Prior to the issuance of any bonds or bond anticipation notes of the agency for residential rehabilitation, the agency shall by ordinance adopt a comprehensive residential rehabilitation financing program, including:
(1)
Criteria for selection of residential rehabilitation areas by the agency including findings by the agency that:
Arrest: Taking physical custody of a person by lawful authority.
Citizen participation: means action by the agency to provide persons who will be affected by residential rehabilitation financed under the provisions of this part with opportunities to be involved in planning and carrying out the residential rehabilitation program. See Utah Code 11-25-3
Financing: means the lending of money or any other thing of value for the purpose of residential rehabilitation. See Utah Code 11-25-3
Residence: means a residential structure in residential rehabilitation areas. See Utah Code 11-25-3
Residential rehabilitation: means the construction, reconstruction, renovation, replacement, extension, repair, betterment, equipping, developing, embellishing, or otherwise improving residences consistent with standards of strength, effectiveness, fire resistance, durability, and safety, so that the structures are satisfactory and safe to occupy for residential purposes and are not conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime because of any one or more of the following factors:
(a)
defective design and character of physical construction;
(b)
faulty interior arrangement and exterior spacing;
(c)
high density of population and overcrowding;
(d)
inadequate provision for ventilation, light, sanitation, open spaces, and recreation facilities;
(e)
age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses; and
(f)
economic dislocation, deterioration, or disuse, resulting from faulty planning. See Utah Code 11-25-3
Residential rehabilitation area: means the geographical area designated by the agency as one for inclusion in a comprehensive residential rehabilitation financing program pursuant to the provisions of this chapter. See Utah Code 11-25-3
(a)
There are a substantial number of deteriorating structures in the area which do not conform to community standards for decent, safe, sanitary housing.
(b)
Financial assistance from the agency for residential rehabilitation is necessary to arrest the deterioration of the area.
(c)
Financing of residential rehabilitation in the area is economically feasible. These findings are not required, however, when the residential rehabilitation area is located within the boundaries of a project area covered by an urban renewal project area plan adopted in accordance with Section 17C-2-107.
(2)
Procedures for selection of residential rehabilitation areas by the agency including:
(a)
Provisions for citizen participation in selection of residential rehabilitation areas.
(b)
Provisions for a public hearing by the agency prior to selection of any particular residential rehabilitation area.
(3)
A commitment that rehabilitation standards will be enforced on each residence for which financing is provided.
(4)
Guidelines for financing residential rehabilitation which shall be subject to the following limitations:
(a)
Outstanding loans on the property to be rehabilitated including the amount of the loans for rehabilitation, may not exceed 80% of the anticipated after-rehabilitation value of the property to be rehabilitated, except that the agency may authorize loans of up to 95% of the anticipated after-rehabilitation value of the property if loans are made for the purpose of rehabilitating the property for residential purposes, there is demonstrated need for such higher limit, and there is a high probability that the value of the property will not be impaired during the term of the loan.
(b)
The maximum repayment period for residential rehabilitation loans shall be 20 years or 3/4 of the economic life of the property, whichever is less.
(c)
The maximum amount loan for rehabilitation for each dwelling unit and for each commercial unit which is, or is part of a “residence” as defined in this chapter, shall be established by resolution of the agency.
