7.4. HRSR 02-07-2022 �J
etyof
ElkRequest for Action
River
To Item Number
Housing and Redevelopment Authoritv 7.4
Agenda Section Meeting Date Prepared by
General Business February 7, 2022 Brent O'Neil, Economic Development Director
Item Description Reviewed by
HRA Housing Rehabilitation Loan Program Update Cal Portner, City Administrator
Reviewed by
Action Requested
Receive update on the Rehabilitation Loan Program.
Background/Discussion
CEE reports all accounts are current and the HRA's portfolio is performing as expected with no delinquencies
or late payments. There have been no new loans issued this period and$150,000 is available for new loan
disbursements. Staff continues to discuss with CEE the possibility of program modifications.
Financial Impact
N/A
Mission/Policy/Goal
The goal of the HRA is to improve existing housing stock by offering incentives or programs to repair and
maintain residential properties.
Attachments
■ CEE Monthly Loan Activity Report
■ Quarterly Report—Q4 2021
■ CEE Peer City Program Summary
The Elk River Vision
A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional P U W E H E o s r
service, and community engagement that encourages and inspires prosperity ,g /` UR
CITY OF ELK RIVER
LOAN SERVICING REPORT
OPERATIONAL RESULTS
DECEMBER 2021
Data set: January 1st, 2022
LOAN SERVICING DEPARTMENT
DocuSign Envelope ID: E488AAA2-F6E2-46CF-8DAF-4098FED0130E
Pg. 2
Table of Contents
•Loan Servicing Dashboard•Invoice Report•Trial Balance Summary•Trial Balance Detail•Aging Delinquency Report
DocuSign Envelope ID: E488AAA2-F6E2-46CF-8DAF-4098FED0130E
CEE SERVICING
REPORT TYPE:LOAN SERVICING DASHBOARD
DATA SET DATE:1/1/2022
REPORTING PERIOD:Dec-21
INVESTOR:CITY OF ELK RIVER
CASH PROCESSING RESULTS AS OF DECEMBER 31, 2021
OPERATIONAL RESULTS AS OF NOVEMBER 30, 2021
7 7 7 7
6 6
5
6
6
7
7
8
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
6 MONTH LOAN COUNT COMPARISON
$74,338.18$75,426.65$76,510.48$99,440.17$100,641.20$101,837.78Dec-21Nov-21Oct-21Sep-21Aug-21Jul-21
UNPAID PRINCIPAL BALANCE 6 MONTH COMPARISON
$8,097.88
$12,024.57
$12,035.75
$12,221.20
$13,274.22
$17,773.03
$0.00 $2,000.00 $4,000.00 $6,000.00 $8,000.00 $10,000.00 $12,000.00 $14,000.00 $16,000.00 $18,000.00 $20,000.00
19-015215
19-015209
19-015204
19-016564
19-015206
19-015217
DECEMBER-2021 UNPAID PRINCIPAL BALANCE
DISTRIBUTION PER LOAN
$154.43
$162.79
$187.63
$192.33
$208.04
$400.00
$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $450.00
19-016564
19-015217
19-015209
19-015215
19-015204
19-015206
TOTAL AMOUNT COLLECTED AS OF DECEMBER 31, 2021
$100.70
$114.25
$160.45
$174.86
$183.31
$354.90
$0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00
19-015217
19-016564
19-015209
19-015215
19-015204
19-015206
TOTAL PRINCIPAL COLLECTED AS OF DECEMBER 31, 2021
$17.47
$24.73
$27.18
$40.18
$45.10
$62.09
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00
19-015215
19-015204
19-015209
19-016564
19-015206
19-015217
TOTAL INTEREST COLLECTED AS OF DECEMBER 31, 2021
DocuSign Envelope ID: E488AAA2-F6E2-46CF-8DAF-4098FED0130E
CEE SERVICING
REPORT TYPE:PRELIMINARY INVOICE REPORT
DATA SET DATE:1/1/2022
REPORTING PERIOD:Dec-21
INVESTOR:ELK RIVER 212 3rd Avenue North, Suite 560
INVOICE #:8202112 Minneapolis, MN 55401
REPORTING MONTH: DECEMBER 2021 Ph.: 612.455.7805
POOL Total Count of
Loans New Loans Added Loans Transferred for
Serviving
Count of Active
Delinquent
Accounts
Total Amount
Collected During
the Month
Principal Collected
During the Month
Interest Collected
During the Month
New Loan On-
boarding Fee @
$20/Account
Loan Transfer On-
Boarding Fee @
$20/Account
Monthly Servicing
@ $6/Account
Delinquent Loan
Management @
$3/Account
Total Monthly
Fees
Netted Amount to
Transfer to Investor
Row Labels Count of LOAN #Sum of NEW LN INDEXSum of TRNX INDEX Sum of DELINQ INDEXSum of PMNT AMOUNTSum of PRN COLLECTEDSum of INT COLLECTED
HRA REHAB 6 0 0 0 $1,305.22 $1,088.47 $216.75 $0.00 $0.00 $36.00 $0.00 $36.00 $1,269.22
Grand Total 6 0 0 0 $1,305.22 $1,088.47 $216.75 $0.00 $0.00 $36.00 $0.00 $36.00 $1,269.22
ACCOUNT DETAIL FOR INVOICING
PORTFOLIO POOL LOAN #PROPERTY CONTRACT DATE LOAN AMOUNT PMNT DATE PMNT AMOUNT PRN COLLECTED INT COLLECTED TRNX INDEX NEW LN INDEX DELINQ INDEX
ELK RIVER RESIDENTIAL HRA REHAB 19-015215 606 JEFFERSON LN NW 8/3/2015 $20,650.00 12/14/2021 $192.33 $174.86 $17.47 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 19-015204 1420 5TH ST NW 1/25/2017 $22,069.00 12/20/2021 $208.04 $183.31 $24.73 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 19-015209 609 GATES AVE NW 9/22/2017 $19,665.00 12/10/2021 $187.63 $160.45 $27.18 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 19-015217 1811 MAIN ST 5/4/2018 $21,640.00 12/10/2021 $162.79 $100.70 $62.09 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 19-015206 870 VERNON AVE 12/27/2018 $25,000.00 12/30/2021 $400.00 $354.90 $45.10 0 0 0
ELK RIVER RESIDENTIAL HRA REHAB 19-016564 403 3RD ST NW 7/15/2019 $15,252.22 12/15/2021 $154.43 $114.25 $40.18 0 0 0
$1,305.22 $1,088.47 $216.75
DocuSign Envelope ID: E488AAA2-F6E2-46CF-8DAF-4098FED0130E
CEE SERVICING
REPORT TYPE:TRIAL BALANCE REPORT SUMMARY
DATA SET DATE:1/1/2022
REPORTING PERIOD:Dec-21
INVESTOR:ELK RIVER
TRIAL BALANCE PER POOL AS OF 12/31/2021
POOL LOAN COUNT LOAN VOLUME UNPAID PRN BAL
HRA REHAB 6 124,276.22$74,338.18$
Grand Total 6 124,276.22$74,338.18$
TRIAL BALANCE SUMMARY PER LOAN AS OF 12/31/2021
LOAN #POOL PROPERTY CONTRACT DATE INT RATE LOAN AMOUNT UNPAID PRN BAL
19-015215 HRA REHAB 606 JEFFERSON LN NW 8/3/2015 2.25 $20,650.00 $7,923.02
19-015204 HRA REHAB 1420 5TH ST NW 1/25/2017 2.50 $22,069.00 $11,852.44
19-015209 HRA REHAB 609 GATES AVE NW 9/22/2017 2.75 $19,665.00 $11,864.12
19-015217 HRA REHAB 1811 MAIN ST 5/4/2018 4.25 $21,640.00 $17,672.33
19-015206 HRA REHAB 870 VERNON AVE 12/27/2018 4.00 $25,000.00 $12,919.32
19-016564 HRA REHAB 403 3RD ST NW 7/15/2019 4.00 $15,252.22 $12,106.95
124,276.22$74,338.18$
6 MONTH COMPARATIVE REPORT
REPORTED MONTH LOAN COUNT UNPAID PRN BAL
Jul-21 7 101,837.78$
Aug-21 7 100,641.20$
Sep-21 7 99,440.17$
Oct-21 7 76,510.48$
Nov-21 6 75,426.65$
Dec-21 6 74,338.18$
DocuSign Envelope ID: E488AAA2-F6E2-46CF-8DAF-4098FED0130E
CEE SERVICING
REPORT TYPE:TRIAL BALANCE REPORT DETAIL
DATA SET DATE:1/1/2022
REPORTING PERIOD:Dec-21
INVESTOR:ELK RIVER
ACCOUNT DETAIL FOR ACTIVE LOANS AS OF 12/31/2021
LOAN #PORTFOLIO POOL ADDRESS CITY STATE ZIP CODE INT RATE CONTRACT MATURITY LOAN AMOUNT TERM UNPD PRN BAL RMNG TERM
19-015215 ELK RIVER RESIDENTIAL HRA REHAB 606 JEFFERSON LN NW ELK RIVER MN 55330 2.25 8/3/2015 8/1/2025 $20,650.00 120 $7,923.02 43
19-015204 ELK RIVER RESIDENTIAL HRA REHAB 1420 5TH ST NW ELK RIVER MN 55333 2.50 1/25/2017 1/1/2027 $22,069.00 120 $11,852.44 60
19-015209 ELK RIVER RESIDENTIAL HRA REHAB 609 GATES AVE NW ELK RIVER MN 55334 2.75 9/22/2017 9/1/2027 $19,665.00 120 $11,864.12 68
19-015217 ELK RIVER RESIDENTIAL HRA REHAB 1811 MAIN ST ELK RIVER MN 55336 4.25 5/4/2018 5/1/2033 $21,640.00 180 $17,672.33 136
19-015206 ELK RIVER RESIDENTIAL HRA REHAB 870 VERNON AVE ELK RIVER MN 55337 4.00 12/27/2018 1/1/2029 $25,000.00 120 $12,919.32 57
19-016564 ELK RIVER RESIDENTIAL HRA REHAB 403 3RD ST NW ELK RIVER MN 55339 4.00 7/15/2019 7/15/2029 $15,252.22 120 $12,106.95 91
124,276.22$74,338.18$
DocuSign Envelope ID: E488AAA2-F6E2-46CF-8DAF-4098FED0130E
CEE SERVICING
REPORT TYPE:AGING DELINQUENCY REPORT
DATA SET DATE:1/1/2022
REPORTING PERIOD:Dec-21
INVESTOR:ELK RIVER
AGING DELINQUENCY DETAIL PER ACCOUNT AS OF 12/31/2021
LOAN #BORROWER ADDRESS CONTRACT UNPD PRN BAL DPD TOTAL DUE 1 TO 15 DPD 15+ DPD 30+ DPD 60+ DPD 90+ DPD UNPD LATE FEES STATUS LAST PMNT DATE LAST PMNT AMNT
19-015215 606 JEFFERSON LN NW 8/3/2015 $7,923.02 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 12/14/2021 $192.33
19-015204 1420 5TH ST NW 1/25/2017 $11,852.44 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 12/20/2021 $208.04
19-015209 609 GATES AVE NW 9/22/2017 $11,864.12 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 12/10/2021 $187.63
19-015217 1811 MAIN ST 5/4/2018 $17,672.33 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 12/10/2021 $162.79
19-015206 870 VERNON AVE 12/27/2018 $12,919.32 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 12/30/2021 $400.00
19-016564 403 3RD ST NW 7/15/2019 $12,106.95 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 CURRENT 12/15/2021 $154.43
$74,338.18 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 1,305.22$
DocuSign Envelope ID: E488AAA2-F6E2-46CF-8DAF-4098FED0130E
Elk River Loan Summary Report
Activity for Period 10/1/2021 - 12/31/2021
Application packets requested/mailed:Year-to-Date: This period:0 0
Residential Advisor Visits:This period:Year-to-Date: 0 0
Loans currently in process for residents in your City/Neighborhood:1
Closed Loans This period:Year-to-Date:
Elk River UnitsUnits
Closed End 0.00 0 00.00
0.00 0Total 0.00 0
Units UnitsYear-to-Date:This period:Leveraged Funds
CEE 218,192.000.00 0
MHFA FUF 263,659.000.00 0
Total 81,851.00 40.00 0
% of Total#Types of Properties Financed YTD
Single Family Residence 100.004
Types of Improvements Financed YTD # of Projects % of Total
Additions/Finishing off unused space 16.671
Air Conditioning 16.671
Electronic Ignition Hearth 16.671
Heating System 16.671
Other Exterior Improvements 16.671
Water Heater 16.671
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.
