09-14-2016 Workshop Packet - Laserfiche WebLink

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Eligible Improvements: The proceeds of the loan may be used to finance permanent exterior and interior Improvements which improve the basic livability or energy efficiency of the property, including home additions, construction or renovation of a garage and hardscapes; bring a property into compliance with state, county, city or municipal health, housing or building codes. Ineligible Improvements: Projects already started prior to loan closing; any improvement which is not a permanent fixture to the property, e.g., appliance or furniture; payment of assessments for public improvements; construction of or aesthetic improvements to recreational facilities, such as tennis courts, hot tubs, gazebos, swimming pools, saunas, greenhouse or playground equipment; outbuildings or underground sprinkler system. II. SCOPE OF SERVICES GMHC’s Housing Resource Center – North & East Metro, located at 1170 Lepak Court, Shoreview, MN will administer the Little Canada loan program. The scope of services to be provided: 1) Develop all loan application materials. Distribute loan applications. 2) Receive calls from individuals seeking information and/or applications. 3) Assist the city with marketing the loan program, including posting information and applications on GMHC’s web site. 4) Screen callers to determine which GMHC programs best fit their needs and circumstances. 5) Process, underwrite and close the city’s loans. GMHC underwriting is consistent with industry standards. 6) Provide rehab advisory services to applicants by a GMHC construction manager. 7) Record loans at the county. 8) Provide loan servicing through a contract with Community Reinvestment Fund. 9) Escrow loan funds. Disburse payments to contractors by a two-party check (homeowner and contractor) following inspection of work, making sure all permits are closed out, collecting lien waivers and receiving a completed application for payment signed by the contractor and homeowner. 10) Provide monthly reports to the City, detailing number of loans closed, loan amounts, types of improvements, fund balance and program income. III. FEES Borrower Fees: 1) Credit report fee payable at the time of application: $15.00 for an individual; $20.00 for a married couple. 2) Title work: $100 for an Owners & Encumbrance (O&E) Report. This fee can be wrapped in the loan. 3) Recording fee payable at the loan closing. Loan Servicing Fees (paid to Community Reinvestment Fund): 1) Loan set-up fee: one time cost of $15.00 (payable with program income) 2) Monthly transaction fee $6.00 (payable with program income) 3) Subordination fee $125.00 (payable by the borrower) GMHC Origination and Construction Management Fee: 1) $900 for loans up to $10,000 2) $1,200 for loans greater than $10,000