction;
• accessibility compliance; and
• asbestos abate ment /remediation.
LOANS
Loans shall be made and managed by the participating financial institutions.
The city shall set aside $105,000 for the purpose of loan guarantees.
Said guarantees shall be in the amount of $7,500 or 50% of the loan amount, whichever is smaller.
All regularly required permits and inspections will be required, except the city shall waive permit fees to
increase the dollars going to actual repair and remedial work.
Clients must show how the money is actually spent, and allow city inspections to ensure funds are
properly expended. Participating financial institutions also reserve the right to file collateral liens and to
inspect all work.
DOWNTOWN LOANS FOR REPAIRS: APPLICATION
PARTICIPATION
To qualify for a loan, a property must be:
• a primary structure, either residential or non - residential;
• compliant with current zoning;
• within the city's Historic District 1 (Downtown) or 2 (Church Street); and
• a deteriorated, but salvageable, structure.
The client must:
• be the owner of the structure;
• be current on his /her taxes; and
• have no code liens on the property.
REPAIRS: All repairs must be NECESSARY.
Check the type(s) of repair planned:
Roof repairs
Enclose holes in exterior walls
Repair and replace windows
Accessibility compliance
Install and /or repair of fire sprinklering systems
_ Other fire safety
_ Electrical repairs and upgrades
Gas repairs and upgrades
Abate /remediate asbestos
LOANS: All loans are made by participating financial institutions; the City of Paris does not issue or
approve any loan. The city only certifies eligibility. Applicants must apply directly to a participating
financial institution following certification by the city.
What is the expected cost of your planned repairs?
Preferred financial institution (if any):
First Federal Community Bank
Liberty National
Lamar National
_ Guaranty Bond
Under penalty of law, I certify that I am qualified to receive a loan under the Downtown Loans for
Repairs Program as described above under PARTICIPATION, and further agree that if I receive a repair
loan that city employees will be allowed to enter my property during regular business hours for
purposes of inspecting the repair work; and I further agree that I shall provide copies of invoices and /or
receipts as needed to show how loan funds are spent.
Property owner Date
RETURN FORM TO: Office of the Fire Marshal
ATTN: DOWNTOWN LOAN CERTIFICATION
P. O. Box 9037
Paris, TX 75461
OFFICE USE ONLY
Property ownership confirmed:
Repairs needed /structure deteriorated:
Property within historic district:
Date certified:
Bank to which referred:
Date permit issued:
Current on all taxes:
No code liens on property:
Property meets zoning