HomeMy WebLinkAbout2003-08-11 03-260 ORDERltam Ne. a3-360
Date: B-td-oa
Dxm/Su1geQ: ORDER - Amending the Policies and PmccHures for the Community Development
Residential Rehabilitation Loan Program
Respowible Department: Community &E car is Development
Commentary:
Community Development Property Rehabinladon loans approved by the Business and Economic
Development Committee are deposited into an escrow account controlled by the City and paid out as
vnA is completed. The current Polices and Procedures for the Residential Rehabilitation Loan Program
requires progress payment checks to contractors be made out to both the property owner and the
contractor. The property moor then endorses the check, signaling approval of the payment, and the
check Is then given to the contractor to endorse and rash or deposit Local banks are now requiring both
parties be present In order for the contractor m cash the Bleck. This causes delays In releasing funds to
sub<omaGas and material supdiers as the owners and contractors have to coordinate their schedules
to meet at the bank. The staff has designed a new form for the owner's signature that specifically
authorizes the release of earn progress payment amount, thereby making it posslMe to release the Owk
only in the name of the contractor. This Order would authorize amending Me Policies and Procedures
doormen that regulates the Residential Rehabilitation Loan program to permit release of single -payee
chedks from the cmnmumty, Development escrow account.
Department Head
Manager's Comments: c
�C�tvr%ml �Ddr%�� s66City Mmagenr
Associated Information:
6/Air
Finance Director
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Introduced for /�.��,,.
X Passage lNW✓t
_ First Reading ppe _ of _
Referral
03-260
Asslpcd to councilor Rclwav August 11, 2003
,m gul ,
CITY OF BANGOR
(TIRE.) Order, Amending the Policies and Procedures for the Community
Development Residential Rehabilitation town Program
WHEREAS, the Community Development Renidendal Rehabllitedon Loan Program
currently issues progress payments from the rehabilitation loan escrow account as Mo party
checks made out to both the property owner that borrowed the funds and the centrscmr
performing the work for the owmer; and
WHEREAS, it has been bmugM to the abandon of the staff Mat local banks are now
requiring the presence of bath parties the checks are made out to in order far the connector to
recelve payment by cashing or depositing the progress payment checks; and
WHEREAS, this inconveniences both the pmperty owner and the centmctor and
complicates the timely release of funds; and
WHEREAS, other documentation has been designed to provide for paymen5 to be
issued directly to the contractor with the written approval of the borrower;
NOW, THEREFORE, BE Tr HEREBY ORDERED BYTHE QTY COUNCIL OF WE
QTY OF BANGORTHAT the Community Development Residential Rehabil'Radon Loan
Program Policies and Procedures originally adopted by the City Council in September of 1982 be
amended at Section 1. Paragraph 9.b.(I), and Section 0. Paragraph 3.a.(1) to authorize the
Community Development Department to issue single Pant Progress payment checks to
contractors after receiving written authorization from the Property owner.
Auguet 11. 2003
Passed
C \ # 0}360
aenge
PPr�glTLE,)Amaaddlsg the Policies aad
cem,re a opmea
Resideutial Ae billtatioo W= Progi"
AulBned b Uuxllor
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