7.2 HRSR 11-07-2016Request for Action
ToItem Number
Housing and Redevelopment Authority7.2
Agenda Section Meeting DatePrepared by
General BusinessNovember 7, 2016Colleen Eddy, Economic Development Specialist
Item Description
Reviewed by
HRA Housing Rehabilitation Loan Program Amanda Othoudt, EDD
Discussion
Reviewed by
Cal Portner, City Administrator
Action Requested
Receive information on the HRA Housing Rehabilitation Loan Progr
Background/Discussion
rd
work session, the HRA discussed expanding the existing Rehabilitation Loan Program
At the October 3
targeted area. Staff has put together three maps which depict the following:
Expanding the targeted area to include the two areas discussed at the work session
Citywide map that shows the breakdown of ages of home
Map showing the age of the homes in the proposed expanded target
Also during the work session, members discussed including defaulbilitation
Loan Program Policy and Mortgage and Repayment Agreement between the homeowner and the HRA.
Staff has included samples of default language in the packet for discussion.
Financial Impact
N/A
Attachments
Targeted Area Maps
HRA Rehabilitation Loan Program Policy
Default Language
FINAL
ELK RIVER HRA
OWNER-OCCUPIED HOUSING
REHABILITATION PROGRAM
POLICIES AND PROCEDURES
2014
443114v4 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
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443114v4 MJM EL185-26
Elk River HRA
Owner-Occupied Housing Rehabilitation Program
1.PROGRAM OBJECTIVES
The Housing and Redevelopment Authority inand for the City of Elk River, Minnesota
ce 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.
443114v4 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 brokers 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
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.
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443114v4 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 Section 10).
Applicants whose applications have been initially approved will be sent an initial approval of
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:
Exhibit A
Homes must be located within the Target Area (see )
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
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 city code
The home fails to provide suitable shelter in some other obvious manner as determined
by CMHP
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
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443114v4 MJM EL185-26
be based on structural viability, after rehabilitation market value, historical significance, cost of
rehabilitation and housing replacement cost.
Nuisance Standards
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
Modify or rehabilitate the housing unit to make it accessible for a disabled member of the
household. Accessibility Improvements may include: structural, exterior, bathroom,
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443114v4 MJM EL185-26
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 may not 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
staff will meet with homeowners and perform a visual Housing Quality Standards inspection and
ed 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.
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
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443114v4 MJM EL185-26
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
s
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
the work, based on bid amounts and comfortableness with contractors. The Contract shall be
ss 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
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:
General conditions
Timeframe for completion
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443114v4 MJM EL185-26
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.
not
The 90-day time period shall 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
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:
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443114v4 MJM EL185-26
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 perfo
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
may be terminated by the homeownerdue to
the following circumstances:
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443114v4 MJM EL185-26
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
clist 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:
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
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443114v4 MJM EL185-26
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.
th
37 28Avenue 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.
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443114v4 MJM EL185-26
Exhibit A
Targeted Area
Target area starts at the intersection of School Street and Freeport Street and travels south including all
rd
homes abutting Freeport Street until the intersection with 3Street NW. At the intersection of Freeport
rd
Street and 3Street NW it travels east until the intersection with Evans Avenue NW including all homes
rdrd
south of 3Street NW. At the intersection of 3Street 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
ndst
Court NW are included, along with all homes on 2Street NW and 1Street NW cul-de-
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.
443114v4 MJM EL185-26
FINAL
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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:
I own and live in the house to be remodeled
My home receives homestead credit on my Sherburne county taxes
My home is at least 20 years old and was build in _______(year built)
If home is older than 1978 lead assessment required
o
I have not begun my home improvement project
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
2
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.Proposed improvements must comply with Minnesota State Building Code for
rehabilitation work.
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:
Windows and doors
Painting, sandblasting or other façade improvements
Roofs
Foundations
Exterior lighting
Handicap Accessibility
Cement work (sidewalks and steps)
Landscaping
Other:___________________________________________________________
Eligible safety, accessibility, habitability and energy efficiency improvements:
Heating
Electrical
Plumbing
Insulation
Handicap accessibility
Asbestos and lead abatement
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
3
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$10,001to $20,000 5 or 10 year loan
15 year loan at prime rate. $20,001to $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:
Jason Krebsbach
Phone: 320-258-0672
Email: Jason@cmhp.net
Return completed application and all attachments to:
Central Minnesota Housing Partnership, Inc.
Attn: Jason Krebsbach
th
37 28Avenue North, Suit #102
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.
4
Application Steps
1.Submit application
Work requested checklist
Most recent Federal tax return
Homeowners insurance (must show current dates of coverage)
Property tax statement (most recent)
Copy of warranty deed or contract for deed
Conflict of interest form (signed by all owners)
2.Housing inspection
Elk River house inspection required (any issues found must be addressed to
receive funding)
If home is older than 1978 lead assessment is required
CMHP provides scope of work based on home inspection and list of contractors
in Elk River.
3.Scope of work
Returned with at least 2 bids
Sketches is applicable
4.
Signed and notarized
5.Contracts signed by homeowner sent to contractor
6.Contracts reviewed by CMHP
Notice to proceed issued to contractor
Material and construction draws after notice to proceed issued
7.Closing inspection
CMHP
5
Borrowers failure to pay as required.
A.Late charge for Overdue Payments
If the Note Holder has not received the full amount of any month
calendar days after the date it is due. I will pay a late charge
charge will be 5.000% of my overdue payment of principle and int
promptly but only once on each late payment.
B.Default
If I do not pay the full amount of each monthly payment on the d
C.Notice of Default
If I am in default, the Note Holder may send me a written notice telling me that if I do no pay the
overdue amount by a certain date, the Note Holder may require me
of Principle which has not been paid and all the interest that I must be
at least 30 days after the date on which the notice is mailed to
D.No Waiver by Note Holder
Even it, at a time when I am in default, the Note Holder does no
as described above, the Note Holder will still have the right to do so if I am in de
E.Payment of Note Holders Cost and Expenses
If the Note Holder has required me to pay immediately in full as
have the right to be paid back by me for all of its costs and expenses in enforcing t
not prohibited by applicable law. Those expenses include, for ex