8.4. HRSR 02-04-2019Request for Action
To Item Number
Housing and Redevelopment Authority 8.4
Agenda Section Meeting Date Prepared by
General Business February 4, 2019 Amanda Othoudt, EDD
Item Description Reviewed by
HRA Housing Rehabilitation Loan Program Cal Portner, City Administrator
Reviewed by
Action Requested
1. Approve, by motion, the loan origination agreement with CEE.
2. Approve, by motion, the program guidelines for the HRA Rehab Loan Program.
3. Approve, by motion, the loan servicing contract with CEE.
4. Approve, by motion, the subordination agreement and policy.
Background/Discussion
At their January 14, 2019, special meeting, the HRA reviewed the program guidelines and loan servicing
agreement with the Center for Energy and Environment (CEE) to administer the HRA Rehabilitation
Loan Program.
At the direction of the commission, staff worked with CEE to finalize the program guidelines and loan
servicing agreement based upon the discussion at their meeting.
Financial Impact
The HRA allocated $50,000 in the budget for 2019.
Attachments
CEE Residential Loan Application
CEE Loan Origination Agreement (clean and redlined)
CEE Program Guidelines (clean and redlined)
CEE Loan Servicing Contract Exhibit A Duties (clean and redlined)
CEE Loan Servicing Contract Pricing Exhibit B
CEE Subordination Agreement and Policy
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Application Instructions
To Apply, please submit the following:
1. Completed and signed application.
o The application must include all household residents who
have an ownership interest in the property and whose
income and credit history are being relied upon to qualify
for the loan requested.
2. Signed and dated Authorization and Release form
3. Signed and dated USA Patriot Act Information Disclosure
4. A copy of your government issued ID(s) with a photo (ie: drivers license)
5. Proof of Income
o If you are employed: submit your two most recent,
consecutive pay stubs showing year-to-date information
o A copy of your most recent W2
o If you are retired: submit a copy of your social security or
pension award letter
o If you are self-employed: submit your past two years 1040
Federal tax returns, including all schedules
o Note: additional documentation may be requested by CEE
personnel
6. At least 1 bid for each project
o The contractor must include the energy efficiency, Energy
Star rating, U-Factor, etc. on the bid
Improvements may NOT begin prior to closing your loan with CEE
A copy of CEE’s information sharing practices and privacy policy is attached for
your records. This form does not need to be signed or returned.
Completed applications may be retuned:
By fax: 612-335-2650
By mail: 212 3rd Ave N, Suite 560, Minneapolis MN 55401
By email: loaninfo@mncee.org (please note: documents sent via email may not be secure)
Application for Credit
This application is to be completed by the applicant without the lender's assistance and is required to determine eligibility for financing.
Applicants should complete this form as "Applicant" or "Co-Applicant" as applicable. Co-Applicant information must also be provided when the
income or assets of a person other than the Applicant (including the Applicant's spouse) will be used as a basis for qualification and/or
repayment of the loan or grant being requested.
Center for Energy and Environment ("CEE")
Amount $
A portion of the information requested in this credit application is classified as "private data on individuals" under Minnesota Statute 462A.065.
Use of the data is limited to that necessary for the administration and management of this program by CEE personnel, those under contract with
CEE that have a need to know this information, and other governmental agencies when authorized by state statute or federal law.
Section 1: Terms Requested
Term (No. of Months)
How did you learn about CEE?
Property Address (where work will be performed):
Section 2: Property Information
Street:City:Zip:
County:Name of Neighborhood (if Applicable):
Number of Dwelling Units:
1-unit 2-unit 3-unit 4-unit Other
Year Built: Month and Year Purchased: Purchase Price: $
Describe the Improvements to be made:
Applicant Name (include Jr/Sr if applicable)
Section 3: Applicant Information
Social Security Number Date of Birth
# and Ages of Dependants
Separated
Unmarried (includes single, divorce, widowed)
Married
Home Phone
Work Phone
Mobile Phone
Email
Present Address (if different than property address)
Previous Address (if less than 2 years at current)
RentOwn How Long?
Co-Applicant Name (include Jr/Sr if applicable)
Social Security Number Date of Birth
Separated
Unmarried (includes single, divorce, widowed)
Married
# and Ages of Dependants (if different than Applicant)
Home Phone
Work Phone
Mobile Phone
Email
Present Address (if different than property address)
Previous Address (if less than 2 years at current)
RentOwn How Long?
CEE / CEE_Application / 9-18
Gas Company Name: Electric Company Name:
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CEE / CEE_Application / 9-18
Name & Address of Employer
Section 4: Income / Employment
Yrs/Mos at this Job
Position/Title
Yrs in this line of work
If employed in current position for less than 2 years, or if currently employed in more than one position, complete the following:
Name & Address of Employer Yrs/Mos at this Job
Yrs in this line of work
Position/Title
Gross Monthly Income 1:
Base Income
Overtime
Bonuses
Commissions
Dividends / Interest
Social Security / Pension
Net Rental Income
Other 2
TOTAL
Applicant Co-Applicant
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1 Self Employed Applicants: Self employed applicants will be required to provide additional documentation such as tax returns and financial
statements.
2 Other Income: May include such things as unemployment, alimony, child support or separate maintenance, which income need not be
revealed if the Applicant/Co-Applicant does not choose to have it considered for repaying this loan:
Describe Other Type of Income - Applicant
Section 5: Credit History / Debts
List all current obligations including mortgage loans, installment loans (such as auto and student loans), revolving charge accounts, debts to
banks or finance companies and government agencies. Use additional sheet of paper if necessary.
Check if Business
RelatedTo Whom Indebted Amount Owed (Balance) Monthly Payment
1st Mortgage*:
2nd Mortgage:
Other Real Estate Owned (provide property address &
name of Lender):
$
$
$
$
$
$
$
$
$
$
Name & Address of Employer Yrs/Mos at this Job
* If real estate taxes and homeowners/flood insurance are not included in the mortgage payment amount above, please list the amounts here:
Position/Title
Yrs in this line of work
Name & Address of Employer Yrs/Mos at this Job
Yrs in this line of work
Position/Title
$ taxes per year $ insurance per year
Monthly Amount
$
$
Monthly Amount
$
$
Describe Other Type of Income - Co-Applicant
$ $
Self-Employed Income
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CEE / CEE_Application / 9-18
Section 6: Information for government Monitoring Purposes
These questions apply to all applicants. If you answer "yes" to question 1-5, please provide a written explanation, including the circumstances
and dates. Use a separate piece of paper if necessary.
Applicant
Yes Yes No
Co-Applicant
No
1: Are there any outstanding judgments or liens against you?
Explanation:
2: Have you declared bankruptcy (Chapter 7 or 13) within the last 36 Months?
3: Have you had any property foreclosed upon or given title or deed-in-lieu thereof in the past 36
months?
4: Are you a co-maker or endorser of a note that is not included in the above listed debts?
5: Are you obligated to pay alimony, child support or separate maintenance?
