01-25-1984 Council Agenda - Laserfiche WebLink

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SOLAR BANK DEFERRED LOAN PROGRAM Program Description: The Solar Bank Deferred Loan Program provides financing for energy improvements to homeowners who otherwise would be unable to increase the energy efficiency of the home: Assistance is in the form of a deferred loan which need not be repaid unless the borrower sells, transfers, or conveys the property, or ceases to live in the property, either voluntarily or involuntarily, within 10 years after the date of the loan. Eligibility Criteria: In order to receive assistance through this program, the following c,riteria must be met: 1.) The applicant must own the property to be improved, either through at least a one -third interest in the fee title or as purchaser of a contract - for -deed, or as a recipient of a life estate, and must reside in the property. 2.) The property to be improved can contain no more than four dwelling units. 3.) The applicant is a current heating customer of NSP or Minnegaseo. A.) An RCS audit must show that energy improvements to the property are necessary. 5.) The applicant must have been prohibited from obtaining assistance for the required improvements as a result of at least one of the following: a.) The applicant was ineligible for a loan from a financial institution based on one of the following reasons: - Applicant has a poor credit history; - The applicant's ability to repay the loan did not meet MHPA's Home Improvement Loan Program underwriting standards; - The property to be improved was being purchased through a contract- for -deed with a balloon pay- ment due prior to the maturity date of the improvement loan; - The property to be improved was being purchased on a contract- for -deed and the contract vendors would not enter into a mortgage. b.) The applicant was denied assistance from MNEA, Weath- erization, or Community Development programs because of inability to meet program guidelines. 59