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8.2. SR 05-05-2014 City of Elk=' Request for Action River To Item Number Mayor& City Council 8.2 Agenda Section Meeting Date Prepared by Consent May 5, 2014 Brian Beeman,Director of Economic Development Item Description Reviewed by Housing and Redevelopment Authority Owner Jeremy Barnhart,Deputy Director, CODD Occupied Housing Rehabilitation Program and Reviewed by Budget Amendment Cal Portner, City Administrator Action Requested Approve,by motion pending HRA direction,the Elk River HRA Housing Rehabilitation Policies & Procedures and a budget amendment in the amount of$100,000 to fund the program. Background/Discussion The HRA, over the last several months,has worked with the Central Minnesota Housing Partnership (CMHP) in the development of a Housing Rehabilitation Program,patterned after similar programs in Coon Rapids and Brooklyn Park. The initial term of the program will be for 3 years, and cost approximately$100,000 per year. CMHP will administer the program. For 2014, the program will be funded through the attached budget amendment, from existing reserves. At the meeting on May 5,the HRA is expected to approve this program and associated applications, policies, and agreement. Financial Impact All within the HRA budget, $100,000 will be transferred from the fund balance to the contractual services line item. The balance is currently$922,696. Attachments ■ HRA packet dated May 5, 2014 P a w E A E U s r Template Updated 4/14 INIM UREI City of Ell* = Request for Action River To Item Number Housing and Redevelopment Authority 7.1 Agenda Section Meeting Date Prepared by General Business May 5,2014 Brian Beeman,Director of Economic Development Item Description Reviewed by Approve Housing and Redevelopment Authority Jeremy Barnhart,Deputy Director, CODD (HRA) Housing Owner-Occupied Rehabilitation Reviewed by Policies and Procedures, contract with Central Minnesota Housing Partnership (CMHP),and Authorize a Budget Amendment to Fund the Program Action Requested Approve by motion,making recommendation to the City Council to approve: 1) Resolution Approving Housing Rehabilitation Loan Program 2) The Elk River HRA Owner-Occupied Housing Rehabilitation Program Policies and Procedures. 3) The HRA Rehab Owner-Occupied Housing Rehabilitation Program Administrative Agreement with CMHP to administer the new housing program. 4) The Elk River HRA Rehabilitation Loan Application 5) Elk River HRA Rehabilitation Loan Program Contractor Owner Agreement. 6) Elk River HRA Rehabilitation Program Mortgage and Repayment Agreement Owner-Occupied Housing Rehabilitation Program. 7) A budget amendment to transfer funds in the amount of$100,000 from the HRA fund balance to the HRA contractual services line item. Background/Discussion At the August 5, 2013 regular Housing and Redevelopment Authority (HRA) meeting, the HRA heard a presentation about the housing programs in Coon Rapids Brooklyn Park. The HRA also approved hiring the Central Minnesota Housing Partnership (CMHP) to serve as the HRA's housing consultant to develop and administer an Elk River internally funded housing program and assist the city in applying for the Small Cities Development Program grant. The HRA met in a series of workshops to discuss what they would like to see in an Elk River housing program. More recently,during an April 7,2014 workshop, the HRA, by general consensus, agreed to fund the new housing program at$100,000 per year, for the next three years,under contract with CMHP to administer the program. It was also decided that no additional changes needed to be made to the proposed Elk River Housing Owner-Occupied Rehabilitation Policies and Procedures. These policies and procedures are provided for formal approval. In addition, because the new program wasn't budgeted for in 2014, a budget amendment is necessary. It was also suggested that in the future the $100,000 be funded through the HRA levy.The attached Budget P 0 f E 6 E 0 0 Y I IV"AWRE] Revision Request Form will transfer funds in the amount of$100,000 from the HRA fund balance to the contractual services line item. The policies,procedures and related documents have been reviewed by the HRA's attorney.As a result of that review the policies and procedures and related documents have been revised to reflect a condition that qualifying homeowners must not exceed moderate income limits. Copies of the updated policies and procedures and related documents are attached. Because the attorney review resulted in a change in the documentation that would impose income limitations on the program,the HRA is asked to consider whether it prefers to proceed with the program on the current timeline with the income restrictions or delay the program to qualify it as a redevelopment project in which no income limitations are imposed. If the HRA prefers to proceed with the program on the current timeline with the income restrictions,the HRA is asked to both approve budget amendment the policies &procedures and also make recommendation to the City Council on the same. Alternatively,if the HRA prefers to undertake the program without the income restrictions, the HRA is asked to recommend to the City Council to call public hearing to consider a Redevelopment Plan to undertake the Owner-Occupied Housing Rehabilitation Program in the Target Area. The alternative action follows: Alternative Action Requested Recommend, by motion, the City Council call public hearing on June 16,2014 to consider a Redevelopment Plan as part of the Owner-Occupied Housing Rehabilitation Program in the Target Area. Jenny Boulton,the HRA's attorney from Kennedy& Graven will be present to explain the HRA's options in greater detail. Financial Impact $100,000 will be transferred from the fund balance to the contractual services line item. The balance is currently$922,696. Attachments • Resolution Approving Housing Rehabilitation Loan Program • HRA Rehab Loan Policies and Procedures, (Final&Redline Copy) • HRA Rehab Loan Administration Agreement, (Final&Redline Copy) • HRA Rehab Loan Application, (Final&Redline Copy) • HRA Rehab Contract Owner Contract, (Final&Redline Copy) • HRA Rehab Mortgage&Repayment Agreement, (Final&Redline Copy) • Budget Amendment Revision Request Form • Timeline for Approval of Redevelopment Plan and Project C:\Documents and Settings\jsb\Application Data\Hummingbird\DM\Temp\DOCSOPEN-#443276-v4- Elk River HRA Rehab Loan STAFF REPORT.docx RESOLUTION NO. 14-02 A RESOLUTION OF THE HOUSING & REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER, SHERBURNE COUNTY, MINNESOTA, APPROVING HOUSING REHABILITATION LOAN PROGRAM Section 1. Recitals. 1.01 The Board of Commissioners (the "Board") of the Housing & Redevelopment Authority in and for the City of Elk River (the "HRA") has proposed to undertake a program to assist in the rehabilitation of owner-occupied single-family homes by making loans to qualifying homeowners in a targeted area in the City of Elk River (the "Program"). 1.02 The HRA has caused to be prepared Owner-Occupied Housing Rehabilitation Program Policies and Procedures (the "Plan") setting forth, among other things, the terms and conditions under which the HRA will make loans to qualifying homeowners, a copy of which is on file with the HRA Executive Director, along with related Program documents, including but not limited to an Administrative Agreement with Central Minnesota Housing Partnership, Inc. to administer the Program (collectively, the "Program Documents"). NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners ("Board") of the Housing&Redevelopment Authority in and for the City of Elk River ("HRA") as follows: Section 2. Approval of Program. 2.01. The HRA hereby approves the Plan and finds,determines and declares that it is in the public interest of the residents of the City that the Program as described in the Plan be undertaken by the HRA in accordance with Minnesota Statutes, Sections 469.001 through 469.047 (the "HRA Act"). 2.02. In accordance with Section 469.012, Subd. 11 and Minnesota Statutes, Section 462C.03, Subd. 2, the HRA hereby determines that moderate income means 115% of the area median income as defined by HUD for the Minneapolis-St. Paul-Bloomington, MN-WI MSA. 2.03. The Program Documents as presented to the HRA are hereby in all respects approved, in substantially the forms submitted, together with any related documents necessary in connection therewith, and the Chair and Executive Director are hereby authorized and directed to execute the Program Documents, as needed from time to time (including without limitation in connection with initiating the program and originating loans) on behalf of the HRA and to carry out, on behalf of the HRA,the HRA's obligations thereunder. 2.04. The approval hereby given to the Program Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and 443216v1JSB EL185-26 approved by legal counsel to the HRA and by the Chair and Executive Director prior to executing said documents; and said officers are hereby authorized to approve said changes on behalf of the HRA. The execution of any instrument by the Chair and Executive Director shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of said officers, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney,may act in their behalf. Passed and adopted by the Board of Commissioners of the Housing & Redevelopment Authority in and for the City of Elk River this 5th day of May,2014. Chair ATTEST: Executive Director 443216v1JSB EL185-26 ELK RIVER HRA OWNER-OCCUPIED HOUSING REHABILITATION PROGRAM POLICIES AND PROCEDURES 2014 4431140 MJM EL185-26 TABLE OF CONTENTS 1. PROGRAM OBJECTIVES 1 2. EQUAL OPPORTUNITY/FAIR HOUSING/ AFFIRMATIVE ACTION 1 3. PROGRAM ADMINISTRATION 2 4. PROGRAM MARKETING 2 5. APPLICIATION PROCESS 2 6. ELIGIBILITY REQUIREMENTS/PROPERTY CONDITIONS 3 7. FINANCING TERMS &AMOUNTS 4 8. ELIGIBLE/INELIGIBLE REHABILITATION ITEMS 4 9. CONSTRUCTION PROJECT STEPS 5 10. DENIAL/COMPLAINT/APPEAL PROCEDURES 9 11. AMENDING POLICIES & PROCEDURES 10 4431140 MJM EL185-26 Elk River HRA Owner-Occupied Housing Rehabilitation Program 1. PROGRAM OBJECTIVES The Housing and Redevelopment Authority in and for the City of Elk River, Minnesota (hereinafter referred to as "the HRA") will provide financial assistance for the rehabilitation of residential properties. The policies and procedures for distribution and eligibility are incorporated in this document. 2. EQUAL OPPORTUNITY/FAIR HOUSING/AFFIRMATIVE ACTION The HRA shall not deny assistance based upon race, color, creed, religion, national origin, sex, marital status, reliance on public assistance, age, disability, or familial status. It is the policy of the HRA to provide equal employment opportunity for all persons regardless of race, color, religion, national origin, marital status, political affiliation, sexual orientation or gender identity, status with regard to public assistance, disability, sex, or age. The HRA responds affirmatively in its employment practices. Affirmative action applies to all aspects of employment practices including, but not limited to: recruiting, hiring, placement, promotion, demotion, transfer, training, compensation, benefits, layoff, recall, and termination. The HRA seeks to do business with entities that encourage equal employment opportunity. Fair Housing/Affirmative Action: It is the policy of the HRA to work affirmatively to ensure that all persons regardless of race, creed, national origin, sex, marital status, age, handicap or reliance on public assistance shall be treated equally and fairly for purposes of this Housing Rehabilitation Program. Program promotion conducted by CMHP and the HRA shall be inclusive and will exercise care to avoid promotion methods that may exclude eligible applicants. All applicants will be provided with printed information on Fair Housing with their application packet. The HRA will not tolerate discriminatory practices within its jurisdiction. The following practices have been declared to be discriminatory and unlawful under the Fair Housing Act: • Refusal to sell, rent or to negotiate for the sale or rental of any property based on race, creed, color, sex, religion, national origin, marital status, familial status, handicap, or in regard to public assistance. • Discrimination in terms, conditions,privileges and in services and facilities. • Engage in any conduct which makes dwellings unavailable or denies dwellings to persons. 4431140 MJM EL 185-26 • Make, print, publish or cause to make, print, or publish public discriminatory advertisements. • To represent that a dwelling unit is not for sale or rent when in fact it is. • To engage in blockbusting. • To deny access to membership or participation in, or to discriminate against any person in his or her access to membership or participation in, any multiple-listing service, real estate broker's association, or other service organization or facility relating to the business of selling or renting a dwelling or in the terms or conditions or membership or participation. 3. PROGRAM ADMINISTRATION General/Field Administrator: The HRA has contracted with Central Minnesota Housing Partnership, Inc. (hereinafter referred to as "CMHP") for all housing rehabilitation field administration services. CMHP is responsible for program delivery to include: marketing, application processing and approval, inspections and suitability of housing rehabilitation, scope of work preparation, bid packets, loan document origination, contract awards, interim inspections, change orders, final inspections, recommendation of payment to contractors and project close-outs. CMHP will provide the HRA with regular financial and progress reports. 4. PROGRAM MARKETING CMHP, on behalf of the HRA, will conduct marketing and outreach as needed. Applicants may be contacted for the program in the following ways: • Conduct a community meeting to inform residents of the program availability and application process, upon startup and annually when funds become available. • Issue monthly news releases to local newspapers with information about the program and community meetings. • Direct mailing of program information to homeowners in the community • Create marketing flyers and post them in prominent areas in the community 5. APPLICATION PROCESS Applicants will be served on a first come, first served basis with those on the letter of interest list being notified first of funding availability. Applications will be logged by date of receipt of the application and not by request of an application packet. Applications will be processed in the order that they are received. Applications will not be considered complete until all required documentation is collected. CMHP will move forward with projects in the order that applications are completed and approved. CMHP holds the right to close an application and move to the next application in line if applicant is non-responsive to requests for application documentation. If an applicant is not responsive to requests for information, CMHP will send a letter stating such, along with a deadline to receive the information. If the requested information is not received by the deadline, the application will be closed. 2 4431140 MJM EL 185-26 Misrepresentation: Any material misrepresentation on the part of an applicant revealed through the application process or otherwise, may result in a determination of ineligibility. The applicant shall be notified in writing of such determination by CMHP, and shall be given the opportunity to request an informal review upon the matter. Evidence of Fraud: Any administering party participating in the program shall refer evidence of fraud, misrepresentation, collusion or other misconduct on the part of the applicant or contractors in connection with the operation of the program to the State of Minnesota Attorney General for investigation and legal action. Approval/Denial letter: If the applicant or home does not meet the eligibility requirements, CMHP will send a denial letter will be sent to the applicant. Any applicant receiving a denial letter has the right to appeal through a set appeals process (see Section 10). Applicants whose applications have been initially approved will be sent an initial approval of funding letter. This letter will state the applicant's eligibility for the program and provide information on next steps. The approval letter will not state or guarantee a specific amount of funding. This will be determined through the construction bidding process. Receipt of an initial approval also does not guarantee that the maximum amount of funding will be available. 