6. Do you intend to occupy this property (at least one unit) as your primary residence?
Applicant Co-Applicant
I do not wish to furnish this information
Ethnicity:Hispanic or Latino
Japanese
Race:American Indian or Alaskan Native
Native Hawaiian or Other Pacific Islander
Asian
Black or African American
White
Sex:Male Female
I do not wish to furnish this information
Ethnicity:Hispanic
Not Hispanic or Latino
Race:
Japanese
Asian
Black or African American
White
Sex:Male Female
To be completed by Lender
This information was provided by:
By the applicant and submitted by fax or mail
In a face-to-face interview
By the applicant and submitted via email or the Internet
In a telephone interview
8. Are you a permanent resident alien?
7. Are you a U.S. citizen?
Not Hispanic or Latino
Chinese
Asian Indian
Other Asian
Puerto Rican
Cuban
Mexican
Other Hispanic or Latino - enter race
Puerto Rican
Cuban
Mexican
Other Hispanic or Latino
Filipino
Vietamese
Koreon
Native Hawaiian
Guamanian or Chamorro
Samoan
Other Pacific Islander - enter race
Chinese
Asian Indian
Other Asian
Filipino
Vietamese
Koreon
Native Hawaiian
Guamanian or Chamorro
Samoan
Other Pacific Islander - enter race
American Indian or Alaskan Native
Native Hawaiian or Other Pacific Islander
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CEE / CEE_Application / 9-18
Acknowledgments and Agreements
I agree to, acknowledge, and represent the following statements to CEE (this includes CEE's agents, service
providers, and any of their successors and assigns), and to other participants in the loan or grant applied for
(including any actual or potential source of funding, any actual or potential owner of the loan or acquirer of any
beneficial or other interest in the loan, any guarantor, servicer or service provider on the transaction, and any of
their successors and assigns).
By signing below, I agree to, acknowledge, and represent the following statements about:
(1) The complete information for this application.
The information I have provided in this application is true,accurate, and complete as of the date I signed this
application. If the information I submitted changes or I have new information before the closing of the transaction,
I must change and supplement this application. CEE and other participants in the loan or grant applied for may rely
on the information contained in the application before and after closing of the transaction. Any intentional or
negligent misrepresentation of information may result in the imposition of civil liability on me, including monetary
damages, if a person suffers any loss because the person relied on any misrepresentation that I have made on this
application, and/or criminal penalties on me including, but not limited to, fine or imprisonment or both under the
provisions of federal law (18 U.S.C. 1001 et seq.).
(2) Electronic records and signatures.
CEE and other participants in the transaction may keep any paper record and/or electronic record of this application,
whether or not the transaction is approved. If this application is created as (or converted into) an "electronic
application", I consent to the use of "electronic records" and "electronic signatures" as the terms are defined in and
governed by applicable federal and state electronic transaction laws. I intend to sign and have signed this
application either using my: (a) electronic signature; or (b) a written signature and agree that if a paper version of
this application is converted into an electronic application, the application will be an electronic record, and the
representation of my written signature on this application will be my binding electronic signature. I agree that the
application, if delivered or transmitted to CEE or other participants in the loan or grant applied for as an electronic
record with my electronic signature, will be as effective and enforceable as a paper application signed by me in
writing.
(3) Delinquency.
CEE and other participants may report information about my account to credit bureaus. Late payments, missed
payments, or other defaults on my account may be reflected in my credit report and will likely affect my credit
score.
(4) Use and sharing of information.
I understand and acknowledge that CEE and other participants in the loan or grant applied for can obtain, use, and
share the application, a consumer credit report, and related documentation for purposes permitted by applicable
laws.
(5) Eligibility.
I am not a spouse, child, parent, sibling or spouse of a sibling of a CEE director, officer or employee, nor do I hold
any of the aforementioned positions.
(6) Security interest.
If I have applied for a loan, the loan may be secured by a mortgage or deed of trust which provides CEE a security
interest in the property described in this application.
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Loan Originator Company Name Loan Originator Individual Name
Loan Originator Company NMLSR ID Loan Originator Individual NMLSR ID
(as name appears on NMLSR)
(if applicable)
TIL and NMLSR ID
Section 7: Signatures
Type of Credit Requested:(Important! Check and Initial the appropriate boxes below):
Joint Credit (Relying on my income and assets as well as that of someone else)
Individual Credit (Relying solely on my income or assets)(Initials)
(Initials)
(Applicant) Date (Co-Applicant) Date
TIL and NMLSR ID
(to be completed by CEE)
CEE / CEE_Application / 9-18
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USA Patriot Act Information Disclosure
Important Information about Application Procedures
Center for Energy and Environment
212 3rd Avenue North, Suite 560
Minneapolis, MN 55401
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all
financial institutions to obtain, verify, and record information that identifies every customer.
What this means to you: When you apply for a loan, we will ask for your name, address, date of birth, and other
information that will allow us to identify you. We will ask to see your driver’s license or other identifying
documents.
I/We acknowledge that I/we received a copy of this disclosure.
___________________________________________________
Date
___________________________________________________
Date
NON-AGENCY DISCLOSURE
CENTER FOR ENERGY AND ENVIRONMENT IS NOT ACTING AS YOUR
AGENT IN CONNECTION WITH OBTAINING A RESIDENTIAL
MORTGAGE LOAN. WHILE WE SEEK TO ASSIST YOU IN MEETING
YOUR FINANCIAL NEEDS, WE CANNOT GUARANTEE THE LOWEST OR
BEST TERMS AVAILABLE IN THE MARKET.
By my/our signature(s) below, I/we acknowledge receipt of the foregoing disclosure, and further acknowledge that
I/we have read it and understand what it means.
Date
Date
CEE / Non_Agency_Disc / 8-12
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 1
LOAN ORIGINATION AGREEMENT
This LOAN ORIGINATION AGREEMENT (“Agreement”) is made by and between The City of ELK
RIVER HOUSING and REDEVELOPMENT AUTHORITY, with offices at 13065 Orono Parkway, Elk River,
MN 55330 (“Authority”), and CE NTER FOR ENERGY AND ENVIRONMENT, with offices at 212 3rd
Avenue North , Suite 560, Minneapolis, Minnesota 55401 (“CEE”).
RECITALS
A. The Authority has a need for certain professional services and desires to retain CEE to
provide said services, all subject to the terms and conditions contained in this
Agreement.
B. CEE is qualified to provide the desired professional services and desires to provide said
services for the Authority, all subject to the terms and conditions contained in this
Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained in this
Agreement, the parties agree as follows:
1. Services/Scope of Work
1.1 CEE shall in conjunction with the Authority develop and deliver the City of Elk
River Home Improvement Loan Program (hereinafter the “Program”) and more fully
described in Exhibit A attached hereto. All activities delivered under the Program
shall be coordinated with the Authority’s designated Economic Development
Director .
1.2 CEE shall assist the Authority staff in marketing the Program. CEE shall insure that
the Authority's sponsorship of the program is a prominent part of any marketing
effort.
1.3 The funding source is exclusively from the Authority and the program will be
referred to as the Authority Funded Program.
2. Compensation
2.1 The Authority shall compensate CEE for services provided under this agreement
according to the following schedule and more fully described in Exhibit B attached hereto:
Loan Set Up Fee $1,500
The Authority shall pay CEE a one time loan set-up fee. This shall compensate CEE for
time and labor to create the loan program.
Loan Origination Fee $550.00
The Authority shall pay CEE an Origination Fee for each loan closed using the Authority
Funded Program. The Origination Fee shall compensate CEE for assisting borrowers with
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 2
loan applications, preparation of loan documents, loan closing and other direct costs of
processing loans. Mortgage filing, title work, credit report, flood, origination fee,
document preparation fee and o ther applicable closing costs shall be paid by the
borrower. CEE shall provide a copy of closing documents including the loan note and
mortgage as documentation of the loan closing.
Remodeling Advisor Visit Fee(RAV) $225
CEE will provide City of Elk River homeowners with rehabilitation counseling services to
assist in evaluating projects, bids and how to move forward with their project. The visit
fee is for each site visit or trip to the property. Phone calls, emails and other forms of
communication are included in the fee.
Annual Administrative Fee $500.00
This shall be due January 1st of each calendar year the contract is in effect. To begin in
the year 2020.
The Authority shall compensate CEE only for services completed.
Upon request, CEE will provide marketing services for the following fees:
CEE Labor $65 per hour
Hourly rates are inclusive of all overhead expenses and will be charged only for hours
directly related to marketing. CEE will be reimbursed by the Authority for any non-labor,
out-of-pocket expenses, relating to these services on a dollar-for -dollar basis with no
mark-up. There is no cost for creating a program information sheet, creating links to our
website and assisting in writing articles to promote the program.
