HomeMy WebLinkAboutEDA Resolution 10-EDA-262 EDA RESOLUTION 10 -EDA -262
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING CRITERIA FOR
THE MOUNDS VIEW GENERAL HOME REPAIR LOAN
WHEREAS, the Mounds View Economic Development Authority (EDA) has
Housing and Redevelopment Authority powers provided in Minnesota Statutes, Sections
469.001 to 469.047 and,
WHEREAS, the purposes of Sections 469.001 to 469.047 are:
(1) to provide a sufficient supply of adequate, safe, and sanitary dwellings in order to
protect the health, safety, morals, and welfare of the citizens of this state;
(2) to clear and redevelop blighted areas;
(3) to perform those duties according to comprehensive plans;
(4) to remedy the shortage of housing for low and moderate income residents, and to
redevelop blighted areas, in situations in which private enterprise would not act without
government participation or subsidies; and
(5) in cities of the first class, to provide housing for persons of all incomes; and,
WHEREAS, pursuant to the purposes of Housing and Redevelopment Authority
powers, in September 2010, the Mounds View City Council directed City staff to develop
criteria for a new, one -year pilot home improvement loan program; and,
WHEREAS, the Mounds View General Home Repair Loan would provide up to
$10,000 at 3% interest for up to ten years for general home repairs to owner occupied
single family or duplex properties in Mounds View; and,
WHEREAS, the goal of the Mounds View General Home Repair Loan is to assist in
maintaining and improving Mounds View's housing stock.
Resolution 10 -EDA -262
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NOW, THEREFORE BE IT RESOLVED, the proposed criteria for the Mounds View
General Home Repair Loan as presented in the attached Exhibit A, is hereby approved,
established, and adopted by the Mounds View Economic Development Authority.
Adopted this 22nd day of November,
2010 by the Mounds View Economic
Development Authority
0'1-e' 4j*k
J O Flahe ent
(ATTEST)
J a-v►
James Ericson, Executive Director
10 -EDA -262
Exhibit A
MOUES �VIBV
Economic Development Authority (EDA)
General Home Repair Loan Criteria
EDA Approved November 22, 2010
The purpose of this loan is to provide loans for general home repairs to owner occupied
single family or duplex homes in Mounds View.
Loan Amount From $1,000 to $10,000
Loan Security All loans will be secured by a mortgage in favor of the City. The loan
may be secured in a subordinate lien position behind the borrower's
existing rime /A -rated fixed rate mortgage.
Interest Rate The interest rate is fixed at 3 The monthly payment is fixed.
Loan Term The maximum loan term is 10 years, however, the loan shall become due
upon sale, transfer of title or refinancing of the property, whichever
occurs first.
Income Limit The applicant's total gross annual household income shall not exceed
80% of the current year area median household income as defined by
HUD per household size, as follows:
Household Size Income Limit
1 $45,100
2 $51,550
3 $58,000
4 $64,400
5 $69,600
6 $74,750
7 $79,900
8 $85,050
Loan to Value The borrower's combined mortgage debt including the Mounds View loan
cannot exceed 90% of the property value based on the taxable market
value as determined by Ramsey County for the current year. Applicants
may also submit a third party appraisal that has been completed within
the last 6 months. Such an appraisal is to be obtained by the applicant at
their expense.
Debt to Income' 50%
Eligible Mounds View owner occupied single family duplex properties
Pro erties
Eligible Repairs Exterior repairs:
Exterior painting
Siding repairs /replacement
Rafters, soffit and fascia repair
Energy efficient window glass and screens
Railings and stairs
Landings and porches
Interior repairs:
Energy efficiency improvements (insulation and heating /cooling
systems)
Accessibility improvements for people with disabilities
Failure of electrical, ventilation, or plumbing /septic system
Roof leaks that have led to significant damage to the interior
A structural failure of the foundation, walls, or roof that could
cause collapse;
Removing lead paint or the cause of a confirmed concentration
of lead in the resident's whole blood (Environmental Intervention
Blood Lead Level
Ineligible Exterior repairs to condos and townhomes
Improvements New construction (additions)
Luxury items, such as swimming pools or saunas
Working capital, debt service or refinancing of existing debts
Contractor Bids Applicants must provide the Housing Resource Center's
Construction Manager with three bids for each improvement
roiect. All contractors must be licensed and insured.
Application Loan Disbursement Process
The Housing Resource Center's (HRC) NorthMetro Office is the program administrator.
Please call the HRC's construction and loan consultants at 651- 486 -7401 to answer
any questions about Mounds View's loan program and /or your project.
GMHC Housing Resource Center NorthMetro Office
1170 Lepak Court
Shoreview, MN 55126
Phone: 651 486 -7401
Fax: 651 486 -7424
DO NOT SIGN ANY CONTRACTS OR START YOUR PROJECT UNTIL A CLOSING
HAS TAKEN PLACE. ANY PROJECT BEGUN BEFORE A LOAN CLOSING HAS
TAKEN PLACE WILL BE INELIGIBLE FOR PARTICIPATION IN THE PROGRAM.
General Home Repair
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Application Process: Completed applications will be processed by the Housing
Resource Center (HRC) NorthMetro on a first -come, first- served basis, as funds are
available until all program funds are committed. After loan approval you will be notified
to come to the HRC for a loan closing to sign a Note and Mortgage.
Rehabilitation Consulting: HRC consultants will be available to advise borrowers
about proposed projects and conduct an optional initial home inspection. HRC will
review bid(s) for reasonableness.
Loan Costs: A credit report fee paid by applicant at time of application; mortgage
registration tax and filing fee and title policy paid by borrower at closing. The title policy
may be financed through the loan.
Contractors Permits: Contractors must be properly licensed by the state of
Minnesota when required. Permits must be obtained when required by city code.
Total Project Cost: It is the borrower's responsibility to obtain the amount of funds
necessary to finance the entire cost of the work. If the final cost exceeds the loan
amount, the borrower must obtain the additional funds. Borrower's contribution to
project cost must be paid prior to release of loan funds. HRC can direct borrowers to
additional financing sources.
Work Completion: Weather permitting, work must be completed within 120 days of
loan closing.
Disbursement Process: Loan funds will remain in escrow at GMHC until payment for
completed work. The following items must be received before the funds can be
released:
1. Final Invoice from each contractor showing all amounts paid and due.
2. Lien Waiver. Original from each contractor.
4. Completion Certificate signed by each contractor and the borrower.
5. Permits Closed. Have the inspector sign the permit card, or have the
inspector leave a message at the HRC (651) 228 -1077.
6. Final Inspection and approval by the HRC.
It may take up to 10 business days after receipt of above items to prepare checks.
Payment checks to contractors must be countersigned by the borrower. Lien waivers
must be provided before the funds will be released.
General Home Repair
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