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29 5. Generally, no more than two 60 -day lates on credit report. Any 90 -day late requires a document explanation and acceptable reasons; medical, unemployment, divorce. Underwriting Process: GMHC will have the final determination on applicant's eligibility. Eligible Improvements: Interior and exterior repairs and improvements are all eligible. Decks, porches, retaining walls, skylights, garages, landscaping, and fences can be repaired, replaced or built as new construction. Contractors contracting for the work must be properly licensed by the City of St. Anthony. Permits must be obtained when required by ordinance. Ineligible Improvements: This includes recreational or luxury improvements, working capital, payment for owner's labor, debt service or refinancing existing debts and other work items determined by HRC to be ineligible. Work by Owner: Work can be performed on a "sweat equity" basis. Loan funds are for materials only, not for labor or tools. HRC will determine if the owner has the ability to properly complete the work within the program time requirement. Material must be purchased and installed prior to the disbursement of the loan proceeds. Under unusual circumstances, a partial advance will be provided to the borrower. In either situation, a two-party check will be issued payable to both the borrower and the materials provider. When applicable, a St. Anthony Building Department permit must be obtained by the borrower. OTHER GENERAL CONDITIONS AND PROCEDURES: Rehabilitation Consulting: The HRC construction manager will be available to borrowers to advise them about proposed projects prior to obtaining bids and will review bids for reasonableness. Two bids must be obtained for all projects for which at least $5,000 of funds will be spent. 2. Loan Costs: Mortgage filing fees, other closing costs, if any, and mortgage satisfaction preparation fees will be paid by the borrowers. Borrowers, if necessary, will be assessed a 5% fee for submitting a late payment and/or a fee if a payment is returned to the servicer for insufficient funds. Initial Applications for Funding: Applications will be accepted by HRC on an ongoing basis and processed on a first-come, first-served basis, as funds are available until all program funds are committed. 4. Contractors & Permits: Contractors must be properly licensed by the state of Minnesota when required. Permits must be obtained when required by city code. Work Completion: Weather permitting, all work must be completed within 120 days of the loan closing. FACouncil Meetings\2012\03132012\Revised St Anthony Revolving Guidelines.dogx Rev. 2 -28-12