SEC. 40.16. ELIGIBILITY FOR LOAN.

(a) Each owner of a residential multi-family building inspected pursuant to a systematic program of enforcement of rehabilitation standards or pursuant to the voluntary inspection program defined in Section 40.9 of this Chapter is eligible for a loan, provided the owner demonstrates to the satisfaction of the Chief Administrative Officer the ability to repay such a loan; applies for the loan within a time period to be designated by the Chief Administrative Officer; and can meet the other requirements of this Chapter. The property owner shall agree to all conditions of the loan agreement as a prerequisite to obtaining a loan. No elective officer of the state or any of its subdivisions shall be eligible to receive a loan under the provisions of this Chapter.

(b) No owner shall be eligible for a loan under the program if the owner has in the 12 months preceding the date of application:

(1) Attempted to, or intentionally did cause any tenant to vacate his or her premises in the subject building, other than for those causes defined as just cause by the San Francisco Rent Stabilization and Arbitration Ordinance or other ordinance or general law limitation on cause for eviction as may be applicable to the building; or

(2) Attempted to, or intentionally did cause any tenant to vacate his or her premises in the subject property by the use of coercion, intimidation, harassment, undue influence, or any means contrary to law; or

(3) Caused the conversion of any residential hotel unit to any other use or any apartment unit to tourist hotel unit use in the subject building subsequent to November 23, 1979 in violation of the San Francisco Residential Hotel Unit Conversion, Demolition and Change in Use Ordinance, or such other ordinance or law as may be applicable to the conversion of such units at the time of such conversion.

Any owner found ineligible for any of the above reasons may not reapply for a loan under this Chapter for a period of 18 months from the date of final denial. Each loan applicant shall be required as part of the application process to sign an affidavit swearing under penalty of perjury that he or she has not engaged in any of the prohibited practices specified herein during the 12 months preceding the date of application.

(c) In any year in which the Chief Administrative Officer determines that in the next succeeding year funds will not be available to fund all applications meeting the program criteria in a timely fashion, priority shall be given to those buildings inspected pursuant to Section 40.8, and second priority to those buildings qualifying under Section 40.9 in which 50 percent or more of the units, as shown in the loan application, are such that the units meet the definition of "low income housing stock" in Chapter 13 (Subdivision Code) of the Municipal Code of the City and County of San Francisco.

shion, priority shall be given to those buildings inspected pursuant to Section 40.8, and second priority to those buildings qualifying under Section 40.9 in which 50 percent or more of the units, as shown in the loan application, are such that the units meet the definition of "low income housing stock" in Chapter 13 (Subdivision Code) of the Municipal Code of the City and County of San Francisco.

(d) Any owner who is denied a loan by the Chief Administrative Officer on the grounds that the owner does not meet eligibility requirements may appeal the decision to the Loan Committee. Any tenant of a building for which approval has been granted may appeal the approval on grounds of ineligibility under Subdivision (b) of this Section. The Loan Committee shall review the application for a loan and make a recommendation regarding approval or denial to the Chief Administrative Officer.

In reviewing the application, the Loan Committee shall give due consideration to the need for the loan to be made in order to accomplish the purposes of the program, the risks to the City and County of granting the loan, and the ability of the property to support the loan as well as the reasons for approval or denial of the application by the Chief Administrative Officer. If the Chief Administrative Officer does not accept the recommendation of the loan committee, he or she shall give written reasons for the refusal to approve or deny the loan.

(Added by Ord. 482-80, App. 10/17/80)