Loading...
HomeMy WebLinkAboutSECURITY PACIFIC NATIONAL BANK - 1978-04-18 s 7t REQUES . OIL CITY COUNCIL. CTION YJNGIL at�`��rt ?Xl§�L Submitted to: Honorable Mayor and City Council Submitted by: Charles W. Thompson, City Administrator .'it_� P:�pared by: glepartment ct Development Services, HCD Divi"sion Subject: SUPP!.EMENTAL AGREEMENT NO. 1 TO REHABILITATION LOAN PROGRAM OPERATING AGREEMENT BY AND BETWEEN THE CITY OF HUNT itGTON BEACH AND SECURITY PACIFIC NATIONAL BANK Statement of issue, Recommendation,Analysis, Fund+ng Source,Alternative Actions,Attachments: Tj STATEMENT OF ISSUE: In August, 1980, the City entered into an agreement with Security Pacific National Bank for the administration of a portion of the Rehabilitation Loans Program funded through the Community Development Block Grant. This agreement was required to specify the bank's responsibilities to participate in the pr .-am and to enable the City to drawdown $350,000 from its Block Grant entitlement for deposit with the bank. The term of this agreement is now abcut to expire, and Supplemental Agreement No. 1 emends the term for an additional two years. RECOMMENDATION: Approve and authorize the City Clerk to execute the attached Supplemental Agreement No. 1 to the Rehabilitation Loan Program Operating Agreement by and between the City of Huntington Beach and Security Pacific National Bank to extend the term of the agreement for two years. ANALYSIS: The agreement with Security Pacific National Bank was init�ated in 1980 in response to HUD regulations approved at that time which enable recipients of Community Develop- ment Block Grant funds to receive a "lumpsum" drawdown of such funds for rehabilita- tion loan programs. (This provision of the HUD regulations is an exception to the general rule which forbids local communities frorr, drawing funds against the Letter of Credit more than three days before expenditure. ) the benefits of the lumpsum drawdown and deposit of funds is the accrual of interest to the City for use in the Rehabilitation Program. The attached Supplemental Agreement No. 1 simply extends the provisions of the existing agreement between the City and Security Pacific National Bank for an additional two years. Funds on deposit in the interest bearing account with Security Bank can be used for both the Direct lending approach and may also be used for interest subsidy loans as necessary. Therefore, the funds on deposit provide the City additional flexi- bility in the Rehabilitation Loans "rogram permitting the selection of the appro- priate funding technique. This will become increasingly important as the Rehabilitation Loans Program becomes a -,ore active tool in the implementation, of the Community and Neighborhood Enhance- ment Pro-ram; specifically, those areas designated in the C.N.E.P.as potentially benefiting from the rehabilitation of multi-family rental units. Under this type P10 4181 "r V r i of program, it is likely that there will be a fairly large number of owners, whose individual financial situation and goals are as diverse and unique as the properties involved. Under these circumstances, it will be particularly important to je able to either make a direct loan of CDBG funds or simply subsi- dize the interest rate on a loan pro:,ided by +he bank. This will allow the program to remain flexible, leverage the funds budgeted for rehabilitation activity ane a, iow the funds to grow through accrued interest. i Supplemental Agree,,rent No. 1 to the Rehabilitation Loan Program Operating Agree- ment has been reviewed and approved by the City Attori,ey and is consistent with the U.S. Department of Housing and Urban Development's regulations pertaining to lumpsum drawdowns and deposit of such funds (24 CFR 570.513). These regulations also provide that all interest accrued on the Block Grant funds on deposit mus' be devoted solely to the perpetuation of the Rehabilitation Program. FUNDING SOURCE: U.S. Department of Housing and Urban Development; Housing and Community Deve'cp- ment Block Grant funds. ALTERNATIVE ACTIONS: A valid and current Operating Agreement between the City and a financial institu- tion is a prerequisite to the receipt and deposit of Block Grant funds. Without such an Agreement, the funds currently on deposit (approximately $24,000) would have to be returned to HUD and any future interest would be lost. CWT:SV,<:j b I I I i I i i J REQUEP FOR CITY COUNCIL AcrION Submitted by James W. Pal;n. Dirgator Department Development Services Date Prepared _Auau 8 , 99_U Backup Material Attached Lg Yes 0 No Subject .,MENDED AOREF,NENT WTTH —RT'rY pAQIFTC NATT_ONAL BANK: LUMP-SUM DRAWDOWN OF HCD FUNDS City Administrator's Comments Approve as Recommended f Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions: STATEMENT OF ISSUE: Federal regulations now permit cities to drawdown lump sums of HCD funds for deposit in interest bearing accounts for the operation of rehabilitation loan programs. This amended agreement is necessary f to establish such an account. l� RECOMMENDATION: Approve and authorize execution of the amended "Rehabilitation Loan Program Operating Agreement" with Security Pacific National Bank. r ANALYSIS: Recent changes in federal regulations now permit the City to request a lump sum drawdown of Housing and Community Development funds if the funds are deposited in an interest bearing account and are used to implement a rehabilitation loans program (normally the City expends general funds and requests HUD reimbursement) . There are three major advantages to establishing such an