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Exhibit A City of Mounds View Interest Subsidy Program Terms for Market Rate Home Improvement Loans PROGRAM OVERVIEW The Mounds View Economic Development Authority (EDA) is making available $35,000 in Tax Increment Financing (TIF) funds that will provide a 3% annual interest rate subsidy for new market rate home improvement loans which meet the program's criteria. The loans originated under this program will be for a term of up to 10 years. The maximum city subsidy for all loans and associated administrative costs issued in the first two years is $20,000. Aggregate subsidies for future years will decline each year as loan balances decrease. Aggregate subsidies will be paid by the city over the life of the loan. The loans will be provided through Western Bank and subsidized µ(PG.(p by the City of Mounds View. Maximum loan amounts through this program will be $35,000. V The program expects to provide subsidized loans for a period of at least two years. The City of Mounds View will provide funds in an account at Western Bank for the purpose of subsidizing qualifying market rate home improvement loans. Subsidy funds will be provided incrementally to an account at Western Bank as needed. All loan proceeds provided by Western Bank will be subsidized by amortization payments over a maximum 10 year period (i.e. a$10,000 loan at a market rate of 11%, subsidized to an 8%rate will require a 3% interest subsidy payment of $1,587.20 by the city over a period of 10 years. The city's subsidy will be amortized over a 10-year payment.) ELIGIBLE PROPERTIES/OWNERS All owner occupied residential properties having 1-4 units. No eligibility requirements for household income or age of housing will be required for this program. A4;401;490 G PROGRAM GUIDELINES 1. The City of Mounds View will subsidize 3%of the market interest rate for home improvement loans within the city. 2. Western Bank will utilize City of Mounds View TIF funds to write down market rate home improvement loans not to exceed$200,000 in loan amounts for the program's first two years. 3. Loans will be approved and originated under Western Banks underwriting criteria. 4. Western Bank will be responsible for servicing the loans. 5. Eligible improvements and eligible properties are determined by criteria adopted by the city (see Eligible Improvements). 6. Borrowers' must provide proof of income, a property tax statement, bid for work, and contractor warranties. 7. The property owner has nine months from the date of closing to complete the