2.2 CEE shall invoice the Authority not more than two times each month for the principal
of loans and administrative fees. The Authority shall pay CEE within 20 days of receipt of
the invoice.
3. CLIENT’s Obligations
3.1 If requested by CEE, the Authority shall make reasonable efforts to respond
promptly to requests from CEE for information and approvals regarding the
services to be provided under this Agreement.
3.2 If requested by CEE , the Authority shall make reasonable efforts to obtain
information and or permission for access from clients which may be necessary
for CEE to provide the services under this Agreement.
3.3 The Authority shall provide sufficient funding to fund eligible Authority funded
loans. The Authority shall determine the amount of funds allocated to the
Program.
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 3
3.4 The Authority shall establish eligibility for the Authority Funded Program and shall
provide these criteria in writing to CEE prior to commencement of any
marketing efforts.
3.5 The Authority shall make reasonable efforts to respond promptly to requests from
CEE for information and approvals regarding the services to be provided under
this Agreement.
4. CEE’s Obligations
4.1 CEE shall use its best efforts to provide services under this Agreement in a
professional manner consistent with the care and skill used by reputable
members of CEE ’s profession.
4.2 CEE, and all of its employees or agents, shall comply with all statutes,
ordinances, rules, regulations and other laws applicable to the provision of
services under this Agreement.
4.3 CEE shall secure all permits and licenses required for performance of the
services under this Agreement.
4.4 CEE shall not engage in discriminatory employment practices against any
employee or applicant for employment and shall in all respects comply with all
federal, state and local laws, regulations and orders, including without limitation,
Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure
to comply with the provisions hereof shall be deemed a material default under
this Agreement.
5. Term and Termination
5.1 Unless earlier terminated as provided in the following paragraphs, this
Agreement shall become effective on February 4, 2019 , and continue
through 12/31/2021.
5.2 This Agreement may be terminated by either party, for any reason or no reason,
immediately upon written notice to the other party. In the event this Agreement
is terminated by CEE prior to the expiration of the term set forth in paragraph
5.1, the Authority shall compensate CEE for all services delivered up the date of
termination and CEE shall provide the Authority with such information as the
Authority may request regarding the status of the Authority Funded Program.
5.3 Any termination of this Agreement shall not release either party from their
respective obligations under sections 7 and 8 of this Agreement.
6. Insurance
6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the
amounts listed below:
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 4
General Liability $2,000,000 Aggregate Limit
Automobile Liability $1,000,000 Combined Single Limit
Excess Liability $1,000,000 Aggregate Limit
Workers Compensation Statutory Limit
7. Liability and Indemnification
7.1 CEE represents that the services to be provided under this Agreement are
reasonable in scope and that CEE has the experience and ability to provide the
services.
7.2 CEE warrants that any services provided hereunder shall be done in a
professional and workmanlike manner.
7.3 CEE shall indemnify, defend and hold harmless Authority and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys’ fees and damages
for death, personal injury and property damage) which Authority may incur as a
result of any act or omission by CEE in providing services under this Agreement.
7.4 Authority shall indemnify, defend and hold harmless CEE and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys’ fees and damages
for death, personal injury and property damage) which CEE may incur as a
result of any act or omission by Authority in discharging its duties under this
Agreement.
8. Confidentiality
Unless otherwise agreed by Authority in writing, CEE shall maintain in confidence and
not disclose to any third party any information obtained regarding the Authority
and/or any of Authority’s clients for which CEE is providing services; provided,
however, that this obligation to maintain confidentiality shall not apply to:
a) Information in the public domain at the time of disclosure;
b) Information which becomes part of the public domain after disclosure
through no fault of CEE; or
c) Information which CEE can demonstrate was known by it prior to the date
of this Agreement.
Notwithstanding the foregoing, CEE shall be entitled to disclose the documents or client
informa tion covered by this paragraph to governmental authorities to the extent CEE
reasonably believes it has a legal obligation to make such disclosures and to the extent
CEE reasonably deems to be necessary; provided, however, that if CEE believes that any
such disclosure is required by law, it shall provide advance notice to the Authority to
provide the Authority with a reasonable opportunity to attempt to obtain an injunction or
other protective order preventing such disclosure.
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 5
9. Relationship of Parties
CEE will provide services as an independent contractor under this Agreement.
Neither CEE, nor any of its employees or agents, shall be considered employees of the
Authority for any purpose, and neither shall CEE be eligible for any compensation or
benefits which the Authority may provide to its employees from time to time. CEE shall
be solely responsible for all employment and other taxes applicable to providing
services hereunder, and the Authority will not withhold any taxes or contributions from
the compensation payable to CEE under this Agreement.
10. Notices
All notices, requests, demands and other communications required to be given in
writing under this Agreement shall be given to the other party in person or by mail as
provided in this section. If delivered personally, notice shall be deemed to have been
duly given on the date of delivery. If delivered by mail, such notice shall be sent via
first class U.S. mail, postage prepaid, to the address set forth at the beginning of this
Agreement or such other address as a party may otherwise request by written notice,
and notice shall be deemed duly given three (3) business days after mailing.
11. Assignment
This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, successors and assigns; provided, however, that neither party shall
assign or transfer in any manner, this Agreement or any portion hereof without the
prior written consent of the other party, and any attempt to assign or transfer without
prior written consent shall be void and of no effect.
12. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of
the Sta te of Minnesota.
13. Miscellaneous
13.1 Headings and captions used in this Agreement are for convenience only and
shall not affect the meaning of this Agreement.
13.2 This Agreement contains the entire agreement of the parties and supersedes all
prior agreements, discussions and representations, written or oral, concerning
the subject matter hereof.
13.3 No waiver by the Authority of any term or condition of this Agreement or any
document referred to herein shall, whether by conduct or otherwise, be
construed as a waiver or release of any other term or condition of this
Agreement.
13.4 This Agreement may only be amended in a written agreement signed by both
parties.
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 6
13.5 Except as expressly set forth in section 7, the rights and benefits under this
Agreement shall inure solely to the benefit of the Authority and CEE , and this
Agreement shall not be construed to give any rights, benefits or causes of
action to any third party.
13.6 The invalidity or partial invalidity of any provision of this Agreement shall not
invalidate the remaining provisions, and the remainder shall be construed as of
the invalidated portion shall have never been a part of this Agreement.
13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13
(Government Data Practices) that are applicable to the Authority and shall not
disseminate any information concerning loan requests of the borrowers without
the prior written approval of the Authority.
13.8 This Agreement may be signed in any number of counterparts, each of which
shall be deemed an original and one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
The City of ELK RIVER HOUSING and
REDEVELOPMENT AUTHORITY
By: Its:
Print Name
Date:
CENTER FOR ENERGY & ENVIRONMENT
By: Its:
Date: Tax ID # 41-1647799
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 1
LOAN ORIGINATION AGREEMENT
This LOAN ORIGINATION AGREEMENT (“Agreement”) is made by and between The City of ELK
RIVER HOUSING and REDEVELOPMENT AUTHORITY, with offices at 13065 Orono Parkway, Elk River,
MN 55330 (“Authority”), and CE NTER FOR ENERGY AND ENVIRONMENT, with offices at 212 3rd
Avenue North , Suite 560, Minneapolis, Minnesota 55401 (“CEE”).
RECITALS
A. The Authority has a need for certain professional services and desires to retain CEE to
provide said services, all subject to the terms and conditions contained in this
Agreement.
B. CEE is qualified to provide the desired professional services and desires to provide said
services for the Authority, all subject to the terms and conditions contained in this
Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained in this
Agreement, the parties agree as follows:
1. Services/Scope of Work
1.1 CEE shall in conjunction with the Authority develop and deliver the City of Elk
River Home Improvement Loan Program (hereinafter the “Program”) and more fully
described in Exhibit A attached hereto. All activities delivered under the Program
shall be coordinated with the Authority’s designated Economic Development
Director .
