Item 2C: Adoption of Resolution 4892 Concerning the City’s Historic Loan Program

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PROGRAM DESCRIPTION The City of Eugene's Historic Loan Program (HLP) is designed to leverage private investment in the restoration, rehabilitation, repair, and/or maintenance of historic properties. Established in 1976, the HLP is a public financing revolving loan program. Funds for this program are available through the City of Eugene. Applications are accepted and reviewed throughout the year. Approval of a loan request is determined in part by the availability of funds. ELIGIBILITY All City Landmark or National Register properties within the City of Eugene are eligible for the HLP. Other properties may be eligible under special circumstances upon approval by the Loan Committee or the Historic Review Board. Properties may be residential or commercial in use. Funds may be used for restoration, rehabilitation, repair, and/or maintenance. Proposed work must be completed in entirety but can sometimes be part of an ongoing project. Proposed work must go through the City's historic alteration review process for Historic Landmarks, if deemed appropriate, and meet the Secretary of Interior's Standards for Rehabilitation. PROGRAM TERMS The following terms of the HLP are intended to provide additional flexibility over conventional lending programs to accommodate and adapt to the changing needs of historic property owners. Therefore, the City Manager or his/her designee has the authority and discretion to alter, amend, waive, or otherwise make an exception to any of the following terms. Matchin2 Funds Loans are approved on a matching fund basis with a minimum 1: 1 ratio of private to public funds for loans made to businesses or individuals. The owner must provide proof of available matching funds. Depending on the scope of the project, the borrower may be required to help fund the project beyond the minimum leverage requirement. Amount The loan amount minimum is $5,000 and maximum is $20,000. Rate The interest rate is fixed for the term of the loan at two points below the Oregon Bond 30-year rate. The interest rate for each loan is set at the time of closing. Term The loan term is generally a maximum of 10-years with equal monthly payments. Loans may be amortized over a longer period if authorized by the City Manager or his/her designee. Collateral All City loans will be secured with collateral appropriate to the loan request. Security will usually consist ofliens against real property and may include personal assets of the borrower. Fees Borrowers will pay a 1 % loan fee and applicable recording fees. There is no application fee. LICMOl2006 Council AgendasIM06ll27IS06ll272C.doc