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Mounds View Home Improvement Loan Program Criteria Draft 5 Page 3 of 8 Option 3 − Code Enforcement Loan The purpose of this loan is to provide loans to owner-occupied single-family or duplex properties in Mounds View that have been required by the City of Mounds View to bring their properties into compliance with the City Code. Loan Amount From $1,000 to $7,000 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 other loans. Interest Rate The interest rate will be fixed at 3%, and the monthly payment will be fixed. Loan Term Maximum loan term is 15 years. Loan is due upon sale, transfer of title, refinance or if the property ceases to be owner- occupied. Income Limit The applicant’s household gross income shall not exceed 80% of the area median income (see chart on page 5). Asset Limit The maximum gross assets of the borrower, excluding the residential property to be improved and a retirement account that is or was subject to penalty for early withdrawals before age 59 ½, shall not exceed $25,000. Gross assets will generally be defined as the current market value of an item listed minus existing indebtedness on that item. Loan to Value 100% Debt to Income 50% Eligible Properties Eligible properties are owner-occupied single-family or duplex properties in Mounds View. Eligible Repairs Eligible repairs are those that Mounds View’s Code Enforcement Officer have written to the property owner as structural code citations. Citations for “junk” or debris removal are ineligible. Contractor Bids Applicants must provide the Housing Resource Center’s Construction Manager with two bids for each improvement project. All contractors must be licensed and insured. Other Code Enforcement Deferred Loan applicants may also apply for the General Home Repair Deferred Loan not to exceed a total loan am amount of $15,000.