6. ELIGIBILITY REQUIREMENTS/PROPERTY CONDITIONS Property eligibility: requirements listed below will be verified through the application approval process and initial inspection of the property: • Homes must be located within the Target Area(see Exhibit A) • Homes must be the principal place of residence of applicants. By definition, this means you must live in your home a majority of the year(Over six months) • Homes must be classified as homestead • Homes must be a permanent structure on a permanent foundation (no mobile or manufactured homes) • Homes located within a 100-year flood plain are not eligible for rehabilitation • Applicant household income must not exceed 115% of the area median income as defined by HUD for the Minneapolis-St. Paul-Bloomington,MN-WI MSA Homes with the following conditions will be a priority of the program, assuming applicant and home meet all eligibility requirements: • The home needs wiring updated because the existing wiring does not comply with the applicable laws and regulations. • The home has health and safety hazards such as lead based paint, asbestos, etc. • The home does not meet HUD's Housing Quality Standards • The home does not meet city code • The home fails to provide suitable shelter in some other obvious manner as determined by CMHP 3 4431140 MJM EL 185-26 Suitability for Rehabilitation: CMHP must make a determination that a specific home is a suitable candidate for rehabilitation in order to receive program funding. The determination will be based on structural viability, after rehabilitation market value, historical significance, cost of rehabilitation and housing replacement cost. Nuisance Standards: Homeowners must demonstrate compliance with the City of Elk River's public nuisance ordinances. Properties improved using program funding must maintain these standards throughout the life of the program loan or risk repayment, as determined by the HRA. Housing Replacement Cost: When a home is determined to be unsuitable for rehabilitation due to economic factors, other factors must be considered before denial of assistance to the household. These factors include: • Lack of other housing alternatives • Cost of relocation • Expense of housing alternatives • Abnormal low market values due to depressed market 7. FINANCING TERMS &AMOUNTS Loan rates: Loan rates escalate depending on amount of loan. 5 year loan will be set 2% below prime rate, 10 year loan will be set 1% below prime rate, and 15 year loan will be set at prime rate. All prime rates will be calculated on the date of bid opening. • $5,000 to$10,000 must be 5 year loan • $10,001 to $20,000 must be 5 or 10 year loan • $20,001 to $25,000 can be 5, 10 or 15 year loan Owners match: Projects can be above $25,000 but owners are required to cover remaining cost. 8. ELIGIBLE/INELIGIBLE REHABILITATION ITEMS Loans are only allowed to address certain rehabilitation items. Rehabilitation items will be discussed with applicants during the initial property inspection. Eligible rehabilitation items include: • Removal of health, safety and/or other hazards to bring the structure into compliance with the property rehabilitation standards used by CMHP. For example: electrical outlet replacement, smoke/CO detectors, lead based paint remediation, etc. NOTE: these are required if applicable to the project. • Improvement/replacement of roofing, siding, plumbing, water supply, septic systems or wiring may be eligible for repair • Improvement of the structure's energy efficiency. For example: increasing insulation, installing new windows and doors 4 4431140 MJM EL 185-26 • Modify or rehabilitate the housing unit to make it accessible for a disabled member of the household. Accessibility Improvements may include: structural, exterior, bathroom, kitchen and other improvements necessary to enable a handicapped person to function independently in the residential setting. • Landscaping • Garages/Outbuildings • Fences (new or repair) • Water softeners • Decks/Patios (new) • Additions to structures and finishing of basements • Finishing basements • Other rehabilitation items found suitable by CMHP rehabilitation staff Loans maw be used to address any of the following (except for necessary replacement in connection with an eligible rehab item): • Freestanding or built-in kitchen appliances unless needed to meet HQS standards • Fireplaces or woodstoves (unless a health/safety issue) • Window/door coverings (curtains, blinds, etc.) • Air Conditioning (unless needed for medical purposes) • Recreational items (swimming pools, tennis courts, saunas) • Garage door opener(unless handicap accessible improvement) • Driveways, sidewalks (unless health or safety issues) • 200 amp service unless needed (then justify) • Work begun or completed before the date of the Notice to Proceed order • Improvements not consistent with established standards • The refinancing of any existing mortgage or debt Note: Above listed items may be part of a total project scope of work, but any costs with the items are required to be covered by owners match funds. 9. CONSTRUCTION PROJECT STEPS After approval of a homeowner's application, an initial inspection will be scheduled. CMHP staff will meet with homeowners and perform a visual Housing Quality Standards inspection and discuss the homeowner's wishes. After the initial inspection a lead based paint risk assessment will be requested. After the risk assessment is completed, CMHP will create a scope of work based on the initial inspection and the lead assessment report. Once the homeowner has approved the scope of work the project is ready to go out for bid. All contractors participating in the program must have a Contractors Application Form on file at CMHP. The application must contain proof of insurance coverage and copy of their MN Contractors License. Contractors will be responsible for securing insurance of the amounts specified on the application form. 5 4431140 MJM EL 185-26 Scope of work determination: CMHP will originate a rehabilitation scope of work from information collected from the initial home inspection. Homeowners will participate in the creation of the scope of work and will sign an owner approval form once they are satisfied with the scope of work. A final scope of work should be completed and approved by the owner no more than one month after the initial inspection. The final draft scope of work will be provided to contractors through the bidding process. Bid Solicitation: A homeowner may request the services of a specific contractor to bid on its project. CMHP will provide homeowners with a list of local participating contractors. It is the responsibility of the homeowner to select 2-4 contractors from the list to whom CMHP will send project bid packets. In order for a contractor who is not on the list to be awarded a bid, the contractor must furnish a Contractors Application Form and the required contractor license and insurance documentation. Bidding: Contractors will submit bids based on the bid specifications and approved scope of work prepared by CMHP. Participating contractors will be allowed to bid on any and all rehabilitation projects. However, CMHP will closely monitor the number of jobs that contractors receive to ensure that work is carried out in a timely manner. CMHP will also take into account homeowner's satisfaction of workmanship and will have the authority to remove contractors from the participating contractor list. Bid openings are typically scheduled 3 weeks from the date of mailing. Contractors will mail bids to CMHP and they will be opened at the scheduled time and date by CMHP staff. Bid results will then be forwarded to the homeowners for review. Bid Awards: It is the homeowner's responsibility to select a contractor a contractor to complete the work, based on bid amounts and comfortableness with contractors. The Contract shall be awarded to the owner's selection unless one of the following circumstances occurs: • The contractor has failed to follow the procedures outlined in the instructions to bidders • The contractor failed to bid according to the specifications and CMHP determines it is impossible to compare the contractor's bid with the other contractors' bids If the lowest bid is not selected, CMHP will review to make sure the bid selected by the homeowner is responsible and reasonable and if CMHP determines that the bid is not responsible and reasonable, the homeowner cannot enter into a contract with that contractor/bidder. If only one bid is received, the bid will be compared to a cost estimate provided by CMHP to ensure reasonableness. Contractor Notification: CMHP will provide an award letter to the selected contractor and unsuccessful bidder letters to those contractors not selected by the homeowner. Contractor Contract: A rehabilitation contract will be executed between the homeowner and the contractor. The contract will include the scope of work, contract amount, and outline the terms for completion of the rehabilitation and will include the following: 6 4431140 MJM EL 185-26 • General conditions • Timeframe for completion • Warranties • Special conditions • Amount of contract • Change order procedures • Payment terms • Termination procedures Loan documents: CMHP will forward the Repayment Agreement to homeowners. Homeowners will execute the repayment agreement in the presence of a Notary Public, and return the executed document to CMHP, along with any required owners match funds. All documents must be executed and returned to CMHP before a project can start. The Repayment Agreement will be recorded with the Sherburne County. Notice to Proceed: After receipt of the executed Repayment Agreement, receipt of owners match funds, and confirmation of construction contract execution, the project can start. Upon contractor request, CMHP will issue a Notice to Proceed to the contractor and provide a copy to the homeowner. The notice will allow the contractor ninety (90) days from the date of the Notice to Proceed to complete the specified work. Ninety (90) days will be the allotted amount of time except under the following conditions: • The work is weather dependent and weather conditions have not allowed for the completion of the work • The Notice to Proceed is issued too late in the building season to allow weather dependent work to be completed on time • The selected contractor is too heavily committed to perform the work within the allotted time and informs the homeowner and CMHP of the situation. A work schedule will be established that is acceptable to the homeowner, CMHP, and the contractor • Unforeseen difficulties develop with the approved work and force a delay Failure to Start/Complete Project: Upon receipt of the Notice to Proceed, a contractor will have 90 calendar days in which to complete the contracted work. Failure to begin work within the first 60 days will be grounds to terminate the contract unless unforeseen weather issues affect the start date. The 90-day time period shall not be exceeded except through the issuance of a change order and by approval of the homeowner. In the absence of a change order, a contractor who violates the time period shall be penalized 10% of the unpaid balance for each week that the contractor is in violation. Payment Procedures: All contractors will agree to the payment schedule established by CMHP and the HRA. Typically draws will scheduled to provide for one draw for materials and a second draw upon completion. Draw requests approved by CMHP must be submitted to the HRA at least one week before the first Monday of a month to be paid in such month. Approved payments 7 4431140 MJM EL 185-26 will be made by the HRA directly to the contractor and will be deemed advances of the Loan to the Homeowner. Steps and conditions for contractor payment include: • No pre-payments are allowable for any reason. Payment requests for materials will be allowed only if contractor provides receipt for payment • Draw inspections will be scheduled by CMHP and will include the contractor and homeowner • Progress payments will only be allowed for work that is completed • Payments will be made only after the work is completed according to the specifications in the scope of work, and is approved by the owner and CMHP. In order for the contractor to be paid, a draw request form must be signed by the homeowner • Ten percent (10%) will be withheld from each partial payment. Final payment for all work completed, including any withheld amounts, may be made after all work by a contractor is completed, the final inspection has been conducted and CMHP, homeowner and contractor have signed off on the work Payments will be made only upon presentation of the following documents: • Billing statement/invoice submitted to CMHP by contractor • Homeowner signed draw form • Signed lien waiver • Sworn Construction Statement(final draw only) • Completion Certificate (final draw only) Change Orders: Change orders to the contract require the signature of the homeowner, the contractor and CMHP. Change orders will specify what the change is and the increase/deduction in the contract amount. Costs may be the responsibility of the homeowner and, if so, these funds must be placed in the appropriate escrow account. Funds may not be eligible for change order items if change order work is completed before approval of CMHP staff. Change orders will be allowed only for the following reasons. • To rectify hidden deficiencies discovered once work has started • To change a specification due to unforeseen difficulties arising after work has started • To address a deficiency that was inadvertently dropped from the project during scope of work origination • To approve changes in the contract time period Owner Participation: Homeowners are expected to participate in their project by communicating with contractors when they have questions about work items, scheduling or any other concerns that may arise. It is expected that homeowners and contractors will communicate any issues or problems that arise to CMHP staff. Homeowners are not allowed to complete work, or perform "sweat equity". Only licensed contractors will be allowed to complete needed work. NOTE: if a homeowner is a licensed contractor with a current license and insurance coverage, they will be allowed to complete work on their home, and only materials will be covered by the program. 8 4431140 MJM EL 185-26 Termination of Contract: A contractor's contract may be terminated by the homeowner due to the following circumstances: • Poor work performance on the job site and the demonstrated inability to rectify poor workmanship • Contractor is causing undue damages to the property and showing an inability or unwillingness to correct the damages. The cost of repairing damages will be deducted from any money owed the contractor for work already completed • Where collusion or fraud has been determined to exist on the part of the contractor • Lack of sufficient insurance coverage • Inability of the contractor to perform the work within the allotted time • Irreconcilable and irresolvable differences between the contractor and the owner The cost of repairing poor workmanship and the higher costs of awarding the bid to another bidding contractor shall be deducted from any amount owed to the initial contractor for work completed. In all cases, the contractor shall be given the opportunity to rectify the problem before contract cancellation procedures are instituted. CMHP shall adhere to the following procedures when negotiating a workmanship problem: • A meeting will be scheduled at the job site with the contractor and homeowner to attempt to come to a consensus about the problem and solution • If problem persists, CMHP shall contact the contractor by certified mail notifying the contractor that the workmanship is still poor and specifying areas that need to be addressed to satisfy the contract. The letter will give the contractor fifteen (15) days to make the required repairs • Contractors who are removed from a contract shall be removed from the participating contractor's list and shall be prohibited from bidding on projects. Project Close-Out: At the time of project completion, the following steps will be taken to close out the project: • A final draw/ inspection will be scheduled to confirm that all work has been done according the contract and to execute final draw form, final lien waiver and completion certificate • Draw requests will be submitted by CMHP for final payment • Lead based paint clearance inspection is ordered and completed(if applicable) • Close-out letter will be sent to homeowners and will include: copies of all recorded loan documents, completion certificate and contractor documents 10. DENIAL/COMPLAINT/APPEALS PROCEDURES Applicant Denial Procedure: If a household's application is denied for any reason, a letter of denial will be sent to the household within 10 working days. The denial letter will clearly outline the reason for denial and inform the applicant that an appeals procedure is available. 9 4431140 MJM EL 185-26 Applicant Complaint Procedure: Initial applicant complaints about any aspect of service delivery, staff, program restrictions or contractor relations/workmanship may be pursued verbally or in writing to CMHP. The complaint shall be addressed by working with the contractor and the applicant to resolve the problem within two (2)weeks. Applicant Appeal Procedure: If a household is dissatisfied with the level of assistance they have received, and where an applicant complaint cannot be resolved with CMHP, CMHP will notify the applicant in writing that a written procedure for appeal is available. The appeals procedure follows these steps: 1. The applicant who wishes to appeal the initial response must submit a request for appeal in writing within thirty (30) days of the initial response. This request must state the reason(s) for the appeal and should include any information that the applicant feels is pertinent to the appeal. 2. All appeals should be addressed to: Central Minnesota Housing Partnership, Inc. 37 28th Avenue North, Suite #102 St. Cloud, MN 56303 3. A Review Committee shall be established and made up of representatives from CMHP and the HRA. 4. If the Review Committee concurs on the findings, CMHP shall respond to the applicant, in writing, including the results of the review, an explanation of the findings and the next step the applicant can take if he/she is still not satisfied with the response. 5. If the Review Committee does not concur on the findings, the appeal will be presented to the HRA, whose written decision shall be final and presented to the applicant within fifteen (15)working days. 11. AMENDING POLICIES & PROCEDURES These policies and procedures may be amended during the course of the loan agreement, by taking the following steps: • The HRA or CMHP may recommend an addition, deletion or revision by contacting the other party and stating the proposed change and reason for the proposed change. • The proposed change will be presented, discussed and approved at an HRA meeting Policies and Procedures prepared by Central Minnesota Housing Partnership, Inc. on behalf of the HRA of Elk River. 