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Mounds View Home Improvement Loan Program Criteria <br /> Draft 4 <br /> Option 1 — Demolition Deferred Loan <br /> The purpose of this loan is to provide zero-interest deferred loans to demolish blighted <br /> single-family or duplex properties in Mounds View. <br /> Loan Amount Up to $10,000 secured by a note & mortgage <br /> Interest Rate If the loan is paid in full within 30 days of the date the loan <br /> becomes due and payable, the interest rate is 0%. If the loan is <br /> not repaid within 30 days of the date it becomes due and payable, <br /> the interest rate is the lesser of 18% per annum or the highest <br /> interest rate allowed by law. <br /> Loan Term The loan is due on sale, transfer of title, when the primary <br /> mortgage is paid off, or when the property ceases to be the <br /> owner's primary place of residence. <br /> Eligible Properties Eligible properties that qualify as blighted single-family or duplex <br /> properties in Mounds View. See the Blight Qualification standard <br /> below. <br /> Demolition Bids Applicants are encouraged to first consider the Spring Lake <br /> Park/Blaine/Mounds View Fire Department's house burning/training <br /> program demolition option. If that option is not feasible, applicants <br /> must obtain three demolition bids. The demolition contractor will <br /> be required to obtain all necessary City permits, pay applicable <br /> • fees and provide for appropriate handling and abatement of any <br /> hazardous materials encountered. All contractors must be <br /> licenses and insured. <br /> Blight Qualification (for Demolition Deferred Loan Only) <br /> Once a deferred loan application is received, Mounds View's Code <br /> Enforcement/Housing Inspector will arrange, by appointment, an inspection of the <br /> interior of the home to establish blight qualification. In addition, the inspector will make a <br /> determination as to the potential presence of hazardous materials on the property and <br /> will obtain a statement from the interested participant about any knowledge of the <br /> property's use for production, storage, deposit, or disposal of any toxic or hazardous <br /> wastes or substances or asbestos products whatsoever, during the time the interested <br /> participant owned the property and before the date of interested participant purchased <br /> property. If a property satisfies the blight conditions as outlined herein, demolition <br /> procedures can continue. If the blight test cannot be met, the city will notify the <br /> interested person in writing indicating the reasons why the property cannot be <br /> considered as blighted. <br /> • <br /> Page 2 of 5 <br />