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. All borrowers must have a credit score of at least 620.
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)
Exhibit A19 #2860 Page 1
Agreement between the City of Coon Rapids and Center for Energy and Environment
EXHIBIT A19
PROGRAM GUIDELINES
This document includes guidelines for the
COON RAPIDS LOAN PROGRAMS
Exhibit A19 #2860 Page 2
Agreement between the City of Coon Rapids and Center for Energy and Environment
COON RAPIDS LOAN PROGRAM GUIDELINES
The Coon Rapids 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 Coon Rapids Loan Program and will secure the most beneficial financing based on
the borrower’s needs independent of the funding source.
Coon Rapids Home Improvement Loan
Interest Rate: Income Rate
>110% 4%
<=110% and >80% 3%
<=80% and >50% 2%
<=50% 1%
***Income to determine interest rate is determined by projected gross income for the next 12 months
and household size
Amortization Type: Amortizing, closed-end (Monthly Payments Required).
Loan Amount: Minimum of $2,000 and Maximum of $25,000.
Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire
project (as outlined in the bid(s). Additional funds may come from the applicant’s personal savings,
gifts, or other NON City loans.
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. The minimum term is 1 year; the maximum
term will be 15 years.
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Coon Rapids. Individual townhomes, twin homes and condominiums. Properties held in a
trust are eligible.
Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes,,
properties in a Contract-for-Deed and properties used for commercial purposes.
Exhibit A19 #2860 Page 3
Agreement between the City of Coon Rapids and Center for Energy and Environment
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 (TIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and
Properties in the name of a business.
Ownership/Occupancy: Owner- occupied only.
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. Value can be established by the Property Tax Statement or an Appraisal dated within
the past 12 months.
Income Limit: None.
Property Value Limit: $400,000 based on the Estimated Property Value from the most recent property
tax statement.
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 50% will be ineligible to receive financing.
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 months prior to loan closing (without reasonable explanation). 5) The redemption period on
prior foreclosures must have occurred at least 18 months prior to the loan application date. 6)
Generally, no more than two 60-day late payments on credit report (without reasonable explanation).
7) No defaulted government loans.
Multiple Loans per Property/Borrower: More than one loan per property/borrower is allowed,
however, the outstanding balance(s) of any amortizing loans through the Coon Rapids Home
Improvement Loan Program cannot exceed $25,000 and the total of all city funds cannot exceed
$50,000.
Eligible Use of Funds: Projects eligible through MHFA and CEE home improvement programs.
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 1 bid is required. All contractors must be properly licensed and permits must be obtained
when required.
Exhibit A19 #2860 Page 4
Agreement between the City of Coon Rapids and Center for Energy and Environment
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. Loan funds cannot be used to rent
tools/ equipment or compensate for labor.
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 CEE 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 City of Coon Rapids. Borrower
will pay all applicable title and filing fees.
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 applicable closing fee which
may be financed in the loan amount.
Underwriting Decision: Applicants must have acceptable credit history. 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’s decision shall be final.
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.
Coon Rapids Deferred Loan
The intent of the Coon Rapids Deferred Loan Program is to provide assistance to property owners in the
City of Coon Rapids who face home repairs and are low income.
Interest Rate: 0%
Loan Amount: Minimum loan is $1,000. Maximum loan is $15,000.
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 is
responsible to provide proof of having funds to pay for the remaining portion.
Loan term: Loan will be deferred until the borrower sells, transfers title of the property or is no longer
occupied by the borrower, at which time 100% of the loan is due.
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Coon Rapids. Individual townhomes, twin homes and condominiums. Properties held in a
trust are eligible.
Exhibit A19 #2860 Page 5
Agreement between the City of Coon Rapids and Center for Energy and Environment
Ineligible Properties: Dwellings that are more than 4 units (these would be considered apartment and
hence commercial properties), cooperatives, manufactured homes, properties held in a Contract-for-
Deed and properties used for commercial purposes.
Eligible Borrowers: Owners of 1-4 unit properties within the City of Coon Rapids who meet the program
guideline criteria.
Ineligible Borrowers: Includes, but are not limited to nonresident owners, non-occupant co-borrowers,
properties held in the name of a business.
Ownership / Occupancy: Only owner-occupied.
Loan- to-Value Ratio: 100%
Income Limit: 50% of adjust gross income based on household size and most recent tax return. If a tax
return is not required to be filed by the borrower(s), the income will be determined by the projected
income over the next 12 months.
Property Value Limit: $400,000 based on the Estimated Property Value from the most recent property
tax statement.
Debt- to-Income Ratio: N/A
Multiple Loans per Property/Borrower: Multiple loans on a property are allowed if the outstanding
balance is within the maximum loan limit. The maximum combined balances of all Coon Rapids loans
can not exceed $50,000.
Eligible Improvements: General, permanent improvements including alterations, renovations or repairs
upon or in connection with existing structures which correct defects or deficiencies in the property
affecting directly to the minimum building code housing standards or the safety, habitability, energy
consumption or accessibility to the property. CEE will identify and prioritize projects.
Ineligible Improvements: Work initiated prior to the loan being approved and closed. Personal
property items, including appliances, furniture, hot tubs, swimming pools, and other luxury items,
exterior plumbing (e.g. sprinkler systems), non-permanent landscaping fixtures (e.g. potted plants,
furniture, bird feeders), repairs to property used for business or trade purposes, refinancing existing
indebtedness, and labor costs of borrowers and/or residents. CEE will refer to the city whenever
eligibility of an improvement project is questionable.
Bidding: Only 1 bid is required. All contractors must be properly licensed. Permits must be obtained
when required by City ordinance.
Sweat Equity: Not permitted.
Property Inspection: Required. Eligible improvements will be determined through an analysis of the
property. A CEE representative will perform the analysis to prioritize eligible improvements.
Exhibit A19 #2860 Page 6
Agreement between the City of Coon Rapids and Center for Energy and Environment
Post Installation Inspection: Properties are subject to a post installation inspection by a CEE staff
member when a permit is not required. Where a permit is required, the work must be signed-off by a
City inspector prior to release of funds.
Work Completion: All work must be completed within 120 days of loan closing. Extensions may be
granted by CEE.
Underwriting Decision: Must be current on all mortgages and property taxes.
Borrower Fees: Borrower will be responsible for mortgage filing and service fees, flood certificate,
credit report fees and any applicable closing fee which may be financed in the loan amount.
Emergency Repair Deferred Loan
The intent of the Coon Rapids Emergency Repair Deferred Loan Program is to provide assistance to
property owners in the City of Coon Rapids who face emergency home repairs and cannot qualify for
other housing related programs to remedy the situation.
Interest Rate: 0%
Loan Amount: Minimum loan is $1,000. Maximum loan is $10,000.
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 is
responsible to provide proof of having funds to pay for the remaining portion.
Loan term: Loan will be deferred until the borrower sells, transfers title of the property or is no longer
occupied by the borrower, at which time 100% of the loan is due.
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Coon Rapids. Individual townhomes, twin homes and condominiums. Properties held in a
trust are eligible.
Ineligible Properties: Dwellings that are more than 4 units (these would be considered apartment and
hence commercial properties), cooperatives, manufactured homes, properties held in a Contract-for-
Deed and properties used for commercial purposes.
Eligible Borrowers: Owners of 1-4 unit properties within the City of Coon Rapids who meet the program
guideline criteria. The borrower must not be eligible for any other financing administered by CEE
(including Coon Rapids Programs) in order to obtain an Emergency Repair Deferred Loan.
Ineligible Borrowers: Includes, but are not limited to nonresident owners, non-occupant co-borrowers,
properties held in the name of a business.
Exhibit A19 #2860 Page 7
Agreement between the City of Coon Rapids and Center for Energy and Environment
Ownership / Occupancy: Only owner-occupied.
Loan- to-Value Ratio: Not applicable.
Income Limit: None.
Property Value Limit: $400,000 based on the Estimated Property Value from the most recent property
tax statement.
Debt- to-Income Ratio: N/A
Multiple Loans per Property/Borrower: Multiple emergency loans on a property are allowed if the
balance is within the overall maximum loan limit.
Eligible Improvements: An emergency is defined as an imminent condition that makes a house
uninhabitable, dangerous to the occupants, or is capable of causing severe health problems. Repairs
that will remedy such emergency repairs are eligible. Examples of eligible repairs include, but are not
limited to, water lines, sewer service, fire hazards, repair to exterior steps, railings, retaining walls, water
seepage into basement, structural problems, or replacement of a furnace or hot water heater.
Ineligible Improvements: Work initiated prior to the loan being approved and closed. Personal
property items, including appliances, furniture, hot tubs, swimming pools, and other luxury items,
exterior plumbing (e.g. sprinkler systems), non-permanent landscaping fixtures (e.g. potted plants,
furniture, bird feeders), repairs to property used for business or trade purposes, refinancing existing
indebtedness, and labor costs of borrowers and/or residents. CEE will refer to the city whenever
eligibility of an improvement project is questionable.
Bidding: Only 1 bid is required. All contractors must be properly licensed. Permits must be obtained
when required by City ordinance.
Sweat Equity: Not permitted.
