06-06-2018 Council Packet - Laserfiche WebLink

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8 electronically unless they have not consented to this, in which case the documents would be mailed. Currently, for projects with full construction management services (generally funded by CDBG or HOME dollars), NWHP’s Construction Specialist (CS) discusses the project with the homeowner as well as completes a visual inspection of the entire home for any other health and safety issues at this time. The CS then writes up a scope of work for the project and sends to the homeowner and 3-4 contractors of their choice. Once bids have been received, the CS reviews for financial feasibility of the project. The CS then speaks with the homeowner and, if the homeowner decides to move forward with the project, the loan is then closed. For a number of our current programs, NWHP only provides a portion of these cons truction management services, based on funder need. While we are willing to be flexible, for this program, we would propose that the homeowner receive an initial inspection at the outset of the project. We would also propose NWHP staff complete a scope of work for the project but require that the homeowner solicit at least 3 bids from licensed and insured contractors. We would also propose that NWHP’s staff be involved in the approval of fund disbursem ent to ensure work is complete and we would advise allowing the contractor up to 2 draws during the process. Unless CDBG or HOME funds are being used, NWHP would not propose full construction management services for this program but would be open to other specific tasks that Little Canada would like to see included. Items we would suggest to not be included would be lead and radon testing (unless that is a specific concern), environmental review and historic review. This would be something we would talk through as this process progressed NWHP’s lending staff then issue a Final Commitment Letter and preliminary Closing Disclosure to the borrower. NWHP’s lending staff then personally closes the loan. The loan closing would likely occur at our St. Paul office, which is located 1.5 blocks off I-94 and under 10 miles from Little Canada City Hall. NWHP may be able to close loans on-site in Little Canada, in certain circumstances. After the loan is closed in our current process, our CS meets with the contractor and the homeowner at the property and holds a proceed mee ting in which the entire project is discussed. All funds are held in escrow at NWHP at this time. Once the contractor starts work, the CS is available to both parties to answer questions, provide support or mediate if necessary. Contractors can request progress payments during the project but the CS must inspect the work completed, check for permit completion and authorize any payment before a check is released to the contractor. Once the project is complete, our CS completes a final inspection and wraps up the project and initiates the final payout. All of the above steps are tracked on a loan tracking sheet included in the paper file. In addition, all of the steps are tracked via milestones in our customized SalesForce instance. After loan closing, NWHP staff would then complete the post-closing steps including gathering of the original documents. NWHP staff then complete the final file checklist, review all of the 11