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HomeMy WebLinkAboutResolution 01-EDA150 e . . RESOLUTION NO. Ol-EDA-150 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING AND AUTHORIZING THE EXPENDITURE OF TAX INCREMENT FUNDS FOR THE AeQUISITION OF THE HAZARDOUS BUILDING AT 209llllLL VIEW ROAD FOR THE PURPOSE OF REDEVELOPMENT It is hereby resolved by the Board ofeommissioners (the "Board") of the Mounds View Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1. 10 The Authority has the powers provided in Minnesota Statutes, Sections 469.124 to 469.134 and 469.090 to 469.108 (collectively, the "Act"). 1.02 Pursuant to and in furtherance of the objectives of the Act, the Authority has undertaken a program to promote development and redevelopment of certain land within the eity of Mounds View and in this connection is engaged in carrying out the Mounds View Economic Development Project (the "Project") within the City. 1.03 There has been approved pursuant to the Act a Project Plan for the Project. 1.04 The redevelopment of property within the Project is a stated objective of the Project Plan. 1.05 In order to achieve the objectives of the Project Plan, the Authority has determined to provide substantial aid and assistance through the financing of certain public costs of development. 1.06 It has been proposed that the Authority acquire the property located in the City at 2091 Hillview Road (the "Property") and that the Authority approve the purchase agreement and/or similar agreement(s) (collectively, the "Agreement") attached as "Appendix A" for the acquisition of the Property for the purposes of redevelopment. Section 2. Resolved. 2.01 The Board hereby determines that the Authority's execution of the Agreement and the subsequent acquisition and redevelopment of the Property would be in furtherance of the Project Plan and hereby approves and authorizes said actions, including the execution of the Agreement by the officers of the Authority in their discretion and at such time, if any, as they may deem appropriate. e e . RESOLUTION NO. 01-EDA-150 PAGE TWO OF TWO 2.02 Upon execution and delivery of the Agreement, the officers and employees of the Authority (including members of the eity Staff, acting in their capacity as staff to the Authority as well) are hereby authorized and directed to take or cause to be taken such actions as may be appropriate or necessary on behalf of the Authority to implement the Agreement, including the acquisition of the Property, which is being accomplished for redevelopment purposes. 2.03 That the Board of the Authority hereby determines that the execution and performance of the Agreement and acquisition of the Property will help realize the public purposes of the Act and are in furtherance of the Project Plan and authorizes the President and Executive Director to appropriate a maximum of$lOO,OOO in tax increment funds to purchase the property located at 2091 Hillview Road for redevelopment purposes. Adopted by the Board of Commissioners of the Mounds View Economic Development Authority this 11 th day of June 2001. ~~ Rich Sonte re, President ATTEST: ~U{~ '-----11li LL Kathlee Miller, Executive Director Motion: Thomas Second: StiQnev Santerre: Yes Stigney: Yes Quick: Yes Marty: Yes Thomas: Yes Appendix A: Purchase A2reement Sales Contract u.s. Department of Housing and Urban Development . . . Office of Housing Property DISposition Program Federal Housing Commissioner ewe). Mounds View Economic Development Authority urc~ase:(s)) agree to purch.ase on the terms set forth herein, the following property. as more particularly sCribed In the deed conveYing the property to the Secretary of Housing and Urban Development: 2091 Hillview Road, Mounds View, Ramsey County, Minnesota (street number, street name, unit number, if applicable, city, county, State) 2. The Secretary of Housing and Urban Development (Seller) agrees to sell the property at the price and terms set forth herein. and to prepare a deed containing a covenant which warrants against the acts of the Seller and all claiming by ,through or under him. Title will be taken in the following name(s) and style: Mounds View Economic Development Authority 3. The agreed purchase price of the property is ........................................................................................................ > 3. $ 80,000 Purchaser has paid $ as earnest money to be applied on the purchase price, and agrees to pay the balance of the purchase price. plus or minus prorations. at the time of closing. in cash to Seller. The earnest money deposit shall be held by 4. D Purchaser is applying for FHA insured financing [D 203(b), D 203(b) repair escrow, D 203(k)] with a cash down payment of $ due at closing and the balance secured by a mortgage in the amount of $ for months (does not include FHA Mortgage Insurance Premium. prepaid expenses or closing costs Seller has agreed to fund into mortgage.). D Said mortgage involves a repair escrow amounting to $ . n Purchaser is paying cash or applying for conventional or other financing not in vol ving FHA. 5. 