Property Inspection: Required. Eligible improvements will be determined through an analysis of the
property. A CEE staff member will perform the analysis to determine the severity of the situation.
Post Installation Inspection: Properties are subject to a post installation inspection by a CEE staff
member when a permit is not required. Where a permit is required, the work must be signed-off by a
City inspector prior to release of funds.
Work Completion: All work must be completed within 30 days of loan closing. Extensions may be
granted by CEE.
Underwriting Decision: CEE will review the application and submitted documentation for consideration
for other home improvement programs prior to considering the application for the Emergency Repair
Deferred Loan Program. CEE will approve or deny loans based on income verification and other criteria.
This is a last resort program. The borrower must not be eligible for any other financing administered by
CEE in order to obtain an Emergency Repair Deferred loan. CEE’s decision shall be final.
Exhibit A19 #2860 Page 8
Agreement between the City of Coon Rapids and Center for Energy and Environment
Borrower Fees: Borrower will be responsible for mortgage filing and service fees, flood certificate,
credit report fees and any applicable closing fee which may be financed in the loan amount.
Home for Generations II Loan
Interest Rate: 4%
Amortization Type: Amortizing. Closed-end (Monthly Payments Required).
Loan Amount: Minimum of $2,000 and Maximum of $50,000. Minimum project cost is $35,000.
Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire
project (as outlined in the bid(s). Additional funds may come from the applicant’s personal savings,
gifts, or other NON City loans.
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. The minimum term is 1 year; the maximum
term will be 20 years.
Eligible Properties: Single family, owner-occupied properties located within the geographical
boundaries of the City of Coon Rapids. Property must be at least 20 years old. Individual townhomes,
twin homes and condominiums are eligible. Properties held in a trust are eligible.
Ineligible Properties: Dwellings with more than one unit, cooperatives, manufactured homes,
properties in a Contract-for-Deed and properties used for commercial purposes.
Eligible Borrowers: Borrowers must obtain a Homes for Generation II Participation Agreement from the
City of Coon Rapids. 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 (TIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and
Properties held in the name of a business.
Ownership/Occupancy: Owner-occupied only.
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. Value can be established by the Property Tax Statement or an Appraisal dated within
the past 12 months.
Income Limit: None.
Exhibit A19 #2860 Page 9
Agreement between the City of Coon Rapids and Center for Energy and Environment
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 50% will be ineligible to receive financing.
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 months prior to loan closing (without reasonable explanation). 5) The redemption period on
prior foreclosures must have occurred at least 18 months prior to the loan application date. 6)
Generally, no more than two 60-day late payments on credit report (without reasonable explanation. 7)
No defaulted government loans.
Multiple Loans per Property/Borrower: More than one loan per property/borrower is allowed,
however, the outstanding balance(s) of all city loans cannot exceed $50,000.
Eligible Use of Funds: Borrowers must obtain a Participation Agreement with the city. Eligible value
added improvements include additions, conversion of unfinished space (including garage), covered front
entry porch and/or enclosed entry and major remodeling of kitchens, bathrooms and basements. Other
types of improvements are also eligible as long as at least one of the value added improvements listed
above is included in the scope of work. The minimum project cost is $35,000.
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 1 bid is required. All contractors must be properly licensed and permits must be obtained
when required.
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. Loan funds cannot be used to rent or
buy tools/equipment or compensate for labor.
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 CEE 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 City of Coon Rapids. Borrower
will pay all applicable title and filing fees.
Borrower Fees: Borrower will be responsible for a 1% origination Fee, $50 document preparation fee,
mortgage filing and service fees, flood certificate, credit report fees and any applicable closing fee which
may be financed in the loan amount.
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE’s
underwriting guidelines. CEE’s decision shall be final.
Exhibit A19 #2860 Page 10
Agreement between the City of Coon Rapids and Center for Energy and Environment
Work Completion: All work must be completed within 180 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
CenterPoint Energy On-Bill Repayment Program
Interest Rate: Income Rate
>110% 4%
<=110% and >80% 3%
<=80$ and >50% 2%
<=50% 1%
***Income to determine interest rate is determined by projected gross income for the next 12 months
and household size
Amortization Type: Amortizing (Monthly Payments Required).
Loan Amount: Up to $10,000.
Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire
project (as outlined in the bid(s). Additional funds may come from the applicant’s personal savings,
gifts, or other NON City loans.
Loan term: Generally, one year per $1,000 borrowed. Up to 5 years.
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Coon Rapids. Individual Townhomes, Twin-homes and Condominiums are eligible. Properties
held in a are eligible.
Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes, time
shares, properties used for commercial purposes.
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 (TIN) ARE NOT ACCEPTABLE. **Must be an eligible CenterPoint Energy
customer.***
Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and
Properties held in the name of a business.
Ownership/Occupancy: Owner- occupied only.
Exhibit A19 #2860 Page 11
Agreement between the City of Coon Rapids and Center for Energy and Environment
Loan - to - Value Ratio: N/A
Income Limit: None
Debt - to - Income Ratio: N/A
Credit Requirements: All borrowers must be current on their CenterPoint Energy utility bill and have
not had more than 1 late payment in the last 12 months. All mortgage payments and property taxes
must be current. Borrowers must have a minimum credit score of 600.
Multiple Loans per Property/Borrower: Only one CenterPoint On-Bill Repayment loan is permitted at a
time and the total of all city funds cannot exceed $50,000.
Eligible Use of Funds: Projects eligible through the CenterPoint Energy On-Bill Repayment Program.
These include, but are not limited to (Efficiency requirements are subject to change per CenterPoint):
• Furnace >= 92% AFUE
• Boiler >=83.5% efficiency
• Programmable thermostat with eligible heating system
• Water Heater >=.67 EF
• Wall Insulation
• Attic Insulation & Air Sealing (R-Value>= 44)
***Other improvements are eligible to be included as long as at least one eligible energy conservation
improvement is being done. These include, but are not limited to:
• Air conditioning (no window units)
• Energy Star Windows/Doors
• Ventilation/Bath Fans
• Electrical updates required due to energy improvement
• Asbestos and Radon mitigation
• HVAC cleaning
• Other health and safety issues
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Improvements that are not an eligible energy conservation improvement or other
improvements listed as an eligible improvement. Funds used for working capital, debt management, or
to refinance existing loans.
Bids: Only 1 bid is required. All contractors must be properly licensed and permits must be obtained
when required. Contractor must be participating in the CenterPoint Energy On-Bill Repayment Program.
Sweat Equity / Homeowner Labor: Not permitted.
Post Installation Inspection: N/A
Loan Security: N/A.
Exhibit A19 #2860 Page 12
Agreement between the City of Coon Rapids and Center for Energy and Environment
Borrower Fees: Borrower shall be responsible for a $50 Document Preparation Fee and applicable
credit report fees which may be financed in the loan amount.
Underwriting Decision: Applicants must have acceptable credit history. 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’s decision shall be final. Borrower must also meet all CenterPoint Energy
On-Bill Loan Repayment requirements.
Disbursement of Funds: Funds will be disbursed to the borrowers at loan closing.
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.
Loan Security: None. Loan will be paid per the CenterPoint Energy On-Bill Repayment Program.
Loan Servicing: All CenterPoint Energy On-Bill Repayment loans are serviced by CEE.
Exhibit A19 #2860 Page 13
Agreement between the City of Coon Rapids and Center for Energy and Environment
Down-Payment/Closing Cost Assistance
Interest Rate: 0%.
Loan Amount: Up to $5,000.
Term: Loan will be deferred until the borrower sells or transfers title of the property or is no longer
occupied by the borrower, at which time 100% of the loan is due.
Eligible Borrowers: The borrowers must be legally residing in the United States (based on approval of
1st mortgage lender). The homebuyer(s) MUST attend a Home Stretch workshop or other valid
homebuyers course offered through an approved counseling agency by the US Department of Housing
and Urban Development and provide evidence prior to closing. Borrowers must be considered as a first
time homebuyer.
Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and
Properties held in the name of a business.
Eligible Properties: 1-4 unit residential properties located with the geographical boundaries of the City
of Coon Rapids. Single family homes, townhomes, twin-homes and condominiums. Properties held in a
trust are eligible.
Ineligible Properties: Non-owner occupied (aka absentee-owned), unless the property is the property
being purchased and will become owner-occupied, dwellings with more than 4 dwelling units,
Cooperatives, Manufactured homes, properties held in a Contract-for-Deed and properties used for
commercial purposes.
Ownership/Occupancy: Must be owner-occupied after time of purchase.
Loan-to-Value: 100%.
Income Limits: 110% AMI based on household size and adjusted gross income from most recent tax
return. If a tax return is not required to be filed by the borrower(s) then income will be determined by
the projected income over the next 12 months.
Debt-to-Income Ratio: N/A
Multiple Loans per Property / Borrower: Borrowers may only obtain one purchase assistance deferred
loan from this program. If ownership changes, the new owner is eligible. If a previous recipient
purchases a new qualifying home, they would be eligible again at that new property if the borrower(s)
would be considered as a first time homebuyer at that time.
Exhibit A19 #2860 Page 14
Agreement between the City of Coon Rapids and Center for Energy and Environment
Eligible Improvements: These funds may only be used for down-payment or closing cost related to the
purchase of the subject property.
Underwriting: Amount and approval of loan will be determined based on the 1st mortgage approval. In
order to determine eligibility, CEE requires the following documentation from the 1st mortgage lender:
1) A CEE application
2) Certification that all homebuyers have completed a Home Stretch or other Homebuyers course
offered through a counseling agency approved by the US Department of Housing and Urban
Development
2) A copy of the whole/complete Purchase Agreement
3) A copy of the Appraisal or determination of value
4) A copy of the Title Commitment
5) A copy of the 1st mortgage pre-approval/commitment letter
6) A copy of the 1st Mortgage loan estimate, closing disclosure or similar closing cost / financing
statement.
Disbursement of Funds: Funds will be disbursed to the closing agent, for the benefit of the borrower, in
coordination with the purchase closing.
Borrower Fees: Borrower will be responsible for mortgage filing and service fees, flood certificate,
credit report fees and any applicable closing fee which may be financed in the loan amount.
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 the following in order to be
considered for funding.
Completed and signed application form
Proof of income
Bids or estimates for proposed projects
Other miscellaneous documents loan officers may require.
Loan Security: All loans that will be secured with a mortgage will be in favor of the City of Coon Rapids.
Contractors/Permits: Contractors must be properly licensed. Permits must be obtained when required
by city ordinance.
Program Costs: Loan origination, post installation inspection and remodeling advisor visit fees will be
paid out of the Program Budget. Loan program marketing efforts will be billed directly to the City of
Coon Rapids and is a separate expense should the city choose to commission CEE for marketing support.
Borrowers will pay all mortgage filing fees and related closing costs.