10 4431140 MJM EL 185-26 Exhibit A Targeted Area Target area starts at the intersection of School Street and Freeport Street and travels south including all homes abutting Freeport Street until the intersection with 3rd Street NW.At the intersection of Freeport Street and 3rd Street NW it travels east until the intersection with Evans Avenue NW including all homes south of 3rd Street NW.At the intersection of 3rd Street NW and Evans Avenue NW it travels south until it interacts with Railroad Drive.All homes along Main Street NW east of Evans Ave NW until Carson Court NW are included, along with all homes on 2nd Street NW and Ist Street NW cul-de-sac's. At the intersection of Evans Ave NW and Railroad Drive the target area boundary travels directly west over Highway 10 to the Mississippi River. It travels up stream along the Mississippi River until the intersection with the Elk River,it travels up stream on the Elk River until the Main Street NW bridge all homes on the north side of the Mississippi and Elk River are included in target area. The boundary travels along Main Street NW to the intersection with Rush Avenue NW and includes any abutting homes.At the intersection of Main Street NW and Rush Avenue NW it travels north to Highway 10 and includes all homes east of Rush Ave NW. It then travels east along Highway 10 including all property to the south until the Quinn Avenue NW. It follows Quinn Avenue NW north over the railroad tracks until School Street NW including all homes east of Quinn Avenue NW.At School Street NW it travels east until the intersection with Freeport Street including all homes south of School Street NW. 4431140 MJM EL 185-26 ELK RIVER HRA OWNER-OCCUPIED HOUSING REHABILITATION PROGRAM POLICIES AND PROCEDURES 2014 443114v3 MJM EL185-26 TABLE OF CONTENTS 1. PROGRAM OBJECTIVES -31 2. EQUAL OPPORTUNITY/FAIR HOUSINGL AFFIRMATIVE ACTION -3 1 3. PROGRAM ADMINISTRATION 42 4. PROGRAM MARKETING 42 5. APPLICIATION PROCESS 42 6. ELIGIBILITY REQUIREMENTS/PROPERTY CONDITIONS -53 7. FINANCING TERMS &AMOUNTS 64 8. ELIGIBLE/INELIGIBLE RE14ABREHABILITATION ITEMS 64 9. CONSTRUCTION PROJECT STEPS -75 10. DENIAL/COMPLAINT/APPEAL PROCEDURES 4-29 11. AMENDING POLICIES & PROCEDURES 4-210 443114v3 MJM EL185-26 Citu .Elk River HRA Owner-Occupied Housing Rehabilitation Program 1. PROGRAM OBJECTIVES Thee Housing and Redevelopment Authority in and for the City of Elk River, Minnesota (hereinafter referred to as "the C41),HRA") will provide financial assistance for the rehabilitation of residential properties. The policies and procedures for distribution and eligibility are incorporated in this document. 2. EQUAL OPPORTUNITY/FAIR HOUSING/AFFIRMATIVE ACTION The G4�,HRA shall not deny assistance based upon race, color, creed, religion, national origin, sex, marital status, reliance on public assistance, age, disability, or familial status. It is the policy of the 64�,HRA to provide equal employment opportunity for all persons regardless of race, color, religion, national origin, marital status, political affiliation, asexual orientation or gender identity, status with regard to public assistance, disability, sex, or age. The C*HRA responds affirmatively in its employment practices. Affirmative action applies to all aspects of employment practices including, but not limited to: recruiting, hiring, placement, promotion, demotion, transfer, training, compensation, benefits, layoff, recall, and termination. The Git),HRA seeks to do business with entities that encourage equal employment opportunity. Fair Housing/Affirmative Action: It is the policy of the OHM to work affirmatively to ensure that all persons regardless of race, creed, national origin, sex, marital status, age, handicap or reliance on public assistance shall be treated equally and fairly for purposes of this Housing Rehabilitation Program. Program promotion conducted by CMHP ands the GityHRA shall be inclusive and will exercise care to avoid promotion methods that may exclude eligible applicants. All applicants will be provided with printed information on Fair Housing with their application packet. The GityM will not tolerate discriminatory practices within its jurisdiction. The following practices have been declared to be discriminatory and unlawful under the Fair Housing Act: • Refusal to sell, rent or to negotiate for the sale or rental of any property based on race, creed, color, sex, religion, national origin, marital status, familial status, handicap, or in regard to public assistance. • Discrimination in terms, conditions,privileges and in services and facilities. • Engage in any conduct which makes dwellings unavailable or denies dwellings to persons. 4431140 MJM EL185-26 • Make, print, publish or cause to make, print, or publish public discriminatory advertisements. • To represent that a dwelling unit is not for sale or rent when in fact it is. • To engage in blockbusting. • To deny access to membership or participation in, or to discriminate against any person in his or her access to membership or participation in, any multiple-listing service, real estate broker's association, or other service organization or facility relating to the business of selling or renting a dwelling or in the terms or conditions or membership or participation. 3. PROGRAM ADMINISTRATION General/Field Administrator: The Qt�,HRA has contracted with Central Minnesota Housing Partnership, Inc. (hereinafter referred to as "CMHP") for all housing rehabilitation field administration services. CMHP is responsible for program delivery to include: marketing, application processing and approval, inspections and suitability of housing rehabilitation, scope of work preparation, bid packets, loan document origination, contract awards, interim inspections, change orders, final inspections, recommendation of payment to contractors and project close-outs. CMHP will provide the C4t�,HRA with regular financial and progress reports. 4. PROGRAM MARKETING CMHP, on behalf of the Git�,HRA, will conduct marketing and outreach as needed. Applicants may be contacted for the program in the following ways: • Conduct a community meeting to inform residents of the program availability and application process,upon startup and annually when funds become available. • Issue monthly news releases to local newspapers with information about the program and community meetings. • Direct mailing of program information to homeowners in the community • Create marketing flyers and post them in prominent areas in the community 5. APPLICATION PROCESS Applicants will be served on a first come, first served basis with those on the letter of interest list being notified first of funding availability. Applications will be logged by date of receipt of the application and not by request of an application packet. Applications will be processed in the order that they are received. Applications will not be considered complete until all required documentation is collected. CMHP will move forward with projects in the order that applications are completed and approved. CMHP holds the right to close an application and move to the next application in line if applicant is non-responsive to requests for application documentation. If an applicant is not responsive to requests for information, CMHP will send a letter stating such, along with a deadline to receive the information. If the requested information is not received by the deadline, the application will be closed. 2 4431140 MJM EL185-26 Misrepresentation: Any material misrepresentation on the part of an applicant revealed through the application process or otherwise, may result in a determination of ineligibility. The applicant shall be notified in writing of such determination by CMHP, and shall be given the opportunity to request an informal review upon the matter. Evidence of Fraud: Any administering party participating in the program shall refer evidence of fraud, misrepresentation, collusion or other misconduct on the part of the applicant or contractors in connection with the operation of the program to the State of Minnesota Attorney General for investigation and legal action. Approval/Denial letter: If the applicant or home does not meet the eligibility requirements, CMHP will send a denial letter will be sent to the applicant. Any applicant receiving a denial letter has the right to appeal through a set appeals process (see page16Section 10). Applicants whose applications have been initially approved will be sent an initial approval of funding letter. This letter will state the applicant's eligibility for the program and provide information on next steps. The approval letter will not state or guarantee a specific amount of funding. This will be determined through the construction bidding process. Receipt of an initial approval also does not guarantee that the maximum amount of funding will be available. 6. ELIGIBILITY REQUIREMENTS/PROPERTY CONDITIONS Property eligibility: requirements listed below will be verified through the application approval process and initial inspection of the property: • Homes must be located within the Target Area(see „tt,, +ef4 i A) • Homes must be the principal place of residence of applicants. By definition, this means you must live in your home a majority of the year(Over six months) • Homes must be classified as homestead • Homes must be a permanent structure on a permanent foundation (no mobile or manufactured homes) • Homes located within a 100-year flood plain are not eligible for rehabilitation • Applicant household income must not exceed 115% of the area median income as defined by HUD for the Minneapolis-St. Paul-Bloomington. MN-WI MSA Homes with the following conditions will be a priority of the program, assuming applicant and home meet all eligibility requirements: • The home needs wiring updated because the existing wiring does not comply with the a plicable laws and regulations. • The home has health and safety hazards such as lead based paint, asbestos, etc. • The home does not meet HUD's Housing Quality Standards • The home does not meet city code • The home fails to provide suitable shelter in some other obvious manner as determined by CMHP 3 4431140 MJM EL185-26 Suitability for Rehabilitation: " home ffitist be detefRiined a1RCMHP must make a determination that a specific home is a suitable candidate for rehabilitation in order to receive program funding. The determination will be based on structural viability, after rehabilitation market value, historical significance, cost of rehabilitation and housing replacement cost. Nuisance Standards: Homeowners must demonstrate compliance with theif 4tythe Citv of Elk River's public nuisance ordinances. Properties improved using program funding must maintain these standards throughout the life of the program loan or risk repayment, as determined by the e4),HRA. Housing Replacement Cost: When a home is determined to be unsuitable for rehabilitation due to economic factors, other factors must be considered before denial of assistance to the household. These factors include: • Lack of other housing alternatives • Cost of relocation • Expense of housing alternatives • Abnormal low market values due to depressed market 7. FINANCING TERMS &AMOUNTS Loan rates: Loan rates escalate depending on amount of loan. 5 year loan will be set 2% below prime rate, 10 year loan will be set 1% below prime rate, and 15 year loan will be set at prime rate. All prime rates will be calculated on the date of bid opening. • $5,000 to $10,000 must be 5 year loan • $10,004=10,=001 to $20,000 must be 5 or 10 year loan • $ 08920,001 to $25,000 can be 5, 10 or 15 year loan Owners match: Projects can be above $25,000 but owners are required to cover remaining cost. 8. ELIGIBLE/INELIGIBLE REHABILITATION ITEMS Loans are only allowed to address certain rehabilitation items. Rehabilitation items will be discussed with applicants during the initial property inspection. Eligible rehabilitation items include: • Removal of health, safety and/or other hazards to bring the structure into compliance with the property rehabilitation standards used by CMHP. For example: electrical outlet replacement, smoke/CO detectors, lead based paint remediation, etc. NOTE: these are required if applicable to the project_ • Improvement/replacement of roofing, siding, plumbing, water supply, septic systems or wiring may be eligible for repair • Improvement of the structure's energy efficiency. For example: increasing 4 4431140 MJM EL185-26 insulation, installing new windows and doors • Modify or rehabilitate the housing unit to make it accessible for a disabled member of the household. Accessibility Improvements may include: structural, exterior, bathroom, kitchen and other improvements necessary to enable a handicapped person to function independently in the residential setting. • Landscaping • Garages/Outbuildings • Fences (new or repair) ,- hive..,,-ys sidewalks (,,,,loss b,eah safety ; es) inn amp sen,iee „loss needed (thee ; is � • Water softeners • Decks/Patios (new) • Additions to structures and finishing of basements • Finishing basements • Other rehabilitation items found suitable by CMHP rehabilitation staff Loans may be used to address any of the following (except for necessary replacement in connection with an eligible rehab item): • Freestanding or built-in kitchen appliances unless needed to meet HQS standards • Fireplaces or woodstoves (unless a health/safety issue) • Window/door coverings (curtains, blinds, etc.) • Air Conditioning (unless needed for medical purposes) • Recreational items (swimming pools, tennis courts, saunas) • Garage door opener(unless handicap accessible improvement) • Driveways, sidewalks (unless health or safety issues) • 200 amp service unless needed (then justify) • Work begun or completed before the date of the Notice to Proceed order • Improvements not consistent with established standards • The refinancing of any existing mortgage or debt Note: Above listed items may be part of a total project scope of work, but any costs with the items are required to be covered by owners match funds. 9. CONSTRUCTION PROJECT STEPS After approval of a homeowner's application, an initial inspection will be scheduled. CMHP staff will meet with homeowners and perform a visual Housing Quality Standards inspection and discuss the homeowner's wishes. After the initial inspection a lead based paint risk assessment will be requested. After the risk assessment is completed, CMHP will create a scope of work based on the initial inspection and the lead assessment report. Once the homeowner has approved the scope of work the project is ready to go out for bid. 5 4431140 MJM EL185-26 All contractors participating in the program must have a Contractors Application Form on file at CMHP. The application must contain proof of insurance coverage and copy of their MN Contractors License. Contractors will be responsible for securing insurance of the amounts specified on the application form. Scope of work determination: CMHP will originate a rehabilitation scope of work from information collected from the initial home inspection. Homeowners will participate in the creation of the scope of work and will sign an owner approval form once they are satisfied with the scope of work. A final scope of work should be completed and approved by the owner no more than one month after the initial inspection. The final draft scope of work will be provided to contractors through the bidding process. Bid Solicitation: A homeowner may request the services of a specific contractor to bid on its proiect. CMHP will provide ew*efshomeowners with a list of local participating contractors. It is the responsibility of the homeowner to select 2-4 contractors from the list ke Ito whom CMHP will send project bid packets sent to. In order for a contractor who is not on the list to be awarded a bid, the contractor must furnish a Contractors Application Form and the required contractor license and insurance documentation. Bidding: Contractors will submit bids based on the bid specifications and approved scope of work prepared by CMHP. Participating contractors will be allowed to bid on any and all rehabilitation projects. However, CMHP will closely monitor the number of jobs that contractors receive to ensure that work is carried out in a timely manner. CMHP will also take into account homeowner's satisfaction of workmanship and will have the authority to remove contractors from the participating contractor list. Bid openings are typically scheduled 3 weeks from the date of mailing. Contractors will mail bids to CMHP and they will be opened at the scheduled time and date by CMHP staff. Bid results will then be forwarded to the homeowners for review. Bid Awards: It is the homeowner's responsibility to select a contractor a contractor to complete the work, based on bid amounts and comfortableness with contractors. The Contract shall be awarded to the owner's selection unless one of the following circumstances occurs: • The contractor has failed to follow the procedures outlined in the instructions to bidders • The contractor failed to bid according to the specifications and CMHP determines it pfevesis impossible to compare the contractor's bid with the other contractors' bids If the lowest bid is not selected, CMHP will review to make sure the bid selected bid is Eby the homeowner is responsible and reasonable and if CMHP determines that the bid is not responsible and reasonable- the homeowner cannot enter into a contract with that contractor/bidder. If only one bid is received, the bid will be compared to a cost estimate provided by CMHP to ensure reasonableness. Contractor Notification: CMHP will provide an award letter to the selected contractor and unsuccessful bidder letters to those contractors not selected by the homeowner. 6 4431140 MJM EL185-26 Contractor Contract: A rehabilitation contract will be executed between the homeowner and the contractor. The contract will include the scope of work, contract amount, and outline the terms for completion of the rehabilitation and will include the following: • General conditions • Timeframe for completion • Warranties • Special conditions • Amount of contract • Change order procedures • Payment terms • Termination procedures Loan documents: CMHP will forward the Repayment Agreement to homeowners. Homeowners will execute the repayment agreement in the presence of a Notary Public, and return the executed document to CMHP, along with any required owners match funds. All documents must be executed and returned to CMHP before a project can start. The Rel2aymQnL Agreement will be recorded with the Sherburne County. Notice to Proceed: After receipt of the executed Repayment Agreement, receipt of owners match funds, and confirmation of construction contract execution, the project can start. Upon contractor request, CMHP will issue a Notice to Proceed to the contractor and provide a copy to the homeowner. The notice will allow the contractor ninety (90) days from the date of the Notice to Proceed to complete the specified work. Ninety (90) days will be the allotted amount of time except under the following conditions: • The work is weather dependent and weather conditions have not allowed for the completion of the work • The Notice to Proceed is issued too late in the building season to allow weather dependent work to be completed on time • The selected contractor is too heavily committed to perform the work within the allotted time and informs the homeowner and CMHP of the situation. A work schedule will be established that is acceptable to the homeowner, CMHP, and the contractor • Unforeseen difficulties develop with the approved work and force a delay Failure to Start/Complete Project: Upon receipt of the Notice to Proceed, a contractor will have 90 calendar days in which to complete the contracted work. Failure to begin work within the first 60 days will be grounds to terminate the contract unless unforeseen weather issues affect the start date. The 90-day time period shall not be exceeded except through the issuance of a change order and by approval of the homeowner. In the absence of a change order, a contractor who violates the time period shall be penalized 10% of the unpaid balance for each week that the contractor is in violation. 