account: 1. The HCD funds deposited earn market rate interest, -thus providing additional funds for the rehabilitation program; 2. The interest rate charged for rehabilitation loa.is (and subsidized by the City) is reduced by one-half percentage point; thus re- ducing the cost of the program; and 3. Processing of loans should occur more quickly. The proposed agreement is identical to the existing agreement with the Bank except that it includes the provisions necessary to establisht r PU? 3)78 9 Page •2 the interest bearing account and stipulate the intended use of the accrued interest. The proposed amendment has been reviewed and approved by the City Attorney and the ?cos Angeles Area HUD Office (see HUD letter attached) . The funds drawndown from HUD under this agreement are considered by HUD to be expended. This is of special interest to the City since HUD has reauested that the City improve the rate at which funds are being expended. Therefore, this agreement will substantially improve the City's drawdown rate. ALTERNATIVES: The City could continue to operate the Neighborhood Preservation Pro- gram without the lump-sum drawdown. FUNDING SOURCE: U.S. Department of Housing and Urban Development; Housing and Community Development Program. ($350,000 of previously allocated Neighborhood Preservation Program funds to be deposited) . Respectfully submitted, 7' Aames W. Palin, Director velopment Services TP.S v :j b Attachments: Operating Agreement HUD Approval: 7-24-80 `s h a • 0` DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOS ANGELES AREA OFFICE 25CO WILSHIRE BOULEVARD o d 0a L--S ANGELES,CALIFORNIA 90057 - 30 M REGION Ix July 24, 1980 IN R(_PLY REFER TO: Mr. Floyd 0. Belsito City Admi.rzstrator WE Attention: Stephen V. Kohler P.O. Box 190 t; 28 1980 Huntington Beach, California 92648 Dear Mr. Belsito: CITY OF HUNTINGTON BEACH ADMINISTRATIVE OFFICE Subject: Community Development Block Grant Program Grant No. B--80-NIC-06-0506 Proposed Agrea-ent with B,=nk Lump Sum Drawdown for Rehabilitation We have ccapleted our review of the proposed agreement between the City uf Huntington Beach and Security Pacific National Bank and the Certifi- cation submitted by letter dated July 11, 1980. The docim-ents submitted meet the review requi repents as set fo,.-th in 24 CFI: Section 570.513 and the request for lump sum drawdown is approved, subject to the inclusion in the agreement of a statement on the intended use of interest earned in accordance with the requirements of sus 570.513 (b) (c) ar_d (g) . YaLi are reminded that your first assisted loan should be made within 45 days of the limp sum deposit. Sincerely, Qirector bert L�. Canm mity PlannLig and Develcpnent Division z .� .. ,. v..ry_ ,{::ea,.. f'� rEY'.;n,,. *�.w:e•.-..�• ,e#xss.,rw.w» ',. ..Y .,.. ,�, AWA City Huntington d T — e P.O. Box 190 CALIFORNIA 92648 OFFICE OF THE CITY CLERK May 20, 1980 Security Pacific Nar Lonr,l Bank Community Development :opportunity Center P. 0, Box 4430 Downey, California 90241 The City Council of the City of Huntington Beach at its regular meeting held May 19, 1980, approved the Neighborhood Rehabilitation Loan Program :agreement between the City and the Security Pacific National Bank. Enclosed is a duly executsd copy for your records. ALICIA M. WEPTCWORTH, CITY CLERIC by: Deputy E AMR:CB:js Enclosure i REQUEST FOR CITY COUNCIL ,ACTION Submitted by James W. Palin, Director pepartn ent Development Services Date Prepared April 28 , 1g 80 Backup Material 4ttached ® Yes No Subject SECURITY PACIFIC NATIONAL BANK AMENDED AGREEMENT City Administrator's Comments Approve as recommended. 4_FR9V9D Vy CITY couNaILI �t i 2. CITY eLY Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions: )� STATEMENT OF ISSUE: Security Pacific National Bank processes the Neighborhood Preserva- tion Program Loans pursuant to a contractual agreement with the City. National economic trends have caused Security Bank to raise the interest rate charged on these loans which makes necessary an amend- ment to the City's agreement with the bank. RECOMMENDATION: Approve and authorize execution of the attached Rehabilitation Loan Program Agreement between the City and Security Pacific National Bank. ANALYSIS: The Neighborhood Preservation Program provides low-interest home , improvement loans to properly owners within the downtown area. Security Pacific National Bank makes all interest-bearing loans from its own funds at the prevailing marke� rate and the City uses Housing and Community Development Block Grant. Funds to reduce this interest to 4 -- 7.75 percent. However, the City's agreement with the bank limits the interest rate which the bank may charge to fifteen per- cent. Recent events in the nation' s economy have caused the bank to increase the interest rate charged to eighteen percent. Therefore, it is necessary to amend the City's agreement with the bank. The attached agreement contains the increased limit of 22 percent. The interest actually charged may fluctuate under this agreement, but it may never exceed this rate. This is the onjy change to the agreement currently used. 42- QIr 308 Security Pacific Nation Bank Agreement April 28, 198C 'Pane 2 ALTERNATT_VES: Without an amended agreement, the Neighborhood Preservation Pro- gram would be inoperative. FUNDING: U.S. Department of Housing and Urban DEvelopment; Housing and Community Development Program (Security Pacific National Bank charges no fee for processing interest-bearing loans) . Respectfully submitted, Jame� alinP tor Development Services JWP:SVK:jb ?attachment k 4 i r Aft C; ' y of Huntington Beach Box 190 CALIFORNIA 92688 OFFICE OF THE CITY CL.F.RK December 26, 1979 Security Pacific National bank Community Development Opportunity Center P. 0. Box 4430 Downey, California 90241 Gent l e;aen: Enclosed for your record is an executed contract between the City of Huntington Beach and the Security Pacific National Bank extending the services of Security Pacific National Bank for the implementation of the financial aspects of the Neighborhood Preservation Program. Sincerely, Alicia M. Wentworth City Clerk AMW:b t Enclosure 4 VMW M City of Huntington each' ° P.Q. I3ox 1ld0 CALIF'OnNIA 46 t; ;S trpy,�.