Exhibit A19 #2860 Page 15
Agreement between the City of Coon Rapids and Center for Energy and Environment
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 CEE 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 receipt from supplier);
• Final inspection verification by a City Inspector (or CEE);
• Completion certificate(s) signed by borrower and contractor;
• Lien waiver for entire cost of work;
• Evidence of city permit (if required)
***Funds will be disbursed to the homeowner at closing for the CenterPoint On-Bill Repayment
Program.
Exhibit A-21
City of Brooklyn Park Loan Program Guidelines
Home Improvement Loan Program
ON-Bill Repayment Loan Program
Senior Deferred Loan Program
Code Enforcement Loan Program
Down Payment and Closing Cost Assistance Program
Rental Rehabilitation Loan Program
Home Improvement Loan Program
1. Loan Amount: Loan amounts from $2,000 to $25,000.
2. Amortization Type: Monthly payment is required.
3. Loan Term: Up to 15 years.
4. Interest Rate: 3% fixed interest rate for borrowers making up-to-120% area
median income (AMI) and 4% fixed interest rate for borrowers earning over 120%
of the area median income. Income is calculated on projected income for all
owners living in the property and household size.
5. Loan-to-Value ratio: 110%.
6. Income Restrictions: No income limits, but the interest rate is determined by
projected gross income of the owners living in the property and household size.
7. Loan Security: The loan will be secured with a mortgage in favor of the EDA.
8. Credit / Underwriting Requirements: No more than two 30-day late payments
within the last six months on the credit report. 90-day lates (within the past 24
months) require reasonable explanation from the applicant. No Bankruptcy or
Foreclosure in the last 18 months. Current on mortgage payments and taxes. No
outstanding judgements, defaulted government loans, collections (without
reasonable explanation), or liens that are tied to the property.
9. Debt-to-Income Ratio: 50%
10. 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 and non-permanent resident aliens. Individual Tax identification
numbers are not acceptable.
11. Ineligible Borrowers: Applicants with no ownership interest, business entities,
foreign nationals and non-occupant co-borrowers
12. Eligible Properties: All 1-4 unit owner-occupied properties located within the
geographical boundaries of the City of Brooklyn Park. Condominiums and
townhomes are eligible for this program if their individual unit’s interior is not
covered by the owner’s association as stated in the association by laws. Properties
held in a trust or contract for deed are eligible.
13. Ineligible Properties: Non-owner-occupied, properties with more than 4 units,
co-operatives, mobile homes and properties used for commercial purposes.
14. Eligible Improvements: Most permanent Interior and exterior improvements are
eligible..
15. Ineligible Improvements: No saunas, whirlpools, furniture, skylights, non-built-
in appliances (unless part of a kitchen remodel), or funds for working capital, debt
service or refinancing existing debts are allowed. Center for Energy and
Environment will refer to City Staff whenever eligibility of an improvement project
is questionable.
16. Sweat Equity: Work may be performed by property owners on a "sweat equity"
basis. Loan funds may be used only for the purchase of materials. Loan funds
cannot be used to compensate for labor, only for materials. Materials must be
purchased and installed prior to the disbursement of the loan proceeds. When
applicable, a signed city permit must be obtained.
17. Bids/Contractors: 1 contract bid required. All contractors must be properly
licensed or registered with the Minnesota Department of Labor (if applicable).
Permits must be obtained where required by the City of Brooklyn Park.
18. Multiple Loans: More than one loan per household/ property is permitted based
upon the availability of funds and the borrower’s ability to qualify. The cumulative
outstanding balance of all Home Improvement Loans can not exceed the program
maximum loan amount. The cumulative outstanding balance of all Brooklyn Park
loans cannot exceed $50,000.
19. Post Install Inspection: Prior to the release of loan proceeds, the property is
subject to inspection by a CEE representative or, where a permit is required, work
must be off by a City inspector.
20. Work Schedule: All work must be completed within 120 days of the loan closing.
However, when warranted, CEE may authorize extensions on a case by case
basis.
21. Disbursement of Funds: Funds are held by CEE and payment is made to the
contractor upon completion of work. An inspection will be performed by CEE (if a
permit is not required) to verify completion of the work. The following items (and
any additional as determined by CEE) must be received prior to disbursement of
funds:
1. Final invoice from contractor (or materials list from supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit pulled and inspected, where
applicable
22. Borrower Fees: 1% Origination Fee a Document Preparation Fee, mortgage filing
fees, title work, credit report, flood certification and any other applicable closing
costs. All fees may be financed.
On-Bill Repayment Loan Program
1. Loan Amount: Loan amounts from $1,000 to $10,000.
2. Loan Term: Up to 5 years.
3. Interest Rate: 3% fixed interest rate if all borrowers have a credit score of at least
680 and 4% fixed interest rate for all borrowers with at least a 600 score..
4. Loan-to-Value ratio: None.
5. Income Restrictions: No income limits, but the interest rate is determined by
projected gross income for all owners living in the property and household size.
6. Amortization: Monthly payments required
7. Security: None
8. Credit / Underwriting Requirements: All borrowers must meet all CenterPoint
Energy eligibility requirements. All mortgage payments and property taxes must be
current. All borrowers must have a minimum credit score of 600.
9. Debt-to-Income Ratio: None
10. 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 and non-permanent resident aliens. Individual Tax identification numbers are
not acceptable. Must be an eligible CenterPoint Energy customer.
11. Ineligible Borrowers: Applicants with no ownership interest, business entities,
foreign nationals and non-occupant co-borrowers
12. Eligible Properties: All 1-4 unit owner-occupied properties located within the
geographical boundaries of the City of Brooklyn Park. Condominiums and
townhomes are eligible for this program if their individual unit’s interior is not
covered by the owner’s association as stated in the association by laws. Properties
held in a trust or contract for deed are eligible.
13. Ineligible Properties: Non-owner-occupied, properties with more than 4 units, co-
operatives, mobile homes and properties used for commercial purposes.
14. Eligible Improvements: Must include only the energy efficiency upgrades that are
eligible through the CNP On-Bill Repayment Program; furnace,
Specifically, all measures eligible for a rebate under one or more of CNP’s
Residential Segment Program will be eligible for the On-Bill Repayment Program
except for furnace or boiler tune-ups or thermostats not installed with an eligible
heating system. Eligible improvements include but are not limited to (Efficiency
requirements are subject to change):
• HES recommended improvements determined through a site visit
• Furnace >= 92% AFUE*
• Boiler >= 83.5% AFUE*
• Programmable, communicating, and analytics-capable thermostats installed with
a qualifying heating system
• Electronic ignition hearth products
• Water Heaters (conventional tank, tankless, indirect, or heating/water heating
combo systems) that meet energy star requirements
• Energy Star rated clothes washers and natural gas dryers
• Wall insulation in a home with natural gas heating, improving insulation levels of
R-5 or less to a level of R-11 or greater
• Attic insulation installed with air sealing in a home with natural gas heating,
improving from R-30 or less to a value of R-49 or greater.
***Other improvements are eligible to be included in the loan as long as at least one
eligible energy conservation improvement is being done. These improvements
include, but are not limited to:
• Central Air, Mini-Split or Heat Pumps installed with eligible gas heating
equipment (at least 14 SEER)
• Energy Star rated Windows/Doors , if doing eligible insulation measures ***
• Ventilation
• Bath fans
• Electrical updates required due to related energy improvement
• Asbestos and Radon mitigation
• Repairs or repainting of wall surfaces damages by installation of eligible
insulation projects
• Modifications or cleaning of venting or duct-work necessary to install water
heaters or heating equipment
15.
Ineligible Improvements: Work initiated prior to the loan being approved and
closed (exceptions will be made case by case if immediate replacement is needed).
• Furnace and boiler tune-ups
• New construction
• Solar
• Electric appliances
• Projects not listed as an eligible improvement or not determined to be an eligible
improvement by CNP or CEE.
• CEE will refer to CNP whenever eligibility of an improvement project is
questionable
16. Sweat Equity: Not permitted.
17. Bids/Contractors: 1 contract bid required. All contractors must be properly
licensed and be an eligible contractor with CenterPoint Energy. Permits must be
obtained where required by the City of Brooklyn Park.
18. Multiple Loans: More than one loan per household/ property is permitted based
upon the availability of funds and the borrower’s ability to qualify. The cumulative
outstanding balance of all On-Bill Repayment Loans can not exceed the program
maximum loan amount. The cumulative outstanding balance of all Brooklyn Park
loans cannot exceed $50,000.
19. Post Install Inspection: None.
20. Work Schedule: All work must be completed within 120 days of the loan closing.
However, when warranted, CEE may authorize extensions on a case by case basis.
21. Disbursement of Funds: Funds are disbursed to the borrower at closing.
22. Borrower Fees: A Document Preparation and credit report fee.,
Senior Deferred Loan Program
1. Loan Amount: Loan amounts from $2,000 to $25,000.
2. Amortization Type: Deferred
3. Loan Term: Loan is due upon sale, transfer of ownership or no longer occupied by
the borrower as their primary residence.
4. Interest Rate: 0%
5. Loan-to-Value ratio: 110%.
6. Income Limit: None
7. Loan Security: The loan will be secured with a mortgage in favor of the EDA.
8. Credit / Underwriting Requirements: All mortgages and property taxes must be
current. No outstanding judgements, liens or pending Bankruptcy or Foreclosure.
9. Debt-to-Income Ratio: None
10. 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 and non-permanent resident aliens. Individual Tax identification numbers are
not acceptable. At least one borrower must be at least 62 years of age.
11. Ineligible Borrowers: Applicants with no ownership interest, business entities,
foreign nationals and non-occupant co-borrowers
12. Eligible Properties: All 1-4 unit owner-occupied properties located within the
geographical boundaries of the City of Brooklyn Park. Condominiums and townhomes
are eligible for this program if their individual unit’s interior is not covered by the
owner’s association as stated in the association by laws. Properties held in a trust or
contract for deed are eligible.
13. Ineligible Properties: Non-owner-occupied, properties with more than 4 units, co-
operatives, mobile homes and properties used for commercial purposes.
14. Eligible Improvements: CEE shall perform an inspection to determine project
eligibility and prioritization. If there are no health, safety or code violations the
borrower may use the funds for any permanent exterior or interior improvements.
15. Ineligible Improvements: No saunas, whirlpools, furniture, skylights, non-built-in
appliances (unless part of a kitchen remodel), or funds for working capital, debt service
or refinancing existing debts are allowed. CEE will refer to City Staff whenever
eligibility of an improvement project is questionable.
16. Sweat Equity: Work may be performed by property owners on a "sweat equity" basis.
Loan funds may be used only for the purchase of materials. Loan funds cannot be
used to compensate for labor, only for materials. Materials must be purchased and
installed prior to the disbursement of the loan proceeds. When applicable, a signed
city permit must be obtained.
17. Bids/Contractors: 1 contract bid required. All contractors must be properly licensed
and registered with the Minnesota Department of Labor (if applicable). Permits must
be obtained where required by the City of Brooklyn Park.
