8.2. HRSR 12-03-2018
Request for Action
To Item Number
Housing and Redevelopment Authority 8.2
Agenda Section Meeting Date Prepared by
Work Session December 3, 2018 Amanda Othoudt, EDD
Item Description Reviewed by
HRA Housing Rehabilitation Loan Program Policy Cal Portner, City Administrator
Reviewed by
Action Requested
Approve, by motion, the revisions to the HRA Housing Rehabilitation Loan Program policy.
Background/Discussion
At their November 5, 2018, meeting, the HRA conducted an annual review of the HRA Rehabilitation
Loan Program and Policy. Changes were discussed to the underwriting criteria and the targeted area.
Changes to the policy include:
Updated to new policy template
Eligibility Requirements: clearly define homes must be a minimum of 20 years old to qualify.
Expanded the Targeted Area to include the entire Elk River Urban Service District.
Changes to the application include:
Removing estimated yearly gross household income. This information is currently obtained by
receipt of annual tax returns.
Adding: How many outstanding mortgages do you have on your property? (include primary
mortgage and second mortgages/ home equity lines of credit)
Adding: What is the current outstanding balance on your mortgage(s)? $
Adding Eligibility Requirements: Owner’s and Encumbrance Report (O&E) obtained by
Sherburne County Abstract (Cost is $100)
Adding Eligibility Criteria: Properties must be a minimum of 20 years old to qualify.
The HRA directed staff to research the addition of eligible improvements to include sewer and water
connections on aging infrastructure. City ordinance provides a Petition & Waiver process to assess
property taxes the costs of access fees and lateral connections to city services.
Financial Impact
Currently, $74,291 is available and an additional $50,000 is budgeted in 2019 for a total of $124,291. This
could fund five or more projects in 2019.
Attachments
HRA Rehabilitation Loan Program Policy and Application (Clean and Redlined)
Revised Targeted Area Map
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Elk River HRA
Owner-Occupied
Housing
Rehabilitation
Loan Program
2018
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Table of Contents
PROGRAM OBJECTIVES .................................................................................................................... 3
EQUAL OPPORTUNITY/FAIR HOUSING/AFFIRMATIVE ACTION ............................................. 3
PROGRAM ADMINISTRATION ......................................................................................................... 3
PROGRAM MARKETING ................................................................................................................... 4
APPLICATION PROCESS .................................................................................................................... 4
ELIGIBILITY REQUIREMENTS/PROPERTY CONDITIONS .......................................................... 5
FINANCING TERMS & AMOUNTS .................................................................................................... 6
ELIGIBLE/INELIGIBLE REHABILITATION ITEMS ....................................................................... 6
CONSTRUCTION PROJECT STEPS.................................................................................................... 7
DENIAL/COMPLAINT/APPEALS PROCEDURES ......................................................................... 11
AMENDING POLICIES & PROCEDURES ....................................................................................... 11
EXHIBIT A ........................................................................................................................................ 12
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Elk River HRA
Owner-Occupied Housing Rehabilitation Program
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.
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.
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.
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
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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.
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
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.
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.
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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 a minimum of 20 years old.
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 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
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
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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.
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, 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
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)
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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.
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.
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.
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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:
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
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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 5% 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:
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
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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.
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)
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Close-out letter will be sent to homeowners and will include: copies of all recorded loan documents,
completion certificate and contractor documents
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.
th
37 28 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.
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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EXHIBIT A
Targeted Area
Targeted area encompases the City of Elk River Urban Services District
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Elk River HRA Housing Rehabilitation Loan Program and Policy
Policy History
Adopted by: On (date) Item #
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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:_____________
Primary Phone Number: ____________________ Email Address: _______________________
Short Project Description:_________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Number of people in Household:______ Estimated Yearly Gross Household Income:
$_________
How many mortgages do you have outstanding on your property? _____________ (This would
include your primary and any Second Mortgages or Home Equity Lines of Credit you may have)
What is the current outstanding balance on your mortgage(s) for your property? $____________
Eligibility Requirements:
I own and live in the house to be remodeled
My home receives homestead credit on my Sherburne county taxes
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 the recorded 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)
7.8.Owner’s and Encumbrance Report (O&E) obtained by Sherburne County Abstract (cost is
$100)
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.
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I hereby authorize Central Minnesota Housing Partnership staff to enter my home to identify
necessary rehabilitation work items, to take photographs and use photographs for program
marketing purposes.
Signature:______________________________________ Date:__________________________
Application will be reviewed in the order they are received
Eligibility Criteria
1. Properties must be located within target area.
1.2.Properties must be a minimum of 20 years old to qualify.
2.3.Applicant must have ownership of property and is current resident.
3.4.Applicant must not have started or completed work on the proposed project.
4.5.Proposed improvements must comply with Minnesota State Building Code for
rehabilitation work.
5.6.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:
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
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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
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.
2.
Contact information:
Ed Zimny
Phone: 320-258-0673
Email: ed@cmhp.net
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Formatted: Font: Times New Roman, 12 pt,
Bold
Formatted: Numbered + Level: 1 +
Numbering Style: 1, 2, 3, … + Start at: 1 +
Alignment: Left + Aligned at: 0.25" + Indent
at: 0.5"
Return completed application and all attachments to:
Central Minnesota Housing Partnership, Inc.
Attn: Elk River HRA Rehab
th
37 28 Avenue North, Suit #102
St. Cloud, MN 56303
Formatted: Font: Bold
Note: Faxed or emailed applications will not be accepted
Formatted: Font: Times New Roman, 12 pt
Please remember to complete all sections of the application and provide addresses where
Formatted: Normal
requested. Failure to complete the application in full will delay your approval time, and
may lead to application denial.
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)
Owners and Encumbrance Report (Obtained from Sherburne County Abstract
cost is $100)
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. Contract sent to homeowner with chosen contractor’s and scope of work
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
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CMHP
CITY OF ELK RIVER HRA
OWNER-OCCUPIED REHABILITATION PROGRAM
APPLICANT CONFLICT OF INTEREST DETERMINATION
You have applied for a rehabilitation loan through the Elk River HRA. The program has policies and
procedures in place to address any conflict of interest of an applicant. Please complete this form to
determine of additional steps are needed:
Have you or your company, in the last 12 months, been a: (check all that apply)
Employee ____
Consultant ____
Officer ____
Elected Official ____
Appointed Official ____
NONE of the above ____
Of the…
State of Minnesota ____ Name Agency:
Local Government ____ Name Position:
Or, do you/have you or any immediate family member had a business relationship with any of the above
named persons?
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If yes, please describe:
I/we certify that the information is true and correct to the best of my/our knowledge.
Signature of Applicant Date
Signature of Applicant Date
Note: If a conflict exists, the city and program administrator will review conflict to determine if an
exception to the conflict can be approved.
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Legend
Urban Service Area
Year Built (Residential and Agricultural)
1800 - 1998
1999 - 2018
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0 1 20.5 Miles