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RESOLUTION NO 5,971
A RESOLUTION AMENDING RESOLUTION #5 ,427 , AS
AMENDED, AS SUCH PERTAINS TO THE HOME IMPROVE-
MENT PROGRAM; AND FOR OTHER PURPOSES
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
OF LITTLE ROCK , ARKANSAS .
SECTION 1 . Resolution #5 ,427 , adopted by the Board of
Directors October 7 , 1975 , as amended, is hereby amended as
such pertains to the Home Improvement Program set out on
Attachment "A" of said Resolution #5 , 427 , as follows :
a) The maximum loan limit is raised from $12 ,500. 00
to $18 ,000 . 00
b) The use of a flat three (3%) percent interest
in the code enforcement areas.
SECTION 2. This Resolution shall be in full force and
effect from and after its adoption.
ADOPTED: July 26, 1978
ATTEST: APPROVED:
City Cit Cler Mayor
Copy of Attachment A of Resolution No. 5,427
•
ATTACHMENT A
Low Interest Loan Program
Pulaski Federal, Commonwealth, and First Federal Savings and Loan Associa-
tions have agreed to use three hundred thousand dollars ($300,000) of their
funds to match the three hundred thousand dollars ($300,000) of Community Deve-
lopment Block Grant funds for a low interest rehabilitation loan program. The
total six hundred thousand dollars ($600,000) will be used to rehabilitate (to
the City's Code) owner-occupant homes in the Little Rock area. The program
will operate accordingly:
1. Interest will be charged on a sliding scale ranging from three
percent (3%) to seven percent (7%) . Anyone over seven percent
(7%) should be able to qualify for a regular loan.
2. The maximum loan will be twelve thousand dollars ($12,0001.
3. The City will subsidize the loan company for lost interest.
4. The loan package will be worked up by the Little Rock Housing
Authority.
5. The decision not to make a loan will rest with a committee.
6. For each loan, the loan company will loan fifty percent (50%) of
their funds, and fifty percent (50%) from the City. Interest
will be charged on the total loan.
7. Homes must be brought up to the City's Codes.
8. The Housing Authority will supervise the rehabilitation.
9. The period for repayment will depend on the ability to repay but
shall not exceed fifteen years (15) .
10. Repayments will be divided between the City and the loan company
with the City's share being placed in a special account to be
used to subsidize interest, administrative charges and future
loans.