-u"��. OFFICE OF THE CITY CLERIC December 18, 1979 Security Pacific National Bank Community Development Opportunity Center P. O. Box 4430 Downey, California 90241 Gentlemen: The City Council of the City of Huntington Beach at its regular meeting held December 17, 1979 approved an agreement between the City and Security Pacific National Bank extending the services of Security Pacific National Bank for the implementation of the financial aspects of the Neighborhood Preservation Program. We have enclosed the original agreement for your signature. Please sign and return to this office. Upon receipt, a duly executed copy will be returned for your records. We have enclosed a self-addressed envelope for your use. Sincerely, Alicia M. Wentworth City Clerk AMW:js cc: Steve Kohler - City Planning Department 4 w �. REQUEST FOR CITY COUNCIL ACTION Submitted by James W. Palin Director Department - Development Services Date Prepared November 15, 1979 Backup Material Attached rX Yes ❑ No Subject Approval of Contract with Security Pacific National Bank for Residential Rehabilitation Loans City Administrator's Comments APPR(}VEI?BY CITY COOI�7CdT :approve as recommended City r,I.f,P.'.0 Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions: G STATEMENT OF ISSUE: As part of the Neighborhood Preservation Program funded with Housing and Community Development Funds, the participation of a financial institution is required. The financial institution is responsible for the issuance of loans to program participants, the jervicing of loans, and will offer "leveraging" of limited block grant funds. Security Pacific National Bank hat been performing this function and it is now time to renew this contract. RECOMMENDATION: Approve the attached contract extending the services of Security Pacific National Bank for the implementation of the financial aspects of the Neighborhood Preservation Program. ANALYSIS: This contract will extend the services currently received from Security Pacific National Bank. The contract contains two changes: 1. Security Pacific National Bank's address; and . 2. The interest rate limit is raised from 11 percent to 15 percent to accommodate the current rate charged by FHA on Title I in- sured loans (13 percent) . The contract limit is intentionally raised beyond the current rate to avoid future contract amend- ments. Pro anti Contract A5 `a.1 - Sec _ty Pacific National Bank November 1: )9 Page 2 FUNDING SOURCB: U.S. Department of Housing and Urban Development, Housing and Community Development Program. ALTERNATIVE ACTIONS: The City could implement the program by establishing an in-house system; however, this approach would require a large staff to administer the program., and would not leverage grant funds. Respectfully submitted, James W. Palin, Director Development Services J'WP:S VK:j b a 1 i i t 7 REQUEST FOR CITY COUNCIL ACTI0 ,C--ff"tdA.-,1— Submitted by Edward D. S eiich Department Planning Date Prepared April 7,_ 119 78 Backup Material Attached FX-J Yes No Subject Approval of Contract with Security Pacific National Bank for Residential Rehabilitation Loans City Administrat Comments APPROVLEA B I CITY COUNCIL Approve as recommended. CITY !n Ll'UC Statement of Issue, Recommendation,Analysis, Funding Source,Alternative.Actions: STATEMENT OF ISSUE As part of the Residential Rehabilitation Loans Prograit, funded with $100,000 of the City's Third Year Rousing and Community Development Block_, the participation of a financial institution will be required. The financial institution will be responsible for the issuance of loans to program participants. the servicing of loans, and will offer "leveraging" of limited block grant funds. RECOMMENDATION Approve the attached contract retaining the services of Security Pacific National Bank: for the implementation of the financial aspects of the Residential Rehabilitation Loans Program. ANALYSIS On March 1, 1978, the Planning Department requested proposals from financial. institutions for participation in the Residential Rehabili- tation Loans Program. These proposals were reviewed by staff, and submitted for the City Council' s consideration on March 3, 1978. At the March 3 meeting, the City Council approved the selection of Security Pacific National Bank, and authorized the City Attorney to negotiate a contract retaining the services of the bank. SUMMARY The attached contract, negotiated at the Council's direction, retrains the services of Security ?,acific National Bank for the implementation of the Residential Rehabilitation Loans Program. PIQ 3na Page Two FUNDING SOURCE U.S. Department of Housing and Urban Development, Housing and Community Development Program. ALTERNATIVE ACTIONS The City could implement the program by establishing an in-house system, however, this approach would require a large stuff to administer the program, and would nct leverage grz7nt funds. Respectfully submitted, (41J D`�Q Edward D. Selich Planning Director PT:gc i { i 'k -r ORZ6,1,V4L- SUPPLEMENTAL AGREEMENT NO. 1 TO REHABILITATION LOAN PROGRAM OPERATING AGREEMENT BY AND BETWEEN THE CITY OF HUNTINGTON BEACH (herein as CITY) AND SECURITY PACTFIC NATIONAL BANK (herein as BANK) WHEREAS, the City of Huntington Beach, a municipal corporation in the State of California (hereinafter referred to as "CITY") , and Security Pacific National Bank, a national banking; association (hereinafter referred to as "BANK" ) , have heretofore entered into a Rehabilitation Loan Program Operating Agreement (hereinafter referred to as "AGREEMENT") ; and The Agreement between the CITY and BANK has been reviewed and approved by the U. S. Department of Housing and Urban Development (HUD) as complying with 24 CFR 570. 