7 4431140 MJM EL185-26 Payment Procedures: All contractors will agree to the payment schedule established by CMHP and the .HRA. Typically draws will scheduled to provide for one draw for materials and a second draw upon completion. Draw requests approved by CMHP must be submitted to the HRA at least one week before the first Monday of a month to be paid in such month. Approved payments will be made by the HRA directly to the contractor and will be deemed advances of the Loan to the Homeowner. Steps and conditions for contractor payment include: • No pre-payments are allowable for any reason. Payment requests for materials will be allowed only if contractor provides receipt for payment • Draw inspections will be scheduled by CMHP and will include the contractor and homeowner • Progress payments will only be allowed for work that is completed • Payments will be made only after the work is completed according to the specifications in the scope of work, and is approved by the owner and CMHP. In order for the contractor to be paid, a draw request form must be signed by the homeowner • Ten percent (10%) will be withheld from each partial payment. Final payment for all work completed, including any withheld amounts, may be made after all work by a contractor is completed, the final inspection has been conducted and CMHP, homeowner and contractor have signed off on the work Payments will be made only upon presentation of the following documents: • Billing statement/invoice submitted to CMHP by contractor • Homeowner signed draw form • Signed lien waiver • Sworn Construction Statement (final draw only) • Completion Certificate (final draw only) Change Orders: Change orders to the contract require the signature of the homeowner, the contractor and CMHP. Change orders will specify what the change is and the increase/deduction in the contract amount. Costs may be the responsibility of the homeowner and, if so, these funds must be placed in the appropriate escrow account. Funds may not be eligible for change order items if change order work is completed before approval of CMHP staff. Change orders will be allowed only for the following reasons. • To rectify hidden deficiencies discovered once work has started • To change a specification due to unforeseen difficulties arising after work has started • To address a deficiency that was inadvertently dropped from the project during scope of work origination • To approve changes in the contract time period Owner Participation: Homeowners are expected to participate in their project by communicating with contractors when they have questions about work items, scheduling or any other concerns that may arise. It is expected that homeowners and contractors will communicate 8 4431140 MJM EL185-26 any issues or problems that arise to CMHP staff. Homeowners are not allowed to complete work, or perform "sweat equity". Only licensed contractors will be allowed to complete needed work. NOTE: if a homeowner is a licensed contractor with a current license and insurance coverage, they will be allowed to complete work on their home, and only materials will be covered by the program. Termination of Contract: A contractor's contract may be terminated by the homeowner due to the following circumstances: • Poor work performance on the job site and the demonstrated inability to rectify poor workmanship • Contractor is causing undue damages to the property and showing an inability or unwillingness to correct the damages. The cost of repairing damages will be deducted from any money owed the contractor for work already completed • Where collusion or fraud has been determined to exist on the part of the contractor • Lack of sufficient insurance coverage • Inability of the contractor to perform the work within the allotted time • Irreconcilable and irresolvable differences between the contractor and the owner The cost of repairing poor workmanship and the higher costs of awarding the bid to another bidding contractor shall be deducted from any amount owed to the initial contractor for work completed. In all cases, the contractor shall be given the opportunity to rectify the problem before contract cancellation procedures are instituted. CMHP shall adhere to the following procedures when negotiating a workmanship problem: • A meeting will be scheduled at the job site with the contractor and homeowner to attempt to come to a consensus about the problem and solution • If problem persists, CMHP shall contact the contractor by certified mail notifying the contractor that the workmanship is still poor and specifying areas that need to be addressed to satisfy the contract. The letter will give the contractor fifteen (15) days to make the required repairs • Contractors who are removed from a contract shall be removed from the participating contractor's list and shall be prohibited from bidding on projects. Project Close-Out: At the time of project completion, the following steps will be taken to close out the project: • A final draw/ inspection will be scheduled to confirm that all work has been done according the contract and to execute final draw form, final lien waiver and completion certificate • Draw requests will be submitted by CMHP for final payment • Lead based paint clearance inspection is ordered and completed(if applicable) • Close-out letter will be sent to homeowners and will include: copies of all recorded loan documents, completion certificate and contractor documents 9 4431140 MJM EL185-26 10. DENIAL/COMPLAINT/APPEALS PROCEDURES Applicant Denial Procedure: If a household's application is denied for any reason, a letter of denial will be sent to the household within 10 working days. The denial letter will clearly outline the reason for denial and inform the applicant that an appeals procedure is available. Applicant Complaint Procedure: Initial applicant complaints about any aspect of service delivery, staff, program restrictions or contractor relations/workmanship may be pursued verbally or in writing to CMHP. The complaint shall be addressed by working with the contractor and the applicant to resolve the problem within two (2)weeks. Applicant Appeal Procedure: If a household is dissatisfied with the level of assistance they have received, and where an applicant complaint cannot be resolved with CMHP, CMHP will notify the applicant in writing that a written procedure for appeal is available. The appeals procedure follows these steps: 1. The applicant who wishes to appeal the initial response must submit a request for appeal in writing within thirty (30) days of the initial response. This request must state the reason(s) for the appeal and should include any information that the applicant feels is pertinent to the appeal. 2. All appeals should be addressed to: Central Minnesota Housing Partnership, Inc. 37 28th Avenue North, Suite #102 St. Cloud, MN 56303 3. A Review Committee shall be established and made up of representatives from CMHP and the eit�HRA. 4. If the Review Committee concurs on the findings, CMHP shall respond to the applicant, in writing, including the results of the review, an explanation of the findings and the next step the applicant can take if he/she is still not satisfied with the response. 5. If the Review Committee does not concur on the findings, the appeal will be presented to the HRA, whose written decision shall be final and presented to the applicant within fifteen (15)working days. 11.AMENDING POLICIES & PROCEDURES These policies and procedures may be amended during the course of the loan agreement, by taking the following steps: • The 64�,HRA or CMHP may recommend an addition, deletion or revision by contacting the other party and stating the proposed change and reason for the proposed change. • The proposed change will be presented, discussed and approved at an HRA meeting Policies and Procedures prepared by Central Minnesota Housing Partnership, Inc. 10 4431140 MJM EL185-26 on behalf of the 4;i U A of Elk River. n,trf��i 11 4431140 MJM EL185-26 Exhibit Targeted Area Target area starts at the intersection of School Street and Freeport Street and travels south including all homes abutting Freeport Street until the intersection with 3rd Street NW.At the intersection of Freeport Street and 3rd Street NW it travels east until the intersection with Evans Avenue NW including all homes south of 3rd Street NW.At the intersection of 3rd Street NW and Evans Avenue NW it travels south until it interacts with Railroad Drive.All homes along Main Street NW east of Evans Ave NW until Carson Court NW are included, along with all homes on 2nd Street NW and Ist Street NW cul-de-sac's. At the intersection of Evans Ave NW and Railroad Drive the target area boundary travels directly west over Highway 10 to the Mississippi River. It travels up stream along the Mississippi River until the intersection with the Elk River,it travels up stream on the Elk River until the Main Street NW bridge all homes on the north side of the Mississippi and Elk River are included in target area. The boundary travels along Main Street NW to the intersection with Rush Avenue NW and includes any abutting homes.At the intersection of Main Street NW and Rush Avenue NW it travels north to Highway 10 and includes all homes east of Rush Ave NW. It then travels east along Highway 10 including all property to the south until the Quinn Avenue NW. It follows Quinn Avenue NW north over the railroad tracks until School Street NW including all homes east of Quinn Avenue NW.At School Street NW it travels east until the intersection with Freeport Street including all homes south of School Street NW. 4431140 MJM EL185-26 Document comparison by Workshare Professional on Thursday, May 01 , 2014 8:58:12 AM Input: Document 1 ID Powerpocs://DOCSOPEN/443114/1 DOCSOPEN-#443114-vl- Description Elk_River_HRA_Rehab_Loan_POLICIES_AND_PROCED URES Document 2 ID Powerpocs://DOCSOPEN/443114/3 DOCSOPEN-#443114-v3- Description Elk_River_HRA_Rehab_Loan_POLICIES_AND_PROCED URES Rendering set standard Legend: Insertion Deletieff Moved 4am Moved to Style change Format change r 'g'il pd. a„!Q�jer Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Statistics: Count Insertions 81 Deletions 52 Moved from 4 Moved to 4 Style change 0 Format changed 0 Total changes 141 Housing & Redevelopment Authority In and For the City of Elk River Owner-Occupied Housing Rehabilitation Program ADMINISTRATIVE AGREEMENT THIS AGREEMENT is effective as of this day of , 2014,between Central Minnesota Housing Partnership, Inc., a Minnesota non-profit corporation, located at 37 28th Avenue North, Suite 102, St. Cloud, MN 56303 (the "Administrator"), and the Housing & Redevelopment Authority in and for the City of Elk River, Minnesota, a public body, corporate and politic under the laws of the State of Minnesota, located at 13065 Orono Parkway, Elk River, MN 55330 (the "HRA"). RECITALS A. The HRA has implemented an Owner-Occupied Housing Rehabilitation Program (the "Program") which will use HRA funds to assist in the rehabilitation of owner-occupied single-family homes in a targeted area of city of Elk River. B. Under the Program, the HRA will make loans to qualifying homeowners ("Loan Applicants") to assist in the rehabilitation of their homes. C. The Administrator has communicated with the HRA and has agreed to administer the Program in the approved targeted area, as described in the attached Exhibit A ("Targeted Area"), which duties shall include the Program marketing and selection of Loan Applicants, and the loan processing and closing of loans under the Program. D. The HRA and the Administrator desire to enter into this Agreement to establish the obligations and responsibilities of each party with respect to the Program. AGREEMENT 1. Participation in Program. The HRA consents to the Administrator's participation in the Program. By participating, the Administrator agrees to the (i) administration of the Program in the Targeted Area, (ii) identification and selection of Loan Applicants and properties, and (iii) processing and closing of loans under the Program, all of which shall be done in performed in accordance with the provisions, terms, conditions, limitations and requirements set forth and contained in this Agreement. 2. Administrator Responsibilities. The Administrator has the following responsibilities: A. Marking and recruitment of qualified Loan Applicants and properties. B. Processing of applications to determine approval or denial of Loan Applicant. 1 C. Performing initial property inspections of approved properties with applicable inspection staff. D. Preparation of scope of work and oversight of bidding process. E. Program loan document origination. F. Construction project oversight, draw inspections and contractor payment requests and project closeout. G. Preparation and submission of quarterly Program reports to HRA. H. Maintenance and retention of records in accordance with HRA guidelines. 3. Reservation of Funds. The HRA shall allocate $100,000 per year for three years ($300,000 total) to the Program to be used as loan funds to eligible Loan Applicants and Administrative Fee payments to Administrator. The Administrator shall not make, or commit to make, any loans under the Program in excess of this allocation without prior written approval of the HRA. The HRA has the authority to allocate additional funds to the Program at any time during the term of this Agreement. 4. Administrative Fees. The Administrator will receive an annual Administrative fee of $15,000 per year, for a three year total of $45,000 (15% of total Program fund allocation). Administrator will submit invoices for payment to the HRA on a quarterly basis. The first quarterly invoice of $3,750 will be submitted after this Agreement is executed to help offset initial Program administration expenses. If the HRA allocates additional funding to the Program during the term of this Agreement, additional Administrative Fee amount shall be 15% of additional funding amount. The Administer will not be compensated separately for necessary incidental expenses for, such as, but not limited to, office space, administration, lodging, food, telephone, internet, photocopies, faxes, and computer. 5. Representations and Warranties of Administrator. The Administrator certifies, represents, covenants and warranties as follows: A. It is a duly constituted entity in good standing and authorized to do business in the State of Minnesota. B. It has legal authority to enter into, execute, and deliver this Agreement, and has taken all actions necessary and incident to its execution and delivery thereof. C. It shall work affirmatively to ensure that all persons, regardless of age,race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation, or familial status, will be given fair and equal opportunity to participate in the Program. 2 D. It has not made any materially false statements or misstatements of fact in communication with the HRA. 6. Cancellation of Agreement. This Agreement may be canceled by the HRA or Administrator at any time, with or without cause, upon thirty (30) days written notice to other party. In the event of such a cancellation, the Administrator shall be entitled to administrative fee payment, determined on a pro-rata basis, for work or services performed. 7. Term of Agreement. This Agreement shall be effective as of the date first written above and shall remain in effect until December 31, 2016, unless sooner terminated due to project completion or in accordance with the provisions contained herein. 8. Record Keeping and Reporting. The Administrator shall supply such records and receipts as are necessary for the HRA to verify complete and total compliance with the Program. The Administrator shall retain all records in connection with each project and will forward applicable files to the HRA for each project to set up loan payment schedule. Pursuant to Minnesota Statutes § 16C.05, Subd. 5, the Administrator agrees that the books, records, documents, and accounting procedures and practices of the Administrator that are relevant to or arise as a result of the Administrator's performance under this Agreement, are subject to examination by the HRA and the state auditor or legislative auditor for a minimum of six years. The Administrator shall maintain such records for a minimum of six years after final payment. 9. Data Practices. The Administrator agrees, with respect to any data that is possesses regarding the Program, to comply with all of the provisions and restrictions contained in the Minnesota Government Data Practices Act(Minn. Stat. Ch. 13). 10. Liability. The Administrator and the HRA agree that they will be responsible for their own acts and omissions and the results thereof to the extent authorized by law, and they shall not be responsible for the acts and omissions of the other party and the results thereof. Nothing in this Agreement shall constitute a waiver or limitation of any immunity or limitation on liability to which the HRA is entitled. The parties agree that these indemnification obligations will survive the completion or termination of this Agreement. 