18. Multiple Loans: More than one loan per household/ property is permitted based upon
the availability of funds and the borrower’s ability to qualify. The cumulative
outstanding balance of all Senior Deferred Loans can not exceed the program
maximum loan amount. The cumulative outstanding balance of all Brooklyn Park
loans cannot exceed $50,000.
19. Post Install Inspection: Prior to the release of loan proceeds, the property is subject
to inspection by a CEE representative or, where a permit is required, work must be off
by a City inspector.
20. Disbursement of Funds: Funds are held by CEE and payment is made to the
contractor upon completion of work. An inspection will be performed by the City and/or
CEE to verify completion of the work. The following items (and any additional as
determined by CEE) must be received prior to disbursement of funds:
a. Final invoice from contractor (or receipts from supplier))
b. Final inspection verification by CEE (if necessary)
c. Completion certificate(s) signed by borrower and contractor
d. Lien waiver for entire cost of work and
e. Evidence of required city permit, where applicable
21. Work Schedule: All work must be completed within 120 days of the loan
closing. However, when warranted, CEE may authorize extensions on a case by
case basis.
22. . Borrower Fees: 1% Origination Fee a Document Preparation Fee, mortgage filing
fees, title work, credit report, flood certification and any other applicable closing costs.
All fees may be financed.
Code Enforcement Loan Program
1. Loan Amount: Loan amounts from $1,000 to $25,000.
2. Amortization Type: Monthly payment is required.
3. Loan Term: Up to 15 years.
4. Interest Rate: 2% fixed interest rate
5. Loan-to-Value ratio: 110%.
6. Income Restrictions: None.
7. Loan Security: The loan will be secured with a mortgage in favor of the EDA.
8. Credit / Underwriting Requirements: No more than two 30-day late payments
within the last six months on the credit report, 90-day lates (within the past 24
months) require reasonable explanation from the applicant. No Bankruptcy or
Foreclosure in the last 18 months. Current on mortgage payments and taxes. No
outstanding judgements, defaulted government loans, collections (without
reasonable explanation), or liens that are tied to the property.
9. Debt-to-Income Ratio: 50%
10. 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 and non-permanent resident aliens. Individual Tax identification
numbers are not acceptable. Borrower must have an active property maintenance
corrective order issued by the city.
11. Ineligible Borrowers: Applicants with no ownership interest, business entities,
foreign nationals and non-occupant co-borrowers
12. Eligible Properties: All 1-4 unit owner-occupied properties located within the
geographical boundaries of the City of Brooklyn Park. Condominiums and
townhomes are eligible for this program if their individual unit’s interior is not
covered by the owner’s association as stated in the association by laws. Properties
held in a trust or contract-for -deed are eligible.
13. Ineligible Properties: Non-owner-occupied, properties with more than 4 units,
co-operatives, mobile homes and properties used for commercial purposes.
14. Eligible Improvements: Must address corrective actions required by the city.
Repairs must be directed at improving the safety and structural integrity of the
property including, but not limited to: siding, trim, soffit/fascia, roofing, garage
doors, windows/doors, driveways, removal of trees affecting foundation, demolition
of pools and sheds, HVAC, water heating, pest control, mold and mildew
remediation, foundation repairs, deck/patio repairs (no new installation), hoarding
cleanup, flooring, radon/lead/asbestos mitigation and other health and safety
issues.
15. Ineligible Improvements: Any improvement not meeting the definition of an
eligible improvement.
16. Sweat Equity: Work may be performed by property owners on a "sweat equity"
basis. Loan funds may be used only for the purchase of materials. Loan funds
cannot be used to compensate for labor, only for materials. Materials must be
purchased and installed prior to the disbursement of the loan proceeds. When
applicable, a signed city permit must be obtained.
17. Bids/Contractors: 1 contract bid required. All contractors must be properly
licensed or registered with the Minnesota Department of Labor (if applicable).
Permits must be obtained where required by the City of Brooklyn Park.
18. Multiple Loans: More than one loan per household/ property is permitted based
upon the availability of funds and the borrower’s ability to qualify. The cumulative
outstanding balance of all Code Enforcement Loans can not exceed the program
maximum loan amount. The cumulative outstanding balance of all Brooklyn Park
loans cannot exceed $50,000.
19. Post Install Inspection: Prior to the release of loan proceeds, the property is
subject to inspection by a CEE representative or, where a permit is required, work
must be off by a City inspector.
20. Work Schedule: All work must be completed within 120 days of the loan closing.
However, when warranted, CEE may authorize extensions on a case by case
basis.
21. Disbursement of Funds: Funds are held by CEE and payment is made to the
contractor upon completion of work. An inspection will be performed by CEE (if a
permit is not required) to verify completion of the work. The following items (and
any additional as determined by CEE) must be received prior to disbursement of
funds:
1. Final invoice from contractor (or materials list from supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit pulled and inspected, where
applicable
22. Borrower Fees: 1% Origination Fee a Document Preparation Fee, mortgage filing
fees, title work, credit report, flood certification and any other applicable closing
costs. All fees may be financed.
Down Payment and Closing Cost Assistance Deferred
Loan Program
1. Loan Amount: Up to $7,500. If the borrower is a current resident of Brooklyn Park
the maximum loan amount is up to $10,000.
2. Loan Term: 10 years. The loan is 100% forgiven if the borrower(s) did not sell,
transfer ownership or no longer occupied the property as the borrower(s) primary
residence within 10 years of the loan closing date. If the loan is sold, ownership is
transferred or is not the borrower(s) primary residence before 10 years of the loan
closing, 100% of the loan is due.
3. Interest Rate: 0%
4. Minimum Borrower Contribution: Lesser of $1,000 or 1% of the purchase price.
5. Income Limit: 120% of the Area Median Income (AMI). Income if determined by the
Adjusted Gross Income from the most recent tax return and household size. If the
borrower(s) are not required to file a tax return the income will be determined by the
projected gross income.
6. Homebuyer Education: All borrower(s) MUST attend a Home Stretch workshop or
other valid first time homebuyers course offered through an approved counseling
agency by HUD. Applicants who have previously completed their pre-purchase
education through an eligible provider must have a completion certificate that is dated
not more than 12 months prior to closing.
7. First-Time Homebuyer Status: Borrowers must be a first-time homebuyer (a person
or household that has not owned a home within the last three years – based on HUD
approved definition). The Borrowers may not have had an ownership interest in a
principal residence at any time during the three-year period ending on the date of
execution of the mortgage. This requirement applies to any person who will execute
the note and will have a present ownership interest in the financed property.
8. Debt-to-Income Ratio: N/A. Borrower must qualify for a first mortgage to purchase
the property.
9. Loan to Value Ratio: 110%
10. 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 and non-permanent resident aliens. Individual Tax Identification Numbers are
not acceptable.
11. Ineligible Borrowers: Applicants with no ownership interest, business entities,
foreign nationals and non-occupant co-borrowers.
12. Eligible Properties: All 1-4 unit owner occupied properties with a purchase price
equal to or less than $352,300 (subject to change[JH1]) located within the
geographical boundaries of the City of Brooklyn Park. Condominiums and
townhouses will be eligible for this program as well.
13. Ineligible Properties: Properties held in a contract for deed are not eligible. Mobile
homes, Co-ops, Non-owner-occupied and commercial properties.
14. Multiple Loans: Only one loan, but if ownership changes the new owner is eligible. If
previous owner purchases a new home in Brooklyn Park they are eligible if considered
a first time homebuyer. The cumulative outstanding balance of all Brooklyn Park loans
cannot exceed $50,000
15. Subordination: Full repayment of the loan is required unless the borrower is
refinancing for a better interest rate to lower monthly payments or cash out funds for
critical home repairs.
16. Underwriting Decision: Borrower(s) must meet 1st mortgage lender requirements.
17. Borrower Fees: All applicable mortgage filing fees, wire transfer, title, credit report,
flood inspection and any other relevant closing costs associated with the loan.
18. Participating Lenders: Brooklyn Park EDA recommends the utilization of lenders
with a presence in the City of Brooklyn Park.
19. Purchase price: Cannot exceed $340,000 (subject to change)
20. Eligible Use of Funds: The loan funds can only be used for down payment and/or
closing costs. The borrower cannot receive any portion of these funds as cash.
Rental Rehabilitation Loan Program
1. Loan Amount: Loan amounts from $10,000 to $100,000 (Maximum amount per
unit is $10,000, but the EDA may consider requests for loan amounts greater than
the maximum on a case by case basis). A maximum of $100,000 between the
Rental Rehabilitation Deferred and Amortizing Loan Programs
2. Matching Requirements: None
3. Amortization Type: Amortizing
4. Loan Term: Up to 10 years
5. Interest Rate: 0% if the Borrower(s) agree to Rent Limitations and 3% if there are
no Rent Limitations
6. Loan-to-Value ratio: 100%
7. Income Limit for Borrower: None
8. Income Limit for Business Entities: None, but the business must have been in
business for at least one year and show positive cash flow from the most recent
Federal Tax Return. If a tax return hasn’t been filed a Profit & Loss Statement and
Budget must be provided along with current Lease and verification that rent is
being received (1 month verification).
9. Income Limit for Tenants: None
10. Rent Limitations: Borrowers must agree that rents charged do not exceed 60%
AMI affordability levels and will be verified annually. If the Borrower agrees to the
Rent Limitations they MUST restrict rents for 10 years from the date of closing or
until the property has been sold or ownership has been transferred.
11. Loan Security: The loan will be secured with a mortgage in favor of the EDA,
unless the borrower is a Condominium or Townhome Association.
12. Credit / Underwriting Requirements: All mortgages and property taxes must be
current. No outstanding judgements, liens or pending Bankruptcy or Foreclosure.
13. Debt-to-Income Ratio for Natural Persons: 50%
14. Debt-to-Income Ratio for Business Entities: None, but the business must have
been in business for at least one year and show positive cash flow on the most
recent Federal Tax Return. If a tax return hasn’t been filed and a Profit & Loss
Statement and Budget must be provided along with the current Lease and
verification that rent is being received (1 month verification).
15. Eligible Borrowers: All borrowers must be either a legal resident of the United
States, as evidenced by a social security number, including U.S. citizens,
permanent resident aliens and non-permanent resident alien OR a registered
business with the MN Secretary of State. Borrower must not own more than 30
units in the City of Brooklyn Park.
16. Ineligible Borrowers: Homeowner Associations, applicants with no ownership
interest, illegal residents or business entities not registered with the MN Secretary
of State. Borrowers that own more than 30 units in the City of Brooklyn Park.
17. Eligible Properties: All 1-16 unit licensed rental properties used for residential
purposes located within the City of Brooklyn Park. Individual condominium and
townhome units are eligible. Properties held in a trust or Contract for Deed are
eligible.
18. Ineligible Properties: Properties with more than 16 units, co-operatives, mobile
homes and properties used for commercial purposes.