513 of HUD's regulations on Community Development Block Grants; and Such Agreement was executed on August 19, 1980 for a term of two years; and The parties to the Agreement wish to extend its term, NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS : 1. Section XI - TERM - is deleted and the following is substituted therefor: This Agreement is to expire August 14 , 1984 . 2. All other terms of the Agreement shall remain in full force and effect. s JG:bb 8/4/82 r IN WITNESS WHEREOF, the parties have hereto caused this Agreement to be executed. by their respective officers. CITY OF HUNTINGTON BEACH, a municipal corporation ATTEST: By Cl,/' Mays I, Tt C..iy C'l('rlt APPROVED AS TO FORM: REVIE4dED AND APPROVED: ' / -• ' City Atto iey '� _ City Administrator INITIATED AND APPROVED: SECURITY PACIFIC NACIONAL Director or Puir.ess and Industrial BANK �• Enterprise f Phil Long, i, e President')-- 2 — t?CSif-s`yy ... va;e�.,. F+,r....,A_,y,:°-?>n'.+,n-.,'w:}..;;f+wa.,.�.a,-,+!,NRn• -*syw» 3.... a.w,.an.. r. y REHABILITATIJN LOAN PROGhAM OPERATING AGREEMENT THIS AGREEMENT is made and entered into this day of 1980, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation in the State of Cali- fornia, hereinafter referred to as "CITY," and SECURITY PACIFIC NA'1"IONAL BANK, a national banking association, a legal entity, hereinafter referred to as "BANK. " R E C I T A L S WHEREAS, CITY is carrying out a Neighborhood Preservation Program as part of CITY1Q Community Development Block Grant Pro- gram under the United States Housing and Community Development Act of 1974 which was oeauthorized by the 1977 Act; and CITY and BANK desire to mutually agree upon the methods and procedures under which they will make loans for rehabili- tation and improvement purposes. xx NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS: I. LOAN APPLICATION PACKAGE: CITY shall refer all persons desiring credit under this Agreement ,o BANK by forwarding to BANK a Loan Application Package 1 consisting of at least the following documents and materials: (a) Letter of introduction from CITY. (b) Appropriate loan application; application supplement and BANK'S form of Fair Lending Notice. JG:bc 1. 6/23/80 WHOM (c) Construction contract or bids or description of work with cost estimates. (d) Applicant authorization of confidential disclosures. II. REVIEW OF LOAN APPLICATIONS: BANK shall review the Loan Application Package within five (5) days of receipt. BANK shall forward to CITY and applicant a written notice indicating either BANK'S approval or disapproval of the loan application. The written notice shall be held by CITY as a privileged and confidential document and not as a public record unless disclo,ure is required by the California Public Records Act (Government Code H 6250 et seq. ) . CITY warrants that BANK shall be held harmless from any act of CITY'S employees within the scope of their employment and in the course of the loan process that are in violation of state and/ or federal credit granting statutes. With the above exception, the sole liability of CITY with respect to any loan shall be the interest subsidy, and BANK shall have no recourse against CITY, its officers, employees or agents other than for the full amount of said agreed upon interest subsidy. III. LOAN PROVISIONS: f 1. BANK agrees to promptly make loans for the Neighborhood Preservation Program in all cases where loan applications are ap- proved by BANK and CITY. 2. CITY may subsidize a loan by making a single "lump sum" interest subsidy payment to BANK at loan funding so that the finance charge payable by the borrower shall be as determined 2. Ay CITY. 3. Interest rates to be charged to borrower shall be det°ermined by BANK, prior to any interest subsidy, but not to exceed the Federal Housing Authority (FHA) rate for the Title I loan program less one-half point interest rate. In considera- tion of CITY depositing block grant funds in BANK, BANK shall charge CITY one-half point subsidy interest rate less than the FHA rate. 4. In cases where a borrower prepays a loan, BANK shall refund to CITY the unused prepaid interest subsidy, providing that such refund exceeds $50. Refund to be calculated based on the Rule of 78ths method. IV. DEPOSIT OF CITY FUNDS AND PAYMENT OF INTEREST SUBSIDY: 1. CITY shall deposit its Housing and Community Develop- ment Block Grant :Funds allocated to the program with BANK in an interest bearing account. Such funds shall earn interest at the market rate offered to the general public for deposits of similar size and maturity established by federal regulation. All such earned interest shall be used to further fund the s Neighborhood Preservation Program. 