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SEWER ASSISTANCE LOAN PROGRAM GUIDELINES Adopted 12/01/2009 1 A. PROGRAM OBJECTIVE The objective of the Sewer Assistance Loan Program is to assist homeowners who sustain damage to their home and personal property as the result of a sanitary or storm sewer backup which is not covered by the city’s insurer and not associated with the homeowners private service. The program is intended to allow eligible participants to repair damage to their property in a timely fashion. B. EFFECTIVE DATE The effective date of this loan program will be for incidents occurring on or after July 1, 2009. C. PROPERTY ELIGIBILITY 1. This program is only for residential properties. Businesses or residential properties with 4 units or more are not eligible for this program. 2. Mixed-use properties containing commercial uses are not eligible. 3. Costs which are eligible for funding include repairs to the building; cleaning and sanitizing; replacement of personal belongings which are documented. 4. Properties which have received compensation for their loss by the city’s insurance carrier shall not be eligible for this program, D. PARTICIPANT ELIGIBILITY In order to be eligible, the applicant’s household income cannot exceed 150% of median family income. E. FUNDING SOURCE Funding of the loan program shall be established in the sewer and stormwater departments. F. LOAN TERMS 1. The minimum amount of the loan, per household, shall be $1,000. 2. The maximum amount of the loan, per household, shall be $25,000. 3. The interest rate on the loan shall be 4. The loan term shall be established by the Loan Qualification Committee and shall not be greater than 10 years. G. UNDERWRITING 1. The maximum amount of the loan shall be no greater than the actual cost of replacement of eligible items. Damages and costs of replacement may be reviewed, at the city’s discretion, by an Insurance Adjuster, contracted by the City. 2. Documentation of the loss shall include date of the loss; photographs of the damage; estimates or invoices of the damage sustained in the loss; documentation from the city’s sewer department that the loss occurred as the result of a sewer backup and confirmation from the city’s insurance carrier that the damage loss is not covered by the city’s liability insurance. 3. Any prior year taxes, on the property in which the damaged occurred, and outstanding water, sewer and storm water fees must be paid in full in order to qualify for the loan. ---PAGE BREAK--- SEWER ASSISTANCE LOAN PROGRAM GUIDELINES Adopted 12/01/2009 2 4. Security for the loan shall be in the form of a mortgage on the property for which the damaged occurred. H. APPROVAL Loan applications shall be submitted to the Finance Office for Documentation of insurance denial then forwarded to the Development Department to review other underwriting criteria and submission to the Loan Qualification Committee to approve or deny the loan request. .