19. Eligible Improvements: Permanent interior and exterior improvements including,
but not limited to: kitchen and bath remodel, roofing/gutters, siding, window/door
replacement, plumbing (including sprinkler systems), electrical, energy star rated
appliances, HVAC, water heating, painting, flooring, insulation, solar and
improvements to common and play areas.
20. Ineligible Improvements: No swimming pools, hot tubs, saunas, whirlpools,
furniture or funds for working capital, debt service or refinancing existing debts are
allowed. CEE will refer to City Staff whenever eligibility of an improvement project
is questionable. Improvements required to be done by a Homeowner Association.
21. Sweat Equity: Work may be performed by property owners on a "sweat equity"
basis. Loan funds may be used only for the purchase of materials. Loan funds
cannot be used to compensate for labor or the rental or purchase of equipment
needed to complete the project. Materials must be purchased and installed prior
to the disbursement of the loan proceeds. When applicable, a signed city permit
must be obtained.
22. Bids/Contractors: 1 contract bid required. All contractors must be properly
licensed and registered with the Minnesota Department of Labor (if applicable).
Permits must be obtained where required by the City of Brooklyn Park.
23. Multiple Loans: Only one Rental Rehabilitation Loan may be open at any time.
24. Post Install Inspection: Prior to the release of loan proceeds, the property is
subject to inspection by a CEE representative or, where a permit is required, work
must be off by a City inspector.
25. Disbursement of Funds: Funds are held by CEE and payment is made to the
contractor upon completion of work. Down-payments may be made to the
Contractor or Borrower on a case by case basis as approved by the City. An
inspection will be performed by the City and/or CEE to verify completion of the
work. The following items (and any additional as determined by CEE) must be
received prior to disbursement of funds:
a. Final invoice from contractor (or receipts from supplier))
b. Final inspection verification by CEE (if necessary)
c. Completion certificate(s) signed by borrower and contractor
d. Lien waiver for entire cost of work and
e. Evidence of required city permit, where applicable
26. Work Schedule: All work must be completed within 120 days of the loan
closing. However, when warranted, CEE may authorize extensions on a case by
case basis.
27. Borrower Fees: 1% Origination Fee a Document Preparation Fee, mortgage filing
fees, title work, credit report, flood certification and any other applicable closing
costs. All fees may be financed.
28. Loan Administration: The Rental Rehabilitation Loan Program will be
administered by CEE in close consultation with the City of Brooklyn Park EDA staff.
29. Loan Servicing: The Rental Rehabilitation Loan Program will be serviced by
CRF.
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A B C D E F G
Exhibit A-21
January 1, 2021 " Last Resort " Emergency Deferred Mobile Home Improvement
Program Senior Deferred Multi Family
Improvement Loan
Interest Rate 0%2.0%0%2.0%
Amortization Type Deferred Amortizing Deferred Amortizing
Loan Amount Minimum: $500
Maximum: $10,000
Minimum: $ 500
Maximum: $ 10,000
Minimum: $5,000
Maximum: $25,000
Minimum: $5,000
Maximum: $ 50,000 (city may allow
higher amounts, case by case)
Total Project Cost/Match
Term
The loan is 100% due when the
borrower(s) sell(s), transfers ownership or
no longer occupies the property as the
borrower(s) primary residence.
Minimum: 1 Year
Maximum: 10-years
The loan is 100% due when the
borrower(s) sell(s), transfers ownership
or no longer occupies the property as
the borrower(s) primary residence.
Minimum: 1 Year
Maximum: 20-years
Eligible Borrowers
All borrowers must be a legal resident of
the United States, as evidenced by a
Social Security Number AND at least one
borrower must be at least 62 years of
age, including:
* US Citizens
* Permanent Resident Aliens
* Non-Permanent Resident Aliens
* Tax identification numbers (ITIN) are
not acceptable
* Contract for deeds are eligible
* Properties held in a Trust
All borrowers must be a legal resident
of the United States, as evidenced by a
social security number, or:
*A legal business registered with the MN
Secretary of State and must have been in
business for at least 2 years
* Properties held in a contract-for-deed
are eligible as long as both parties, the
purchaser and seller, both sign the
mortgage and the contract for deed
holder approves of the project.
*Properties held in a Trust
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 requested loan amount, the borrower must obtain the a
the additional funds in order to be approved for the loan
All borrowers must be a legal resident of the United States, as evidenced by a social security number, including:
*U.S. Citizens
*Properties held in a Trust
*Permanent Resident Aliens
*Non-Permanent Resident Aliens
* Tax identification numbers (ITIN) are not acceptable *Properties
held in a contract-for-deed are eligible as long as both parties, the purchaser and seller, both sign the mortgage and the
contract for deed holder signs a letter giving their approval of the project.
The City of Fridley Housing and redevelopment Authority has made funds available to improve homes in the City of Fridley.
The GUIDELINES TOOK EFFECT AS FOLLOWS:
October 13, 2015 - Closed End Revolving Rehab
January 1, 2016 - a Last Resort Loan Deferred Loan program
January 1, 2016 - a Mobile Home Improvement Revolving Loan Program
July 1, 2018 - 1-12 Unit Multi Family Improvement Revolving program
July 1, 2018 - Senior Deferred Loan Program
2021- Down Payment Assistance
Home Improvement
2.0%
Amortizing
Minimum: $1,000
Maximum: $50,000
Minimum: 1 Year
Maximum: 20-years
2
A B C D E F G
January 1, 2021 " Last Resort " Emergency Deferred Mobile Home Improvement
Program Senior Deferred Multi Family
Improvement Loan Home Improvement
9
10
11
12
13
14
15
16
In-Eligible Borrowers
* A resident or business with no legal
interest in the property
Eligible Properties Residential mobile homes located in
the City of Fridley
1-4 unit residential properties located in
the City of Fridley
1-12 unit residential properties located
in the City of Fridley
In-Eligible Properties
*Non-owner occupied
*Properties with more than 4 units
*Co-ops
* Properties used for commercial
purposes
*Non-owner occupied
*Properties with more than 4 units
*Co-ops
* Mobile Homes
* Properties used for commercial
purposes
* Properties with more than 12 units
*Co-ops
* Mobile Homes
* Properties used for commercial
purposes
Ownership/Occupancy Owner Occupied /
Absentee Owned
Loan-to-Value 125%N/A 110%110%
Income Limits/
Requirements
Less than or equal to 110% of current HUD
based on household size and Adjusted
Gross Income from most recent tax return.
If a tax return is not required to be filed
the income will be based on projected
gross income.
None None None
Debt-to-Income Ratio NA 50%N/A
Max 50% (N/A if in the name of business,
but must show positive cash flow from
most recent business tax return or Profit
& Loss Statement if in business for less
than a year).
Multiple Loans per
Property/Borrower
More than one last Resort Emergency
Loan is permitted based upon the
availability of funds and the borrower’s
ability to qualify. The cumulative
outstanding balance of all Fridley
emergency loans on the property,
including cannot exceed the maximum
loan amount of $10,000.
More than one loan per
household/property is permitted based
upon the availability of funds and the
borrower’s ability to qualify. The
cumulative outstanding balance of all
Fridley Mobile Home Loans on the
property cannot exceed $10,000.
More than one Senior Deferred Loan is
permitted based upon availability of
funds and ability to qualify. The
cumulative outstanding balance of all
Senior Deferred Loans cannot exceed
the maximum loan amount allowed per
program guidelines.
More than one loan per property is
permitted based upon the availability of
funds and the borrower’s ability to
qualify. The cumulative outstanding
balance of all Fridley Multi Family
Program Loans on the property cannot
exceed the maximum loan amount
limits.
110%
* Non-Occupant Co-Borrowers
* Business entities
*Non-owner occupied
*Properties with more than 4 units
*Co-ops
* Mobile Homes
* Properties used for commercial purposes
1-4 unit residential properties located in the City of Fridley
Owner Occupied
More than one loan per
household/property is permitted based
upon the availability of funds and the
borrower’s ability to qualify. The
cumulative outstanding balance of all
Fridley loans on the property, including
deferred loans cannot exceed $50,000.
None
50%
2
A B C D E F G
January 1, 2021 " Last Resort " Emergency Deferred Mobile Home Improvement
Program Senior Deferred Multi Family
Improvement Loan Home Improvement
17
18
19
20
Eligible
Improvements/Use of
Funds
* Eligible improvements will be
determined through a required analysis of
the emergency condition of the property.
CEE’s Representative will perform the
analysis to determine the eligibility and
whether the intended improvement is an
emergency. An emergency is defined as a
condition that makes a house
uninhabitable, extremely dangerous to the
occupants, or is capable of causing severe
health problems.
* Property Emergency Inspection Fees
apply and will be Invoiced to the City
Most permanent interior and exterior
improvements
Most permanent interior and exterior
improvements
* Improvements that correct City code
violations
* Improvements to the exterior of
residential structures including but not
limited to: roofing, solar, siding, painting,
exterior windows & doors, driveways,
parking improvements, signage, lighting,
windows/doors, awnings,
sidewalks/steps, security systems,
exterior garage repair and tuck pointing.
*Interior improvements include, but are
not limited to: structural, ADA
accesibililty upgrages, fire prevention,
HVAC, insulation, plumbing, electrical,
flooring, permanent fixtures
(cabinets/countertops).
*Any questionable improvements will be
sent to the city for review
Ineligible Improvements
Sweat
Equity/Homeowner
Labor
Not permitted
Work can be performed on a “sweat
equity” basis. Loan funds cannot be
used to compensate for labor, only for
materials and rental of equipment or
tools to complete the project.
Materials must be purchased and
installed prior to the disbursement of
the loan proceeds. When applicable, a
signed city permit must be obtained.
Not permitted Not permitted
Property Inspection
A property inspection will be performed to
determine that the project is an
emergency as defined by the description in
eligible improvements.
None
A property inspection will be performed
to determine project eligibility and
prioritization.
None
Work initiated before the loan has been approved and closed. Recreational items including gazebos, pools, hot tubs, saunas, lawn sprinklers, play ground equipment; Furniture and non permanent appliances
(unless part of kitchen remodel); Funds used for working capital, debt management or to refinance existing loans; Personal property items, and repairs to property used for business or trade purposes. Funds
cannot be used to purchase equipment needed to complete the project.
None
Most permanent interior and exterior
improvements
Work can be performed on a “sweat
equity” basis. Loan funds cannot be
used to compensate for labor, only for
materials and rental of equipment or
tools to complete the project.
Materials must be purchased and
installed prior to the disbursement of
the loan proceeds. When applicable, a
signed city permit must be obtained.
2
A B C D E F G
January 1, 2021 " Last Resort " Emergency Deferred Mobile Home Improvement
Program Senior Deferred Multi Family
Improvement Loan Home Improvement
21
22
23
24
25
26
27
28
Post-Install Inspection
Contractors/ Permits
Bids
Work Completion
All work must be completed within 30 days
of the loan closing. However, when
warranted, CEE may authorize extensions
on a case by case basis as warranted.
