City of Hughson

The City of Hughson Downtown Façade Improvement Loan Program has been established to stimulate investment in the Downtown. Attractive buildings attract business. The intent of the Loan Program is to produce visible changes on the facades of commercial buildings in Downtown Hughson. This section provides an overview of the Façade Improvement Loan Program. Complete information on this program, including an application and checklist, is available at the Planning Department.

I. ELIGIBILITY AND GENERAL LOAN PROGRAM DESCRIPTION

A. Eligibility
Merchants and property owners located within the Hughson Avenue Principle Improvement Zone are eligible to apply for Hughson Downtown Facade Improvement loans. These loans may also be applied for by business owners who lease or are purchasing their property if all parties to the lease or contract agree to the improvements. The City of Hughson will not discriminate on the basis of race, religion, sex, age, sexual orientation or national origin. For purposes of this program, the Hughson downtown project area is defined as that property within the Economic Improvement District boundaries. Maps of the Improvement Zone boundaries are on file with the City of Hughson Planning Department.

B. Income Requirements
There are no minimum or maximum income requirements for participants. The program shall provide up to fifty percent (50%) of the total cost of this project, not to exceed $10,000 per project for exterior rehabilitation. Program funds of $50,000 are available and would include but not be limited to exterior painting, lighting, signage, weatherization, mounting of new or replacing inadequate awnings.

C. Use of Funds
Loan funds are intended for exterior rehabilitation only. Applicants are eligible for one facade improvement loan per 12 month period.

D. Loan Terms
1. Term: Maximum 5 years
2. Rate: 4% interest, fixed rate, compounded monthly. No penalty for early repayment.
3. Repayment: Monthly amortized payment schedule
4. Amount: The loan shall not exceed $10,000.
5. Project shall be completed within six (6) months of loan approval.

E. Selection Criteria
1. Design approval by the City of Hughson is required before a loan shall be made. Design review criteria will be provided as part of the application packet.
2. Project shall be approved based on availability of funds and the acceptance of the design by the City of Hughson.

F. Disposition of Loan Principal and Interest
Monies repaid to the City of Hughson through this program shall be returned to the Facade Improvement Loan Fund and used to make additional facade improvement loans.

II. LOAN PROGRAM ADMINISTRATION
The City of Hughson is responsible for all design review for loan applications.

III. LOAN APPLICATION AND APPROVAL PROCESS
A. Application Process
1. Applicants shall submit design plans and cost estimates to the City of Hughson for review.
2. Applicants are encouraged to contact the City of Hughson Planning Department for assistance before submitting plans. The City of Hughson has materials on building rehabilitation, sign and awning design to help with design decisions.
3. An application packet of materials, including guidelines and drawings from the City of Hugh-son’s Façade Improvements Program booklet, will be provided to all loan applicants.

B. Loan Approval Process
1. Upon receipt of the above documentation, the City of Hughson shall review the application.
2. If the applicant has been a business or property owner in the Downtown for less than 3 years, the City of Hughson may require additional financial information. All submitted material shall re-main confidential.
3. The City of Hughson will notify the applicant upon loan approval. In the event of rejection, reason(s) will be given and will be based upon the inappropriateness of design, color or use of materials, as recommended in the Design Review application packet.
4. If the loan application is accepted, the applicant shall be provided a written loan commitment stating the term of the loan and the security requirements.

C. Payments and Disbursements
1. Funds will be disbursed within fifteen (15) days of submitting an invoice and after acceptance of completed work by the Planning Department.
2. Funds will be disbursed to the borrower as follows:
a. Upon completion of the project and,
b. After a final inspection sheet has been signed by the property owner and the Planning Department and,
c. Upon receipt of invoices or as agreed upon in the promissory note.
3. The Planning Department shall provide the applicant with a repayment schedule for the loan. Re-payments begin within sixty (60) days after the loan papers are signed. Payments shall be made ac-cording to provisions in the promissory note which shall be executed upon loan approval. In the event of the sale of the Borrower’s business or business property, the total outstanding balance remaining on the loan shall be due upon completion of that sale.

D. Loan Closing Process
1. The City of Hughson will prepare all loan closing documents.
2. All parties to the transaction shall sign the documents necessary to initiate the loan.
3. The applicant shall be responsible for all hiring decisions with regard to contractors and for obtaining any required permits from the City. Project contractor shall be licensed and bonded in the State of California. The contractor shall not discriminate on the basis of race, religion, sex, age, sexual orientation, national origin, disability or marital status.
4. Any changes from the original work plan and design approved by the Planning Department must be subsequently approved by the Planning Department.
5. The Planning Department may conduct periodic inspections to insure compliance during construction.

IV. ACCOUNTING FOR LOAN PROGRAM FUNDS
A. Audits
Audits of loan program funds shall be done in accordance with the terms of the contractual agreement with the City of Hughson and shall be made available for review, upon request.

B. Loan Program Abandonment
In the event the Facade Improvement Program is discontinued the original grant money and loan proceeds will revert to the City, in accordance with the contractual agreement in effect.

For more information on Hughson’s Façade Program please call (209) 883-0811 or email lcullum@hughson.org.

7018 Pine Street PO Box 9 Hughson, CA 95326 (209) 883-4054 phone (209) 883-2638 fax