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<br /> Economic Development Authority (EDA) <br /> <br />Demolition Home Loan Criteria <br />Draft 8 - November 22, 2010 <br /> <br /> <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 Loan Only) <br />Once a 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 the <br />borrower’s existing prime/A-rated fixed rate mortgage. <br />Interest Rate The interest rate is fixed at 3%. The monthly payment is fixed. <br />Loan Term The maximum loan term is 10 years, however the loan shall <br />become due upon sale, transfer of title, refinancing of the property, <br />whichever occurs first. <br />Eligible Properties Mounds View single-family or duplex properties that qualify as <br />blighted. See the Blight Qualification standard 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.