1.2 CEE shall assist the Authority staff in marketing the Program. CEE shall insure that
the Authority's sponsorship of the program is a prominent part of any marketing
effort.
1.3 The funding source is exclusively from the Authority and the program will be
referred to as the Authority Funded Program.
2. Compensation
2.1 The Authority shall compensate CEE for services provided under this agreement
according to the following schedule and more fully described in Exhibit B attached hereto:
Loan Set Up Fee $1,500
The Authority shall pay CEE a one time loan set-up fee. This shall compensate CEE for
time and labor to create the loan program.
Loan Origination Fee $550.00
The Authority shall pay CEE an Origination Fee for each loan closed using the Authority
Funded Program. The Origination Fee shall compensate CEE for assisting borrowers with
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 2
loan applications, preparation of loan documents, loan closing and other direct costs of
processing loans. Mortgage filing, title work, credit report, flood, origination fee,
document preparation fee and o ther applicable closing costs shall be paid by the
borrower. CEE shall provide a copy of closing documents including the loan note and
mortgage as documentation of the loan closing.
Annual Administrative Fee $500.00
This shall be due January 1st of each calendar year the contract is in effect. To begin in
the year 2020.
The Authority shall compensate CEE only for services completed.
Upon request, CEE will provide marketing services for the following fees:
CEE Labor $65 per hour
Hourly rates are inclusive of all overhead expenses and will be charged only for hours
directly related to marketing. CEE will be reimbursed by the Authority for any non-labor,
out-of-pocket expenses, relating to these services on a dollar-for -dollar basis with no
mark-up. There is no cost for creating a program information sheet, creating links to our
website and assisting in writing articles to promote the program.
2.2 CEE shall invoice the Authority not more than two times each month for the principal
of loans and administrative fees. The Authority shall pay CEE within 20 days of receipt of
the invoice.
3. CLIENT’s Obligations
3.1 If requested by CEE, the Authority shall make reasonable efforts to respond
promptly to requests from CEE for information and approvals regarding the
services to be provided under this Agreement.
3.2 If requested by CEE , the Authority shall make reasonable efforts to obtain
information and or permission for access from clients which may be necessary
for CEE to provide the services under this Agreement.
3.3 The Authority shall provide sufficient funding to fund eligible Authority funded
loans. The Authority shall determine the amount of funds allocated to the
Program.
3.4 The Authority shall establish eligibility for the Authority Funded Program and shall
provide these criteria in writing to CEE prior to commencement of any
marketing efforts.
3.5 The Authority shall make reasonable efforts to respond promptly to requests from
CEE for information and approvals regarding the services to be provided under
this Agreement.
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 3
4. CEE’s Obligations
4.1 CEE shall use its best efforts to provide services under this Agreement in a
professional manner consistent with the care and skill used by reputable
members of CEE ’s profession.
4.2 CEE, and all of its employees or agents, shall comply with all statutes,
ordinances, rules, regulations and other laws applicable to the provision of
services under this Agreement.
4.3 CEE shall secure all permits and licenses required for performance of the
services under this Agreement.
4.4 CEE shall not engage in discriminatory employment practices against any
employee or applicant for employment and shall in all respects comply with all
federal, state and local laws, regulations and orders, including without limitation,
Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure
to comply with the provisions hereof shall be deemed a material default under
this Agreement.
5. Term and Termination
5.1 Unless earlier terminated as provided in the following paragraphs, this
Agreement shall become effective on February 4, 2019, and continue through
12/31/2021.
5.2 This Agreement may be terminated by either party, for any reason or no reason,
immediately upon written notice to the other party. In the event this Agreement
is terminated by CEE prior to the expiration of the term set forth in paragraph
5.1, the Authority shall compensate CEE for all services delivered up the date of
termination and CEE shall provide the Authority with such information as the
Authority may request regarding the status of the Authority Funded Program.
5.3 Any termination of this Agreement shall not release either party from their
respective obligations under sections 7 and 8 of this Agreement.
6. Insurance
6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the
amounts listed below:
General Liability $2,000,000 Aggregate Limit
Automobile Liability $1,000,000 Combined Single Limit
Excess Liability $1,000,000 Aggregate Limit
Workers Compensation Statutory Limit
7. Liability and Indemnification
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 4
7.1 CEE represents that the services to be provided under this Agreement are
reasonable in scope and that CEE has the experience and ability to provide the
services.
7.2 CEE warrants that any services provided hereunder shall be done in a
professional and workmanlike manner.
7.3 CEE shall indemnify, defend and hold harmless Authority and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys’ fees and damages
for death, personal injury and property damage) which Authority may incur as a
result of any act or omission by CEE in providing services under this Agreement.
7.4 Authority shall indemnify, defend and hold harmless CEE and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys’ fees and damages
for death, personal injury and property damage) which CEE may incur as a
result of any act or omission by Authority in discharging its duties under this
Agreement.
8. Confidentiality
Unless otherwise agreed by Authority in writing, CEE shall maintain in confidence and
not disclose to any third party any information obtained regarding the Authority
and/or any of Authority’s clients for which CEE is providing services; provided,
however, that this obligation to maintain confidentiality shall not apply to:
a) Information in the public domain at the time of disclosure;
b) Information which becomes part of the public domain after disclosure
through no fault of CEE; or
c) Information which CEE can demonstrate was known by it prior to the date
of this Agreement.
Notwithstanding the foregoing, CEE shall be entitled to disclose the documents or client
informa tion covered by this paragraph to governmental authorities to the extent CEE
reasonably believes it has a legal obligation to make such disclosures and to the extent
CEE reasonably deems to be necessary; provided, however, that if CEE believes that any
such disclosure is required by law, it shall provide advance notice to the Authority to
provide the Authority with a reasonable opportunity to attempt to obtain an injunction or
other protective order preventing such disclosure.
9. Relationship of Parties
CEE will provide services as an independent contractor under this Agreement.
Neither CEE, nor any of its employees or agents, shall be considered employees of the
Authority for any purpose, and neither shall CEE be eligible for any compensation or
benefits which the Authority may provide to its employees from time to time. CEE shall
be solely responsible for all employment and other taxes applicable to providing
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 5
services hereunder, and the Authority will not withhold any taxes or contributions from
the compensation payable to CEE under this Agreement.
10. Notices
All notices, requests, demands and other communications required to be given in
writing under this Agreement shall be given to the other party in person or by mail as
provided in this section. If delivered personally, notice shall be deemed to have been
duly given on the date of delivery. If delivered by mail, such notice shall be sent via
first class U.S. mail, postage prepaid, to the address set forth at the beginning of this
Agreement or such other address as a party may otherwise request by written notice,
and notice shall be deemed duly given three (3) business days after mailing.
11. Assignment
This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, successors and assigns; provided, however, that neither party shall
assign or transfer in any manner, this Agreement or any portion hereof without the
prior written consent of the other party, and any attempt to assign or transfer without
prior written consent shall be void and of no effect.
12. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of
the State of Minnesota.
13. Miscellaneous
13.1 Headings and captions used in this Agreement are for convenience only and
shall not affect the meaning of this Agreement.
13.2 This Agreement contains the entire agreement of the parties and supersedes all
prior agreements, discussions and representations, written or oral, concerning
the subject matter hereof.
13.3 No waiver by the Authority of any term or condition of this Agreement or any
document referred to herein shall, whether by conduct or otherwise, be
construed as a waiver or release of any other term or condition of this
Agreement.
13.4 This Agreement may only be amended in a written agreement signed by both
parties.
13.5 Except as expressly set forth in section 7, the rights and benefits under this
Agreement shall inure solely to the benefit of the Authority and CEE , and this
Agreement shall not be construed to give any rights, benefits or causes of
action to any third party.
