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A. Whenever a borrower of a rehabilitation loan is in default on a debt to a senior creditor and the repayment of a rehabilitation loan is in jeopardy, the City Manager is hereby authorized to take all actions necessary to protect the City’s financial interests including but not limited to making advancements to senior creditors, foreclosure, bidding for and acquiring the secured property and expending sums in excess of ten thousand dollars.

B. Whenever a borrower of a rehabilitation loan is in default on that debt to the City, the City Manager is hereby authorized to proceed with foreclosure if all resolution measures short of foreclosure have failed, and, the City’s interests in the repayment of rehabilitation loans outweigh the City’s interests in preventing the displacement of low income homeowners. The City Manager is also authorized to take all other actions to protect the City’s financial interests including, but not limited to, acquiring secured property and expending amounts in excess of ten thousand dollars.

C. In exercising the authority conferred by this section, the City Manager shall act in accordance with guidelines adopted by the City Council by resolution.

D. The City Manager is authorized to rent property acquired pursuant to this chapter on a month to month basis pending its ultimate disposition by the council.

E. A report from the City Manager setting forth the basis of any actions taken pursuant to this chapter, the amounts expended, and the sources of funds used shall be transmitted to the council within ten days after taking such actions. (Ord. 5619-NS § 4, 1984)