11. Relationship of the Parties. The Administrator is an independent contractor. Nothing contained in this Agreement is intended or should be construed in any manner as creating or establishing the relationship of co-partners or a joint venture between the parties hereto, nor shall the Administrator be considered or deemed to be an employee of the HRA in the performance of this Agreement. The Administrator' duties will be performed with the understanding that Administrator has special expertise as to the services which the Administrator is to perform and is customarily engaged in the independent performance of the same or similar services for others. 3 12. Compliance with Laws. The Administrator shall exercise due professional care to comply with applicable federal, state and local laws, rules, ordinances and regulations in effect as of the date of this Agreement. 13. Attorney Fees. In the event of any action to enforce or interpret this Agreement, the prevailing party shall be entitled to recover from the losing party reasonable attorney fees incurred in the proceeding, as set by the court, at trial, on appeal or upon review. 14. Entire Agreement. This Agreement, the HRA Owner-Occupied Housing Rehabilitation Program Policies And Procedures attached hereto as Exhibit B, and any other exhibits, and any addenda or amendments signed by the parties shall constitute the entire agreement between the HRA and the Administrator, and supersedes any other written or oral agreements between the HRA and the Administrator. This Agreement can only be modified in writing signed by the HRA and the Administrator. 15. Third Party Rights. The parties to this Agreement do not intend to confer on any third party any rights under this Agreement. 16. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts,whether based on convenience or otherwise. 17. Conflict of Interest. The Administrator shall use reasonable care to avoid conflicts of interest and appearances of impropriety in performance of this Agreement with the HRA. In the event of a conflict of interest, Administrator shall advise the HRA and either secure a waiver of the conflict or advise the HRA that it will be unable to provide the requested services. 18. Work Products and Ownership of Documents. All records, information, materials and other work products, including, but not limited to the completed reports, drawings, plans, and specifications prepared and developed in connection with the provision of services pursuant to this Agreement shall become the property of the HRA, but reproductions of such records, information, materials and other work products in whole or in part may be retained by the Administrator. 19. Amendments. Any amendments to this Agreement shall be in writing, and shall be executed by the same parties who executed the original contract or their successors in office. 20. Insurance. The Administrator will maintain insurance coverage for: Worker's Compensation (statutory limits), General Liability, Automobile Liability, Professional Liability, and Excess or Umbrella Liability in an amount of not less than $1,500,000.00 per occurrence, and will provide information as to specific limits upon receipt of signed Agreement. The Administrator shall provide HRA with a current certificate of liability 4 insurance for all insurance coverage referenced above. Such certificate of liability insurance shall list the HRA as an additional insured and contain a statement that such policies of insurance shall not be canceled or amended unless thirty (30) days written notice is provided to the HRA, or ten (10) days written notice in the case of non-payment. 21. Assignment. Neither HRA nor Administrator shall subcontract or assign this Agreement or any rights under or interest in this Agreement, in whole or in part, without the other party's prior written consent. Any assignment in violation of this provision is null and void. 22. Waiver. No waiver of any provision or of any breach of this Agreement shall constitute a waiver of any other provisions or any other or further breach, and no such waiver shall be effective unless made in writing and signed by an authorized representative of the party to be charged with such a waiver. 23. Severability. In the event that any provision of this Agreement shall be illegal or otherwise unenforceable, such provision shall be severed, and the balance of the Agreement shall continue in full force and effect. 24. Authorized Agents. The HRA's authorized agent for purposes of administration of this contract is the of the HRA, or its designee. The Administrator's authorized agent for purposes of administration of this contract is the Executive Director, and this Agreement shall be performed by or under his/her supervision. 25. No Discrimination. The Administrator agrees not to discriminate in providing products and services under this Agreement on the basis of race, color, sex, creed, national origin, disability, age, sexual orientation, status with regard to public assistance, or religion. Violation of any part of this provision may lead to immediate termination of this Agreement. (THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK.) 5 IN WITNESS WHEREOF, the HRA and the Administrator have caused this Administrative Agreement to be executed by their duly authorized representatives in duplicate on the respective dates indicated below. ADMINISTRATOR: Central Minnesota Housing Partnership,Inc. By: Its: Date: HRA: Housing & Redevelopment Authority in and for the City of Elk River,Minnesota By: Its: Date: By: Its: Date: 6 Exhibit A TARGETED AREAS 7 Exhibit B HRA OWNER-OCCUPIED HOUSING REHABILITATION PROGRAM POLICIES AND PROCEDURES 8 Hof Elk River—Housing & Redevelopment Authority (14 41n and For the City of Elk River Owner-Occupied Housing Rehabilitation Program ADNHNISTRATIVE AGREEMENT THIS AGREEMENT is effective as of this day of , 2014,between Central Minnesota Housing Partnership, Inc., a Minnesota non-profit corporation, located at 37 28th Avenue North, Suite 102, St. Cloud, MN 56303 (the "Administrator"), and the Gity or El River- Housing & Redevelopment Authority, ^ "'dries^+^ ptib ie ^^fp^rat ^r in and for the City of Elk River. Minnesota, a public body, corporate and politic under the laws of the State of Minnesota, located at 13065 Orono Parkway, Elk River,MN 55330 (the"HRA"). RECITALS A. The HRA has implemented an Owner-Occupied Housing Rehabilitation Program (the "Program") which will use HRA funds to assist in the rehabilitation of owner-occupied single-family homes in a targeted area of city of Elk River. B. Under the Program, the HRA will make loans to qualifying homeowners ("Loan Applicants") to assist in the rehabilitation of their homes. C. The Administrator has communicated with the HRA and has agreed to administer the Program in the approved targeted area as described in the attached Exhibit A ("Targeted Area" , which duties shall include the Program marketing and selection of Loan Applicants, and the loan processing and closing of loans under the Program. D. The HRA and the Administrator desire to enter into this Agreement to establish the obligations and responsibilities of each party with respect to the Program. AGREEMENT 1. Participation in Program. The HRA consents to the Administrator's participation in the Program. By participating, the Administrator agrees to the (i) administration of the Program in an ,,,.r,.^.,°a af:e the Targeted Area, (ii) identification and selection of Loan Applicants and properties, and(iii) processing and closing of loans under the Program, all of which shall be done in performed in accordance with the provisions, terms, conditions, limitations and requirements set forth and contained in this Agreement. 2. Administrator Responsibilities. The Administrator has the following responsibilities: A. Marking and recruitment of qualified Loan Applicants and properties. B. Processing of applications to determine approval or denial of Loan Applicant. 1 C. Performing initial property inspections of approved properties with applicable inspection staff. D. Preparation of scope of work and oversight of bidding process. E. Program loan document origination. F. Construction project oversight, draw inspections and contractor payment requests and project closeout. G. Preparation and submission of quarterly Program reports to HRA. H. Maintenance and retention of records in accordance with HRA guidelines. 3. Reservation of Funds. The HRA shall allocate $100,000 per year for three years ($300,000 total) to the Program to be used as loan funds to eligible Loan Applicants and Administrative Fee payments to Administrator. The Administrator shall not make, or commit to make, any loans under the Program in excess of this allocation without prior written approval of the HRA. The HRA has the authority to allocate additional funds to the Program at any time during the term of this Agreement. 4. Administrative Fees. The Administrator will receive an annual Administrative fee of $15,000 per year, for a three year total of $45,000 (15% of total Program fund allocation). Administrator will submit invoices for payment to the HRA on a quarterly basis. The first quarterly invoice of $3,750 will be submitted after this Agreement is executed to help offset initial Program administration expenses. If the HRA allocates additional funding to the Program during the term of this Agreement, additional Administrative Fee amount shall be 15% of additional funding amount. The Administer will not be compensated separately for necessary incidental expenses for_ such as_ but not limited to_ office space_ administration_ lodging_ food_ telephone_ internet_ photocopies_ faxes_ and computer. 5. Representations and Warranties of Administrator. The Administrator certifies, represents, covenants and warranties as follows: A. It is a duly constituted entity in good standing and authorized to do business in the State of Minnesota. B. It has legal authority to enter into, execute, and deliver this Agreement, and has taken all actions necessary and incident to its execution and delivery thereof. C. It shall work affirmatively to ensure that all persons, regardless of age,race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation, or familial status, will be given fair and equal opportunity to participate in the Program. 2 D. It has not made any materially false statements or misstatements of fact in communication with the HRA. 6. Cancellation of Agreement. This Agreement may be canceled by the HRA or Administrator at any time, with or without cause, upon thirty (30) days written notice to other party. In the event of such a cancellation, the Administrator shall be entitled to administrative fee payment, determined on a pro-rata basis, for work or services performed. 7. Term of Agreement. This Agreement shall be effective as of the date first written above and shall remain in effect until December 31, 2016, unless sooner terminated due to project completion or in accordance with the provisions contained herein. 8. Record Keeping and Reporting. The Administrator shall supply such records and receipts as are necessary for the HRA to verify complete and total compliance with the Program. The Administrator shall retain all records in connection with each project and will forward applicable files to the HRA for each project to set up loan payment schedule. Pursuant to Minnesota Statutes & 16C.05. Subd. 5. the Administrator agrees that the books, records, documents, and accounting procedures and practices of the Administrator that are relevant to or arise as a result of the Administrator's performance under this Agreement, are subject to examination by the HRA and the state auditor or legislative auditor for a minimum of six vears. The Administrator shall maintain such records for a minimum of six years after final payment. 9. Data Practices. The Administrator agrees, with respect to any data that is possesses regarding the Program, to comply with all of the provisions and restrictions contained in the Minnesota Government Data Practices Act(Minn. Stat. Ch. 13). 10. Liability. The Administrator and the HRA agree that they will be responsible for their own acts and omissions and the results thereof to the extent authorized by law, and they shall not be responsible for the acts and omissions of the other party and the results thereof. Nothing in this Agreement shall constitute a waiver or limitation of any immunity or limitation on liability to which the HRA is entitled. The parties agree that these indemnification obligations will survive the completion or termination of this Agreement. 11. Relationship of the Parties. The Administrator is an independent contractor. Nothing contained in this Agreement is intended or should be construed in any manner as creating or establishing the relationship of co-partners or a joint venture between the parties hereto, nor shall the Administrator be considered or deemed to be an employee of the HRA in the performance of this Agreement. The Administrator' duties will be performed with the understanding that Administrator has special expertise as to the services which the Administrator is to perform and is customarily engaged in the independent performance of the same or similar services for others. 3 12. Compliance with Laws. The Administrator shall exercise due professional care to comply with applicable federal, state and local laws, rules, ordinances and regulations in effect as of the date of this Agreement. 13. Attorney Fees. In the event of any action to enforce or interpret this Agreement, the prevailing party shall be entitled to recover from the losing party reasonable attorney fees incurred in the proceeding, as set by the court, at trial, on appeal or upon review. 14. Entire Agreement. This Agreement. the HRA Owner-Occupied Housing Rehabilitation Program Policies And Procedures attached hereto as Exhibit B. and any other exhibits. and any addenda or amendments signed by the parties shall constitute the entire agreement between the HRA and the Administrator, and supersedes any other written or oral agreements between the HRA and the Administrator. This Agreement can only be modified in writing signed by the HRA and the Administrator. 15. Third Party Rights. The parties to this Agreement do not intend to confer on any third arty any rights under this Agreement. 16. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies. or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 17. Conflict of Interest. The Administrator shall use reasonable care to avoid conflicts of interest and appearances of impropriety in performance of this Agreement with the HRA. In the event of a conflict of interest, Administrator shall advise the HRA and either secure a waiver of the conflict or advise the HRA that it will be unable to provide the requested services. 18. Work Products and Ownership of Documents. All records_ information_ materials and other work products, including, but not limited to the completed reports, drawings, plans_ and specifications prepared and developed in connection with the provision of services pursuant to this Agreement shall become the property of the HRA, but reproductions of such records, information, materials and other work products in whole or in part may be retained by the Administrator. 19.4-2—. Amendments. Any amendments to this ^^Agreement shall be in writing, and shall be executed by the same parties who executed the original contract or their successors in office. 20. Insurance. The Administrator will maintain insurance coverage for: Worker's Compensation (statutory limits). General Liability. Automobile Liability. Professional Liability, and Excess or Umbrella Liability in an amount of not less than $1.500.000.00 per occurrence, and will provide information as to specific limits upon receipt of signed Agreement. The Administrator shall provide HRA with a current certificate of liability 4 insurance for all insurance coverage referenced above. Such certificate of liability insurance shall list the HRA as an additional insured and contain a statement that such policies of insurance shall not be canceled or amended unless thirty (301 days written notice is provided to the HRA, or ten (10) days written notice in the case of non-payment. 21. Assignment. Neither HRA nor Administrator shall subcontract or assign this Agreement or any rights under or interest in this Agreement, in whole or in part, without the other party's prior written consent. Any assignment in violation of this provision is null and void. 22. Waiver. No waiver of any provision or of any breach of this Agreement shall constitute a waiver of any other provisions or any other or further breach, and no such waiver shall be effective unless made in writing and signed by an authorized representative of the arty to be charged with such a waiver. 23. Severability. In the event that any provision of this Agreement shall be illegal or otherwise unenforceable, such provision shall be severed, and the balance of the Agreement shall continue in full force and effect. 24. Authorized Agents. The HRA's authorized agent for purposes of administration of this contract is the of the HRA, or its designee. The Administrator's authorized agent for purposes of administration of this contract is the Executive Director. and this Agreement shall be performed by or under his/her supervision. 