Loading...
HomeMy WebLinkAbout09-26-2022 EDACITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, September 26, 2022 6:30 p.m. 1. CALL TO ORDER 2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Hull, Commissioner Meehlhause, Commissioner Bergeron 3. APPROVAL OF AGENDA 4. CONSENT AGENDA A. Approval of Minutes: September 12, 2022 5. PUBLIC COMMENT Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 6. EDA BUSINESS A. Center for Energy and Environment, Annual Update B. Resolution 22-EDA-360 Approving a Fourth Amendment to the Loan Origination Agreement with Center for Energy and Environment 7. REPORTS A. None 8. NEXT EDA MEETING: October 10, 2022 at 6:30 p.m., Mounds View City Hall 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 September 12, 2022 6 Mounds View City Hall 7 2401 Mounds View Boulevard, Mounds View, MN 55112 8 9 10 1. CALL MEETING TO ORDER 11 12 President Mueller called the meeting to order at 6:32 p.m. 13 14 2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Bergeron 15 Commissioner Hull, Commissioner Meehlhause, and Executive Director Zikmund. 16 17 NOT PRESENT: None. 18 19 3. APPROVAL OF AGENDA 20 21 MOTION/SECOND: Mueller/Hull. To Approve the September 12, 2022, Agenda as presented. 22 23 Ayes – 5 Nays – 0 Motion carried. 24 25 4. CONSENT AGENDA 26 27 A. August 22, 2022, EDA Minutes. 28 29 MOTION/SECOND: Bergeron/Cermak. To Approve the Consent Agenda as presented. 30 31 Ayes – 5 Nays – 0 Motion carried. 32 33 5. PUBLIC COMMENT 34 35 None. 36 37 6. EDA BUSINESS 38 39 A. Resolution 22-EDA-359, Approving the Preliminary EDA Property Tax Levy 40 Request and Budget for Fiscal Year 2023. 41 42 Finance Director Beer requested the EDA approve the preliminary EDA Property Tax Levy 43 request and budget for fiscal year 2023. He explained the City’s TIF districts have decertified 44 which led the EDA to create a general tax levy in order to support the activities of the EDA. He 45 reported the proposed levy was $100,000. 46 Mounds View EDA September 12, 2022 Regular Meeting Page 2 1 MOTION/SECOND: Meehlhause/Bergeron. To Waive the Reading and Adopt Resolution 22-2 EDA-359, Approving the Preliminary EDA Property Tax Levy Request and Budget for Fiscal 3 Year 2023. 4 5 Ayes – 5 Nays – 0 Motion carried. 6 7 7. REPORTS 8 9 Commissioner Meehlhause stated the Mounds View Business Council would be meeting next on 10 Wednesday, September 14 at 8:00 a.m. at the Mounds View Community Center. Assistant City 11 Administrator Beeman reported Logica would be discussing energy efficiencies and security 12 systems at the meeting. 13 14 8. NEXT EDA MEETING: Monday, September 26, 2022 at 6:30 p.m. 15 16 9. ADJOURNMENT 17 18 President Mueller adjourned the meeting at 6:40 p.m. 19 20 Respectfully submitted, 21 22 23 Recorded and transcribed by: 24 Heidi Guenther 25 Minute Maker Secretarial 26 Item No: 06.A Meeting Date: September 26, 2022 Type of Business: EDA BUSINESS Administrator Review: ____ City of Mounds View Staff Report To: Economic Development Authority From: Brian Beeman, Assistant City Administrator Item Title/Subject: Center for Energy and Environment Annual Update Background The Center for Energy and Environment (CEE) administers several loan programs for the EDA and City as well as the home energy audit services through the Energy Squad. Discussion The EDA to hear an update from CEE and ask any questions as needed. Strategic Plan Strategy/Goal Maintain a positive business climate where businesses want to locate and remain in Mounds View. Finance top redevelopment areas Industrial/Commercial/Residential. Financial Impact None Recommendation Staff recommends the EDA hear an update from CEE and ask any questions as needed. Respectfully submitted, ___________________________ Brian Beeman, Assistant City Administrator Attachment(s): 1. None Item No: 06.B Meeting Date: September 26, 2022 Type of Business: EDA BUSINESS Administrator Review: ____ City of Mounds View Staff Report To: Economic Development Authority From: Brian Beeman, Assistant City Administrator Item Title/Subject: Resolution 22-EDA-360 Approving a Fourth Amendment to the Loan Origination Agreement with the Center for Energy and Environment Background The Center for Energy and Environment (CEE) administers several loan programs for the EDA. The current agreement expires December 31, 2022. CEE has indicated that with the increase in their labor and overhead costs, they need to make some adjustments to some of the administrative costs in the upcoming amendment. The origination fee will remain the same, however the annual administrative fee will be $5,000, up from $2,500 and the post installation inspection fee will be $150, up from $100. Everything else will remain the same. In addition, the EDA decided to remove the Forgivable Loan program from the upcoming amended contract in order to save costs on the loan origination fee. The amended contract will be effective January 1, 2023. Discussion Staff and Kennedy & Graven have reviewed the proposed amendments and is recommending the EDA consider 22-EDA-360. Changes include:  Removing the Forgivable Loan program and Commercial Loans, saving $1050.  Increasing the Annual Administrative Fee from $2,500 to $5,000.  Increasing the post installation inspection fee from $100 to $150.  