2. CITY shall maintain sufficient funds throughout the term of this Agreement to meet its subsidy payment obligations. BANK is authorized to debit CITY'S account the interest subsidy S or subsidies due on loans funded from time to time. 3. Initial amount of deposit shall be $350,000 with ad- ditional deposits made as authorized by CITY throughout the term of this Agreement. V. LOAN DOCUMENTATION AND DISBURSEMENT: 1. CITY shall obtain a dated and signed rehabilitation con 3 . tract. The contract must specify the type of improvements and the itemized cost of those improvements. If the property owner per- forms the work himself or herself, CITY must certify the re- habilitation specifications and the itemized cost of each improve- ment. 2. CITY shall forward the executed contract or CITY certified specifications to BANK with a request for lc,,;-, documents. 3. BANK shall prepare and forward loan dok:umentation at the interest rate previously determined and advise CITY of the interest subsidy due. Payments on the loan are in equal monthly installments. The first payment is due thirty (30) days from note date. 4. CITY shall obtain borrov.er' s signature on loan docu- mentation and shall return all documents to BANK. 5. BANK shall forward to CITY loan proceeds in the form of a Cashier' s Check or checks payable to the borrower. If more than one check is necessary, CITY shall inform BANK of the number of checks to be issued. VI. COMPLETION CERTIFICATE: 1. CITY shall make a final inspection. 2. CITY shall execute the completion certification (FHA-2) . (a) The certificate must be properly filled in and signed by both the customer and the contractors. It must be dated the day it is signed by the borrowers , and borrowers must sign it after work has been completed. The completion certificate includes the necessary lien releases. 1 4. V 1 _.u.�-..4.< ,.....-_.. .cs.r-,..,e.;tr-_as w«rv-st•ew... r-ti ., .,._. .-,: i i ri (b) CITY shall forward the completed and signed com- pletion certificate to BANK. VII. COLLECTION OF FUNDS: BA14K shall collect all monthly payments made on account of loans originated under this loan program. There shall be no additional charge to the borrower or CITY for servicing of loans except charges to the borrower resuiting from late payments, defaults and/or foreclosures. The federal government and/or BANK or their designees are not barred by this provision from collecting amounts from the borrower which represent a loss of principal , interest and/or administration or legal costs result- ing from a foreclosed loan. VIII. DELINQUENCY AND FORECLOSURE: BANK shall forward to CITY a copy of defaults and fore- closure or proposed foreclosure proceedings. CITY shall have the option to cure any default of the borrower. BANK shall re- port to CITY any loan delinquencies at least once a month. IX. CITY'S LOAN LIABILITY: City shall not be liable or responsible in any manner in the event of borrower' s default on his or her promissory note with BANK which is related to the loan. X. INDEMNIFICATION: BANK agrees to indemnify, defend and hold harmless CITY, its officers, agents, employees and representatives against loss, damage or expense by reason of any suits, claims, demands and judgments caused by the wrongful acts of BANK, its employees or 5. I agents arising out of the performance of this Agreement. XI. TERM: The term of this Agreement shall be two years from the date of its execution. XII. TERMINATION: CITY or BANK may terminate this Agreement by 60 days written notice. Any termination of this Agreement shall not affect loans outstanding at the time of said termination. XIII. PRIOR AGREEMENT REVOCATION: This Agreement revokes an existing prior agreement , between these parties , titled REHABILITATION LOAN PROGRAM AGREEMENT, and dated December 17 , 1979. XIV. GOVERNING LAW: This Agreement shall be governed by and construed in actor°d- ance with the laws of the State of California and the terms and provisions contained herein shall be subject to th provisions governing lump sum drawdowns for property rehabilitation , 24 CFR Section 570. 513 of the United States Department of H.U.D. regulations on Community Development Block Grants. IN WITNESS WHEREOF, the parties have hereto caused this Agreement to be executed by their respective officers. CITY OF HUNTINGTON BEACH, a municipal corporation By Mayor ATTEST: APPROVED AS TO FORM: City Clerk C ty Attorney 6. REVIEWED AND APPROVED: INITIATED AND APPROVED: City Administrator rector of Development Services I SECURITY,)PACIFIC NATIONAL BANK 1 By PM Lang Title 7- &,, REHABILITATION LOAN PROGRAM AGREEMENT THIS AGREEMENT is made and entered into this,20-J-1- day of 194n, by and between the CITY OF HUNTINGTON BEACH, a m,,nicipal corporation, Hereinafter called "CITY, " and SECURITY PACIFIC NATIONAL BANK, a national banking association, hereinafter called "BANK. " RECITALS WHEREAS, CITY has authorized a Residential Rehabili- tation Program as part of its Community Development Block Grant Program (as may be amended and modified from time to time) , here- inafter called "PROGRAM; " and As part of CITY 's implementation of PROGRAM, CITY h,. i requested BANK to make FHA Title I insured property improvement loans, hereinafter called "LOANS, " to certain qualified owners of zeal property, hereinafter called "APPLICANT, " within CITY who have been approved by CITY as recipients of LOANS. The purpose of the LOANS will be the rehabilitation of said real property in accordance with PROGRAM; and BANK is willing to consider making LOANS to qualified CITY APPLICANTS utilizing its own prudent banking judgment and, where LOANS are made, to make them on the terms and conditions set forth in this Agreement, NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE FORE- GOING AND THE MUTUAL AGREEMENTS HEREIN, CITY AND BANK AGREE AS FOLLOWS: 1. At the request of CITY, BANK, through its Community Development Opportunity Center, shall consider making LOANS to APPLICANTS directed to BANK by CITY. 2. CITY shall furnish to BANK with respect to each LOAN application the following: a. An introductory letter stating that CITY desires BANK to consider making a LOAN to APPLICAaT: b. A work repair specification form including a preliminary cost estimate; C. A completed and signed credit application indicating the desired LOAN amount and terns. 