25. No Discrimination. The Administrator agrees not to discriminate in providing products and services under this Agreement on the basis of race, color, sex, creed, national origin. disability, age, sexual orientation, status with regard to public assistance, or religion. Violation of any part of this provision may lead to immediate termination of this Agreement. (THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK.) 5 IN WITNESS WHEREOF, the HRA and the Administrator have caused this Administrative Agreement to be executed by their duly authorized representatives in duplicate on the respective dates indicated below. ADMINISTRATOR: Central Minnesota Housing Partnership,Inc. By: Its: Date: HRA: Gi of Elk River- Housing & Redevelopment Authority in and for the City of Elk River,Minnesota By: Its: Date: By: Its: Date: 6 Exhibit A TARGETED AREAS 7 Exhibit B HRA OWNER-OCCUPIED HOUSING REHABILITATION PROGRAM POLICIES AND PROCEDURES 8 Document comparison by Workshare Professional on Thursday, May 01 , 2014 8:57:30 AM Input: Document 1 ID Powerpocs://DOCSOPEN/443085/1 DOCSOPEN-#443085-vl- Description Elk_River_HRA_Rehab_Loan_ADMINISTRATIVE_AGRE EMENT with CMHP Document 2 ID Powerpocs://DOCSOPEN/443085/3 DOCSOPEN-#443085-v3- Description Elk_River_HRA_Rehab_Loan_ADMINISTRATIVE_AGRE EMENT with CMHP Rendering set standard Legend: Insertion Deletieff Moved 4am Moved to Style change Format change r 'g'il pd. a„!Q�jer Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Statistics: Count Insertions 48 Deletions 9 Moved from 0 Moved to 0 Style change 0 Format changed 0 Total changes 57 CENTRAL MINNESOTA HOUSING PARTNERSHIP, INC. Elk River Housing and Redevelopment Authority Application for Home Rehabilitation Property Owners Name: Property Owners Address: Address to be improved: City: State: Zip: Phone: Date: Short Project Description: Number of people in Household: Estimated Yearly Gross Household Income: $ Eligibility Requirements: Ll I own and live in the house to be remodeled IJ My home receives homestead credit on my Sherburne county taxes Ll My home is at least 20 years old and was build in (year built) o If home is older than 1978 lead assessment required IJ I have not begun my home improvement project IJ This home is my primary residence Your application is not complete if you do not include: 1. Application 2. Work requested checklist 3. Most recent Federal tax return 4. Proof of ownership copy of deed 5. Homeowners insurance binder(must show current dates of coverage) 6. Property tax statement(most recent) 7. Conflict of interest form (signed by all owners) I agree with and understand the following: I have read and am within the guidelines for the Housing Rehabilitation Loan Program. I understand that if any information is incorrect or incomplete,my chances of receiving funding will be delayed and/or hindered. I understand I cannot begin work before approval of my application. Signature: Date: Application will be reviewed in the order they are received Eligibility Criteria 1. Properties must be located within target area. 2. Applicant must have ownership of property and is current resident. 3. Applicant must not have started or completed work on the proposed project. 4. Applicant household income must not exceed 115% of the area median income as defined by HUD for the Minneapolis-St. Paul-Bloomington, MN-WI MSA 5. Proposed improvements must comply with Minnesota State Building Code for rehabilitation work. 6. Eligible improvements include exterior improvement to buildings, as well as interior improvements related to safety, accessibility, habitability, and energy consumption, and efficiency. Work Requested(Check all that apply) Eligible exterior improvements: Ll Windows and doors IJ Painting, sandblasting or other fagade improvements IJ Roofs Li Foundations IJ Exterior lighting Ll Handicap Accessibility IJ Cement work(sidewalks and steps) IJ Landscaping IJ Other: Eligible safety, accessibility, habitability and energy efficiency improvements: IJ Heating IJ Electrical IJ Plumbing IJ Insulation Ll Handicap accessibility Ll Asbestos and lead abatement IJ Other: Ineligible improvements include: • Refinancing debt or prior rehabilitation debt • Security systems • Furniture • Recreational items (tennis courts, swimming pools, etc.) • Appliances (unless needed to meet rehabilitation standards or livability) *Loans are not available to remodel apartments or rental units Financing Terms: • 5 year loan at 2%below prime rate • $5,000 to $10,000 5 year loan • 10 year loan at 1% below prime rate • $10,001 to $20,000 5 or 10 year loan • 15 year loan at prime rate. • $20,001 to $25,000 5, 10 or 15 year loan The amount of the loan should be$5,000 or more and no more than$25,000.Prime rates set on date of bid opening. Conditions 1. If the applicant has received a loan(s) from Elk River HRA in the past, he or she is only eligible for the difference between the maximum loan amount and the amount remaining to be paid on previous loan(s). 2. Loans on the property sold by contract-for-deed are due when the title transfers or owner no longer maintains property as primary residence. 3. All owners must join in the application including contract holders. 4. Loan applicants will pay recording fees. Loan Application Review Process 1. CMHP staff will evaluate the loan application to determine eligibility. 2. Once staff makes a determination the building inspector or CMHP staff will conduct an inspection of the property. At the inspection, there will be a determination if corrective actions are necessary for the property to conform to rehabilitation standards. Contact information: Seth Kauffman Phone: 320-258-0673 Email: SethgCmhp.net Return completed application and all attachments to: Central Minnesota Housing Partnership, Inc. Attn: Seth Kauffinan 37 28th Avenue North, Suit 9102 St. Cloud,MN 56303 Note:Faxed or emailed applications will not be accepted Please remember to complete all sections of the application and provide addresses where requested. Failure to complete the application in full will delay your approval time, and may lead to application denial. Application Steps 1. Submit application Ll Work requested checklist Ll Most recent Federal tax return IJ Homeowners insurance (must show current dates of coverage) IJ Property tax statement(most recent) Ll Copy of warranty deed or contract for deed Li Conflict of interest form (signed by all owners) 2. Housing inspection Ll Elk River house inspection required(any issues found must be addressed to receive funding) IJ If home is older than 1987 lead assessment is required IJ CMHP provides scope of work based on home inspection and list of contractors in Elk River. 3. Scope of work Li Returned with at least 2 bids IJ Sketches is applicable 4. Contract sent to homeowner with chosen contractor's and scope of work IJ Signed and notarized 5. Contracts signed by homeowner sent to contractor 6. Contracts reviewed by CMHP Ll Notice to proceed issued to contractor Ll Material and construction draws after notice to proceed issued 7. Closing inspection IJ CMHP CENTRAL MINNESOTA HOUSING PARTNERSHIP, INC. Elk River Housing and Redevelopment Authority Application for Home Rehabilitation Property Owners Name: Property Owners Address: Address to be improved: City: State: Zip: Phone: Date: Short Project Description: Number of people in Household: Estimated Yearly Gross Household Income: $ Eligibility Requirements: Ll I own and live in the house to be remodeled IJ My home receives homestead credit on my Sherburne county taxes Ll My home is at least 20 years old and was build in (year built) o If home is older than 1978 lead assessment required IJ I have not begun my home improvement project IJ This home is my primary residence Your application is not complete if you do not include: 1. Application 2. Work requested checklist 3. Most recent Federal tax return 4. Proof of ownership copy of deed 5. Homeowners insurance binder(must show current dates of coverage) 6. Property tax statement(most recent) 7. Conflict of interest form (signed by all owners) I agree with and understand the following: I have read and am within the guidelines for the Housing Rehabilitation Loan Program. I understand that if any information is incorrect or incomplete,my chances of receiving funding will be delayed and/or hindered. I understand I cannot begin work before approval of my application. Signature: Date: Application will be reviewed in the order they are received Eligibility Criteria 1. Properties must be located within target area. 2. Applicant must have ownership of property and is current resident. 3. Applicant must not have started or completed work on the proposed project. 4. Applicant household income must not exceed 115% of the area median income as defined by HUD for the Minneapolis-St. Paul-Bloomington, MN-WI MSA 5. 4-Proposed improvements must comply with Minnesota State Building Code for rehabilitation work. 6. 5—Eligible improvements include exterior improvement to buildings, as well as interior improvements related to safety, accessibility, habitability, and energy consumption, and efficiency. Work Requested(Check all that apply) Eligible exterior improvements: Ll Windows and doors IJ Painting, sandblasting or other fagade improvements IJ Roofs Li Foundations IJ Exterior lighting Ll Handicap Accessibility IJ Cement work(sidewalks and steps) IJ Landscaping IJ Other: Eligible safety, accessibility, habitability and energy efficiency improvements: IJ Heating IJ Electrical IJ Plumbing IJ Insulation Ll Handicap accessibility Ll Asbestos and lead abatement IJ Other: Ineligible improvements include: • Refinancing debt or prior rehabilitation debt • Security systems • Furniture • Recreational items (tennis courts, swimming pools, etc.) • Appliances (unless needed to meet rehabilitation standards or livability) *Loans are not available to remodel apartments or rental units Financing Terms: • 5 year loan at 2%below prime rate • $5,000 to $10,000 5 year loan • 10 year loan at 1% below prime rate • $10,004 0,001 to $20,000 5 or 10 year loan • 15 year loan at prime rate. • $20;08920,001 to $25,000 5, 10 or 15 year loan The amount of the loan should be°r°x$5,000 or more and no more than$25,000.Prime rates set on date of bid opening. Conditions 1. If the applicant has received a loan(s) from Elk River HRA in the past,he or she is only eligible for the difference between the maximum loan amount and the amount remaining to be paid on previous loan(s). 2. Loans on the property sold by contract-for-deed are due when the title transfers or owner no longer maintains property as primary residence. 3. All owners must join in the application including contract holders. 4. Loan applicants will pay recording fees. Loan Application Review Process 1. CMHP staff will evaluate the loan application to determine eligibility. 2. Once staff makes a determination the building inspector or CMHP staff will conduct an inspection of the property. At the inspection, there will be a determination if corrective actions are necessary for the property to conform to rehabilitation standards. Contact information: Seth Kauffman Phone: 320-258-0673 Email: SethkCmhp.net Return completed application and all attachments to: Central Minnesota Housing Partnership, Inc. Attn: Seth Kauffinan 37 28th Avenue North, Suit 4102 St. Cloud, MN 56303 Note: Faxed or emailed applications will not be accepted Please remember to complete all sections of the application and provide addresses where requested. Failure to complete the application in full will delay your approval time, and may lead to application denial. Application Steps 1. Submit application Li Work requested checklist Ll Most recent Federal tax return IJ Homeowners insurance (must show current dates of coverage) IJ Property tax statement(most recent) Li Copy of warranty deed or contract for deed IJ Conflict of interest form (signed by all owners) 2. Housing inspection Ll Elk River house inspection required(any issues found must be addressed to receive funding) IJ If home is older than 1987 lead assessment is required Ll CMHP provides scope of work based on home inspection and list of contractors in Elk River. 3. Scope of work Li Returned with at least 2 bids IJ Sketches is applicable 4. Contract sent to homeowner with chosen contractor's and scope of work IJ Signed and notarized 5. Contracts signed by homeowner sent to contractor 6. Contracts reviewed by CMHP Ll Notice to proceed issued to contractor Ll Material and construction draws after notice to proceed issued 7. Closing inspection IJ CMHP Document comparison by Workshare Professional on Thursday, May 01 , 2014 8:59:42 AM Input: Document 1 ID Powerpocs://DOCSOPEN/443139/1 Description DOCSOPEN-#443139-v1- Elk River HRA Rehab Loan APPLICATION Document 2 ID Powerpocs://DOCSOPEN/443139/3 Description DOCSOPEN-#443139-v3- Elk River HRA Rehab Loan APPLICATION Rendering set standard Legend: Insertion p 8 e f+ Moved to Style change Format change Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Statistics: Count Insertions 5 Deletions 5 Moved from 0 Moved to 0 Style change 0 Format changed 0 Total changes 10 CONTRACTOR—HOME OWNER CONTRACT ELK RIVER,MINNESOTA WHEREAS, the Contractor has submitted a bid ("Bid") to Central Minnesota Housing Partnership, a Minnesota non-profit ("CMHP") and the administrator of the Owner-Occupied Housing Rehabilitation Loan Program, a program of the Housing & Redevelopment Authority in and for the City of Elk River, Minnesota, a public body, corporate and politic under the laws of the State of Minnesota ("HRA"), for work to be performed in connection with that Program, on the premises located at ,Elk River,Minnesota("Premises") and owned by ("Owner"); and WHEREAS, Owner desires to hire Contractor to perform the work as specified in the Contractor's Bid at the Premises; and WHEREAS,the Contractor desires to perform the work set forth in its Bid at the Premises. NOW, THEREFORE, in consideration of the acceptance of the Bid by the Owner,the Contractor and Owner agree as follows: GENERAL CONDITIONS 1. Hold Harmless Contractor shall defend,indemnify, and hold harmless the Owner, and HRA and CMHP, from all liability,loss,expenses, and claims for damages,including attorneys' fees,made by anyone in connection with Contractor's performance of obligations under this contract. 2. Independent Contractor For the purpose of this Contract,the Contractor shall be deemed to be an independent contractor, and not an employee of Owner,HRA,or CMHP.Any and all employees of the Contractor or other persons,while engaged in the performance of any work or services required to be performed under this Contract, shall not be considered employees of Owner, HRA,or CHMP and any and all claims that may or might arise on behalf of said employees or other persons as a consequence of any act or omission on the part of said employees or the Contractor shall in no way be the obligation or responsibility of Owner,HRA,or CMHP. 3. Insurance Before commencing work on the Premises,the Contractor shall submit certificates of insurance to the Owner and CHMP for approval by the Owner and CMHP and shall be endorsed to provide that the policies will not be canceled or changed until ten days after written notice of change or cancellation has been delivered to Owner and CMHP. The Contractor's certificates must show that at least the following insurance is in force: Class of Coverage Bodily Injury Property Damage (1)Manufacturer's& Contractors $1,500,000 $1,500,000 (2)Product Incl. Compl. Operations $1,500,000 $1,500,000 (3)Auto Owned,Hired or Leased $1,500,000 $1,500,000 (4)Worker's Compensation As required by law The Contractor may satisfy these requirements through an umbrella policy. If any such insurance is due to expire during the construction period,the Contractor shall not permit the coverage to lapse and new certificates shall be furnished to Owner and CMHP. 4. Lien Waivers The Contractor shall protect,defend and indemnify Owner from any claims of unpaid work, labor,or material. Payment shall not be due until the Contractor has delivered to the Owner complete release of all liens arising out of the Contractor or receipt in full covering all labor and materials for which a lien could be filed,or a bond satisfactory to the Owner indemnifying him/her against any lien. 5. Subcontractors and Assignments No subcontractor or assignment of this Contract shall be made without the written consent of the Owner and CMHP. Contractor shall furnish subcontractor lien waiver(s)upon payment. 6. Permits and Codes (a) The Contractor shall secure all necessary permits and licenses required to perform the work called for by this contract, and all such work shall be in compliance with all building code regulations and all ordinances whether or not covered by the specifications and drawings for the work. (b) The Contractor agrees to comply with all applicable local, state, and federal laws, regulations,ordinances, and policies. 7. Equal Employment Opportunity (a) The Contractor shall provide equal opportunity to all persons,without discrimination as to race,color,creed,religion,national origin, sex,marital status,age and status with regard to public assistance or disability. (b) To the extent feasible,the Contractor shall provide opportunities for training and employment to lower income residents of the area with a household income at or below 80%of the area median income as defined by HUD for the Minneapolis-St. Paul- Bloomington,MN-WI MSA,particularly residents of public or federally assisted housing. 8. Proceed to Work and Completion of Work Upon acceptance of this bid and submission of evidence of satisfactory insurance coverage, the work will be started within seven calendar days ONLY AFTER A NOTICE TO PROCEED ORDER is received by the Contractor. The contract shall be fully and satisfactorily completed within 90 working days of the Notice to Proceed Order date.A working day will be considered to be all days except Saturday, Sundays, and legal holidays. Any modification of the above shall be set forth in Article 14 below. 9. Payments (a) The HRA shall pay the Contractor in full after the work is satisfactory completed unless prior arrangements have been made for progress payments. Progress payments shall be limited to two, and shall be subject to ten percent(10%)retainage until final satisfactory completion.Final payment of the Contract amount will be made only after final inspection by CMHP and acceptance by the Owner of all work performed by the Contractor. (b) The Contractor agrees to pay any subcontractor within ten days of the Contractor's receipt of payment from the HRA for undisputed services provided by the subcontractor. The Contractor must pay interest of 1-1/2 %per month for any part of a month to the subcontractor on any undisputed amounts not paid on time to subcontractor. The minimum monthly interest penalty payment for an unpaid balance of$100 or more is $10. For an unpaid balance of less than $100,the Contractor shall pay the actual penalty due to the subcontractor.A subcontractor who prevails in a civil action to collect interest penalties from the Contractor must be awarded its costs and disbursements,including attorney's fees,incurred in bringing the action. 