All other language in the contract to remain the same. Strategic Plan Strategy/Goal Maintain a positive business climate where businesses want to locate and remain in Mounds View. Finance top redevelopment areas Industrial/Commercial/Residential. Financial Impact One time Annual Administrative Fee is increasing from $2,500 to $5,000. Post Installation Inspection Fee is increasing from $100 to $150. Eliminating the Commercial Loan program, saving $1050 per commercial loan origination fee. Recommendation Staff recommends the EDA consider 22-EDA-360 via a motion. Respectfully submitted, ___________________________ Brian Beeman, Assistant City Administrator Attachment(s): 1. EDA Resolution 22-EDA-360, Approving a Fourth Amendment to the Loan Origination Agreement with CEE 2. Amendment 4, Loan Origination Agreement 3. Exhibit A4 Guidelines 4. Exhibit B4 Loan Program Budget DOCSOPEN\MU205\13\825029.v1-9/20/22 EDA RESOLUTION 22-EDA-360 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION APPROVING A FOURTH AMENDMENT TO THE LOAN ORIGINATION AGREEMENT WITH CENTER FOR ENERGY AND ENVIRONMENT BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Mounds View Economic Development Authority (the “Authority”) as follows: Section 1. Recitals. 1.01. The Authority is authorized pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (the “EDA Act”), to participate in providing certain loan programs (collectively, the “Loans”). 1.02. The Authority, on December 11, 2017, approved a Loan Origination agreement with the Center for Energy and Environment, a non-profit corporation formed under the laws of the State of Minnesota. 1.03. The Authority has determined that an amendment is necessary in order to extend the term of the Agreement, approve increases in Annual Administration and Post Installation Inspection fees, and remove administration of the New Business Forgivable Loan Program. 1.04. The Authority has negotiated the terms of the amendment to the loan origination agreement (the “Amendment”), a copy of which is attached as Exhibit A to this resolution, which includes amended program guidelines and budget. 1.05. The Board has reviewed the Amendment and finds that the execution thereof by the Authority and performance of the obligations thereunder are in the best interest of the Authority, the City and its residents. Section 2. Authorization. 2.01. The recitals set forth in this Resolution are incorporated into and made a part of this Resolution. 2.02. The Board hereby approves the Amendment in substantially the form presented to the Board on the date below and further subject to any modifications that do not alter the substance of the transaction and that are approved by the Authority’s attorney. 2.03. The proper Authority officials, staff and consultants are authorized to execute the Amendment and to take any and all other steps necessary or convenient in order to carry out the obligations under the Amendment, as well as to fulfill the intent of this Resolution. EDA Resolution No. 22-EDA-360 Page 2 2 DOCSOPEN\MU205\13\825029.v1-9/20/22 Adopted on the 26th day of September, 2022. Carol A. Mueller, President Attest: Nyle Zikmund, Executive Director (SEAL) A-1 DOCSOPEN\MU205\13\825029.v1-9/20/22 EXHIBIT A Amendment 4 to the Loan Origination Agreement [to be added] DOCSOPEN\MU205\13\821951.v1-9/8/22 AMENDMENT 4 to the LOAN ORIGINATION AGREEMENT Between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF MOUNDS VIEW And CENTER FOR ENERGY AND ENVIRONMENT City of Mounds View Home Improvement Loan Program The Agreement made the 1st day of January, 2018 by and between the Economic Development Authority in and for the CITY OF MOUNDS VIEW, with offices at 2401 Mounds View Blvd, Mounds View, MN 55112, (the “Authority”), and CENTER FOR ENERGY AND ENVIRONMENT, with its offices at 212 3rd Avenue North, Suite 560, Minneapolis, Minnesota 55401 (“CEE”) is hereby amended. 1. Services/Scope of Work of the agreement shall read: 1.1 CEE shall, as directed by the Authority, develop and deliver the City of Mounds View Loan Programs (hereinafter the “Program”) which are more fully described in Exhibit A4, attached hereto. All activities delivered under the Program shall be coordinated with the Authority’s designated representative, who shall be the Finance Director or the Assistant City Administrator. 2. Compensation of the agreement shall read: 2.1 The Authority shall compensate CEE for services provided under this Agreement according to the following schedule and more fully described in Exhibit B4 attached hereto: Loan Origination Fee for all Residential Loans $750 Loan Origination Fee for all Commercial Loans $1050 Annual Administration Fee $5,000 Post Installation Inspection Fee $150 The Annual Administration Fee shall be payable on January 1st of each year the contract is active. 5. Term and Termination of the agreement shall read: 5.