Rules for Getting and Keeping Grant or Loan Funds

A. A grant or loan agreement for distribution of funds under this chapter must contain the following conditions and restrictions: 1. Title to any real property must be held in perpetuity by the grantee or the borrower unless conveyed to the County or to a qualified nonprofit organization as approved by the council. 2. The grantee or borrower must submit annual reports to the director documenting the project's progress. 3. The subject project must not be sold, exchanged, divested, or converted to other uses that are inconsistent with the purposes set forth in this chapter without the prior approval of the council by resolution. 4. If the grantee or borrower dissolves or is adjudicated bankrupt pursuant to any applicable federal statute, title to any real property that has been funded or improved by a grant or loan issued from the fund shall be conveyed to the County or to a qualified nonprofit organization as approved by the council. 5. The grantee or borrower may not distribute or redistribute grant or loan funds to other organizations without the council's prior approval by resolution. B. Loans from the fund must: 1. Be secured by a first mortgage lien in favor of the County. 2. Have a term set by the director. 3. Require the borrower to execute a promissory note in favor of the County. 4. Include an interest rate set at three percent per annum. 5. Be recorded with the bureau of conveyances or the land court. C. In the event of a loan default or if the project is not serving the purposes as set forth in this chapter, the following may be required of the borrower: 1. Forfeit the land or property to the County. 2. Repay the loan with applicable interest. ( Ord. No. 4978 , § 2, 2019)