'setler will pay reasonable and customary costs, but not more than actual costs, nor more than paid by a typical Seller in the area, of obtaining financing andlor closing (excluding broker's commission) in an amount not to exceed ..... > 5. $ 6a. Upon sales closing, Seller agrees to pay to the broker identified below a commission (including selling bonus, if offered by seller) of.................................................................................................................... > 6b. Ifbroker identified below is not the broad listing broker, broad listing broker will receive acommission of: .. > 7. The net amount due Seller is (Purchase price [Item 3] less Items 5 and 6) ........................................................... > 8. Purchaser is: D owner-occupant (will occupy this property as primary residence) D investor o nonprofit organization 0 public housing agency D other government agency. Discount at closing: % . Discount will reduced by amounts, if any, listed on Line Items 5 and 6. e is of the essence as to closing. The sale shall close not later than 60 days from Seller's acceptance of contract. Closing all be held at the office of Seller's designated closing agent or to be determined to. If Seller does not accept this offer, Seller 0 may 0 may not hold such offer as a back-up to accepted offer. 11. Lead based paint addendum IXJ is 0 is not attached; Other addendum 0 is D is not attached hereto and made part of this contract. 12. Should Purchaserrefuseor otherwise fail to perfonnin accordance with this contract,including the time Iimitation,Sellerinay, at Seller'ssoleoption, retain all or a portion of the deposit as liquidated damages. The Sellerreservesthe right to apply the earnest money ,or any portion thereof.to any sums which may be owed by the Purchaser to the Seller for rent. Purchaser(s) Initials: Seller's Initials: 13. This contract is subject to the Conditions of Sale on the reverse hereof, which are incorporated herein and made part of this contract. Certification of Purchaser: The undersigned certifies that in affixing hislhel"lits signature to this contract he/sheJit understands: (1) aU the contents thereof (including the Conditions of Sale) and is in agreement therewith without protest; (2) be/she/it is responsible for satisfying itself as to the full condition of the property; and (3) that Seller will not perfonn repairs' after acceptance of this contract. Purchaser(s): (type or print names & sign) Purchaser{s) Address: .' Mounds View Eco.nomic Development Authority 2401 Highway 10 7'.... (~...-- Mounds View, MN 55112 I HUO Case No. 6a.$ 6b.$ 17~$80,000 I Purchaser(s) Social Security umber {S ployer Identification Number (EIN) (include hyphens) Phone No: 4 - (v 00 ~ q I 2- I ~ 3 - .., I 7 - 4000 Seller. Secretary of Housing and Urban Development By: (lype name & litle, & sign) X Date Purchaser(s)Signed Contract: JUNE 'Zq 'Z.OOI Date Contract Accepted by HUD: Certification of Broker: The undersigned certifies that: (I) neither he/she nor anyone authorized to act for him/her has declined to sell the property described herein to or to make it available for inspection or consideration by a prospective purchaser because of his/her race, color, religion, sex, familial status, national origin, or disability; (2) he/she has both provided and explained to the purchaser the notice regarding use of Seller's closing agent; (3) he/she has explained fully to the purchaser the entire terms of the contract, including Condition B on the reverse hereof; and (4) he/she is in compliance with Seller's earnest money policy as set forth on HUD forms SAMS-Illl, Payee Name and Address, and SAMS-llll-A, Selling Broker Certification, which he/she has executed and filed with Seller. Broker's Business Name & Address: (for IRS reporting) (include Zip Code) Broker's EIN or SSN: (include hyphens) SAMS NAID: . Signature of Broker. Broker's Phone No: X rype or print the name and phone number of sales person: rhis section for Hue use only. Broker notified of: I' AxuthOriZing Signature & Date: ] Acceptance 0 Back-Up No. ] Rejection 0 Return Earnest Money Deposit . . . LEAD-BASED PAINT ADDENDUM TO SALES CONTRACT - PROPERTY BUILT BEFORE 1978 FHA CASE NO. ________ PROPERTY ADDRESS: 209_LH:ttlvt.