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on January 1, 2023 and continue through December 31, 2023. All other sections of the contract shall remain as written in the original and amended agreements. DOCSOPEN\MU205\13\821951.v1-9/8/22 IN WITNESS WHEREOF, the parties hereunder set their hands as of the date written below: ECONOMIC DEVELOPMENT AUTHORITY of MOUNDS VIEW CENTER FOR ENERGY AND ENVIRONMENT By ___________________________ By __________________________ Mayor/EDA President Date __________________________ Date _________________________ #3993 By ___________________________ TAX ID 41-1647799 City Administrator Exhibit A4 Page 1 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 EXHIBIT A4 PROGRAM GUIDELINES Exhibit A4 Page 2 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 MOUNDS VIEW LOAN PROGRAM GUIDELINES The City of Mounds View EDA is making funds available for homeowners to make improvements to their properties. The Mounds View Loan Program is designed to supplement existing loan programs available from MHFA, CEE, private lenders and other housing resources. This program is not intended to be the sole source of improvement funds available to the City. Center for Energy and Environment shall serve as the administrator for the Mounds View Loan Program and will secure the most beneficial financing based on the borrower’s needs independent of the funding source. Residential Home Improvement Loan Program Interest Rate: 3% for households with income less than or equal to 80% of HUD Area Median Income 4% for households with income greater than 80% of HUD Area Median Income ***Income shall be determined by projected income for the next year and is based on household size. Amortization Type: Amortizing (Monthly Payments Required) Loan Amount: Minimum of $2,000 and Maximum of $15,000. Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum term will be 10 years. Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of the City of Mounds View. Townhomes and Condominiums are eligible. Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes and properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers, and Properties held in the name of a business. Ownership/Occupancy: Owner- occupied only. Exhibit A4 Page 3 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 110% of the property value. Half of the improvement value may be added to the initial property value. Income Limit: There is no maximum income limit Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt to income ratio in excess of 50% will be ineligible to receive financing. Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation) 2) All real estate taxes must be current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing. 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late payments on credit report. Any 60 day late requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7) No defaulted government loans. Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding balance(s) cannot exceed $15,000. Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that improve the basic livability of the property. Garages, decks, porches, retaining walls, landscaping and fences can be repaired, replaced or built as new construction. Contractors must be properly licensed and permits must be obtained when required. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed. Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials. Loan funds may be used to rent tools/equipment. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the City of Mounds View EDA. Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees, title, flood certificate, credit report and any other fees associated with the loan. All fees may be financed in the loan. Exhibit A4 Page 4 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. CEE’s decision shall be final. Appeals can be made to the City of Mounds View. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. Residential 0% Clean Water Partnership (CWP) Loan Program Interest Rate: 0% Amortization Type: Amortizing (Monthly Payments Required) Loan Amount: Minimum of $1,000 and Maximum of $20,000. Loan term: Up to 5 years for loan amounts equal to or less than $10,000 and up to 10 years for loan amounts greater than $10,000. Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year. Eligible Properties: 1-4 unit owner-occupied and non-owner occupied properties located within the geographical boundaries of the City of Mounds View. Mobile Homes, Townhomes and Condominiums are eligible. Ineligible Properties: Dwellings with more than four units, co-operatives and properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: Foreign Nationals, illegal residents and properties held in the name of a business. Ownership/Occupancy: Owner and non-owner occupied. Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 110% of the property value. Half of the improvement value may be added to the initial property value. There is no Loan-to-Value Ratio required for mobile homes. Income Limit: There is no maximum income limit. Exhibit A4 Page 5 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 Debt - to - Income Ratio: 50%. Applicant must have the ability to repay the loan. Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payment history in the past 12 month period (without reasonable explanation) 2) All real estate taxes must be current 3) No outstanding judgements or collections 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date 6) Generally, no more than two 60-day late payments on credit report. Any 60 day late requires a documented explanation and reasonable reasons; medical, unemployment, divorce 7) No defaulted government loans Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding balance(s) cannot exceed $20,000. Eligible Use of Funds: Loans may be used to finance projects that are eligible for the Clean Water Partnership (CWP) Program. These include, but are not limited to: lateral sewer line excavation and replacement, lining or re-lining lateral sewer lines, water softener replacement, cleaning ponds due to city assessment and installing rain-gardens. Contractors must be properly licensed and permits must be obtained when required. