EDA Resolution 10-EDA-261 - Laserfiche WebLink

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10 -EDA -261 Exhibit A M'�l.IS V! Y Economic Development Authority (EDA) Demolition Home Loan Criteria EDA Approved November 22, 2010 The purpose of this loan is to provide loans to demolish blighted single family or duplex properties in Mounds View. Loan Amount Up to $10,000 secured by a note mortgage Loan Security All loans will be secured by a mortgage in favor of the City. The loan may- be secured in a subordinate lien position behind the borrower's existing rime /A -rated fixed rate mortgage. Interest Rate The interest rate is fixed at 3 The monthly payment is fixed. Loan Term The maximum loan term is 10 years, however, the loan shall become due upon sale, transfer of title or refinancing of the p roperty, whichever occurs first. Eligible Properties Mounds View single family or duplex properties that qualify as blighted. See the Blight Qualification standard below. Demolition Bids Applicants are encouraged to first consider the Spring Lake Park/Blaine /Mounds View Fire Department's house burning /training program demolition option. If that option is not feasible, applicants must obtain three demolition bids. The demolition contractor will be required to obtain all necessary City permits, pay applicable fees and provide for appropriate handling and abatement of any hazardous materials encountered. All contractors must be licensed and insured. Blight Qualification (for Demolition Loan Only) Once a loan application is received, Mounds View's Code Enforcement/Housing Inspector will arrange, by appointment, an inspection of the interior of the home to establish blight qualification. In addition, the inspector will make a determination as to the potential presence of hazardous materials on the property and will obtain a statement from the interested participant about any knowledge of the property's use for production, storage, deposit, or disposal of any toxic or hazardous wastes or substances or asbestos products whatsoever, during the time the interested participant owned the property and before the date of interested participant purchased property. If a property satisfies the blight conditions as outlined herein, demolition procedures can continue. If the blight test cannot be met, the city will notify the interested person in writing indicating the reasons why the property cannot be considered as blighted.