HomeMy WebLinkAbout02-12-2024 EDA
CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA
MOUNDS VIEW CITY HALL
Monday, February 12, 2024
6:00 p.m.
1. CALL TO ORDER
2. ROLL CALL: President Meehlhause, Vice President Lindstrom,
Commissioner Cermak, Gunn
3. APPROVAL OF AGENDA
4. CONSENT AGENDA
A. Approval of Minutes: January 22, 2024 Open
February 05, 2024 Closed
5. SPECIAL ORDER OF BUSINESS
A. None
6. PUBLIC COMMENT
Citizens may speak to issues relating to economic development and not on the
agenda. Before speaking, please give your full name and address for the
minutes. Also, please limit your comments to three minutes.
7. EDA BUSINESS
A. Resolution 24-EDA-371 Approving a Fifth Amendment to the Loan
Origination Agreement with Center for Energy and Environment
B. Update from the Center for Energy and Environment
8. REPORTS
A. None
9. NEXT EDA MEETING: February 26, 2024 at 6:00 p.m. Mounds View City
Hall
10. ADJOURNMENT
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
January 22, 2024 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 Meehlhause called the meeting to order at 6:07 p.m. 13
14
2. ROLL CALL: President Meehlhause, Commissioner Cermak, Commissioner Gunn, Vice 15
President Lindstrom, and Executive Director Zikmund. 16
17
NOT PRESENT: None. 18
19
3. APPROVAL OF AGENDA 20
21
MOTION/SECOND: Gunn/Lindstrom. To Approve the January 22, 2024, Agenda as presented. 22
23
Ayes – 4 Nays – 0 Motion carried. 24
25
4. CONSENT AGENDA 26
27
A. Approval of Minutes: January 8, 2024. 28
29
MOTION/SECOND: Gunn/Lindstrom. To Approve the Consent Agenda as presented. 30
31
Ayes – 4 Nays – 0 Motion carried. 32
33
5. SPECIAL ORDER OF BUSINESS 34
35
None. 36
37
6. PUBLIC COMMENT 38
39
None. 40
41
7. EDA BUSINESS 42
43
A. Confirm EDC Chair Appointment 44
45
Executive Director Zikmund requested the EDA confirm the EDC chair appointment. He 46
Mounds View EDA January 22, 2024
Regular Meeting Page 2
explained the EDC met last week and recommended the appointment of Jeff Moritko and this 1
would be his second term. 2
3
MOTION/SECOND: Gunn/Cermak. To Confirm the EDC Chair Appointment. 4
5
President Meehlhause thanked Mr. Moritko for being willing to serve as the EDC Chair. 6
7
Ayes – 4 Nays – 0 Motion carried. 8
9
8. REPORTS 10
11
None. 12
13
9. NEXT EDA MEETING: Monday, February 12, 2024 at 6:00 p.m. 14
15
10. ADJOURNMENT 16
17
President Meehlhause adjourned the meeting at 6:10 p.m. 18
19
Respectfully submitted, 20
21
22
Recorded and transcribed by: 23
Heidi Guenther 24
Minute Maker Secretarial 25
DOCSOPEN\MU205\64\932010.v2-2/7/24
PROCEEDINGS OF THE MOUNDS VIEW EDA
CITY OF MOUNDS VIEW
RAMSEY COUNTY, MINNESOTA
Special Closed EDA Meeting
February 5, 2024
Mounds View City Hall
2401 County Road 10, Mounds View, MN 55112
1. CALL MEETING TO ORDER
President Meehlhause called the meeting to order at 7:27 p.m.
2. ROLL CALL: President Meehlhause, Commissioner Cermak, Commissioner Gunn,
Vice-President Lindstrom, Assistant City Administrator Beeman, Executive Director
Zikmund, and Finance Director Bauman
3. EDA BUSINESS. CLOSED SESSION.
MOTION/SECOND: Gunn/Cermak motioned to go into close session.
A. Pursuant to Minnesota Statutes Sections 13D.05, subdivision 3(c) and 13.44,
subdivision 3, the EDA closed a meeting concerning real property located at
addresses noted below, to consider strategies and to develop or consider offers or
counteroffers for the purchase of such real property and to review confidential
appraisal information for such real property:
0 County Road H2
Mounds View, Minnesota
PIN: 08-30-23-42-0014
4. ADJOURNMENT
MOTION/SECOND: Gunn/Lindstrom to adjourn the closed meeting at 8:15 p.m.
Ayes - 4 Nays – 0 Motion Carried.
Respectfully submitted,
Brian Beeman, Assistant City Administrator
Transcribed by: Barb Benesch
Item No: 07.A
Meeting Date: February 12, 2024
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 24-EDA-371 Approving a Fifth 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 expired December 31, 2023. Therefore, an extension of the existing contract is
necessary to continue administering the EDA’s loan programs. There are no changes to the existing
Agreement. This amendment is only an extension of the expiration date. Everything else will remain
the same. The amended contract will be effective January 1, 2024.
Discussion
The EDA to discuss an extension of the existing services provided by CEE as necessary. There
are no changes to the existing Agreement.
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, this is a budgeted item.
Recommendation
Staff recommends the EDA consider 24-EDA-371 via a motion.
Respectfully submitted,
___________________________
Brian Beeman, Assistant City Administrator
Attachment(s):
1. EDA Resolution 24-EDA-371, Approving a Fifth Amendment to the Loan Origination Agreement with CEE
2. Amendment 5, Loan Origination Agreement
3. Exhibit A4 Guidelines
4. Exhibit B4 Loan Program Budget
DOCSOPEN\MU205\13\825029.v1-9/20/22
EDA RESOLUTION 24-EDA-371
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
A RESOLUTION APPROVING A FIFTH 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.
1.04. The Authority acknowledges that 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 program guidelines and budget has not changed except for the
Termination Date.
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. 24-EDA-371
Page 2
2
DOCSOPEN\MU205\13\825029.v1-9/20/22
Adopted on the 12th day of February, 2024.
Gary Meehlhause, President
Attest:
Nyle Zikmund, Executive Director
(SEAL)
A-1
DOCSOPEN\MU205\13\825029.v1-9/20/22
EXHIBIT A
Amendment 5 to the Loan Origination Agreement
AMENDMENT 5 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.
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, 2024 and continue through December 31, 2024.
All other sections of the contract shall remain as written in the original and amended agreements.
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 ___________________________
EDA President
Date _________________________
Date _________________________
#3993
By ___________________________ TAX ID 41-1647799
City Administrator
AMENDMENT 5 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.
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, 2024 and continue through December 31, 2024.
All other sections of the contract shall remain as written in the original and amended agreements.
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 __________________________
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
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.
The Mounds View Vision
A Thriving Desirable Community
Item No: 07.B
Meeting Date: February 12, 2024
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: Update from the Center for Energy and Environment
Background
The Center for Energy and Environment (CEE) administers several loan programs for the EDA and
City. CEE normally provides at least one update per year.
Discussion
The EDA to hear and update from CEE and ask any questions as necessary.
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 the update from CEE and ask any questions as necessary.
Respectfully submitted,
___________________________
Brian Beeman, Assistant City Administrator
Attachment(s):
1. None