~~~o~.!L______________ _Maund.s._Y.i.eJal~ MN 551.12________ NOTE TO PURCHASERS, REAL ESTATE BROKERS AND AGENTS. This addendum is mandatory for any property built before 1978 and consists of four parts. Part A, Disclosure of Information on Lead-Based Paint and/or Lead-Based paint Hazards, Part B, Sales Contract Lead-Based Paint Contingency, Part C, Owner-Occupant Certification, and Part D, Purchaser's Addendum to the Sales Contract - Release of Lead-Based Paint Evaluation Contingency. All parts must be completed as shown. This Lead-Based Paint Addendum must be completed on or before the date of the Sales Contract, and forwarded to HUD with the Sales Contract for any property built before 1978. Sales Contracts without this Addendum will not be accepted by HUD. This Addendum survives the closing of the sale. PART A DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARDS LEAD WARNING STATEMENT. Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The sale of any interest in residential property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. SELLER'S DISCLOSURE A. Presence of lead-based paint hazards (check one below): 1. _ Known lead-based paint and/or lead-based paint hazards are present in the property (explain): 2_ X Seller has no actual knowledge of lead-based paint and/or lead-based paint hazards in the property. B. Records and reports available to the seller (check one below): 1. ___ Seller provided the purchaser with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the property (list documents below). 2. X Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the property. PURCHASER'S ACKNOWLEDGEMENT (initial) C. _ Purchaser has received copies of all information listed above. D. ~ Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. E. Purchaser has (check one below): 1. _Requested a ____ day opportunity to conduct a risk assessment or inspection for the presence of lead- based paint and/or lead-based paint hazards; or 2. ~ Waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead based paint hazards. BROKER/AGENT ACKNOWLEDGEMENT (initial): F. X Broker/agent has informed the seller of the seller's obligations under 42_U.S.C. 4852d and is aware of his/her responsibility to ensure compliance. N/A HUD owned. - CERTIFICATION OF ACCURACY The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate. S~lIer -" -~~~~ Pure aser Date "!';'V ! ,. / .., ~ ~.' - - ----'---- Date Date ~u~~~------- /9-2(".01 Broker/Agent Date PART B Page 1 of 4 (10/99) , . . . SALES CONTRACT LEAD-BASED PAINT EVALUATION CONTINGENCY This contract is contingent upon a risk assessment or inspection of the property for the presence of lead-based paint and/or lead- based paint hazards at the Purchaser's expense until 12 noon on the ____ calendar day after acceptance, on ________. date This contingency will terminate at the above predetermined deadline unless the Purchaser or Purchaser's agent delivers to the Seller or Seller's agent Part D of this Addendum listing the specific lead-based paint hazards and corrections needed, together with a copy of the inspection and/or risk assessment report. The Seller may, at the Seller's option, within five days after delivery of Part D of this Addendum, elect in writing whether to correct the hazard(s) prior to settlement. If the Seller will correct the hazard(s), the Seller shall furnish the Purchaser with certification from a risk assessor or inspector demonstrating that the hazard(s) have been remedied before the date of the settlement. If the Seller does not elect to make the repairs. or if the Seller makes a counter offer, the Purchaser shall have five days to respond to the counter offer or remove this contingency and take the property in its "as is" condition or this contract shall become void. The Purchaser may remove this contingency at any time without cause. INTACT LEAD-BASED PAINT THAT IS IN GOOD CONDITION IS NOT NECESSARILY A HAZARD. See EPA Pamphlet Protect Your Family from Lead in Your Home for more information. Lead-Based Paint Addendum to the Sales Contract. Property Built Before 1978, including Part A, Disclosure of Information on Lead-Based Paint and/or Lead Based Paint Hazards, Part C, Owner-Occupant Certification (if applicable) and Part D, Purchaser's Addendum to the Sales Contract - Release of Lead-Based Paint Evaluation Contingency, if