Underwriting
Applicant's must not be able to qualify for
any other financing administered by CEE to
be eligible for the Emergency Last Resort
Program. In addition, applicants must
also:
* Be current on all mortgage payments
* Be current on all real estate taxes and
assessments
* Not have any unpaid judgments or liens
* Have a pending Bankruptcy or
foreclosure
In addition to CEE's standard
underwriting criteria, applicants must:
* Not have any payments more than 90-
days late in the past 12 months;
(without approval by the city)
* No Bankruptcy in the past 18 Months
(without reasonable explanation)
* Be current on all mortgage payments
* Be current on all real estate taxes
Applicants must:
* Be current on all mortage payments
* Be current on all real estate taxes and
assessments
* Not have any unpaid judgements or
liens
* Not have a pending bankruptcy or
foreclosure
In addition to CEE's standard
underwriting criteria, applicants must:
* Not have any payments more than 90-
days late in the past 12 months;
(without approval by the city)
* No Bankruptcy in the past 18 Months
(without reasonable explanation)
* Be current on all mortgage payments
* Be current on all real estate taxes
Disbursement of Funds
Loan Servicing
Annual Admin Fee
Prior to the release of loan proceeds, the property is subject to inspection by a CEE representative or, where a permit is required, work must be signed off by a City inspector
1 bid is required. Bids must detail the scope of the work to be completed, the associated cost(s) and any rebates
Contractors must be properly licensed. Permits must be obtained when required
Funds are held by CEE in a and payment is made to the contractor (or owner in sweat equity situations) upon completion of work.
An inspection will be performed by the City and/or CEE to verify completion of the work. The following items (and any additional as determined by CEE) must be received prior to final disbursement of funds:
1. Final invoice from contractor (or materials list from supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit, where applicable
CEE or CRF
All work must be completed within 120
days of the loan closing. However,
when warranted, CEE may authorize
extensions on a case by case basis as
warranted.
In addition to CEE's standard
underwriting criteria, applicants must:
* Not have any payments more than 90-
days late in the past 12 months;
(without approval by the city)
* No Bankruptcy in the past 18 Months
(without reasonable explanation)
* Be current on all mortgage payments
* Be current on all real estate taxes
$2,500
All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize extensions
on a case by case basis.
2
A B C D E F G
January 1, 2021 " Last Resort " Emergency Deferred Mobile Home Improvement
Program Senior Deferred Multi Family
Improvement Loan Home Improvement
29
30
City of Fridley
Administrative Fees
$550, plus all Borrower Fees as listed for
the Home Improvement/Mobile
Home/Sr. Deferred Programs
Borrower Fees None, paid by city
$550
1% Origination Fee and a Document Preparation Fee , mortgage/title filing fees, title work, credit report, flood cert and any other applicable closing costs associated
with the loan.
City of Fridley HRA LOAN PROGRAM REVIEW - 2015 / 2016
Program Overview
October 29, 2015
Draft " Last Resort " Emergency Deferred Mobile Home Improvement Program Multi Family Exterior
Improvement Loan Commercial Loan Program
STATUS PENDING JAN 2016 SEE OLD GUIDELINES PENDING JAN 2016 PENDING JAN 2016 PROPOSAL FOR SEPT 2016
Program Intent
The intent of the Fridley Last Resort , Emergency Deferred Loan
Program is to provide funds to owner-occupants of properties
who face emergency home repairs and are unable to obtain
funds to repair the problem(s) through traditional funding
(loan) sources. With this in mind, applicant’s eligibility for
other financing will be analyzed prior to consideration of the
Last Resort , Emergency Deferred Loan Program. If the
applicant qualifies for other program financing, then the
applicant will not be eligible for the Emergency Deferred Loan
Program. An Emergency is defined as a condition that makes a
house uninhabitable, extremely dangerous to the occupants, or
is capable of causing severe health problems.
The intent of the Mobile Home loan program is to make low-
interest home improvement loans available to Fridley residents to
make basic home improvements.
The intent of the Multi Family Home Improvement
loan program is to make low-interest home
improvement loans available to Fridley multi unit
property owners to make improvements to their
buildings.
The intent of the Commercial loan program is to make
low-interest loans available to Fridley business owners
to make building improvements
Interest Rate 0% 4.5%?)4.5%TBD by Fridley HRA : 2 %
Amortization Type Deferred Amortizing - Closed-end: requires borrowers to make monthly
payments of Principal and Interest
Amortizing - Closed-end: requires borrowers to
make monthly payments of Principal and Interest
Amortizing - Closed-end: requires borrowers to make
monthly payments of Principal and Interest
Loan Amount Minimum: $500
Maximum: $10,000
Minimum: $ 500
Maximum: $ 10,000
Minimum: $1,000
Maximum: $ 50,000
Minimum: $ 1,000 (TBD by HRA)
Maximum: $ 50,000 (TBD by HRA)
Total Project Cost/Match
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 requested loan amount, the
borrower must obtain the additional funds and show
verification of the additional funds in order to be approved for
the loan.
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 requested loan amount, the borrower must
obtain the additional funds and show verification of the additional
funds in order to be approved for the loan.
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 requested loan amount, the borrower
must obtain the additional funds and show
verification of the additional funds in order to be
approved for the loan.
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 requested
loan amount, the borrower must obtain the additional
funds and show verification of the additional funds in
order to be approved for the loan.
Term
The Deferred Loan is 100% due if the property ownership
changes or a time period of 20 years whichever comes first.
* No prepayment penalties apply
Minimum: 1 Year
Maximum: 10-years
* Generally 1 year per $1,000 borowed
* No prepayment penalties apply
Minimum: 1 Year
Maximum: 20-years
* No prepayment penalties apply
Minimum: 1 Year
Maximum: 10-years
Generally, one year per $1,000 borrowed.
Should the Borrower leave the business or move the
business from Fridley, the loan will be immediately due
and payable in full. * No
prepayment penalties apply
SEPTEMBER 2015 DRAFT - The City of Fridley Housing and redevelopment Authority has made funds available to improve homes in the City of Fridley. There are 2 programs currently active and 3 under review: a residential revolving closed-end loan, a Last Resort Loan
Deferred Loan program, a Mobile home Improvement Loan Program, a 1-12 Unit Multi Family program and a Commercial Loan program.
Minimum: 1 Year
Maximum: 20-years
Generally, one year per $1,000 borrowed
* No prepayment penalties apply
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
requested loan amount, the borrower must obtain the
additional funds and show verification of the
additional funds in order to be approved for the loan.
ACTIVE OCTOBER 13, 2015
Closed End (Revolving Rehab)
Minimum: $1,000
Maximum: $50,000
4.5%
Amortizing - Closed-end: requires borrowers to make
monthly payments of Principal and Interest
This Program is intended to address the home
improvement financing needs of eligible homeowners
residing in the City of Fridley
Page 6 of 11
City of Fridley HRA LOAN PROGRAM REVIEW - 2015 / 2016
October 29, 2015
Draft " Last Resort " Emergency Deferred Mobile Home Improvement Program Multi Family Exterior
Improvement Loan Commercial Loan Program
Closed End (Revolving Rehab)
Eligible Borrowers
All borrowers must be a legal resident 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
* Properties held in a contract-for-deed, or equivalent security
for mobile homes, are eligible as long as both parties, the
purchaser and seller, both sign the mortgage and the contract for
deed holder signs a letter giving their approval of the project.
All borrowers must be a legal resident 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
Applicants can be in the form of:
*Sole proprietorship (schedule"C"). Sole-proprietors are
required to be personal guarantors of the loan.
*LLC
*C-Corp
*Partnerships
*Non-Profit
All businesses must be registered with the Minnesota
Secretary of State.
* Contracts-for-Deed are eligible as long as both parties,
the purchaser and seller, both sign the mortgage and the
contract for deed holder signs a letter giving their
approval of the project.
In-Eligible Borrowers
* Foreign Nationals
* Non-Occupant Co-Borrowers
* Non-real person entities (such as Partnerships,
Corporations, Trusts, etc.)
* Properties held in a Contract-for-deed
* Foreign Nationals
* Non-Occupant Co-Borrowers
* Non-real person entities (such as
Partnerships, Corporations, Trusts, etc.)
* Properties held in a Contract-for-deed
(POSSIBLE CHANGE: Contracts-for-Deed are
eligible as long as both parties, the purchaser
and seller, both sign the mortgage and the
contract for deed holder signs a letter giving
their approval of the project.)
Businesses not registered with the Minnesota
Secretary of State
Eligible Properties 1-4 unit residential properties located with the geographical
boundaries of the City of Fridley.
Residential mobile homes located with the geographical
boundaries of the City of Fridley.
2-4 unit residential properties located within the
City of Fridley
* Commercially zoned Properties located within the City
of Fridley.
*The Fridley HRA or its designee will review all project
proposals to determine the approved Location
In-Eligible Properties
*Non-owner occupied (aka Absentee Owned)
*Dwellings with more than 4 units
*Co-ops
(* Mobile Homes )
*Manufactured homes
*Time shares
* Properties used for commercial purposes
* Properties held in the name of a trust
*Non-owner occupied (aka Absentee Owned)
*Dwellings with more than 2 units
*Co-ops
*Manufactured homes
*Time shares
* Properties used for commercial purposes
* Properties held in the name of a trust
* Dwellings with more than 4 units
*Co-ops
(* Mobile Homes)
*Manufactured homes
*Time shares
* Properties used for commercial purposes
* Properties held in the name of a trust
* As determined by the City of Fridley HRA prior to loan
approval by CEE.
* Non Commercially zoned properties
* Mixed use properties Commercial & Residential
Ownership/Occupancy Owner Occupied Owner Occupied Owner Occupied /
Absentee Owned
*Applicants must be owners of the property.
1-4 unit residential properties located with the
geographical boundaries of the City of Fridley.
*Non-owner occupied (aka Absentee Owned)
*Dwellings with more than 4 units
*Co-ops
(* Mobile Homes)
*Manufactured homes
*Time shares
* Properties used for commercial purposes
* Properties held in the name of a trust
All borrowers must be a legal resident 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
Owner Occupied
* Foreign Nationals
* Non-Occupant Co-Borrowers
* Non-real person entities (such as Partnerships, Corporations, Trusts, etc.)
* Properties held in a Contract-for-deed
Page 7 of 11
City of Fridley HRA LOAN PROGRAM REVIEW - 2015 / 2016
October 29, 2015
Draft " Last Resort " Emergency Deferred Mobile Home Improvement Program Multi Family Exterior
Improvement Loan Commercial Loan Program
Closed End (Revolving Rehab)
Loan-to-Value Not Greater Than 125%115%115%
Maximum 115%
Value is based on current county property tax statement
OR a commercial appraisal (provided by the applicant)
less than 12-months old as of the date of application.
