HomeMy WebLinkAbout2006-09-25 06-324 ORDERMin 140.06 324
Dae: September 25, 2006
Item/Subject ORDER, Invee4ng Emergency Loan Authorization Maximum Amount
on Community Development Residential Rehabiliibtlon leans
Responsible Dep irtmea: Community & Economic Development
Commentary:
The City's Residential Rehabilitation Loan Program requires that all loans made under Nis program be
rammed and approvetl by the Business & Economic Development Committee. All loans over $100,000
regWre full Council approval. Occasionally a loan application requires immediate attention due to cath[
can easily be considered an emergency situation such as a broken heat system In the winter or a failed
sewer line. These situations can demand such Immediate attention that requiring an applicant to wait
sometimes two weeks for the next BED Committee meeting can mean the emergency could easily
escalate to a dangerous threat to the health and safety of the occupants. To address Nis issue, Council
Order 02-164 adopted on April 8, 2002 authorizes the expenditure of Community Development
Residential Rehabilitation loan Program funds in an amount of up to $3,000 to cone[[ the emergency
situation. However, over the four years since this order was adopted, Ne mals of typical emergency
repairs Ilke heat system replacement and sewer line replacement have Inflated to well over $3,000. A
new boiler heat system installation now requires a chimney Ileer and runs in the range a $5,000 -
$6,000. A typical reoldendal sewer line replacement runs around $3,500 If there are no compilations.
This Order would audience the City Manager or Director of Community & Economic Development to
approve Emergency Residential Rehabilitation leans in an amount up to $7,000.
Department Head
Manager's Comments:
This has been reviewed and is recommended by the Business and Economic lopment Commit
Cloy Manager
Associated Informaion:
LF,
Upal Approval:
V v
City Sollcpor
Introduced for
X_ Passage
_ First Reading
Page _ of _
Raeral
Aavgmdl b Councilor Greene segten6er.25, 2006
CITY OF BANGOR
(TITLE.) ORDER, Increasing Emergency Loan Authorizbon Maximum Amount
on Community Development Residential Rehablll allon Loans
WHEREAS, Community Development Rehabilitation Staff is made aware from time to time of
ememercy-veating defidercles in dwellirg units for which an application for a
Community Development Residential Rehabilitation Loan has been received a is
anticpated; and
WHEREAS, such deficiencies create emergency conditions which threaten the life or safety of
occupants of the Involved dwelling units; and
WHEREAS, these emergencycreating deficlendes are correctable within the scope of the
Community Development ResldeMal Rehabilitation Loan Program; and
WHEREAS, time is of the essenceIrl correcting such deftclencles;
NOW, THEREFORE, BE U ORDERED BYTHE CITY COUNCH. OF THE CITY OF BANGOR
THAT the City Manager or to Director of Community, and Economic Development may approve
the expenditure of Community Development Residential Rehabilitation Loan Program funds in
an amount up t $7,000 to correct the emergency causing deficiency, provided! that:
1. the deficiency or deficiencies Invol ed are judged W create an emergency
ddrabon which treaters the fie or safety of the occupant(s);
2. the owner of the Involved property is found to be an eligible recipient of a
Community Development Residential RehaNlitation Loan;
3. the rehabilitation of to hrvoMed property Is determined to be feasible and
appropriate and the emergencycausing deficiencies to be correctable within the
scope of to Community Development Residential Rehabilitation Loan Program;
4. the expenditure of only those funds necessary ant appropriate for to correction
of the emergency -causing deficiencies are appwed; and
S. the Business and Economic Development Committee is informed in a timely
manner of dre autorizatlon of the expenditure of funds to resolve emergency
situations.
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