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-2- <br />b) structural repairs <br />c) plumbing system replacement <br />d) heating system replacement <br />e) electrical rewiring <br />3. Handicapped accessibility (5 percent of units), <br />if applicable. <br />4. Additional exterior and interior items requiring <br />improvement for compliance with local housing codes <br />and the Housing Quality Standards. <br />Items eligible for improvement after the $1,000 minimum cost <br />has been met include: <br />1. Major roof repair (not maintenance). <br />2. Cost effective energy conservation items. <br />a) insulation <br />b) storm windows <br />c) door replacements <br />All rehabilitation under the program must be completed in a <br />cost effective and efficient manner. Extravagant or luxury <br />improvements are not allowed. All work must meet standards <br />sufficient to serve for a minimum duration of fifteen years <br />(the term of the HAP Contract). <br />Financing <br />The Department of Housing and Urban Development (HUD) does not <br />provide financing for the rehabilitation accomplished by property <br />owners in the Moderate Rehabilitation Program. Therefore, the <br />Metro HRA is responsible for assisting property owners in securing <br />financing and marketing the program to prospective lenders, prop- <br />erty owners and communities. Any type of public or private fi- <br />nancing, such as Community Development Block Grant funds, may be <br />utilized under this program with the exception of the Section 312 <br />rehabilitation loan program. <br />Metro HRA is currently participating in the Minnesota Housing <br />Finance Agency (MHFA) Rental Rehabilitation Program under which <br />financing is available to property owners in the Moderate Rehabil- <br />itation Program. Metro HRA is designated as an administering <br />entity by MHFA to assist in the delivery of rehabilitation loan <br />funds. The loans to property owners are FHA Title I insured <br />improvement loans obtained from the First Bank of St. Paul and <br />carry a below market interest rate of 11 percent. <br />18 <br />