CONTRACT between Elk River Housing and Redevelopment Authority and CENTER FOR ENERGY AND ENVIRONMENT Page 6
13.6 The invalidity or partial invalidity of any provision of this Agreement shall not
invalidate the remaining provisions, and the remainder shall be construed as of
the invalidated portion shall have never been a part of this Agreement.
13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13
(Government Data Practices) that are applicable to the Authority and shall not
disseminate any information concerning loan requests of the borrowers without
the prior written approval of the Authority.
13.8 This Agreement may be signed in any number of counterparts, each of which
shall be deemed an original and one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
The City of ELK RIVER HOUSING and
REDEVELOPMENT AUTHORITY
By: Its:
Print Name
Date:
CENTER FOR ENERGY & ENVIRONMENT
By: Its:
Date: Tax ID # 41-1647799
Exhibit A Page 1
Agreement between Elk River HRA and Center for Energy and Environment
EXHIBIT A
PROGRAM GUIDELINES
This document includes guidelines for the
REVOLVING LOAN PROGRAM
Exhibit A Page 2
Agreement between Elk River HRA and Center for Energy and Environment
CITY of ELK RIVER REVOLVING LOAN PROGRAM GUIDELINES
The Elk River Housing and Redevelopment Authority has funds available for homeowners to make
improvements to their properties. The Elk River Revolving Loan Program is designed to supplement
existing loan programs available from MHFA, CEE, private lenders and other housing resources. This
program is not intended to be the sole source of improvement funds available to the City. Center for
Energy and Environment shall serve as the administrator for the Elk River Loan Program and will secure
the most beneficial financing based on the borrower’s needs independent of the funding source.
Revolving Loan Program
Interest Rate: 34%
Amortization Type: Amortizing (Monthly Payments Required).
Loan Amount: Minimum of $5,000 and Maximum of $25,000.
Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower’s ability to repay the loan.
• $5,000 to $15,000 – up to 10 years
• $15,001 to $25,000 – up to 15 years
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Elk River AND the Urban Services District. A recent water and sewer utility bill may be used
to verify the borrower is in the Urban Services District. If applicant does not have a utility bill a letter of
eligibility from the City of Elk River can be used. Townhomes, Condominiums and properties held in a
Trust are eligible. The property must be at least 20 years old. Property must not be in a flood plain.
Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes, and
properties used for commercial purposes. Properties located in a flood plain. Properties NOT located in
the Urban Services District.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens.
TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers,
and business entities.
Ownership/Occupancy: Owner- occupied only.
Exhibit A Page 3
Agreement between Elk River HRA and Center for Energy and Environment
Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 100% of the property value. Half of the improvement value may be added to the initial
property value. (Most of our programs go up to 110% of after improved value. We add ½ of the value
of improvement value. We use the Estimated Market Value from the most recent property tax
statement, higher of purchase price or appraised value in the past 12 months. We do allow Zillow
values in some programs).
Income Limit: No maximum income limit.
Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt
to income ratio in excess of 5043% will be ineligible to receive financing.
Credit Score Requirement: All borrowers must have a minimum of a 620 credit score.
Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments
history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be
current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at
least 18 24 months prior to loan closing. 5) The redemption period on prior foreclosures must have
occurred at least 18 24 months prior to the loan application date. 6) Generally, no more than two 9030-
day late payments on credit report in the past year (without reasonable explanation). Any 90 30 day
late requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7)
No defaulted government loans.
Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding
balance(s) cannot exceed the maximum program limit and previous loans are current and have an
acceptable payment history.
Eligible Use of Funds: Loans may be used to finance most permanent interior and exterior
improvements including, but not limited to: roofing, siding, doors/windows, plumbing, electrical, HVAC,
insulation, solar, garage, driveways, sidewalks/steps, painting, flooring, additions, landscaping, etc.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc.), furniture, non-permanent appliances(unless part of a full kitchen remodel),
and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT
allowed.
Bids: Only one estimate is required. All contractors must be properly licensed.
Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity”
basis. Loan funds may be used only for the purchase of materials. and to rent tools/ equipment, but not
to compensate for labor.
Remodeling Advisor Visit (RAV): The Remodeling Advisor Visit provides rehabilitation and/or
remodeling advice upon request of the resident. The intent is to help residents improve their homes by
providing technical assistance before and during the bidding and construction process. All “Eligible
Properties” are eligible for this service. This visit is not required and would be paid by the borrower(s).
Exhibit A Page 4
Agreement between Elk River HRA and Center for Energy and Environment
Post Installation Inspection: : Permits must be obtained and signed off by a City inspector where
required; when not required, a post installation inspection will be performed by a City of Elk River
representative to ensure the work has been completed before any funds will be released.
Loan Security: All loans will be secured with a mortgage in favor of the Elk River Housing and
Redevelopment Authority. Borrower will pay all applicable title and filing fees, which may be financed in
the loan amount.
Borrower Fees: Borrower will be responsible for a 1% origination Fee, $50 Document Preparation Fee,
mortgage filing and service fees, flood certificate, credit report fees and any other applicable closing
costs, all which may be financed in the loan amount.
Underwriting Decision: Applicants must have acceptable credit history (see Credit Requirements). CEE
will approve or deny loans based on a credit report, income verification and other criteria as deemed
necessary through CEE’s underwriting guidelines. CEE shall refer to the Elk River HRA for any
questionable situations.
Work Completion: All work must be completed within 120 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
General Program Conditions
Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify.
Applicants must provide a completed application package including, but not limited to:
Completed and signed application form
Proof of income
Bids or estimates for proposed projects
Valid Identification
Other miscellaneous documents CEE may require.
Program Costs: Loan origination, remodeling advisor visit fees and other administrative fees will be paid
out of the Program Budget. Loan program marketing efforts will be billed directly to the City of Elk River
Housing and Redevelopment Authority. Should the HRA choose to commission CEE for marketing
support it will be a separate expense.
Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance
the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower
must obtain the additional funds and show verification of the additional funds in order to be approved
for the loan.
Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made
upon completion of work. An inspection will be performed by a city inspector and/or representative to
verify the completion of the work. The following items must be received prior to final disbursement of
funds:
• Final invoice or proposal from contractor (or materials list from supplier);
• Final inspection verification by a City Inspector or representative;
Exhibit A Page 5
Agreement between Elk River HRA and Center for Energy and Environment
• Completion certificate(s) signed by borrower, contractor and city inspector or representative (if
a permit is not required);
• Lien waiver for entire cost of work;
• Evidence of city permit (if required)
Exhibit A Page 1
Agreement between Elk River HRA and Center for Energy and Environment
EXHIBIT A
PROGRAM GUIDELINES
This document includes guidelines for the
REVOLVING LOAN PROGRAM
Exhibit A Page 2
Agreement between Elk River HRA and Center for Energy and Environment
CITY of ELK RIVER REVOLVING LOAN PROGRAM GUIDELINES
The Elk River Housing and Redevelopment Authority has funds available for homeowners to make
improvements to their properties. The Elk River Revolving Loan Program is designed to supplement
existing loan programs available from MHFA, CEE, private lenders and other housing resources. This
program is not intended to be the sole source of improvement funds available to the City. Center for
Energy and Environment shall serve as the administrator for the Elk River Loan Program and will secure
the most beneficial financing based on the borrower’s needs independent of the funding source.
Revolving Loan Program
Interest Rate: 4%
Amortization Type: Amortizing (Monthly Payments Required).
Loan Amount: Minimum of $5,000 and Maximum of $25,000.
Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower’s ability to repay the loan.
• $5,000 to $15,000 – up to 10 years
• $15,001 to $25,000 – up to 15 years
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Elk River AND the Urban Services District. A recent water and sewer utility bill may be used
to verify the borrower is in the Urban Services District. If applicant does not have a utility bill a letter of
eligibility from the City of Elk River can be used. Townhomes, Condominiums and properties held in a
Trust are eligible. The property must be at least 20 years old. Property must not be in a flood plain.
Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes, and
properties used for commercial purposes. Properties located in a flood plain. Properties NOT located in
the Urban Services District.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens.
TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers,
and business entities.
Ownership/Occupancy: Owner- occupied only.
Exhibit A Page 3
Agreement between Elk River HRA and Center for Energy and Environment
Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 100% of the property value. Half of the improvement value may be added to the initial
property value. (Most of our programs go up to 110% of after improved value. We add ½ of the value
of improvement value. We use the Estimated Market Value from the most recent property tax
statement, higher of purchase price or appraised value in the past 12 months. We do allow Zillow
values in some programs).
Income Limit: No maximum income limit.
Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt
to income ratio in excess of 43% will be ineligible to receive financing.
Credit Score Requirement: All borrowers must have a minimum of a 620 credit score.
Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments
history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be
current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at
least 24 months prior to loan closing. 5) The redemption period on prior foreclosures must have
occurred at least 24 months prior to the loan application date. 6) Generally, no more than two 30-day
late payments on credit report in the past year (without reasonable explanation). Any 30 day late
requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7) No
defaulted government loans.
Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding
balance(s) cannot exceed the maximum program limit and previous loans are current and have an
acceptable payment history.
Eligible Use of Funds: Loans may be used to finance most permanent interior and exterior
improvements including, but not limited to: roofing, siding, doors/windows, plumbing, electrical, HVAC,
insulation, solar, garage, driveways, sidewalks/steps, painting, flooring, additions, landscaping, etc.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc.), furniture, non-permanent appliances(unless part of a full kitchen remodel),
and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT
allowed.
Bids: Only one estimate is required. All contractors must be properly licensed.
Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity”
basis. Loan funds may be used only for the purchase of materials and to rent tools/ equipment, but not
to compensate for labor.
Remodeling Advisor Visit (RAV): The Remodeling Advisor Visit provides rehabilitation and/or
remodeling advice upon request of the resident. The intent is to help residents improve their homes by
providing technical assistance before and during the bidding and construction process. All “Eligible
Properties” are eligible for this service. This visit is not required and would be paid by the borrower(s).
Exhibit A Page 4
Agreement between Elk River HRA and Center for Energy and Environment
Post Installation Inspection: : Permits must be obtained and signed off by a City inspector where
required; when not required, a post installation inspection will be performed by a City of Elk River
representative to ensure the work has been completed before any funds will be released.
Loan Security: All loans will be secured with a mortgage in favor of the Elk River Housing and
Redevelopment Authority. Borrower will pay all applicable title and filing fees, which may be financed in
the loan amount.
Borrower Fees: Borrower will be responsible for a 1% origination Fee, $50 Document Preparation Fee,
mortgage filing and service fees, flood certificate, credit report fees and any other applicable closing
costs, all which may be financed in the loan amount.
Underwriting Decision: Applicants must have acceptable credit history (see Credit Requirements). CEE
will approve or deny loans based on a credit report, income verification and other criteria as deemed
necessary through CEE’s underwriting guidelines. CEE shall refer to the Elk River HRA for any
questionable situations.
Work Completion: All work must be completed within 120 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
General Program Conditions
Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify.
Applicants must provide a completed application package including, but not limited to:
Completed and signed application form
Proof of income
Bids or estimates for proposed projects
Valid Identification
Other miscellaneous documents CEE may require.
Program Costs: Loan origination and other administrative fees will be paid out of the Program Budget.
Loan program marketing efforts will be billed directly to the City of Elk River Housing and
Redevelopment Authority. Should the HRA choose to commission CEE for marketing support it will be a
separate expense.
Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance
the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower
must obtain the additional funds and show verification of the additional funds in order to be approved
for the loan.
Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made
upon completion of work. An inspection will be performed by a city inspector and/or representative to
verify the completion of the work. The following items must be received prior to final disbursement of
funds:
• Final invoice or proposal from contractor (or materials list from supplier);
• Final inspection verification by a City Inspector or representative;
Exhibit A Page 5
Agreement between Elk River HRA and Center for Energy and Environment
• Completion certificate(s) signed by borrower, contractor and city inspector or representative (if
a permit is not required);
• Lien waiver for entire cost of work;
• Evidence of city permit (if required)
1 | Page
CLIENT NAME Loan Servicing Agreement #XXXX
LOAN SERVICING AGREEMENT
Exhibit A: Duties of Servicer
NEW LOAN SET UP
Loan Boarding
CEE will board the loan upon origination into CEE’s servicing system. For any unsecured loan,
CEE will board the new loan within three (3) Business days of origination. For any secured loan,
CEE will board the new loan within three (3) Business days after the expiration of the right of
rescission. CEE will confirm the funding pool and assure that the new loan draws off the correct
pool.
For purposes of this Agreement, “business days” means calendar days other than weekends,
official federal holidays, and non -banking holidays.
Reporting
CEE will report every loan to at least one of the three major credit agencies upon inception as it
may designate in its sole discretion.
Quality Control Review
The loan and ACH entry instruction will be reviewed prior to activation to verify the servicing
system matches the terms of the promissory note and any other programmatic requirements per
the documents submitted.
Welcome Letter
A welcome letter will be sent to borrowers within five (5) business days after boarding. This
letter shall include the toll free customer service number as well as an email address that is
available for borrowers to use should they have a question regarding their loan. Customer service
is available from 8:00 AM to 4:30 PM Central Time, on “business days”. An automatic ACH
enrollment form is included in the letter for borrowers to complete and return to CEE if they
would like recurring payments to be initiated automatically by CEE. The letter will also contain
instructions for borrowers to receive access to the online loan portal where they have access to all
their loan information and ability to make payments.
STANDARD SERVICING –AMORTIZING/DEFERRED
Billing
Borrowers with loans that have regularly scheduled payments will receive billing statements on a
monthly basis or other appropriate frequency based on terms of the promissory note.
Collection of Loan payments
2 | Page
CLIENT NAME Loan Servicing Agreement #XXXX
CEE shall collect payments of principal, interest and any appropriate fees. CEE shall confirm the
application of payments to be consistent with the loan documents as part of ongoing due
diligence.
Customer Service
CEE shall provide customer service to bor rowers from 8:00AM – 4:30 PM Central Time on
“business days”. The customer service team is available through the toll free phone number or
email at loanservicing@mncee.org. Borrowers will receive a response within five (5) business
days following a question submitted to CEE. Borrowers are able to view loan information on the
loan portal as well as schedule payments.
Past Due Collections
CEE will make reasonable efforts to maintain loans in a current status and will deal promptly
with those which are delinquent in accordance with the Collection Activity section below. CEE
will process loan defaults as directed by Client.
Reporting
CEE will provide standard monthly reporting for the prior month’s activities to C lient no later
than the 10th business day of each month. The standard reports are as listed:
o Loan Trial Balance
o Aged Delinquency
o Principal and Interest Collections
o New Loan
o Paid Loan
o Fee Scheduled
o Fee Earned
Special reports may be added at an additional cost for programming. (See Exhibit B for pricing)
IRS Reporting
CEE shall provide borrowers with the required IRS annual tax reporting.
Funds Remittance
CEE shall remit collected funds less servicing and other applicable fees and any late charges
assessed to borrower by the 10th business day of the month. Late charges will be retained by
CEE. Funds will be remitted via ACH. An invoice will be distributed detailing the servicing fees.
CEE shall remit such funds by means of ACH or other electronic funds transfer to an account
designated by Client.