applicable, must also be completed and made a part of this Sales Contract. Page 2 of 4 (10/99) t . . . PART C OWNER-OCCUPANT CERTIFICATION TO BE COMPLETED BY ALL OWNER-OCCUPANT PURCHASERS ONLY Check and complete the following, as appropriate: l!We do not have a child under the age of seven. l!We do have a child under the age of seven. Their names and ages are as follows: Name Age Check on Iv one of the following blocks if children under seven are indicated above: l!We understand that within 15 days after acceptance by HUD of my/our offer to purchase, I/we will, at my/our expense, have each of the above-named children tested for an elevated blood level (EBL) and that I/we will provide these test results to HUD. If I/we fail to provide the test results to HUD within the 15-day time frame, the contract will be canceled immediately without further notice. Further, I/we understand that if an EBL condition is identified, I/we have the option to: 1) cancel this contract and receive our earnest money deposit back, or 2) complete the sale of the property with the understanding thatl/we will, at a minimum, have the property tested for the presence of lead-based paint on all chewable surfaces and, where lead-based paint on chewable surfaces is identified, have such surfaces abated. l!We fully understand that if a blood lead level screening program is not reasonably available, or if I/we refuse to have my/our child(ren) tested, I/we have the option of closing this sales. I/we hereby acknowledge that this property I/we am/are purchasing from the Department of Housing and Urban Development may contain lead-based paint. However, despite this possibility, I/we elect to close the sale on this property. Further, I/we agree to hold HUD harmless for this action. Signature of Purchaser Signature of Purchaser Date Signature of Witness Page 3 of 4 (10/99) t . . . LEAD-BASED PAINT ADDENDUM TO SALES CONTRACT - PROPERTY BUILT BEFORE 1978 FHA CASE NO. PROPERTY ADDRESS: PART D PURCHASER'S ADDENDUM TO THE SALES CONTRACT - RELEASE OF LEAD-BASED PAINT EVALUATION CONTINGENCY If purchaser initialed Part A, Item E.1 of the Lead-Based Paint Addendum to the Sales Contract - Prooertv Built Before 1978 (Addendum), this Part D, must be completed as shown and provided to the Seller on or before the date shown in the Addendum, Part B, or the contingency is tenninated. If the purchaser initialed Part A, Item E.2, then this Part D is unnecessary and need not be completed or provided to the Seller. PURCHASER'S ACKNOWLEDGEMENT (check appropriate boxes) Purchaser acknowledges that he/she has received a 1 O-day opportunity (or other mutually agreed upon period) to conduct a risk assessment or lead-based paint inspection for the presence of lead-based paint and/or lead-based paint hazards, that such a risk assessment or lead-based paint inspection has been made. Purchaser acknowledges that Seller is under no obligation to correct any lead-based paint and/or lead based paint hazards identified by the lead-based paint inspection and/or risk assessment and hereby removes the contingency and accepts the property in its "as is. condition, without warranty, as described in Item B, Conditions of Sale of the contract. Purchaser requests that Seller take the following action to correct the lead-based paint hazards noted: Lead-Based Paint Hazard Corrective Action Reauested __________ Purchaser has attached the risk assessment or inspection report. If Seller refuses this request, Purchaser reserves right to continue with the purchase or request cancellation of the sales contract. Purchaser requests cancellation of the sales contract due to the following deficiencies indicated in the attached report(s): CERTIFICATION OF ACCURACY The following parties have reviewed the information above and certify, to the best of their knowledge, that the infonnation they have provided is true and accurate. Purchaser Date Purchaser Date Broker/Agent Date Page 4 of4 (10/99) , . Forfeiture of Earnest Money Policy All HUD Property Disposition sales of HUD-acquired properties are to close within 45 days of acceptance of a HUD-9548 (1/99) Sales Contract offer to purchase. Forfeiture of Earnest Money Deposits The failure by a Purchaser to close on the sale of property within the allowable time period, including any extensions granted by HUD, will result in the forfeiture of the earnest money deposit, except where special circumstances exist and are documented and accepted by HUD. Investor Purchasers . Uninsured Sales. The purchaser will forfeit 100% of the earnest money deposit for failure