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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. m cin OnneOeL sept ei 25, 2006 easae Ob326 o anee c Nan Muautuea Co ity oeataatioa A sUential a Ubilitatioa Lw= MFg a whumdwr 1