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<br />City of Mounds View <br />Housing Replacement Program <br /> <br /> <br />Page 4 <br />1. Blight Qualification: Properties being considered for demolition funding must meet <br />blight qualifications as outlined in Section G. Applicants shall demonstrate proof of <br />construction financing in a form acceptable to the City. <br /> <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 granted, demolition funds shall not be awarded. <br /> <br />3. Comprehensive Plan/Zoning: The Comprehensive Plan designation and the zoning on <br />the property must allow for its redevelopment as a single-family residence. <br /> <br />4. Development Agreement: The applicant must enter into a Demolition and <br />Redevelopment Agreement with the EDA which will stipulate housing design and site <br />development features consistent with the guidelines attached in Exhibit A (Housing <br />Design and Site Criteria) and identify the time frame for completion. The development <br />agreement will include an estimate of the minimum value of the home to be constructed. <br /> <br />5. Demolition Contract: The applicant must obtain three estimates for demolition from <br />qualified demolition contractors which will assist in determining the amount of <br />demolition funds to award for the project. The total amount of assistance provided shall <br />not exceed the lowest responsible estimate received not to exceed $10,000. The selected <br />demolition contractor must be able to meet project deadlines as outlined by City Staff. <br />The demolition contractor will be required to obtain all necessary City permits, pay <br />applicable fees and provide for appropriate handling and abatement of any hazardous <br />materials encountered. Overall demolition supervision will be provided by a designated <br />Program Staff in conjunction with the interested participant. <br /> <br />6. Funding Mechanism: The assistance will be provided to the applicant upon conclusion <br />of the demolition activity and satisfactory final inspection of the demolition permit, in the <br />form of a five year forgivable interest-free loan, with a 20% incremental reduction in <br />principal upon each successive year the participant lives in the new home, with complete <br />forgiveness after the fifth year in the home. The annual reduction in principal is tied to <br />the date of completion/owner-occupancy of the new home and not to the loan closing. If <br />the participant sells or rents the home to a third party prior to the fifth year, the <br />following loan repayment schedule shall apply: <br /> <br /> If the home is sold before the The amount to be repaid upon closing shall be <br /> End of the first year, 100% of the loan amount <br /> End of the second year, 80% of the loan amount <br /> End of the third year, 60% of the loan amount <br /> End of the fourth year, 40% of the loan amount <br /> End of the fifth year, 20% of the loan amount <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