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Questionable improvements will be brought to the City. Bids: Only one bid is required. All contractors must be properly licensed. Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials and not to compensate for labor. Loan funds can be used to rent tools/ equipment. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the City of Mounds View EDA, unless a mobile home. If the improvements are for a mobile home a lien is filed on the title. Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees, title, flood certificate, credit report and any other fees associated with the loan. All fees may be financed in the loan amount. Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. Appeals can be made to the City of Mounds View. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. Exhibit A4 Page 6 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 Commercial 0% Clean Water Partnership (CWP) Loan Program Interest Rate: 0% Amortization Type: Amortizing (Monthly Payments Required) Loan Amount: Minimum of $5,000 and Maximum of $50,000. Loan term: Up to 5 years for loan amounts equal to or less than $10,000 and up to 10 years for loan amounts greater than $10,000. Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year. Eligible Properties: Commercial, Mixed-Use and Multi-Family (5+ units) properties located within the geographical boundaries of the City of Mounds View. Associations are eligible. Ineligible Properties: Dwellings with less than five (5) units, co-operatives and properties used for residential only purposes. Eligible Borrowers: All borrowers must be a registered business with the MN Secretary of State or legal residents of the United States, as evidenced by a social security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. The borrower(s) must own the property. Ineligible Borrowers: Including but not limited to: Tenants, Foreign Nationals, illegal residents and businesses not registered with the MN Secretary of State. Ownership/Occupancy: Owner and non-owner occupied. Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 110% of the property value. Half of the improvement value may be added to the initial property value. Exceptions may be made by the City. Income Limit: There is no maximum income limit. Debt - to - Income Ratio: Not applicable if the loan is in the name of a business , but the business must show a positive cash flow from the most recent tax return. If the business has not filed a tax return a year-to-date Profit & Loss Statement must be provided. If the business is new a budget shall be provided and brought to the City for review. If the property is in the name of an individual the Debt to Income requirement is 50%. Exhibit A4 Page 7 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payment history in the past 12 month period (without reasonable explanation) 2) All real estate taxes must be current. If the loan is made to an individual they must meet the credit requirements of the Residential CWP Program. Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding balance(s) cannot exceed $50,000. Eligible Use of Funds: Loans may be used to finance projects that are eligible for the Clean Water Partnership (CWP) Program. These include, but are not limited to: lateral sewer line excavation and replacement, lining or re-lining lateral sewer lines, water softener replacement, cleaning ponds due to city assessment and installing rain-gardens. Contractors must be properly licensed and permits must be obtained when required. Assessments made by an Association are eligible. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Questionable improvements will be brought to the City. Bids: Only one bid is required. All contractors must be properly licensed. Sweat Equity Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials and not to compensate for labor. Loan funds can be used to rent tools/ equipment. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the City of Mounds View EDA. Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees, title, flood certificate, credit report and any other fees associated with the loan. All fees may be financed in the loan amount. Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. Appeals can be made to the City of Mounds View. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. Exhibit A4 Page 8 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 Residential Mobile Improvement Loan Program Interest Rate: 3% for households with income less than or equal to 80% of HUD Area Median Income 4% for households with income greater than 80% of HUD Area Median Income ***Income shall be determined by projected income for the next 12 months and is based on household size. Amortization Type: Amortizing. Closed-end (Monthly Payments Required) Loan Amount: Minimum of $2,000 and Maximum of $10,000. Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum term will be 7 years. Eligible Properties: Residential mobile homes located within the geographical boundaries of the City of Mounds View. Ineligible Properties: Non owner-occupied , cooperatives, time shares, properties held in the name of a trust and properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers, and Properties held in the name of a trust or business. Ownership/Occupancy: Owner- occupied only. Loan - to - Value Ratio: Not applicable Income Limit: There is no maximum income limit. Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt to income ratio in excess of 50% will be ineligible to receive financing. Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation) 2) All real estate taxes must be current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing. 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day Exhibit A4 Page 9 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 late payments on credit report. Any 60 day late requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7) No defaulted government loans. Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding balance(s) cannot exceed $10,000. Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that improve the basic livability of the property. Garages, decks, porches, retaining walls, landscaping and fences can be repaired, replaced or built as new construction. Contractors must be properly licensed and permits must be obtained when required. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed. Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials. Loan funds may be used to rent tools/ equipment. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured by a lien in favor of the City of Mounds View EDA. Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees, title, flood certificate, credit report and any other fees associated with the loan. All fees may be financed in the loan amount . Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. CEE’s decision shall be final. Appeals can be made to the City of Mounds View. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. Residential Emergency Repair Deferred Loan Program Exhibit A4 Page 10 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 The intent of the Mounds View Emergency Repair Deferred Loan Program is to provide assistance to property owners in the City of Mounds View who face emergency home repairs and cannot qualify for other housing related programs to remedy the situation. Interest Rate: 0% Loan Amount: Minimum loan is $1,000. Maximum loan is $5,000 within any time period. Loan term: Loan will be deferred until the borrower sells or transfers title of the property, at which time 100% of the loan is due. Eligible Properties: Owner-occupied properties with up to 4 dwelling units located within the boundaries of the City of Mounds View. Condominiums, mobile homes and townhomes are eligible. Ineligible Properties: Dwellings that are more than 4 units (these would be considered apartment and hence commercial properties), cooperatives, time shares, and properties used for commercial purposes. Eligible Borrowers: Owners of 1-4 unit properties within the City of Mounds View who meet the program guideline criteria. The borrower must not be eligible for any other financing administered by CEE in order to obtain an Emergency Program loan. Ineligible Borrowers: Include but are not limited to: nonresident owners, non-occupant co-borrowers, properties held in the name of a business. Ownership / Occupancy: Only owner-occupied. Contract for Deeds are eligible. Loan- to-Value Ratio: Not applicable Income Limit: Household income must be less than 80% of HUD Area Median Income based on projected income over the next year. Debt- to-Income Ratio: Not applicable Multiple Loans per Property/Borrower: Multiple emergency loans on a property are allowed if the balance is within the overall maximum loan limit. Eligible Improvements: An emergency is defined as an imminent condition that makes a house uninhabitable, dangerous to the occupants, or is capable of causing severe health problems. Repairs that will remedy such emergency repairs are eligible. Examples of eligible repairs include, but are not limited to, water lines, sewer service, fire hazards, repair to exterior steps, railings, retaining walls, water seepage into basement, structural problems, or replacement of a furnace or hot water heater. Repairs that remedy code violations and those needed to address home repairs before they significantly de-value the home and become much more serious problems, are also eligible whether or not the city has issued a code violation. Examples of eligible repairs include, but are not limited to, leakage around windows, rotting fascia, holes in siding, roof leakage, crumbling brick or concrete and deteriorated retaining walls. CEE will determine eligibility of projects. Exhibit A4 Page 11 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 Ineligible Improvements: Work initiated prior to the loan being approved and closed. Personal property items, including appliances, furniture, hot tubs, swimming pools, and other luxury items, exterior plumbing (e.g. sprinkler systems), non-permanent landscaping fixtures (e.g. potted plants, furniture, bird feeders), repairs to property used for business or trade purposes, refinancing existing indebtedness, and