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39 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. 3. 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. 5. Work Completion: Weather permitting; all work must be completed within 120 days of the loan closing. 6. 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. HRC can direct borrowers to additional financing sources. The additional funds needed to complete the project must either be escrowed with the Greater Metropolitan Housing Corporation (GMHC) or the funds must be paid into the project before loan funds are expended. 7. Custody of Funds: Loan funds will remain in the custody of HRC until payment for completed work. 8. Disbursement Process: a. Payment to the contractor (or owner) will be made after completion of the work. An inspection will be performed by the City and/or HRC to verify the completion of the work. b. 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. 3.) Material Receipts for sweat equity projects. 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 HousingResource Center, (612)378-7985. 6.) Final Inspection and approval by the Resource Center. The above items must be provided to HRC to begin the preparation of the check(s). Lien waivers must be provided before the funds will be released. Payment checks may take up to 10 business days after the above items are received to prepare. Payment checks to contractors must be countersigned by the borrower. Payments will only be made for work completed and approved. For additional information contact: Greater Metropolitan Housing Corporation HousingResource Center — North 214844 th Avenue North Minneapolis, MN 55412 (612) 588 - 3033 C:Documents and Settings%arb.suciuTocal Settings\Temporary lntemet FileslCoriynt.Outlook\F4MUOOR91StAntlionyRevolvingGuideiinesFinal.doe Rev. 3- 27-12