10. Warranty As to Workmanship and Materials The Contractor shall remedy any defect due to faulty material or workmanship and pay the Owner for any damage to other work resulting therefrom that appears within the period of one year of final payment.Further,Contractor will furnish Owner with all manufacturer's and supplier's written guarantees and warranties covering materials and equipment furnished under this Contract. This warranty does not cover defects caused by or related to: (a) Abuse,misuse,negligence or accident by parties other than the Contractor any Contractor's subcontractors; or (b) Normal deterioration due to wear or exposure. 11. Debris and Materials The Contractor agrees that during the course of work the Premises shall be kept as clean and orderly as is reasonable under the circumstances and shall remove all debris from the Premises that results from the Contract work until completion of this Contract.All materials and equipment that are replaced or removed in the course of work shall become the property of the Contractor unless otherwise specified. 12. Access to Records The Owner and CMHP shall have full access to all records relating to work performed under this Contract. Any and all data received, collected, stored,created,used,maintained,or disseminated by the Contractor shall be administered in accordance with the requirements of Minn. Stat. Ch. 13. The Contractor does not have a duty to provide access to public data when the same is available from the Owner,HRA or CMHP. 13. Modification Any alteration,variation,modification,or waiver of the provisions of this Contract shall be valid only after it has been reduced to writing, approved and signed by the Owner and CMHP and attached to the original of this Contract. 14. Other Remedies: The above conditions and warranties are in addition to, and not in limitation of,any and all other rights and remedies to which the Owner,or subsequent Owners,may be entitled, at law or in equity, and shall survive the conveyance of title, and shall be binding on the undersigned not withstanding any provision to the contrary contained in any instrument heretofore or hereafter executed by the Owner. 15. Termination of Contract: If either the Contractor or the Owner wishes to terminate this Contract for any cause,it shall provide the other party with ten days notice and the Contractor shall be duly compensated for any work satisfactorily completed at the point of termination. 16. This Contract consists of the bid and proposal set forth below,the general conditions as outlined above, and the description of the work to be completed as shown on the Work Write- up, attached hereto as Exhibit A. BID AND PROPOSAL For the consideration named herein,the undersigned Contractor proposes to furnish all work, material and labor to complete the work in accordance with the attached Work Write-up ("Specifications") and the General Conditions outlined above for the sum of$ OWNER CONDITIONS: 1. The Owner certifies that the HRA Owner-Occupied Housing Rehabilitation Loan Program Funds shall be used for eligible improvements, and shall not be applied toward any Specifications begun or completed before the date of the Notice to Proceed Order. 2. The Owner shall permit the Contractor to use, at no cost,existing utilities such as light, heat,power and water necessary to the carrying out the completion of the Specifications.Further,Owner will cooperate with the Contractor to facilitate the performance of the Specifications,including the removal and replacement of rugs, coverings and furniture as necessary. 3.Materials and equipment that have been removed or replaced as part of the Specifications shall belong to the Contractor unless otherwise specified. 4. The Owner understands and agrees that any and all disputes,of whatever kind of nature,in conjunction with this Contract, are solely the disputes of the Owner and Contractor to resolve without legal involvement,by lawsuit or otherwise. 5. The Owner certifies receipt of the EPA brochure entitled,"Renovate Right." 6. The Owner is responsible for normal maintenance of the improvements to the Premises as a result of the Contractor's performance of the Specifications. If a problem occurs that the Owner believes is covered by the warranty,the Owner shall contract the Contractor in writing,giving the Contractor sufficient information to enable him to resolve the matter. In the event the Contractor fails to remedy the problem,then the Owner shall contact CMHP. 7. The Owner understands and agrees with to the Contractor's performance of the Specifications and agrees to permit the Contractor access to the Premises to the extent necessary to complete the Specifications. 8. The Owner agrees that the improvements to the Premises specified in the Specifications shall be inspected by CMHP before funds are disbursed. ACCEPTANCE BY CONTRACTOR ACCEPTANCE BY OWNER Firm Title Name of Owner(s) Firm Address Address of Owner(s) Signature of Authorized Representative Signature of Owner Title Signature of Owner Date Date EXHIBIT A Specifications Elk River 14RA Rehabilitation Pro ram CONTRACTOR—HOME OWNER CONTRACT ELK RIVER. MINNESOTA CONTRACT-OR CONDI -IONS• WHEREAS, the Contractor has submitted a bid (64"Bid") to Central Minnesota Housing Partnership_ a Minnesota non-profit ("CMHP") and the administrator of the Owner-Occupied Housing Rehabilitation Loan Program_ a program of the Housing & Redevelopment Authority in and for the Citv of Elk River_ Minnesota_ a public body_ corporate and politic under the laws of the State of Minnesota for work to be performed in connection with Elk River-14 n Reha ilia 4a that Program,on the premises located at Elk River_ Minnesota ("Premises"1 and owned by —("Owner"); and WHEREAS_ Owner desires to hire Contractor to perform the work as specified in the Contractor's Bid at the Premises; and WHEREAS_the Contractor desires to perform the work set forth in its Bid at the Premises. NOW, THEREFORE, in consideration of the acceptance of said bid(othe Bid by the Owner, the Contractor sand Owner agree as follows: GENERAL CONDITIONS 1. Hold Harmless Contractor shall defend, indemnify, and hold harmless the Owner, and effiplayees of�he Elk n;. or 14 RA and Geatr-al Minnesota 14 assn. Paftae-ship i e-eia ae.e iioaHRA and CMHP, from all liability_loss_ expenses_ and claims for damages .,.:sing f e bad4 iffjid deat, G8144 etEW'S ep ie+i including attorneys' fees.made by anyone in connection with Contractor's performance of obligations under this contract. 2. Independent Contractor For the purpose of this Agree�nea tContract,the Contractor shall be deemed to be an independent''e e contractor, and not an employee of e Owner HRA or CMHP. Any and all employees of the Contractor or other persons,while engaged in the performance of any work or services required to be performed under this Agree�nen tContract, shall not be considered employees of eOwner HRA or CHMP and any and all claims that may or might arise on behalf of said employees or other persons as a consequence of any act or omission on the part of said employees or the Contractor shall in no way be the obligation or responsibility of e rOwner HRA or CMHP. 3. Insurance Before commencing work,on the Premises the Contractor shall fttfffish W44submit certificates''° f lle ^f insurance and GN414P is n feree. P�e-i-eesss h-a"�ttedto the Owner and CHMP for approval efby the ewne Owner and CMHP and shall be endorsed to provide that the policies will not be canceled or changed until ten days after written notice of 44408a*1 A444 P 185 1.4 change or cancellation has been delivered to e �Owner and CMHP. The Contractor's certificates must show that at least the following insurance is in force: Class of Coverage Bodily I jury Property Damage (1)Manufacturer's& Contractors $400,0001.500.000 $100,0001 500 000 (2)Product Incl. Compl. Operations $108;0801 500 000 $480;0001 500 000 (3)Auto Owned,Hired or Leased $108;0001.500.000 $480;0001 500 000 (4)Worker's Compensation As ReEp+ife-dreauired by law The Contractor may satisfy these requirements through an umbrella policy. If any such insurance is due to expire during the construction period,the Contractor shall not permit the coverage to lapse and new certificates shall be furnished to ewne Owner and CMHP. 4. Lien Waivers The Contractor shall protect,defend and indemnify Owner from any claims of unpaid work, labor,or material. Payment shall not be due until the Contractor has delivered to the Owner complete release of all liens arising out of the ea Contractor or receipt in full covering all labor and materials for which a lien could be filed,or a bond satisfactory to the Owner indemnifying him/her against any lien. 5. Subcontractors and Assignments No subcontractor or assignment of this^e�iContract shall be made without the written consent of the Owner and CMHP. Contractor shall furnish subcontractor lien waiver(s)upon payment. 6. Permits and Codes a The Contractor shall secure all necessary permits and licenses required to perform the work called for by this contract, and all such work shall be in compliance with all building code regulations and all ordinances whether or not covered by the specifications and drawings for the work. (b) The Contractor agrees to comply with all applicable local, state. and federal laws_ regulations_ordinances_ and policies. 7. Equal Employment Opportunity (a) The Contractor shall provide equal opportunity to all persons,without discrimination as to race,color,creed,religion,national origin, sex,marital status, age and status with regard to public assistance or disability. (b) To the extent feasible,the Contractor shall provide opportunities for training and employment to lower income residents of the area with a household income at or below 80%of the area median income as defined by HUD for the Minneapolis-St. Paul- Bloomington.MN-WI MSA,particularly residents of public or federally assisted housing. 44408'1:,1 4444 P 185 14 8. Proceed to Work and Completion of Work Upon acceptance of this bid and submission of evidence of satisfactory insurance coverage, the work will be started within seven calendar days ONLY AFTER A NOTICE TO PROCEED ORDER is received by the Contractor. The contract shall be fully and satisfactorily completed within 90 working days of the Notice to Proceed Order date.A working day will be considered to be all days except Saturday, Sundays, and legal holidays. Any modification of the above shall be set forth in Article X14 below. 9. Payments a) The HRA shall pay the Contractor sha" in full after the work is satisfactory completed unless prior arrangements have been made for progress payments. Progress payments shall be limited to two, and shall be subject to ten percent(10%)retainage until final satisfactory completion.Final payment of the Contract amount will be made only after final inspection by CMHP and acceptance by the Owner of all work performed by the Contractor. b) The Contractor agrees to pay any subcontractor within ten days of the Contractor's receipt of payment from the HRA for undisputed services provided by the subcontractor. The Contractor must pay interest of 1-1/2 %per month for any_ part of a month to the subcontractor on any undisputed amounts not paid on time to subcontractor. The minimum monthly interest penalty payment for an unpaid balance of$100 or more is 10. For an unpaid balance of less than$100,the Contractor shall pay the actual penalty due to the subcontractor.A subcontractor who prevails in a civil action to collect interest penalties from the Contractor must be awarded its costs and disbursements.including attorney's fees,incurred in bringing the action. 10. Warranty As to Workmanship and Materials The Contractor shall remedy eeday defect due to faulty material or workmanship and pay the Owner for any damage to other work resulting t4er-e f+effi;A44ieh shall appe rtherefrom that appears within the period of one year of final payment.Further, Contractor will furnish Owner with all manufacturer's and supplier's written guarantees and warranties covering materials and equipment furnished under this^e� Contract. This warranty does not cover defects caused by or related to: (a) Abuse,misuse,negligence or accident by parties other than the Contractor Contractor's subcontractors; or (b) Normal deterioration due to wear or exposure. 11. Debris and Materials The Contractor agrees that during the course of work the Premises shall be kept as clean and orderly as is reasonable under the circumstances and shall remove all debris from the Premises that results from theContract work upe*until completion oftthis Contract.All materials and equipment=.that are 44408at,1 4444 P 185 14 replaced for removed in the course of work shall become the property of the Contractor unless otherwise specified. 1-2. Lead Based Pain aeeer-danee w44 lead safe. ofk pfae�iees. e0x4aeivr. 12. 4-3—. Access to Records The awne and CMHP shall have full access to all records relating to work performed under this Agree%ea Contract. Any and all data received,collected. stored.created.used. maintained,or disseminated by the Contractor shall be administered in accordance with the requirements of Minn. Stat. Ch. 13. The Contractor does not have a duty to provide access to public data when the same is available from the Owner. HRA or CMHP. 13. 44—Modification Any alteration,variation,modification,or waiver of the provisions of this Agree�nea tContract shall be valid only after it has been reduced to writing,approved and signed by the ewffe and CMHP and attached to the original of this Agfee iieii Contract. 14. 4�Other Remedies: The above conditions and warranties are in addition to, and not in limitation of,any and all other rights and remedies to which the Owner,or subsequent Owners, emav bebe entitled, at law or in equity,and shall survive the conveyance of title, and shall be binding on the undersigned not withstanding any provision to the contrary contained in any instrument heretofore or hereafter executed by the Owner. 15. 4-6—Termination of Contract: If either paftyLhe Contractor or the Owner wishes to terminate this eeatr-aetContract for any cause,4wj it shall provide the other party with ten days notice and the�e Contractor shall be duly compensated for any work satisfactorily completed at the point of termination. 17. Nee� r �� Yett are r-equir-ed by a 199-2 Minnesota Statttte -270.66, to provide yedr-Feder-a!or-NP�T&E 44.408a*1 A444 P 185 1.4 twies 4:4is a ,terra..will not be approved—, nlosss rb.oso at�mber-s ., provided. Npi T.,., 1P Federal T.,., 1P C.,eial Seelffity NO. 16. This^a�etContract consists of the bid and proposal set forth below,the general conditions as outlined above,and the description of the work to be completed as shown on the Work Write-up, attached hereto as Exhibit A. BID AND PROPOSAL For the consideration named herein,the undersigned Contractor proposes to furnish all work, material and labor to complete the work in accordance with the attached wa wr-iteWork Write- up( Specifications ) and the General Conditions outlined above for the sum of$ OWNER CONDITIONS: 1. The Owner certifies that the Elk River-un�HRA Owner-Occupied Housing Rehabilitation Loan Program Funds shall be used for eligible improvements, and shall not be applied toward any werkSpecifications begun or completed before the date of the Notice to Proceed Order. 2. The Owner shall permit the Contractor to use,at no cost,existing utilities such as light, heat,power and water necessary to the carrying out the completion of the wer4&ecifications. Further, Owner will cooperate with the Contractor to facilitate the performance of the Al 3fk Specifications,including the removal and replacement of rugs,coverings and furniture as necessary. 3.Materials and equipment that have been removed for replaced as part of the we+4 Specifications shall belong to the Contractor unless otherwise specified. 4. The Owner understands and agrees that any and all disputes,of whatever kind of nature,in conjunction with this Agree €n Contract, are solely the disputes of the Owner and Contractor to resolve without legal involvement,=. by lawsuit or otherwise.A-1+y Cities Development p.-,..,...,m for-„ br-eaeh by (`,.at.-.,ete-0�t4is .--elate.1 agr-eemeat. 5. The Owner certifies receipt of the EPA brochure entitled,"Renovate Right"._' 6. The Owner is responsible for normal maintenance of ff4the improvements to the Premises as a result of the Contractor's performance of the Specifications. If a problem occurs w4"that the Owner believes is covered by the warranty,the Owner shall contract the Contractor in writing,giving the Contractor sufficient information to enable him to resolve the matter. In the event the Contractor fails to remedy_ the problem.then the Owner shall contact CMHP. 44408a*4 A444 P 485 4.4 7. The Owner understands and agrees with toe attae i°a a ar'E,r rite -HNto the Contractor's performance of the Specifications and agrees to permit the Contractor access to the to Premises to the extent necessary to complete the spe-eified,Specifications. 