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3 <br /> <br />2. Construction costs related to the property renovation <br />3. Other costs directly related to the property renovation, including architectural and <br />engineering services, environmental remediation, demolition, financing costs or required <br />fees, temporary relocation costs during renovation, and other similar costs <br />4. Site improvements (i.e. streets, sewer, water, lighting, landscaping) that support the <br />property renovation <br /> <br /> <br />C. Loan Limits and Terms <br /> <br />Loan limits are based on the number and affordability level of rental units. Contract rent levels <br />must meet the most current HUD/MTSP Area Median Income (AMI) rent schedule for the <br />Minneapolis/St Paul/Bloomington Metropolitan Statistical Area by bedroom size, less applicable <br />utility allowance. <br /> <br />Properties with a mix of affordable and higher rent units may apply for NOAH GROW funds, but <br />the NOAH GROW loan amount will be based on the number and affordability level of the units <br />as defined below. <br /> <br />• $25,000 per unit affordable at 60% AMI <br />• $35,000 per unit affordable at 50% AMI <br />• $45,000 per unit affordable at 40% AMI <br />• $55,000 per unit affordable at 30% AMI <br /> <br /> <br />1. Financing structure: NOAH GROW funds are structured as loans secured against the <br />property. Interest rates are provided at below market rates and vary according to market <br />conditions. Contact Agency staff for current interest rates. A Declaration is recorded <br />outlining the number and affordability level of units used to secure the loan. These units <br />must remain at or below the stated affordability for a minimum of 10 years. <br /> <br />The Agency will consider the following financing structures: <br /> <br />a. Amortizing Loan: Fully amortizing over 10-15 year term. <br />b. Interest-Only Deferred Loan: Interest-only payments with principal deferred for 15-20 <br />year term. <br />c. Deferred Forgivable Loan: 25% of deferred principal and interest forgiven after 15 <br />years, 25% forgiven after 20 years, 25% forgiven after 25 years, and 25% forgiven <br />after 30 years. Principal and interest paid on loan cannot be refunded. <br /> <br />2. Closing fee: Greater of $3,500 or 1% of loan amount payable to the Agency. <br /> <br />3. Reservation period: To ensure NOAH GROW Funds remain available to support eligible <br />projects, funding reservations will expire 6 months after the date of Agency Board approval <br />unless the applicant demonstrates significant progress toward securing funding <br />commitments and any required city approvals. Applicants may request an extension to <br />accommodate extenuating circumstances. The Agency reserves the right to consider each <br />request on a case-by-case basis. <br /> <br />