3 . BANK shall verify eligibility of the proposed improvements under FHA Title I requirements, owner's title to the property, owner's employment and income, and will complete a credit investigation and make its judgment with respect to the credit worthiness of each APPLICANT. BANK shall inform a desig- nated representative of the CITY and the APPLICANT of LOAN approval or disapproval. 4 . If the APPLICANT' s credit is approved for the LOAN, CITY shall: a. Assist the homeowner, if necessary, in obtain- inc, at least three (3) bids for the rehabilitation work; b. Prepare a contract indicating the accepted bid , the type and extent of improvements, and a description of materials used; 5. Upon receipt of request for LOAN documents, BANK shall: a. Prepare all LOAN documents and documentation; -2- b. Provide for and advise CITY of precomputed interest subsidy to be paid by CITY resulting in a disclosed annual percentage rate to be determined by CITY and proviu_ng further that said rate shall not exceed 22 percent; C. Amortize the LOAN in equal monthly install- ments starting thirty (30) days from the note date over a period not to exceed fifteen (15) years; d. Deliver LOAN documents to CITY. 6. Upon receipt of LOAN documents, rITY shall: a. Obtain APPLICANT's signature on LOAN documents and return all documents to BANK along with remittance for interest subsidy; b. Deliver LOAN proceeds to APPLICANT after .funding by BANK; C. Make proper inspections and file properly signed completion certificates with BANK after completion of re- habilitation work; d. The sole liability of CITY with respect to any LOAN shall be the interest subsidy and BANK shall have no recourse against CITY, its officers, employees or agents other than for full amount of said agreed upon interest subsidy. 7. The term of this Agreement shall be for one (1) year from date of execution by CITY. This Agreement may be termin- ated by either party provided written notice of intent to terminate is given to the other party at least sixty (60) days prior to the termination date. Any termination of this Agreement shall not affect the operation hereof as it relates to LOANS outstanding at the time of said termination. _3- __ ,. 8. CITY and BANK shall comply with all applicable statutes and regulations, including without limitation the Consumer Credit Reporting Act and Regulation Z thereto, and the Equal Opportunity Act and Regulation B thereto. 9. Any communications between the parties hereto may be given by mailing the same, postage prepaid, as follows: SECURITY PACIFIC NATIONAL BANK Community Development Opportunity Center P.O. Box 4430 Downey, CA 90241 CITY OF HUNTINGTON BEACH Department of Development Services P.O. Box 190 Huntington Beach, CA 92648 or to such other addresses as either party may in writing here- after indicate. 10. This Agreement and any agreement, document, or instrument attached hereto or referred to herein integrate all terms and conditions mentioned herein or incidental hereto, and. supersede all oral negotiations and prior writings in respect to the subject matter hereof. In the event of any conflict between the terms; conditions and provisions of this Agreement, and any such agreement, document or instrument, the terms, conditions, and provisions of this Agreement shall prevail. 11. This Agreement shall be administered on behalf of CITY by and through the CITY Department of Development Services. 12. This Agreement and any note or other instrument or agreement required hereunder shall be governed by and construed under the laws of the State of California. -4- 13. This Agreement may be executed in as many counterparts as may be deemed convenient, each of which, when executed, shall be deemed as original. IN WITNESS WHEREOF, the parties hereto have executed this agreement or the day, nionth .and year first above written. ATTEST: CITY Or HUNTINGTON BEACH ALICIA M. WENTWORTH, CITY CLERK i o Deputy City Clerk Mayor RPVIEWED AND APPROVED: APPROVED AS TO FORM: ty Administrator City AEtorney INITIATED AND APPROVED AS TO CONTENT: i ector of Develop gent Services SECURITY PACIFIC NATIONAL BANK ti , By Mil Lent, Tic,ProSida;'t REHABILITATION LOAN PROGRAM AGREEMENT THIS AGREEMENT is made and entered into this /7 4' day of fA1 ._ 1979, by and between the CITY OF HUNTINGTON BEACH, a mun'-cipal corporation, hereinafter called "CITY, " and SECURITY PACIFIC NATIONAL BANF, a national banking association, hereinafter called "BANK. " RLCITALS WHEREAS, CITY has authorized a Residential Rehabili- tation Program as part of its Community Development Block Grant Program (as may be amended and modified from time to time) , here- inafter called "PROGRAM; " and As part of CITY's implementation of PROGRAM, CITY has .requested BANK to make FHA Title I insured property improvement loans, hereinafter called "LOANS, " to certain qualified owners of real