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City of Mounds View <br />HousinE Replacement Program <br />]. Bli¢ht Qualification: Properties bein� considered for demolition fundinQ must meet <br />bliEht qualifications as outlined in Section G. Applicants sl�all demonstrate proof of <br />construction Snancine in a form acceptable to the City. <br />2. Need for Variances: If a variance is required to redevelop the property, the <br />homeowner must obtain the variance prior to the approval of demolition funds. If a <br />variance is not aranted, demolition funds shall not be awarded. <br />3. Comprehensive Plan/Zonine: The Comprehensive Plan designation and the zoninQ on <br />the propertv must allow for its redevelopment as a sinQle-familv residence. <br />4. Development A2reement: The applicant must enter into a Demolition and <br />Redevelopment Aareement with the EDA which will stipulate housina desi�n and site <br />development features consistent with the Euidelines attached in Exhibit A(Housin� <br />Desian and Site Criteria) and identifv the time frame for completion. The development <br />a¢reement will include an estimate of the minimum value of the home to be constructed. <br />5. Demolition Cmrtract: The applicant must obtain three estimates for demolition from <br />qualified demolition contractors which will assist in determinina the amount of <br />demolition funds to award for the proiect. The total amount of assistance provided shall <br />not exceed the lowest responsible estimate received not to exceed $10,000. The selected <br />demolition contrvctor must be able to meet project deadlines as outlined bV Ciry Staff. <br />The demolition contractor will be required to ubtain all necessarv Citv permits, pav <br />applicable fees and provide for appropriate handline and abatement of anV hazardous <br />materials encountered. Overall demolition supervision will be provided bV a designated <br />Pro2ram Staff in coniunction with the interested participant. <br />6. Fundin2 Mechanism: The assistance will be provided to the applicant upon conclusion <br />of the demolition activitV and satisfactorv final inspection of the demolition permit, in the <br />form of a five Vear forgivable interest-free loan, with a 20% incremental reduction in <br />principal upon each successive Vear the participant lives in the new home, with complete <br />foreiveness nfter the fifth vear in the home. The annual reduction in principal is tied to <br />the date of completion/owner-occupancv of the new home and �rot to tl�e loan closing. If <br />the participant sells or rents the home to a third partv prior to the fifth vear, the <br />followina loan repavment schedule shall applv: <br />If the home is sold bef'ore the The amount to be repaid unon closine shall be <br />End of the first year, 100% of the loan amount <br />End of the second year, 80% of the loan amuunt <br />End of the third year, 60% of the loan amount <br />End of the fourth year, 40"/0 of the loan amount <br />End of the fifth year, 20% of the loan amount <br />The loan shall be administered bv the Housina Resource Center, NorthMeYro Ofece, a <br />division of the Greater Metropolitan Housine Corporation (GMHC). The Housin� <br />Resource Center m� GMHC shall prepare lien release and satisfactiun ducuments as <br />Page 4 <br />