§ 8-07-050. Sidewalk revolving loan fund.

(a)

Loan program created. There is created a loan program to provide eligible property owners with relief from the cost of any city ordered sidewalk repair or construction.

(b)

Revolving loan fund.

(1)

The director of finance shall create and maintain a fund called the sidewalk revolving loan fund. The fund balance of such fund to be used exclusively to provide loans to qualified property owners for the construction and/or repair of sidewalks, driveway aprons and related curb cuts.

(2)

The director of finance shall identify funding sources and amounts to seed the revolving loan fund and make funding recommendations to the city commission.

(3)

The city manager shall, with consent of the city commission, promulgate such rules, policies and procedures as are necessary to implement and manage the revolving loan fund provided that:

a.

The interest rates for all loans made through the revolving loan fund shall never be less than the average annual rate of return for all city investments plus one (1) percent.

b.

The maximum duration of any loan made from the revolving loan fund shall be thirty-six (36) months.

c.

All principal, interest and penalty payments received for loans made through the revolving loan fund shall be credited to the revolving loan fund balance and made available for additional loans.

d.

Origination and administration fees shall be distributed to the department(s) administering and managing the loans.

(4)

Upon recommendation of the city manager the city commission may suspend the sidewalk revolving loan fund program. Nothing in this section shall be construed to require the city to make loans from this fund nor does it grant to any resident a right to receive a loan from the revolving loan fund.

(c)

Property lien. Upon final determination of eligibility the property owner must execute a written agreement to be filed of record acknowledging that the costs of the sidewalk repair or construction constitute a lien against the tract or parcel of land which is contiguous to the sidewalk.

(d)

Nonpayment. If any loan and the accrued interest remains unpaid for a period of more than thirty (30) days after the city has made proper notification, the city may foreclose the lien created by this article in the manner provided in sections 3-36-1 through 3-36-5 NMSA 1978.

(Ord. No. 1360, 9-8-09)