to close, regardless of reason. . Insured Sales. The purchaser will forfeit 50% of the earnest money deposit for failure to close if purchaser is determined by HUD or Direct Endorsement underwriter to be an unacceptable buyer. The purchaser will forfeit 100% of earnest money deposit if sale fails to close for any other reason. Owner-Occupant Purchasers . . The purchaser will have 100% refund of the earnest money deposit under the following circumstances: 1. There has been a death in the immediate family (contract holder, spouse, or children living in the same household); 2. There has been a recent serious illness in the immediate family that has resulted in significant medical expenses or substantial loss of income, thus adversely affecting the purchaser's financial ability to close the sale; 3. There has been a loss of job by one of the primary breadwinners, or substantial loss of income through no fault of the purchaser; 4. On an insured sale, HUD or a Direct Endorsement underwriter determines that the purchaser is not an acceptable borrower; 5. On an uninsured sale, the purchaser was ore-aoorovedfor mortgage financing in an appropriate amount by a recognized mortgage lender and, despite good faith efforts, is unable to obtain mortgage financing in a specified dollar amount sufficient to purchase the property. 6. For other good cause, as determined by the field office. . On an uninsured sale, the purchaser will forfeit 50% of the earnest money deposit where, despite good faith efforts by the purchaser, there is an inability to obtain a mortgage loan from a recognized mortgage lender. . On either type of sale, the purchaser will forfeit 100% of the deposit in those instances where no documentation is submitted, where the documentation fails to provide an acceptable cause for the buyer's failure to close, or where documentation is not provided within a reasonable time following contract cancellation. The documentation must be received by First Preston no later than close of business on the tenth day following cancellation of contract. Buyer Certification: I/we acknowledge that Ilwe have been interviewed, completed a loan application and received a Pre- Qualification Letter from an approved lender. Ilwe have read and understand this policy and will forfeit our earnest money deposit if we enter into this contract without completing the qualification process. ~u; ,<.. ~ Signatures ~ '--/J~ U~f) ~urc~ s~ '~-1.4 - 01 (Purchaser) (iJ/()C{ jOi (Purchaser) (6/99) t . . Closing Date Extension Policy If scheduled closing dates cannot be met, purchasers may request extension of the closing time from the First Preston regional office. Extensions of time to close the sale are at the Seller's discretion and, if granted, will be under the following guidelines: 1. The request for extension of closing time will be made in writing to the appropriate regional office as listed on this website. The request must include the cause of delay and that necessary mortgage funding has been obtained or is imminent. This request must be received by the First Preston office no later than five days before the expiration of the sales contract. 2. Extensions will be granted for a 15 calendar period. The following are the extension fees due to the Closing Agent at the time of submission of extension request. These fees must accompany the extension request and be a non-refundable certified or cashier's check or money order in the full amount of the 15 day extension. This fee is based on the Contract Sales Price: Contract Sales Price of $25,000 or less Contract Sales Price of $25,001 to $50,000 Contract Sales Price over $50,000 Extension Fee is $10 per day Extension Fee is $15 per day Extension Fee is $25 per day 3. At the time of closing, the unused extension fees, if any, will be prorated to the Purchaser. 4. The granting of an initial extension period does not obligate Seller to grant additional extensions. 5. Extension fees will be retained by Seller if a closing does not occur. . Buyer Certification: l/we have read and understand this policy and agree to abide by the above policy. L-" - (Purchaser) (Purchaser) (p /2., / OJ / (4/99) t . . PURCHASER'S RIGHTS AND RESPONSIBILITIES Addendum to HUD-9548 Sales Contract FHA CASE NO.: PROPERTY ADDRESS: _~.9JJ~._"!!~11"y_~,=-~_B-~_~<!.!..-_~E~nds View. MN 55112 PRINTED NAME(S) OF PURCHASER(S): _!!.~~!!gE__y.:!:.~~_]:~-9_1!.Q.