property, hereinafter called "APPLICANT, " withi,: CITY who have been approved by CITY as recipients of LOANS. The purpose of the LOANS will be the rehabilitation of said real property in accordance with PROGRAM; and BANK is willing to consider making LOANS to qualified CITY APPLICANTS utilizing its own prudent banking judgment and, where LOANS are made, to make them on the terms and conditions set forth in this Agreement, NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE FORE- GOING AND THE MUTUAL AGREEMENTS HEREIN, CITY AND BANK AGREE AS FOLLOWS: 1. the request of CITY, BAIG through its Community Development Opportunity Center, shall consider making LOANS to APPLICANTS directed to BANK by CITY. 2. CITY shall furnish to BANK with respect to each LOAN application the following: a. An introductory letter stating that CITY desires BANK to consider making a LOAN to APPLICANT: b. A work repair specification form including a preliminary cost estimate; C. A completed and signed credit application indicating the desired LOAN amount and terms. 3. BANK shall verify eligibility of the proposed _mprovements under FHA Title I requirements, owner's title to the property, owner's employment and income, and will complete a credit investigation and make its judgment with respect to the credit worthiness of each APPLICANT. BANK shall inform a desig- nated representative of the CITY and the APPLICANT of LOAN approval or disapproval. 4 . If the APPLICANT's credit is approved for the LOAN, CITY shall: a. Assist the homeowner, if necessary, in obtain- ing at least three (3) bids fcr the re'E�abiiitation wcr:%-; b. Prepare a contract indicating the accepted bid the type and extent of improvements, and a description of materials used; 5. Upon receipt of request for LOAN documents, BANK shall: a. Prepare all LOAN documents and documentation; -2- b. Provide for and advise CITY of precomputed interest subsidy to be paid by CITY resulting in a disclosed annual. percentage rate to be determined by CITY and providing further that said rate shall not exceed 15 percent; C. Amortize the LOAN in equal monthly install- ments starting thirty (30) days from the note date over a period not to exceed fifteen (15) years; d. Deliver LOAN documents to CITY. 6. Upon receipt of LOAN documents, CITY shall: a. Obtain. APPLICANT's signature on LOAN documents and return all documents to BANK along with remittance for interest subsidy; b. Deliver LOAN proceeds to APPLICANT after funding by BANK; C. Make proper inspections and file properly signed completion certificates with BANK after completion of re- habilitation work; d. The sole liability of CITY with respect to any LOAN shall be the interest subsidy and BANK shall have no recourse against CITY, its officers, employees or agents other than for full amount of said agreed upon interest subsidy. 7. The term of this Agreement shall be for one (1) year from date of execution by CITY. This Agreement may be termin- ated by either party provided written notice of intent to terminate is given to the other party at least sixty (60) days prior to the termination date. Any termination of this Agreement shall not affect the operation hereof as it relates to LOANS outstanding at the time of said termination. -3- t' Ash 8. CITY and BANK shall comply with all applicable statutes and regulations, including without limitation the Consumer Credit Reporting Act and Regulation Z thereto, and the Equal Opportunity Act and Regulation B thereto. 9. Any communications between the parties hereto may be given by mailing the same, postage prepaid, as follows: SECURITY PACIFIC NATIONAL BANK Community Development Opportunity Center P.O. Box 4430 Downey, CA 90241 CITY OF HUNTINGTON BEACH Department of Development Services P.O. Box 190 Huntington Beach, CA 92648 or to such other addresses as either party may in writing here- after indicate. 10. This Agreement and any agreement, document, or instrument attached hereto or referred to herein integrate all terms and conditions mentioned herein or incidental hereto, and supersede all oral negotiations and prior writings in respect to the subject matter hereof. In •the event of any conflict between the terms, conditions and provisions of this Agreement, and any such agreement, document or instrument, the terms, conditions, 3 and provisions of this Agreement shall prevail. 11. This Agreement shall be administered on behalf of CITY by and through the CITY Department of Development Services. 12. This Agreement and any note or other instrument Y or agreement required hereunder s_:all be governed by and construed under the laws of the State of California. k -4- a 13. This Agreement may be executed in as many counterparts as may be deemed convenient, each of which, when executed, shall be deemed as original. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day, *.tionth .dnd year first above written. . ATTEST: CITY OF HUNTINGTON BEACH ALICIA M. WENTWORTH, CITY CLERK B y I Deputy City Clerk Mayor REVIEWED AND APPROVED: APPROVED AS `1`O FORM: City Administrator 4 City Att ev INITIATED AND APPROVED AS TO CONTENT: 6 T--�i�c irector of Development Services SECURITY PACIFIC NATIONAL BANK BY Phil tong Since Press[eat mom.. REHABILITATION LOAN PROGRAM AGREEMENT THIS AGREEMENT is made and entered :into this_L day of ,�X �, 1978, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation, hereinafter called "CITY," and SECURITY PACIFIC NATIONAL BANK, a national banking association, hereinafter called "BANK. " RECITALS WHEREAS, CITY has authorized a Residential Rehabilita- tion Program as part of its Community Develor ent Block Grant Program (as may be amended and modified from -1me to time), here- inafter called "PROGRAM; " and As part of CITY's implementation of PROGRAM, CITY has requested BANK to make FHA Title I insured property improvement loans, hereinafter called "LOANS," to certain qualified owners of real property, hereinafter called "APPLICANT," within city who have been approved by CITY as recipients of LOANS. The purpose of the LOANS will be the rehabilitation of said real property in accordance with PROGRAM; and BANK is willing to consider making LOANS to qualified city APPLICANTS utilizing its own prudent banking judgment and, where LOANS are made, to make them on the terms and conditions set forth in this Agreement, NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE FORE- GOING AND THE MUTUAL AGREEMENTS HEREIN, CITY AND BANK AGREE AS MT:cs FOLLOWS: 1. 1. At the request of CITY, BANK, through its Community Development Opportunity Center, shall consider making LOANS to APPLICANTS directed to BANK by CITY. 2. CITY shall furnish to BANK with respect to each LOAN application the following: a. An introductory letter stating that CITY desires BANK to consider making a LOAN to APPLICANT; b. A work repair specification form including a preliminary cost estimate; C. A completed and signed credit application indicating the desired LOAN amount and terms. 3. BANK shall verify eligibility of the proposed improvements under FHA Title I requirements, owner' s title to the property, owner's employment and income, and will complete a credit investigation and. make its judgment with respect to the credit worthiness of each APPLICANT. BANK shall inform a desig- nated representative of the CITY and the APPLICANT of LOAN approval or disapproval. 4. If the APPLICANT'S credit is approved for the LOAN, CITY shall: a. Assist the homeowner. , if necessary, in obtain- ing at least three (3) bids for the rehabilitation work; b. Prepare a contract indicating the accepted bid, the type and extent of improvements, and a description of materials used; 5. Upon receipt of request for LOAN documents, BANK shall: 2. a. Prepare all LOAN documents and documentation; b. Provide for and advise CITY of precomputed interest subsidy to be paid by CITY resulting in a disclosed. annual percentage rate to be determined by CITY and providing further that said rate shall not exceed 11 percent; C. Amortize the LOAN in equal monthly installments starting thirty (30) days from the note date over a period not to exceed fifteen (15) years; d. Deliver LOAN documents to CITY. 6 . Upon receipt of LOAN documents, CITY shall: a. Obtain APPLICANT's signature on LOAN documents and return all documents to BANK along with remittance for interest subsidy; b. Deliver LOAN proceeds to APPLICANT after fund- ing by BANK; C . Make proper inspections and file properly signed completion certificates with BANK after completion of rehabilita- tion work; d. The sole liability of CITY with respect to any r t LOAN shall be the interest subsidy and BANK shall have no recourse against CITY, its officers, employees or agents other than for full amount of said agreed upon interest subsidy. 7. The term of this Agreement shall be for one (1) } year from date of execution by CITY. This Agreement may be terminated by either party provided written notice of intent to terminate is given to the other party at least sixty (60) days prior to the termination date. Any termination of this Agreement 3. _._. shall not affect the operation hereof as it relates to LOANS outstanding at the time of said termination. 8. CITY and BANK shall comply with all applicaule statutes and regulations, including; without limitation the Consumer Credit Reporting Act and Regulation Z thereto, and the Equal Opportunity Act and Regulation B thereto. 9. Any communications between the parties hereto may be given by mailing the same, postage prepaid, as follows : SECURITY PACIFIC NATIONAL BANK Community Development Opportunity Center 1901 Avenue of the Stars, M80 Los Angeles, CA 90067 CITY OF HUNTINGTON BEACH Planning and Environmental Resources Department P. 0. Box 190 Huntington Beach, CA 92648 or to such other addresses as either party may in writings here- after indicate. 10. This Agreement and any agreement, document or instrument attached hereto or referred to herein integrate all terms and conditions mentioned herein or incidental hereto, and supersede all oral negotiations and prior writings in respect to the subject matter hereof. In the event of any conflict between the terms, conditions and provisions of this Agreement, and any such agreement, document or instrument , the terms, conditions and provisions of this Agreement shall prevail. 11. This Agreement shall be administered on behalf of CITY by and through the CITY Department of Planning and Environ- mental Resources . 4. 12. This Agreement and any note or other instrument or agreement required hereunder shall be governed by and con- strued under the laws of the State of California. 13. This Agreement may be executed in as many counter parts as may be deemed convenient, each of which, when executed, shall be deemed an original. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day, month and year first above written. I ATTEST: CITY OF HUNTINGTON BEACH r °~ 77 y City Clerk Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: C'ty Administrator City/'Attorne M INITIATED AND APPROVED AS TO CONTENT: Planning Director 4 SECURITY'jbACIFIC NATIONAL BANK n BY Assistant Vice resident ' 5.