COLLECTION ACTIVITY
Early Delinquency
3 | Page
CLIENT NAME Loan Servicing Agreement #XXXX
CEE will make reasonable efforts to maintain loans in a current status and will make reasonable
periodic efforts to contact borrowers who are delinquent, in order to encourage payment. Such
efforts will be limited to those loans that are no more than 90 days past due.
o CEE will follow customary, usual and prudent business practices in servicing
delinquent loans.
o CEE will initiate contact with delinquent borrowers on after the 16th day after any
missed due date, and will send a Late Payment Notice via mail, followed by a phone
call.
o CEE will send delinquency letters for loans 31- 60 days past due, followed by phone
calls. .
o CEE will continue sending letters and begin phone calls for loans 61-90 days past
due.
Late Delinquency
CEE will make reasonable efforts to contact Borrowers, solicit payments, and return loans to a
current status, where the loan has reached 90 or more days past due, in order to encourage
payment.
o CEE will follow customary, usual and prudent business practices in servicing
delinquent loans.
o CEE will send formal default letters for loans reaching 120 or more days past
due.
o CEE shall continue phone calls to borrower at 90 days past due .
o After 120 days past due, Client shall determine next steps and CEE shall have no
obligation to take further action regarding delinquent loans until directed by
Client.
DEFAULT MANAGEMENT
Client shall be solely responsible for declaring a loan to be in default, and determining whether a loan is
to be charged-off.
Loan Modifications
CEE shall respond to Client or Borrower requests for modifications to their loan terms, including
Repayment Plans, Forbearance Agreements, Deferments, Extensions, Short Sales (Pre-
Foreclosure Sales), or Negotiated Releases of collateral, obligors or guarantors (each a “Loan
Modification”).
CEE shall make no decisions independent of the Client. Client shall have final approval of any
Loan Modifications, unless Client has instructed CEE in writing that it may approve Loan
Modifications pursuant to criteria established by Client.
CEE will follow customary, usual and prudent business practices in its review and processing of
Loan Modifications, and keep Client informed of the status of such requests.
Formatted: Bulleted + Level: 1 + Aligned
at: 1" + Indent at: 1.25"
Formatted: Space After: 0 pt, Linespacing: single, Bulleted + Level: 1 +Aligned at: 1" + Indent at: 1.25"
Formatted: Bulleted + Level: 1 + Alignedat: 1" + Indent at: 1.25"
4 | Page
CLIENT NAME Loan Servicing Agreement #XXXX
Both Client and CEE recognize that time is of the essence in responding to and approving or
declining Loan Modification requests.
CEE shall monitor Borrowers for compliance with the terms of the loan modification and make
such changes to the loan record as required by the modification terms.
Special Servicing
CEE shall perform special servicing actions and steps at the direction of the Client for loans
subject to formal legal proceedings, including Bankruptcy, Foreclosure, Deed-in -lieu of
Foreclosure, Collections suits, Repossession, and Charge-offs involving either an obligor(s) or
guarantor(s).
CEE shall make no decisions or take actions independent of the Client, who shall have
final say in approval of any Special Servicing actions (other than routine steps taken to
protect or preserve Clients interests), unless Client has instructed CEE in writing that it
may approve and take such actions.
CEE must employ staff with expertise in the above areas and maintain compliance with
all applicable regulations.
CEE will follow customary, usual and prudent business practices in its review, processing, and
management of Special Servicing of Client loans, and keep Client informed of the status of loans
subject to Special Servicing.
Both Client and CEE recognize that time is of the essence in responding to and approving or
declining Special Servicing Actions.
CEE shall monitor Borrowers who are subject to Special Servicing, consistent with the governing
legal proceedings or requirements, and make such changes to the loan record as required to reflect
the Special Servicing requirements. With respect to Bankruptcy, the Special Servicing shall
include Filings, Proof of Claim, Repayment Plan setup and monitoring, and discharge/completion
processing. (See Exhibit B for pricing)
Other Servicing
CEE shall perform the following additional servicing actions and steps for loans as requested
by Client. CEE will follow customary, usual and prudent business practices in providing these
services. The Client shall bear all of CEE’s out of pocket costs for third parties related to these
items. CEE will notify Client of the potential out of pocket costs prior to performing any of the
additional actions.
o REO Marketing
o Insurance Inspections
o Default Inspections
o Property Valuation or Appraisal
o Property Preservation and security
SUBORDINATION PREPARATION
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CLIENT NAME Loan Servicing Agreement #XXXX
CEE will review subordination requests in accordance with the Client’s subordination program
requirements. Subordinations will be forwarded to the Client for signature if request meets the
program requirements. Fees related to the subordination are paid by borrowers.
MORTGAGE SATISFACTION PREPARATION
Loan Payoffs
CEE will process loan payoffs, issue payoff statements as requested by authorized individuals
within 30 calendar days and remit funds to Client. CEE shall draft mortgage satisfactions
(“Satisfaction”) within 30 calendar days after loan is paid in full to ensure funds received are
cleared. The Satisfaction is then sent to client for signature. CEE shall provide instructions to
borrowers as to how to properly record the Satisfaction. In the event that $5 (five dollars) or less
of principle balance remains, CEE and Client will not attempt to collect the remaining fee and
will consider the loan as satisfied.
FINAL/SPECIAL PROCESSING TRANSACTIONS
CEE shall charge additional fees in special circumstances such as a charge-off, foreclosure,
servicing release, or any other transaction that is processed on a loan that is not paid in full but is
no longer an active loan on the servicing system. This does NOT include processing a paid in full
transaction.
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City of Elk River HRA Loan Servicing Agreement #XXXX
LOAN SERVICING AGREEMENT
Exhibit A: Duties of Servicer
NEW LOAN SET UP
Loan Boarding
CEE will board the loan upon origination into CEE’s servicing system. For any unsecured loan,
CEE will board the new loan within three (3) Business days of origination. For any secured loan,
CEE will board the new loan within three (3) Business days after the expiration of the right of
rescission. CEE will confirm the funding pool and assure that the new loan draws off the correct
pool.
For purposes of this Agreement, “business days” means calendar days other than weekends,
official federal holidays, and non-banking holidays.
Reporting
CEE will report every loan to at least one of the three major credit agencies upon inception as it
may designate in its sole discretion.
Quality Control Review
The loan and ACH entry instruction will be reviewed prior to activation to verify the servicing
system matches the terms of the promissory note and any other programmatic requirements per
the documents submitted.
Welcome Letter
A welcome letter will be sent to borrowers within five (5) business days after boarding. This
letter shall include the toll free customer service number as well as an email address that is
available for borrowers to use should they have a question regarding their loan. Customer service
is available from 8:00 AM to 4:30 PM Central Time, on “business days”. An automatic ACH
enrollment form is included in the letter for borrowers to complete and return to CEE if they
would like recurring payments to be initiated automatically by CEE. The letter will also contain
instructions for borrowers to receive access to the online loan portal where they have access to all
their loan information and ability to make payments.
STANDARD SERVICING –AMORTIZING/DEFERRED
Billing
Borrowers with loans that have regularly scheduled payments will receive billing statements on a
monthly basis or other appropriate frequency based on terms of the promissory note.
Collection of Loan payments
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City of Elk River HRA Loan Servicing Agreement #XXXX
CEE shall collect payments of principal, interest and any appropriate fees. CEE shall confirm the
application of payments to be consistent with the loan documents as part of ongoing due
diligence.
Customer Service
CEE shall provide customer service to bor rowers from 8:00AM – 4:30 PM Central Time on
“business days”. The customer service team is available through the toll free phone number or
email at loanservicing@mncee.org. Borrowers will receive a response within five (5 ) business
days following a question submitted to CEE. Borrowers are able to view loan information on the
loan portal as well as schedule payments.
Past Due Collections
CEE will make reasonable efforts to maintain loans in a current status and will deal promptly
with those which are delinquent in accordance with the Collection Activity section below. CEE
will process loan defaults as directed by Client.