8. The Owner agrees that the improvements to the Premises specified in the a+taehed er'E.. *° Specifications shall be inspected by CMHP before funds are disbursed. ACCEPTANCE BY CONTRACTOR ACCEPTANCE BY OWNER Firm Title Name of Owner(s) Firm Address Address of Owner(s) Signature of Authorized Representative Signature of Owner Title Signature of Owner Date Date 44408a*1 A444 P 185 1.4 EXHIBIT A Specifications 44408at,i 4444 P 185 14 Document comparison by Workshare Professional on Thursday, May 01 , 2014 8:56:48 AM Input: Document 1 ID Powerpocs://DOCSOPEN/443082/1 DOCSOPEN-#443082-vl- Description Elk_River_HRA_Rehab—Loan—CONTRACTOR—OWNER- CONTRACT Document 2 ID Powerpocs://DOCSOPEN/443082/3 DOCSOPEN-#443082-v3- Description Elk_River_HRA_Rehab—Loan—CONTRACTOR—OWNER- CONTRACT Rendering set standard Legend: Insertion Deletieff Moved 4am Moved to Style change Format change r 'g'il pd. a„!Q�jer Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Statistics: Count Insertions 99 Deletions 93 Moved from 1 Moved to 1 Style change 0 Format changed 0 Total changes 194 Mortgage and Repayment Agreement (Elk River HRA Owner-Occupied Housing Rehabilitation Program) This mortgage is exempt from Mortgage Registration Tax imposed by Minnesota Statutes, §287.035, pursuant to Minnesota Statutes,§287.04,because the principal amount of the mortgage loan referred to herein is made under an affordable housing program and the mortgagee is the Housing and Redevelopment Authority in and for the City of Elk River,a Minnesota body corporate and politic. THIS MORTGAGE AND REPAYMENT AGREEMENT(this "Mortgage'), is made and entered into this , 20 (the "Effective Date"), by and between (the "Owner') the owner of the property located at Elk River, MN 55 and legally described as set forth in the attached Exhibit A(the"Property")and the Housing and Redevelopment Authority in and for the City of Elk River, (the"HRA"),having its principal office at 13065 Orono Pkwy NW,Elk River,MN 55330. NOW THEREFORE, in consideration of the Installment Loan described below and for other good and valuable consideration,the parties do hereby agree as follows: 1. In accordance with the Elk River Owner-Occupied Housing Rehabilitation Policies and Procedures (the "Procedures") and the Owner's Application dated , 20 (the "Application'),both of which are incorporated herein by reference as if fully set forth herein,the HRA has agreed to make to Owner a Housing Rehabilitation Loan, (the "Installment Loan"), relating to the Property,in the amount of Dollars($ .The Installment Loan shall be disbursed directly to the contractor performing the work on the Property described in the Application in accordance with the Procedures. The Owner agrees to repay to the HRA in the Installment Loan plus interest thereon at the rate of %per annum in installments of principal and interest of $ per month, beginning on , 20_, through and including 20_(the "Final Maturity Date")in accordance with the amortization schedule and the Truth in Lending Statement signed by Owner both attached as Exhibit B. The Owner may prepay the Installment Loan in whole, together with accrued interest thereon,to the HRA on any business day. 2. Owner covenants and agrees with the HRA that if the Property is transferred or otherwise conveyed,voluntarily or involuntarily, either while the Owner is living or by reason of the death of the Owner prior to the Final Maturity Date, the Installment Loan and all accrued interest thereon shall be immediately due and payable and shall be repaid in full to the HRA. 3. As security for Owner's obligation to repay the Installment Loan and accrued interest thereon, and the cost, including reasonable attorney's fees,of collecting the same,and subject to the terms and conditions of this Mortgage, Owner hereby grants, and HRA shall and hereby does have, a statutory mortgage on the Property in accordance with Minnesota Statutes,Section 507.15. 4. The Owner covenants with the HRA the following statutory covenants; a. To warrant the title to the Property; subject to permitted encumbrances as set forth in Exhibit C. b. To pay the indebtedness as herein provided. c. To pay all taxes. d. That the Property shall be kept in repair and no waste shall be committed. e. That the whole of the principal sum shall become due after default,in the payment of any installment of principal or interest, or of any tax, or in the performance of any other covenant,at the option of the HRA. f. To pay principal and interest on prior mortgages. 5. If default be made in any payment or covenant herein,the HRA shall have the statutory power of sale,and on foreclosure may retain statutory costs and attorney's fees. 6. For the protection of the HRA,the Owner will, during all the time until the indebtedness secured by this mortgage is fully paid, maintain all risk property insurance, naming the HRA as an additional insured,in an amount not less than the full insurable replacement value of the Property. Said insurance shall be written by a company or companies licensed to do business in Minnesota and rated Class A-:VII or better by A.M. Best Company. The term "full insurable replacement value" shall mean the actual replacement cost of the Property (excluding foundation and excavation costs and costs of underground flues, pipes, drains, and other items customarily omitted from replacement cost valuation for insurance purposes), without deduction for depreciation. The Owner will assign and deliver the policies of such insurance to the HRA so and in such manner and form that the HRA shall at all times, until the full payment of said indebtedness,have and hold the said policies as a collateral and further security for the payment of said indebtedness, or at the option of the HRA will make such policies payable in case of loss to the HRA as its interest may appear and will deposit them with the HRA, and in default of so doing,that the HRA may,but has no obligation to,obtain such insurance from year to year,or for one or more years at a time, and pay the premiums therefor, and that the Owner will forthwith repay to the HRA the same, with interest at the mortgage rate, and that the same shall become a part of the debt secured by this mortgage in like manner as the principal sum. The Owner may retain any moneys received by him/her on the policies,but the same shall apply in part payment of this mortgage. 7. This Mortgage shall terminate and shall be of no further force or effect upon payment in full of the Installment Loan and accrued interest thereon. 8. The Owner will indemnify, save, and hold harmless the HRA, the City of Elk River, Minnesota, Central Minnesota Housing Partnership, Inc., their officers, agents, and employees, from and against any claim, cause of action, damage, liability, loss or expense, including attorney's fees incurred by the HRA, made by any party in connection with or arising from (i) the presence, if any, of hazardous wastes or pollutants on the Property; (ii) any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Property, (iii)the performance of, or failure to perform, this Mortgage. Nothing herein shall be deemed a waiver of any statutory limitations of liability or immunity. 9. This Mortgage shall run with the aforesaid real estate and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors, and assigns. 10. Any forbearance by the HRA in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 11. This Mortgage shall be governed by the law of the state of Minnesota. In the event that any provision or clause of this Mortgage conflicts with applicable law, such conflict shall not affect other provisions of this Mortgage which can be given effect without the conflicting provision. To this end,the provisions of this Mortgage are declared to be severable. 12. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. In witness whereof the Owner has duly executed this Rehabilitation Program Mortgage and Repayment Agreement. Owner and Mortgagor: (Name) STATE OF MINNESOTA) )ss. COUNTY OF( ) The foregoing instrument was acknowledged before me this day of 20 by (Name) Notary Public S-1 Accepted and agreed to by: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER By Its By Its STATE OF MINNESOTA) )ss. COUNTY OF( ) The foregoing instrument was acknowledged before me this day of 120 by the and the respectively, of the Housing and Redevelopment Authority in and for the City of Elk River, a body corporate and politic organized and existing under the Constitution and laws of the State of Minnesota,on behalf of said Authority Notary Public THIS INSTRUMENT DRAFTED BY: Central Minnesota Housing Partnership,Inc. 37 28ffi Avenue North,Suite#102 St.Cloud,MN 56303 S-2 Exhibit A Legal Description of Property A-1 Exhibit B Amortization Schedule and Truth in Lending Statement B-1 Exhibit C Permitted Encumbrances C-1 Elk River 14RA Rehabilitation M��nd Repayment Agreement (Elk River HRA Owner-oeeupied ccupied Housing Rehabilitation Program This mortgage is exempt from Mortgage Registration Tax imposed by Minnesota Statutes. 5287.035. pursuant to Minnesota Statutes,5287.04,because the principal amount of the mortgage loan referred to herein is made under an affordable housing program and the mortgagee is the Housing and Redevelopment Authority in and for the City of Elk River.a Minnesota body corporate and politic THIS MORTGAGE AND REPAYMENT AGREEMENT, this"Mortgage"1_is made and entered into this . 20 (the "Effective Date"), by and between r"ef&4a4e-fzO�OFFOd as '10Wnef") Of al4d +h° Q , O�Elli RiVe-f-- (14e-feiRa4e-rzeffffed te ash (the "Owner") the owner of the property located at Elk River_ MN 55 and legally described as set forth in the attached Exhibit A (the "Property") and the Housing and Redevelopment Authority in and for the Citv of Elk River_(the"HRA'),having its principal office at 13065 Orono Pkwy NW,Elk River,MN 55330. WHEREAS, en her-einafter-r-efeffed fe as �he "effeefke date", !he City agreed le gr-ffl4 te r-elZling te �he real estate—here-ina te- in •he affietffit of (write ii3zm�viiir'ci Dollars. Said R+140t114 s! '44e Gib, @�Elk River-a+the r-a+e 4�(�er-H4@nt4,begiiming an t4e n sL,.,77 L.v,�.,;.7 ;.,F,,77 plus 44e-est toe-een by ne la+e-than(elan .7 te) crxicrornxrrvo-c'+�.rlriccro vc�xcromrvr'�v'iccccl-ainrr-rvro vo�ccco'7 NOW THEREFORE,in consideration of the—,aid Installment Loan described below and for other good and valuable consideration,the parties do hereby agree as follows: 1. In accordance with the Elk River Owner-Occupied Housing Rehabilitation Policies and Procedures (the "Procedures") and the Owner's Application dated . 20 (the "Application").both of which are incorporated herein by reference as if fully set forth herein_the HRA has agreed to make to Owner a Housing Rehabilitation Loan_ (the "Installment Loan"1 relating to the Property_in the amount of Dollars(S 1.The Installment Loan shall be disbursed directly to the contractor performing the work on the Property described in the Application in accordance with the Procedures. The Owner agrees to repay to the HRA in the Installment Loan plus interest thereon at the rate of %per annum in installments of principal and interest of $ per month_ beginning on . 20 _ through and including . 20 (the "Final Maturity Date")in accordance with the amortization schedule and the Truth in Lending Statement signed by Owner both attached as Exhibit B. The Owner may prepay the Installment Loan in whole_ together with accrued interest thereon_to the HRA on any business day. 2 ' O.T,nefs eeveffaw0mm covenants and agfeeAgrm with the G4�,HRA that if the few h..,-..1na fief desef h^aPronerte is transferred or otherwise conveyed, voluntarily or involuntarily, either while the Owner is living or by reason of the death of the Owner Affing a period of (date) iprior to the Final Maturity Date_the Installment Loan and all accrued interest thereon shall be immediately due and payable and shall be repaid in full to the HRA. a. TIIa4 the City Shall be F-epaid,in Ali!,ppas 44er-est t4er-eon,and; year-period as se!fbi4h above and in aecor-dance with the Tmth in Lending Stalement of eve 44is Agr-emwi#, Owner-14er-eb), grants and City shall and 14er-eb), does hm,e a lien an 44e real est4e 4461iAiRg FeaSE)Rable a4ORW)"S fees, E4 6011e6fiRg t4e SaR4e. T-14e Feal estate Subjeet to Said lien is s4+iated in I MinReset s4eg-a4b, dessr-ibed as &'* ib4 4 3. �OFOGIOSO Said 40+144 thO Sa+140+RaIlHer-as an aetion for-440 for-0610sur-e 0�+14014gages UP014 said F-0 estate as pr-avi °a by star tc As security for Owner's obligation to repay the Installment Loan and accrued interest thereon, and the cost, including reasonable attorney's fees, of collecting the same. and subject to the terms and conditions of this Mortgage_ Owner hereby grants_ and HRA shall and hereby does have_ a statutory mortgage on the Property in accordance with Minnesota Statutes_Section 507.15. 4. r-e"ir-ed r-epayffient within said 14ii4ed per-ied, �he City ffiay, w4h er- withettt ne6ee te Owner-, estate, as ^videa by stat .°.The Owner covenants with the HRA the following statutory covenants a. To warrant the title to the Property_ subject to permitted encumbrances as set forth in Exhibit C'_ b. To pay the indebtedness as herein provided. c. To V all taxes. d. That the Property shall be kept in repair and no waste shall be committed e. That the whole of the principal sum shall become due after default_in the payment of any installment of principal or interest_ or of any tax_ or in the performance of-any other covenant_at the option of the HRA. f. To pay principal and interest on prior mortgages. 5. If default be made in any payment or covenant herein_the HRA shall have the statutory power of sale_and on foreclosure may retain statutory costs and attorney's fees. 6. For the protection of the HRA_the Owner will_during all the time until the indebtedness secured by this mortgage is fully paid. maintain all risk property insurance. naming the HRA as an additional insured.in an amount not less than the full insurable replacement value of the Property. Said insurance shall be written by a company or companies licensed to do business in Minnesota and rated Class A-:VII or better by A.M. Best COmpanv. The term "full insurable replacement value" shall mean the actual replacement cost of the Property (excluding foundation and excavation costs and costs of underground flues, pipes, drains_ and other items customarily omitted from replacement cost valuation for insurance purposes)_ without deduction for depreciation. The Owner will assign and deliver the policies of such insurance to the HRA so and in such manner and form that the HRA shall at all times_ until the full payment of said indebtedness_have and hold the said policies as a collateral and further security for the payment of said indebtedness_ or at the option of the HRA will make such policies payable in case of loss to the HRA as its interest may appear and will deposit them with the HRA_ and in default of so doing_that the HRA may_but has no obligation to.obtain such insurance from year to year_or for one or more vears at a time_ and pay the premiums therefor. and that the Owner will forthwith repay to the HRA the same_ with interest at the mortgage rate_ and that the same shall become a part of the debt secured by this mortgage in like manner as the principal sum. The Owner may retain any moneys received by him/her on the policies_but the same shall apply in part payment of this mortgage. 7 5 jj Mortgage shall terminate and shall be of no further force or effect n pavmen in afefesaid mamier to fefeelese the same.-fall of the Installment Loan and accrued interest thereon. 8. The Owner will indemnify_ save_ and hold harmless the HRA_ the City of Elk River_ Minnesota Central Minnesota Housing Partnership__ Inc._ their officers_ agents_ and employees_ from and against any claim_ cause of action_ damage_ liability_ loss or expense_ including attorney's fees incurred by the HRA_ made by any party in connection with or arising from (i) the presence_ if any_ of hazardous wastes or pollutants on the Property_(ii) any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Property (iii)the performance of or failure to perform_ this Mortgage. Nothing herein shall be deemed a waiver of any statutory limitations of liability or immunity. 9 This Agree Rei4M =or=shall run with the aforesaid real estate and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors,and assigns. 10. Any forbearance by the HRA in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 11. This Mortgage shall be governed by the law of the state of Minnesota. In the event that any rovision or clause of this Mortgage conflicts with applicable law_ such conflict shall not affect other provisions of this Mortgage which can be given effect without the conflicting provision. To his end_the provisions of this Mortgage are declared to be severable. 12. This Agreement may be executed in any number of counterparts_ each of which shall constitute one and the same instrument. In witness whereof the Owner has duly executed this Rehabilitation Program Mortgage and Repayment Agreement. Owner and Mortgagor. of the Owners, such execution sha4l be deemed for-the pttfpose of establishing and cepAirming the satis�etian„said rode.te&@ss 144 pr-opefl�, d@se-ibe v v; (Name) STATE OF MINNESOTA) )ss. COUNTY OF( ) The foregoing instrument was acknowledged before me this day of 20 ,by (Name) Notary Public S-1 Accented and agreed to by: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER By Its By Its STATE OF MINNESOTA ss. COUNTY OF( 1 The foregoing instrument was acknowledged before me this day of 20 by the and the respectively__ of the Housing and Redevelopment Authority in and for the City of Elk River_ a body corporate and politic organized and existing under the Constitution and laws of the State of Minnesota_on behalf of said Authority Notary Public 1.,.1114 1.,..e14 r,.. Ci01 0 f E11i RiV,o>• 13065 O p -. �Sr Elk River,NO 55330 THIS INSTRUMENT DRAFTED BY: Central Minnesota Housing Partnership,Inc. 37 28th Avenue North,Suite#102 St.Cloud,MN 56303 S-2 Exhibit A (naxt Legal Description of Property A-1 Exhibit B Amortization Schedule and Truth in Lending Statement B-1 Exhibit C Permitted Encumbrances C-1 Document comparison by Workshare Professional on Thursday, May 01 , 2014 8:58:51 AM Input: Document 1 ID Powerpocs://DOCSOPEN/443115/1 DOCSOPEN-#443115-vl- Description Elk_River_HRA_Rehab_Loan_REPAYMENT_AGREEME NT Document 2 ID Powerpocs://DOCSOPEN/443115/3 DOCSOPEN-#443115-v3- Description Elk_River_HRA_Rehab_Loan_REPAYMENT_AGREEME NT Rendering set standard Legend: Insertion Deletieff Moved 4am Moved to Style change Format change r 'g'il pd. a„!Q�jer Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Statistics: Count Insertions 77 Deletions 33 Moved from 4 Moved to 4 Style change 0 Format changed 0 Total changes 118 CITY OF ELK RIVER Budget Revision Request 2014 Revised Budget Amendment Form Department: HRA Current Department& Amount New Amount Increase or Acct# Budget Year Budgeted Requesting (Decrease) Explanation 910-4-6100-4409 2014 50,000 150,000 100,000 Housing Rehab Program Requested by: Ll �0 0/y Preparer Date Approved by: ,. r-C�bf 7' - City Administrator Date Budget file updated Finance use Signature Timetable for Adoption Approval of the Redevelopment Plan (Owner-Occupied Housing Rehabilitation Program) Action Date 1. City Council Calls for Public Hearing May 19, 2014 2. Resolution of Planning Commission Finding May 27, 2014 Redevelopment Plan conforms to Comprehensive Plan of the City 3. Publication of notice of public hearing on May 31, 2014 Redevelopment Plan *** 4. Public Hearing by City Council June 16, 2014 5. HRA adopts resolution approving Redevelopment July 7, 2014 Plan and Program documentation and recommends to City Council 6. City Council adopts resolution approving July 7, 2014 Redevelopment Plan and Program documentation At least 10 days but not more than 30 days prior to the public hearing. 443278v1 EL185-26