labor costs of borrowers and/or residents. CEE will refer to the City whenever eligibility of an improvement project is questionable. Bidding: Except when labor is provided by the borrower, the borrower must provide a minimum of 1 bid for each improvement project under $5,000 and 2 bids for each project more than $5,000. All contractors must be properly licensed. Permits must be obtained when required by City ordinance. Sweat Equity: Not permitted Property Inspection: Required. Eligible improvements will be determined through an analysis of the emergency condition of the property. A CEE staff member will perform the analysis to determine the severity of the situation. Post Installation Inspection: Properties are subject to a post installation inspection by a CEE staff member when a permit is not required. Where a permit is required, the work must be signed-off by a City inspector prior to release of funds. Work Completion: All work must be completed within 30 days of loan closing. Extensions may be granted by CEE. Borrower Fees: Borrower will be responsible for mortgage filing and service fees, flood certificate and credit report fees all of which may be financed in the loan amount. Underwriting Decision: CEE will review the application and submitted documentation for consideration for other home improvement programs prior to considering the application for the Emergency Repair Loan Program. CEE will approve or deny loans based on income verification and other criteria. This is a last resort program. The borrower must not be eligible for any other financing administered by CEE in order to obtain an Emergency Repair Deferred loan. CEE’s decision shall be final. Loan Security: All loans will be secured with a mortgage(lien for mobile homes) in favor of the City of Mounds View EDA. Exhibit A4 Page 12 Agreement between the City of Mounds View and Center for Energy and Environment DOCSOPEN\MU205\13\821952.v1-9/8/22 General Program Conditions Application Processing: Loans will be distributed on a first come first serve basis as applicants qualify. Applicants must provide a completed application package including the following in order to be considered for funding.  Completed and signed application form  Proof of income  Bids or estimates for proposed projects  Other miscellaneous documents CEE may require Contractors/Permits: Contractors must be properly licensed. Permits must be obtained when required by City ordinance. Program Costs: Loan origination, post installation inspection and remodeling advisor visit fees will be paid per the Program Budget. Loan program marketing efforts will be billed directly to the City of Mounds View EDA and is a separate expense should the City of Mounds View EDA choose to commission CEE for marketing support. Borrowers will pay all mortgage filing fees and related closing costs. Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the completion of the work. The following items must be received prior to final disbursement of funds: • Final invoice or proposal from contractor (or materials list from supplier); • Final inspection verification by a City Inspector (or CEE); • Completion certificate(s) signed by borrower and contractor; • Lien waiver for entire cost of work; and • Evidence of City permit (if required). Exhibit B4 #3993 Page 1 Agreement between the City of Mounds View EDA and Center for Energy and Environment DOCSOPEN\MU205\13\821950.v1-9/8/22 EXHIBIT B4 TOTAL PROGRAM BUDGET $2,075,000 MOUNDS VIEW LOAN PROGRAM BUDGET A. Loan Program Budget Allocation for the Residential Home Improvement, Mobile Home Improvement and Emergency Repair Deferred Loan Programs: $75,000 • Annual Administration Fee: $5,000 • Administration Fees applicable to the Residential Home Improvement, Mobile Home and Emergency Repair Deferred Loan Programs B. Loan Program Budget Allocation for the Residential and Commercial 0% Clean Water Partnership (CWP) Loan Programs: $2,000,000 • Origination Fees and Post Installation Inspection Fees are not included in the Program Budget. These fees shall be paid by the City of Mounds View EDA. Budget Notes: 1. Funds to be transferred between Budget Categories in this Exhibit that do not change the Total Contract Amount must be approved in writing by the City of Mounds View EDA. 2. CEE shall submit monthly invoices to the City of Mounds View EDA for the loan principal and administrative fees and quarterly invoices for the aged delinquency reporting services. 3. Services performed by CEE will initially be funded from the Total Program Budget as stated above and paid in accordance with the following schedule. (a) Loan Origination Fee for all Residential Loans $750 per loan closed (b) Loan Origination Fee for all Commercial CWP Loans $1,050 per loan closed (c) Post Installation & Emergency Inspection $150.00 per inspection (d) Annual Administration Fee $5,000 The Annual Administration Fee is payable on January 1st of each year the contract is active. 4. Marketing Marketing efforts will be supported by CEE and marketing costs are not included in the administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to the labor of all program marketing. CEE will also be reimbursed by the City of Mounds View EDA for any non-labor, out-of-pocket expenses relating to these services on a dollar-for-dollar basis.