~!S_1>_~y'~!Q.P.!!1_~1!.L~l1J:hori ty CONDITION OF PROPERTY HUD makes no representations or warranties concerning the condition of this property, including, but not limited to, mechanical and operating systems (electrical, plumbing, sewage, kitchen appliances, heating and air conditioning), dry basement, roof, structural condition, or compliance with local codes, zoning, or building requirements. HUD will authorize NO repairs to this property after the closing date. The prohibition of repairs, regardless of the nature or severity of a defect or code violation, extends to all latent (unknown) defects or code violations discovered at any time, including after the closing date. Purchaser(s) are fully responsible for satisfying themselves as to the full condition of this property and any laws, regulations or ordinances affecting this property. . THE IMPORTANCE OF A HOME INSPECTION HUD does not warrant the condition of a property. It is important for you to have a home inspection performed on the property you wish to purchase in order to identify any possible defects. Up to $200 of the cost to perform the inspection may be financed into your mortgage. Names of home inspection companies can be found in the yellow pages of your telephone directory under the heading "Home Inspection Services". .. 15-DAY CONTRACT CANCELLATION CONTINGENCY FOR CONTRACTS REQUESTING FHA INSURED FINANCING Purchaser(s) may request that the Sales Contract be canceled if, within 15 days of HUD's preliminary acceptance, the property is inspected by a professional home inspector who discovers a structural, roof, system defect, or non-compliance with local codes, zoning, or building requirements that HUD elects not to correct. A copy of the property inspection report must be attached to the cancellation request. The cancellation contingency is limited to structural, roof, defective components within the mechanical and operating systems (which include the electrical, plumbing, sewage, heating and air conditioning systems only) or noncompliance with local codes, zoning, or building requirements. Kitchen appliances, window air conditioner units, light fixtures, receptacles and switch covers are not included in the operating systems. Equipment age or energy efficiency ratings are not included in the cancellation contingency. The earnest money deposit will be returned ONLY if HUD concurs with the home inspection report finding(s). APPLICABLE TO SALES INVOLVING 203K FINANCING The purchaser agrees to make all additional improvements as required by HUD or the lender, provided the improvements are intended to bring the property into compliance with the architectural exhibits submitted to the certified 203k lender or be subject to forfeiture of the earnest money deposit if the property transaction does not close. . OTHER IMPORTANT INFORMATION (5/99) . . The broker/agent will allow me to make a final inspection of this property 48 hours prior to closing. This is an "as-is" sale and HUD will not make repairs after closing. Failure to close may result in forfeiture of earnest money. In case of credit denial, all or part of the earnest money may be refunded. It is the broker/agent's responsibility to submit the credit denial letter to First Preston Foreclosure Specialists or Southeast Alliance of Foreclosure Specialists, within ten business days. Failure to do so will result in forfeiture of all earnest money. Closing agents will not release funds until processing is completed by the HUD office. Extensions must be requested before expiration of the contract. Contracts will be canceled if requests are made after the expiration. Extension fees are non-refundable. The broker may not give me keys to the property or allow me to occupy or make repairs to the property prior to closing. It is my responsibility to ascertain if Home Owner Association dues are required and the monthly amount of those dues if applicable. It is also my responsibility to ascertain if the property is located in a utility district, and the assessed tax rate and indebtedness of the district. If I am employed by the U.S. Department of Housing and Urban Development (HUD), or if I am related by blood, marriage, or law to a HUD employee, I must have prior approval before signing a HUD sales contract. . Broker advises Buyer that Buyer should have an Abstract covering the property examined by an attorney of Buyer's selection or Buyer should be furnished with or obtain a Title Policy. If a Title Policy is to be obtained, Buyer should obtain commitment for Title Insurance (the Commitment) which should be examined by an attorney of Buyer's choice at or prior to closing. All locks should be replaced or re-keyed at Purchaser's expense. HUD'S LISTED PRICE PURCHASER(S) MAY BID ABOVE OR BELOW HUD'S LISTED PRICE. HUD'S ORIGINAL LIST PRICE WAS BASED UPON AN APPRAISAL. PURCHASER(S) ACKNOWLEDGE THAT HUD'S LISTED PRICE OF THIS PROPERTY IS L!J.!lE..I!Q.