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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 <br />Up to $10,000 secured by a note & mortgage <br />Interest Rate <br />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 ; <br />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 <br />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 <br />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 />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 />Page 2 of 5 <br />