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<br /> Economic Development Authority (EDA) <br />Home Improvement Loan Program Criteria <br />Draft 6 - November 1, 2010 <br /> <br />Option 1 – Demolition Deferred Loan <br />The purpose of this loan is to provide loans to demolish blighted single-family or duplex <br />properties in Mounds View. <br /> <br /> <br /> Blight Qualification (for Demolition Deferred Loan Only) <br />Once a deferred loan application is received, Mounds View’s Code Enforcement/Housing <br />Inspector will arrange, by appointment, an inspection of the interior of the home to <br />establish blight qualification. In addition, the inspector will make a determination as to <br />the potential presence of hazardous materials on the property and will obtain a statement <br />from the interested participant about any knowledge of the property’s use for production, <br />storage, deposit, or disposal of any toxic or hazardous wastes or substances or asbestos <br />products whatsoever, during the time the interested participant owned the property and <br />before the date of interested participant purchased property. If a property satisfies the <br />blight conditions as outlined herein, demolition procedures can continue. If the blight test <br />cannot be met, the city will notify the interested person in writing indicating the reasons <br />why the property cannot be considered as blighted. <br /> <br /> <br /> <br /> <br /> <br />Loan Amount Up to $10,000 secured by a note & mortgage <br />Loan Security All loans will be secured by a mortgage in favor of the City. The <br />loan may be secured in a subordinate lien position behind other <br />loans. <br />Interest Rate The interest rate will be fixed at 3%, and the monthly payment will <br />be fixed. <br />Loan Term Maximum loan term is 10 years. Loan is due upon sale, transfer of <br />title, refinance or if the property ceases to be owner-occupied. <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 be <br />required to obtain all necessary City permits, pay applicable fees <br />and provide for appropriate handling and abatement of any <br />hazardous materials encountered. All contractors must be <br />licensed and insured.