~!L_______. C----) Buyer's Initials The property has been determined to be a hazardous building purs~g~t150 The above information was explained to the purchaser(s) by: M1.463. ~~f:' Sect1.on . to __~~~_~ppl~~_~~~~________ Signature of Broker/Agent Date I/We acknowledge receipt and understanding of the "PURCHASER'S RIGHTS AND RESPONSIBILITIES" addendum. ~~ Je~.J'}/t1L ~1") ~ Signature of Purchaser Date Signa ure of Pllrc ser _(P___1-_~-=-_Q_L_ Date . (5/99) .. US Department of Housing OMS Approval No: 2502-0538 and Urban Development (exp.11/30/99) Office of Housing eederal Housing Commissioner For Your Protection: Get a Home Inspection Property Address 2091 Hillview Road, Mounds Vj._ew2.._MN 55~l~________________ What the FHA Does for Buyers... and What We Don't Do What we do: FHA helps people become homeowners by insuring mortgages for lenders. This allows lenders to offer mortgages to first-time buyers and others who may not qualify for conventional loans. Because the FHA insures the loan for the lender, the buyer pays only a very low down- payment. What we don't do: FHA does not guarantee the value or condition of your potential new home. If you find problems with your new home after closing, we can not give or lend you money for repairs, and we can not buy the home back from you. .hat's why it's so important for you, the buyer, to get an mdependent home inspection. Before you sign a contract, ask a qualified home inspector to inspect your potential new home and give you the information you need to make a wise decision. Appraisals and Home Inspections are Different As part of our job insuring the loan, we require that the lender conduct an FHA appraisal. An appraisal is different from a home inspection. Appraisals are for lenders; home inspections are for buyers. The lender does an appraisal for three reasons: . to estimate the value of a house . to make sure that the house meets FHA minimum property standards . to make sure that the house is marketable Appraisals are not home inspections. Why a Buyer Needs a Home Inspection A home inspection gives the buyer more detailed information than an appraisal--information you need to make a wise decision. In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to: . evaluate the physical condition: structure, construction, and mechanical systems . identify items that need to be repaired or replaced . estimate the remaining useful life of the major systems, equipment, structure, and finishes What Goes into a Home Inspection A home inspection gives the buyer an impartial, physical evaluation of the overall condition of the home and items that need to be repaired or replaced. The inspection gives a detailed report on the condition of the structural components, exterior, roofing, plumbing, electrical, heating, insulation and ventilation, air conditioning, and interiors. Be an Informed Buyer It is your responsibility to be an informed buyer. Be sure that what you buy is satisfactory in every respect. You have the right to carefully examine your potential new home with a qualified home inspector. You should arrange to have a home inspection before you purchase your home. Make sure your contract states that the sale of the home depends on the inspection. I understand the importance of getting an independent home inspection. I have thought about this before I signed a contract with the seller for a home. . ;(~'--r~U-L 6 -l"')-OI Signature & Date xc:? ~ Signature & Date b /2CijO / Form HUD-92564-CN (6/99) FILE No.712 04/03 '00 15:08 -'!:!,- 10: FAX: PAGE 2/ 2 Request for Taxpayer Identification Number and Certlftcatlon cu.farm.~ nl~HIIr. IJONOT ..... tit ..~.. ~. 1M T-..y 111111'I'III R-. ~ Name (If . joint ICCQUm or you ~ your ".,.. see 8CleCific ~.A""" an paee 2.) i Mounds View Economic Development Authority eldir-. _. II diffInrlt frCI1'llllCMt. (See....... ~ an DIQlt 2.) ~ -= 'C 0 a. ChecIC IpClrCpnae tlclX: InclMl:lllllllScll propnMCt : Addl'lD (r.um&:.. .... and .. or ~ no.1 i 2401 Highwa 10 CIty. .... II'lCt ZIP cadII Mounds View, MN 55112-1429 1i Identification Number Enter your TIN In th. ~. DQX. For incUvldLl8la. this Is YfM ICdII security number (SSN). However; If you .... a rellident alien OR . soItI proprietor, see the InstNCtlons on page 2. For other entitIe8. it Is your employer IdentlflcaUon numbOr (ElN). If you QO not hay. a number. see Haw To Get . nN on page 2. Noe.: It the KCDUnf 1$ In men tfNJn one name. s'- the chait on page 2. faI' guid811nf1S en whcs8 numcer fa enttIr. Certiftcation QI~ o PeINrII1!p o Other.. .......................