HomeMy WebLinkAboutEDA REsolution 12-EDA-273 EDA RESOLUTION 12-EDA-273
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION AMENDING THE MOUNDS VIEW
GENERAL HOME REPAIR LOAN CRITERIA
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, on November 22, 2012, the Mounds View EDA approved criteria for a
one-year pilot program called the Mounds View Home Improvement Loan Program
consisting of the following four loan types available to Mounds View residents:
1) Home Demolition
2) Code Enforcement
3) General Home Repair
4) Emergency Deferred; and,
WHEREAS, on December 12, 2011, the EDA authorized a one-year extension of
loan program through 2012 and increased the program's loan-to-value ratio to 110%; and,
WHEREAS, on June 11, 2012, the EDA expanded the"General Home Repair"loan
criteria to include unimproved driveways as an eligible project.
Resolution 12-EDA-273
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NOW, THEREFORE BE IT RESOLVED THAT the Mounds View Economic
Development Authority does hereby authorize the following amendments to the "General
Home Repair" loan criteria:
1) Change the name of the "General Home Repair" loan to"General Home Improvement"
loan to clarify the intent of the loan, which is to enhance and improve a property's
livability and value
2)Add bathroom and kitchen remodels to the list of eligible improvements
3)Add the following clarifying language to the paragraphs that address eligible repairs and
improvements: The General Home Improvement loan program makes funds available to
improve the exterior and/or interior of the property. Eligible work may correct health and
safety items, increase handicap accessibility, reduce long-term maintenance and energy
costs or improve the livability of the home Eligible improvements include but are not
limited to the following examples:
Adopted this 8th day of October, 2012 by the
Mounds View Economic Development Authority
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(ATTEST) 4A-L4/ ''
James Ericson, Executive Director
MOUNDS VIEW
Economic Development Authority (EDA)
General Home Repair Improvement Loan Criteria
EDA Approved November 22, 2010
Amended December 12, 2011
Amended June 11, 2012
Reviewed October 8, 2012
The purpose of this loan is to provide loans for general home improvements and 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 prime/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 (FY 2012):
Household Size Income Limit
1 $45,500
2 $52,000
3 $58,500
4 $65,000
5 $70,200
6 $75,400
7 $80,600
8 $85,800
Loan to Value The borrower's combined mortgage debt including the Mounds View loan
cannot exceed 110% 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
Properties
Eligible Repairs & The General Home Improvement loan program makes funds
Improvements available to improve the exterior and/or interior of the property.
Eligible work may correct health and safety items, increase
handicap accessibility, reduce long-term maintenance and energy
costs or improve the livability of the home Eligible improvements
include but are not limited to the following examples:
Exterior repairs Work:
• Exterior Painting & Siding
• Siding repairs/replacement
■ Rafters, soffit and fascia fair
• Energy efficient window glass and screens
• Railings and stairs
• Landings and porches
• Driveways (only if current driveway is unimproved)
Interior repairs Work:
• Energy efficiency improvements (insulation and heating/cooling
systems)
• Bathroom and Kitchen repairs & remodels
• 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
project. All contractors must be licensed and insured.
General Home Improvement Loan
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Application & Loan Disbursement Process
The Housing Resource Center's (HRC) North & East Metro 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 North & East Metro
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 HRC's North &
East Metro office 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.
General Home Improvement Loan
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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 at 651-486-7401.
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 Improvement Loan
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