Reporting
CEE will provide standard monthly reporting for the prior month’s activities to C lient no later
than the 1 0th business day of each month. The standard reports are as listed:
o Loan Trial Balance
o Aged Delinquency
o Principal and Interest Collections
o New Loan
o Paid Loan
o Fee Scheduled
o Fee Earned
Special reports may be added at an additional cost for programming. (See Exhibit B for pricing)
IRS Reporting
CEE shall provide borrowers with the required IRS annual tax reporting.
Funds Remittance
CEE shall remit collected funds less servicing and other applicable fees and any late charges
assessed to borrower by the 10th business day of the month. Late charges will be retained by
CEE. Funds will be remitted via ACH. An invoice will be distributed detailing the servicing fees.
CEE shall remit such funds by means of ACH or other electronic funds transfer to an account
designated by Client.
COLLECTION ACTIVITY
Early Delinquency
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City of Elk River HRA Loan Servicing Agreement #XXXX
CEE will make reasonable efforts to maintain loans in a current status and will make reasonable
periodic efforts to contact borrowers who are delinquent, in order to encourage payment. Such
efforts will be limited to thos e loans that are no more than 90 days past due.
o CEE will follow customary, usual and prudent business practices in servicing
delinquent loans .
o CEE will initiate contact with delinquent borrowers after the 16th day after any
missed due date, and will send a Late Payment Notice via mail, followed by a phone
call.
o CEE will send delinquency letters for loans 31- 60 days past due, followed by phone
calls.
o CEE will continue sending letters and phone calls for loans 61-90 days past due.
Late Delinquency
CEE will make reasonable efforts to contact Borrowers, solicit payments, and return loans to a
current status, where the loan has reached 90 or more days past due, in order to encourage
payment.
o CEE will follow customary, usual and prudent business practices in servicing
delinquent loans .
o CEE will send formal default letters for loans reaching 120 or more days past
due.
o CEE shall continue phone calls to borrower at 90 days past due.
o After 120 days past due, Client shall determine next steps and CEE shall have no
obligation to take further action regarding delinquent loans until directed by
Client.
DEFAULT MANAGEMENT
Client shall be solely responsible for declaring a loan to be in default, and determining whether a loan is
to be charged-off.
Loan Modifications
CEE shall respond to Client or Borrower requests for modifications to their loan terms, including
Repayment Plans, Forbearance Agreements, Deferments, Extensions, Short Sales (Pre-
Foreclosure Sales ), or Negotiated Releases of collateral, obligors or guarantors (each a “Loan
Modification”).
CEE shall make no decisions independent of the Client. Client shall have final approval of any
Loan Modifications, unless Client has instructed CEE in writing that it may approve Loan
Modifications pursuant to criteria established by Client.
CEE will follow customary, usual and prudent business practices in its review and processing of
Loan Modifications, and keep Client informed of the status of such requests.
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City of Elk River HRA Loan Servicing Agreement #XXXX
Both Client and CEE recognize that time is of the essence in responding to and approving or
declining Loan Modification requests.
CEE shall monitor Borrowers for compliance with the terms of the loan modification and make
such changes to the loan record as required by the modification terms.
Special Servicing
CEE shall perform special servicing actions and steps at the direction of the Client for loans
subject to formal legal proceedings, including Bankruptcy, Foreclosure, Deed-in-lieu of
Foreclosure, Collections suits, Repossession, and Charge-offs involving either an obligor(s) or
guarantor(s).
CEE shall make no decisions or take actions independent of the Client, who shall have
final say in approval of any Special Servicing actions (other than rou tine steps taken to
protect or preserve Clients interests), unless Client has instructed CEE in writing that it
may approve and take such actions.
CEE must employ staff with expertise in the above areas and maintain compliance with
all applicable regulations.
CEE will follow customary, usual and prudent business practices in its review, processing, and
management of Special Servicing of Client loans, and keep Client informed of the status of loans
subject to Special Servicing.
Both Client and CEE recognize that time is of the essence in responding to and approving or
declining Special Servicing Actions.
CEE shall monitor Borrowers who are subject to Special Servicing, consistent with the governing
legal proceedings or requirements, and make such changes to the loan record as required to reflect
the Special Servicing requirements. With respect to Bankruptcy, the Special Servicing shall
include Filings, Proof of Claim, Repayment Plan setup and monitoring, and discharge/completion
processing. (See Exhibit B for pricing)
Other Servicing
CEE shall perform the following additional servicing actions and steps for loans as requested
by Client. CEE will follow customary, usual and prudent business practices in providing these
services. The Client shall bear all of CEE’s out of pocket costs for third parties related to these
items. CEE will notify Client of the potential out of pocket costs prior to performing any of the
additional actions.
o REO Marketing
o Insurance Inspections
o Default Inspections
o Property Valuation or Appraisal
o Property Preservation and security
SUBORDINATION PREPARATION
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City of Elk River HRA Loan Servicing Agreement #XXXX
CEE will review subordination requests in accordance with the Client ’s subordination program
requirements. Subordinations will be forwarded to the Client for signature if request meets the
program requirements. Fees related to the subordination are paid by borrowers.
MORTGAGE SATISFACTION PREPARATION
Loan Payoffs
CEE will process loan payoffs, issue payoff statements as requested by authorized individuals
within 30 calendar days and remit funds to Client. CEE shall draft mortgage satisfactions
(“Satisfaction”) within 30 calendar days after loan is paid in full to ensure funds received are
cleared. The Satisfaction is then sent to client for signature. CEE shall provide instructions to
borrowers as to how to properly record the Satisfaction. In the event that $5 (five dollars) or less
of principle balance remains, CEE and Client will not attempt to collect the remaining fee and
will consider the loan as satisfied.
FINAL/SPECIAL PROCESSING TRANSACTIONS
CEE shall charge additional fees i n special circumstances such as a charge-off, foreclosure,
servicing release, or any other transaction that is processed on a loan that is not paid in full but is
no longer an active loan on the servicing system. This does NOT include processing a paid in full
transaction.
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CLIENT NAME Loan Servicing Contract #XXXX
LOAN SERVING CONTRACT
Exhibit B: Pricing Schedule
Activity Description Pricing
New Loan Setup Loan Boarded to servicing system and
quality control review, welcome letter $ 20.00 one-time fee per loan
Standard Servicing Activities –
Amortizing Loans
Payment processing, billing notices,
customer service, investor reporting,
early collections
$6.00 per loan per month
Standard Servicing Activities-
Deferred Loans
Payment processing, customer service,
investor reporting $0 per loan per month
Collection Activity Collection Work for loans past due
15-90 days
$3.00 per loan per month on all
amortizing loans
Default Management
Example of activities: Repayment
Plan, Forbearance Agreement,
Deferment, Extension
$80.00 per hour plus any charges that
may be incurred from 3rd party
vendor.
Subordination Preparation Review request and Prepare
subordination document $150.00 per request (Borrower Paid)
Mortgage/Deed of Trust Satisfaction
Preparation
Create mortgage/deed of trust
satisfaction (excludes recording /
filing fees)
$30.00 one-time fee per loan
Final /Special Processing Transaction
For Charge-off, foreclosure, service
release, loans not paid in full but no
longer active on the servicing system
$25.00 per transaction
Conversion/On-Boarding Boarding Loans previously serviced
by a different company $20.00 one-time fee per loan
Optional/Additional Services
Special Report Programming Special report creation not included in
standard report package
$150.00 one time fee per report
Special Reporting Distribution Monthly maintenance for special
reports created for distribution $75.00 one time fee per report
Special Project work Special requests, such as assistance in
audit preparation, special mailings
etc...
$80.00 per hour plus any charges that
may be incurred from 3rd party
vendor.
Non Standard Servicing Activities Any additional activities required
for servicing a loan not specified in
contract
$80.00 per hour, fee will be set
based on time to complete task on
a regular basis