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City of Mounds View <br />Housing Replacement Program <br /> <br />Page 5 <br />The loan shall be administered by the Housing Resource Center, NorthMetro Office, a <br />division of the Greater Metropolitan Housing Corporation (GMHC). The Housing <br />Resource Center or GMHC shall prepare lien release and satisfaction documents as <br />needed. <br /> <br />J. I. Option 1 2: Acquisition of Property by EDA <br /> <br />1. Blight Qualification: Once an offering letter is received from the interested participant, <br />Program Staff will shall arrange, by appointment, an inspection of the interior of the home to <br />establish blight qualification as outlined in Section G. The following information will also be <br />obtained during the inspection: In addition, Program Staff will make a determination as to <br />the potential presence of hazardous materials on the property and will obtain <br /> <br />a. Demolition information for estimating demolition credit to builder. <br />b. A determination as to the existence of any hazardous materials on the property. This <br />includes: <br />(1) a visual inspection <br />(2) a statement from the interested participant regarding any knowledge of the <br />property’s use for production, storage, deposit, or disposal of any toxic or <br />hazardous wastes or substances or asbestos products whatsoever, during the time <br />the interested participant owned the property and prior to the date of interested <br />participant purchased property. Properties with recognized environmental <br />conditions environmental problems or hazards may be considered if the purchase <br />price is reduced sufficiently to cover increased site clearance and preparation <br />costs. <br /> <br />If a property satisfies meets the blight conditions as outlined herein test, acquisition <br />procedures can continue. If the blight test cannot be met, the interested participant will be <br />notified in writing indicating the reasons why the property cannot be considered for <br />acquisition. <br /> <br />2. Need for Variances: If a variance is required to redevelop the property, the EDA may, at <br />its sole discretion, choose not to acquire the property. This determination will be made based <br />on the project time lines, available resources, and availability of other properties which do not <br />require a variance. If the EDA chooses to pursue a variance to enable the acquisition of the <br />property, an application shall be filed following the usual procedures. If a variance is not <br />approved, the property cannot be considered for acquisition. <br /> <br />3. Appraisal: Determining Purchase Price: If the EDA chooses to continue with the <br />acquisition, a fee appraisal shall be ordered at the EDA’s expense and the result shall be used <br />in determining the amount of the purchase price to offer to the interested participant. The <br />independent fee appraiser shall be carefully instructed to document in specific terms the <br />conditions of the property including details regarding structural condition and floor plan. The <br />acceptance of these conditions in the market place should be discussed in the report. The <br />appraiser’s value judgment should reflect these conditions. A negotiated price considerably <br />below the assessor’s market value may be accepted without an appraisal on a case by case basis