HomeMy WebLinkAboutEDA Resolution 10-EDA-263 EDA RESOLUTION 10 -EDA -263
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING CRITERIA FOR
THE MOUNDS VIEW CODE ENFORCEMENT HOME 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 Code Enforcement Home Loan would provide up to
$7,000 at 0% interest for up to ten years to owner occupied single family or duplex
properties in Mounds View that have been required by the City of Mounds View to bring
their properties into compliance with the City Code; and,
WHEREAS, the goal of the Mounds View Code Enforcement Home Loan is to
assist in maintaining and improving Mounds View's housing stock.
Resolution 10 -EDA -263
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NOW, THEREFORE BE IT RESOLVED, the proposed criteria for the Mounds View
Code Enforcement Home 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
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J Flahe ent
(ATTEST)
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James Ericson, Ericson, Executive Director
10 -EDA -263
Exhibit A
M0U_NDtSVICDO V
Economic Development Authority (EDA)
Code Enforcement Home Loan Criteria
EDA Approved November 22, 2010
The purpose of this loan is to provide loans for owner occupied single family or duplex
properties in Mounds View that have been required by the City of Mounds View to bring their
properties into compliance with the City Code.
Loan Amount From $1,000 to $7,000
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 0 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, refinancing of the property, whichever occurs
first.
Loan to Value The borrower's combined mortgage debt including the Mounds View
loan cannot exceed 100% 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%
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
Eligible Mounds View owner occupied single family or duplex properties
Properties
Eligible Repairs Exterior repairs required by Mounds View's Code Enforcement Officer
such as:
Exterior painting
Siding repairs /replacement
Rafters, soffit and fascia repair
Energy efficient window glass and screens
Railings and stairs
Landings and porches
Interior repairs are allowed only if they are related to life safety of the
residents and required by Mounds View's Code Enforcement Officer.
This may include a structural failure of the foundation, walls, or roof
that could cause collapse.
Ineligible Exterior repairs to condos and townhomes
Improvements Any repairs to mobile homes
Driveways, sidewalks and paved areas
"Jun or debris removal, removal of inoperable vehicles, etc.
Contractor Bids Applicants must provide the Housing Resource Center's Construction
Manager with three bids for each improvement project. 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.
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.
Code Enforcement
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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.
Code Enforcement
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