---................ ~I name IU1d ~..... UIl 8CCCNrft numt8(a) MM ~ , . For PIIyMII.... FfWft...... wtthhakIInv __ .. i1IDUI*anI on page 2.) OR 416008912 ... Under penaIti_ ef perjury. I clll1ify that: .. The number SIlOwn G1 thi1l fClnn is my ccrrect ta)cQaywo iden1lfIcaticn numblt (ar I am waiting far a numbllr tel be issuod fa - - I . I am not subject to backup withI'lCIlCSlng beclWSe: (a. I ;un exempt fraM backup wiVlhaldinQ. or tilt 1 have not been natNci by 1he tntamIII Revenue Service (IRS) that I am _ect to baclaJp withhalding as a telUlt of a failure to reIl(lr1 811 int...t or diYi~ gr (vi ow IRS hIllS notlfted me that I am no tang.. IIUbject to backup witnl'lolding. .. ce.tiftc:don 1~....Yau must crcu out item I above if ycu ..,. been nctifted by bIAS that yOU are currenUy IUbiICl to bacIcup. witMOIdlng because you have failed to report all intllnlSt and d\YidIll'Ida on your tax l1IU'ft. Fer ,.... estalB transac:tiClns. Item a dOeI nat 8C)Iiy. Fa mangage intlll8St plIiCS, acquiailian or abandonment at aec:ured property, cancellltian at debt. ccnuibu1ial'la to an IndtvIGuI& ..~ anangement (IRA). and gEH18f'8lly, payments ather man interest and dlvlclendl. you are not requifod to sign the Cenification. but you must provide your carTect T1N. (See the.ina1rUCticns on page 2.) ~~ J mlnatu~ ~ ~bI~ Purpasa of Fonn.-A pflfSOn who is required to file an information retum with the IRS must get, your correct tupayer idemific:ation numaer mN) to report. for example, income ~cS to you. real estate transac=ems. mortgage int81'8st you paid, acqul.sltlon or abll/'ldC)N1'l8m of secured property, cancellation of debt, or contributiDns you mad. to an IRA. Use Form W-9 to giv. your correct TIN to tne person reque=l1lng it (the requester) and. when applicable. to: 1. Certify the nN you are giving Is eomtd (or you are waiting for a number to D4t illaUed), z.. Certify you arB not subject to backup wRhholdlng, or 3. Claim exemption fram backup wlttlholding if yOLl are an exempt payee. . Note: /f a l1Jquester gives you Ii fcnn orner than II W-9 fo teqUe<< your TIN, you must USB the requests"'s l'onn /f If /5 sUbsUUlfia/ly similar to '"/$ Form W.9. wtNIt ,. Bactwp WlthholcAnl?~erscna making certain ~aymems to you must withhold and pay to the. IRS 31'K1 of sucn payments unde, c8f'taln conditions. This' Is called -baClCup withholding:' PaymentlS that may be subject to backup withholding Q~ include interest, aiYide"ds. brOker and baner exchange transactions, rents, royalties. nonem!:llayee pay. and certain payments from fishing bOat operators. Flea! estate tranSaCtions lII'8 ncrt subJect to back~ wnnnolding. If you give tne requll8ter your correct TIN, make the proper certifications. -and report all your taxable Interest and dividends on YQ~r tax nRLlrn. paymentS you receive will not tle subject to backup withnolding. Payments you rec.ive win be subject to t:lac:IwP withholding It: 1. You do not tumisn your TIN to the requester, Clr 2. The IRS tells the requester that you furnished an incorrect TIN. or 3. 11'18 IRS tells you that you are subject to backup withnoldlng beeause you did not report an your inttlt'list and dividends on your tax r~m 1for repClr1atl1e int8f8S1 IInct dividendS only), or 4. You do not certify to the requester that yau are not subject to. bacKUp withholding unatlt' 3 i1tlove. (fer repcnable intenlSt and cllvldend acccunn; epened after 1983 only), or D*~ f.p - 2'} - .0 ( 5. You dO not certifY yaw TIN wnen required. See the Pan IIIInttNCt10ns on page Z far details. Certain payees and payrMntI are exempt from backup wiInhaIdIng. See tne Part II instructiomJ and u. MPlU'It8 'n.arucaOM for ... R..... at Fonn w-e. Penalties Failure To Furnish 11N-6f you fall to fumi:sn your correct TIN to . reqUtllll8r, yeu ant subject to a penaltY of S!O for each sud'l failure unless your faIIan .. due to reua~. caIJU and nat to willful neglect. Civil P....'" for F.... .........4lIIIon WIllI' Aeapec;t fa WItftM~ you make a faiN sta't8tne/'l! with flO rwaonabIe baSis that resulW In no baC:lCUP withl'laldlng, you are subJect to a $500 penIlly. Crlmtn8. PenIStY for F......ne InfDnnaUon.- Willfully faIaIfYfng certiflcatlans or affIrmaUana mIIY lI\.lQ1ecl you to criminal pena/tlee Including fines and/or imprisonment. MI8UM of llN~f the ~. di$loaes or usee TINI In v1olallon at Federal law. the requesW may tle sUbject to civil and criminal penaItI8II.