Less than 115% of current HUD based on household size No Income Limits No Income Limits
Applicants must provide the following documentation:
*Most recent 2-years Federal tax returns for the
business
*A year-to-date P&L statement
Debt-to-Income Ratio NA Max 50%Max 50%
Applicants must demonstrate their ability to repay the
loan through a current profit and loss statement,
including a cash flow analysis is that reflects income is
sufficient to cover the loan payments before
depreciation.
Multiple Loans per
Property/Borrower
More than one last Resort Emergency Loan is permitted based
upon the availability of funds and the borrower’s ability to
qualify. The cumulative outstanding balance of all Fridley
emergency loans on the property, including cannot exceed the
maximum loan amount of $10,000.
More than one loan per household/property is permitted based
upon the availability of funds and the borrower’s ability to qualify.
The cumulative outstanding balance of all Fridley Mobile Home
Loans on the property cannot exceed $10,000.
More than one loan per property is permitted
based upon the availability of funds and the
borrower’s ability to qualify. The cumulative
outstanding balance of all Fridley Multi Family
Program Loans on the property cannot exceed
THE MAXIMUM Loan Amount CURRENTLY
$50,000. or
More than one loan per property is permitted based
upon the availability of funds and the borrower’s ability
to qualify. The cumulative outstanding balance of all
Fridley Commercial Program Loans on the property
cannot exceed THE MAXIMUM Loan Amount.
Eligible Improvements
* Eligible improvements will be determined through a required
analysis of the emergency condition of the property. CEE’s
Rehabilitation Counselor will perform the analysis to
determine the severity of the situation and whether the
intended improvement is an emergency. An emergency is
defined as a condition that makes a house uninhabitable,
extremely dangerous to the occupants, or is capable of causing
severe health problems. * Property Emergency
Inspection Fees Apply and will be Invoiced to the City .
Most Interior and Exterior improvements
* Improvements that correct City code violations
* Improvents to the exterior of residential
structures including but not limited to: siding,
painting, exterior windows & doors, and tuck
pointing.
* The City of Fridley HRA will review and approve
projects to determine eligibility. Most Interior and Exterior
115%
NA
Max 50%
More than one loan per household/property is
permitted based upon the availability of funds and the
borrower’s ability to qualify. The cumulative
outstanding balance of all Fridley loans on the
property, including deferred loans cannot exceed
$50,000
* All income must be derived from within the United States.* All income must be derived from within the United States.
Income Limits/
Requirements
Page 8 of 11
City of Fridley HRA LOAN PROGRAM REVIEW - 2015 / 2016
October 29, 2015
Draft " Last Resort " Emergency Deferred Mobile Home Improvement Program Multi Family Exterior
Improvement Loan Commercial Loan Program
Closed End (Revolving Rehab)
Ineligible Improvements
Work initiated before the loan has been approved and closed.
Recreational items including gazebos, pools, hot tubs, saunas,
lawn sprinklers, play ground equipment; Furniture and non
permanent appliances; Funds used for working capital, debt
management, or to refinance existing loans; Personal property
items, and repairs to property used for business or trade
purposes. Funds cannot be used to rent or purchase equipment
needed to complete the project.
Work initiated before the loan has been approved and closed.
Recreational items including gazebos, pools, hot tubs, saunas,
lawn sprinklers, play ground equipment; Furniture and non
permanent appliances; Funds used for working capital, debt
management, or to refinance existing loans; Personal property
items, and repairs to property used for business or trade purposes.
Funds cannot be used to rent or purchase equipment needed to
complete the project.
Work initiated before the loan has been approved
and closed. Recreational items including gazebos,
pools, hot tubs, saunas, lawn sprinklers, play
ground equipment; Furniture and non permanent
appliances; Funds used for working capital, debt
management, or to refinance existing loans;
Personal property items, and repairs to property
used for business or trade purposes. Funds cannot
be used to rent or purchase equipment needed to
complete the project.
Improvements not approved by the City of Fridley
Sweat
Equity/Homeowner
Labor
Sweat equity is not permitted in this program
Work can be performed on a “sweat equity” basis. Loan funds
cannot be used to compensate for labor, only for materials. The
homeowner must demonstrate to CEE that they have the ability to
complete the work within the program time requirement.
Materials must be purchased and installed prior to the
disbursement of the loan proceeds. When applicable, a signed city
permit must be obtained.
Sweat equity is not permitted in this program Sweat equity is not permitted in this program
PRE Property Inspection
A property inspection will be performed by a CEE
representative prior to the loan closing to determine that the
project is an emergency as defined by the description in eligible
improvements.
None None None
Post-Install Inspection
Contractors/ Permits
Bids
* 1 bid is required. Bids must detail the scope of the
work to be completed, the associated cost(s) and any
rebates.
* Prior to applying for the loan with CEE, applicants must
first submit their project to the City of Fridley HRA
council for approval.
The Fridley HRA will review the documentation and
provide written project approval which the applicant
needs to provide to CEE prior to loan approval.
The proposed work reflected on the bid must match the
project approval provided by the Fridley HRA. All
contractors must be properly licensed, as required by
the city of Fridley.
Work can be performed on a “sweat equity” basis.
Loan funds cannot be used to compensate for labor,
only for materials. The homeowner must
demonstrate to CEE that they have the ability to
complete the work within the program time
requirement. Materials must be purchased and
installed prior to the disbursement of the loan
proceeds. When applicable, a signed city permit must
be obtained.
None
Work initiated before the loan has been approved and
closed. Recreational items including gazebos, pools,
hot tubs, saunas, lawn sprinklers, play ground
equipment; Furniture and non permanent appliances;
Funds used for working capital, debt management, or
to refinance existing loans; Personal property items,
and repairs to property used for business or trade
purposes. Funds cannot be used to rent or purchase
equipment needed to complete the project.
Prior to the release of loan proceeds, the property is subject to inspection by a CEE inspector or, where a permit is
required, work must be signed off by a City inspector. Prior to the release of loan proceeds, the property is subject to inspection by a CEE inspector or, where a permit is required, work must be signed off by a City inspector.
Contractors must be properly licensed to work in the City of Fridley. Permits must be obtained when required by city ordinance.
1 bid is required. Bids must detail the scope of the work to be completed, the associated cost(s) and any rebates. 1 bid is required. Bids must detail the scope of the work to be completed, the associated cost(s) and any rebates.
Contractors must be properly licensed to work in the City of Fridley. Permits must be obtained when required by city
ordinance.
Page 9 of 11
City of Fridley HRA LOAN PROGRAM REVIEW - 2015 / 2016
October 29, 2015
Draft " Last Resort " Emergency Deferred Mobile Home Improvement Program Multi Family Exterior
Improvement Loan Commercial Loan Program
Closed End (Revolving Rehab)
Work Completion
All work must be completed within 30 days of the loan closing.
However, when warranted, CEE may authorize extensions on a
case by case basis as warranted.
Underwriting
Applicants will be evaluated on a first-come first-served basis.
Applicant's must not be able to qualify for any other financing
to be eligible for the Emergency Last Resort Program. In
addition, applicants must also:
* Be current on all mortgage payments
* Be current on all real estate taxes and assessments
* Not have any unpaid judgments or liens
* Have a pending Bankruptcy or foreclosure
Applicants will be evaluated on a first-come first-served basis and
will be offered loan terms that are most favorable based on the
applicants unique situation. In addition to CEE's standard
underwriting criteria, applicants must:
* Not have any payments more than 60-days late in the past 12
months;
* No Bankruptcy in the past 18 months(without reasonable
explanation)
* Be current on all mortgage payments
* Be current on all real estate taxes
* Any liens or judgments against the property must be used in the
TLTV calculation
Applicants will be evaluated on a first-come first-
served basis and will be offered loan terms that
are most favorable based on the applicants
unique situation. In addition to CEE's standard
underwriting criteria, applicants must:
* Not have any payments more than 60-days late
in the past 12 months;
* No Bankruptcy in the past 18 months (without
reasonable explanation)
* Be current on all mortgage payments
* Be current on all real estate taxes
* Any liens or judgments against the property
must be used in the TLTV calculation
1) No Bankruptcy within past 18 months (without
reasonable explanation), as disclosed in the O&E
report
2) Any judgments / collections / liens against the
property, as disclosed in the O&E report, must be
included in the TLTV calculation.
3) Real-estate taxes for the property must be current
4) A business Creditsafe Report will be used to evaluate
the business history & credit rating
Disbursement of Funds
Funds are held by CEE in a non-interest bearing account and
payment is made to the contractor (or owner in sweat equity
situations) upon completion of work.
An inspection will be performed by the City and/or CEE to verify
satisfactory completion of the work. The following items (and
any additional as determined by CEE) must be received prior to
final disbursement of funds:
1. Final invoice from contractor (or materials list from supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit, where applicable
Funds are held by CEE in a non-interest bearing account and
payment is made to the contractor (or owner in sweat equity
situations) upon completion of work.
An inspection will be performed by the City and/or CEE to verify
satisfactory completion of the work. The following items (and any
additional as determined by CEE) must be received prior to final
disbursement of funds:
1. Final invoice from contractor (or materials list from supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit, where applicable
Funds are held by CEE in a non-interest bearing
account and payment is made to the contractor
(or owner in sweat equity situations) upon
completion of work.
An inspection will be performed by the City and/or
CEE to verify satisfactory completion of the work.
The following items (and any additional as
determined by CEE) must be received prior to final
disbursement of funds:
1. Final invoice from contractor (or materials list
from supplier)
2. Final inspection verification by CEE (if
necessary)
3. Completion certificate(s) signed by borrower
and contractor
4. Lien waiver for entire cost of work and
Funds are held by CEE in a non-interest bearing account
and payment is made to the contractor (or owner in
sweat equity situations) upon completion of work.
An inspection will be performed by the City and/or CEE
to verify satisfactory completion of the work. The
following items (and any additional as determined by
CEE) must be received prior to final disbursement of
funds:
1. Final invoice from contractor (or materials list from
supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and
contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit, where applicable
Loan Servicing
All work must be completed within 120 days of the
loan closing. However, when warranted, CEE may
authorize extensions on a case by case basis as
warranted.
All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize extensions on a case by case basis as warranted.
CRF = Community Reinvestment Fund will process all loan repayments CRF = Community Reinvestment Fund will process all loan repayments
Funds are held by CEE in a non-interest bearing
account and payment is made to the contractor (or
owner in sweat equity situations) upon completion of
work.
An inspection will be performed by the City and/or CEE
to verify satisfactory completion of the work. The
following items (and any additional as determined by
CEE) must be received prior to final disbursement of
funds:
1. Final invoice from contractor (or materials list from
supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and
contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit, where applicable
Applicants will be evaluated on a first-come first-
served basis and will be offered loan terms that are
most favorable based on the applicants unique
situation. In addition to CEE's standard underwriting
criteria, applicants must:
* Not have any payments more than 60-days late in
the past 12 months;
* No Bankruptcy in the past 18 Months (without
reasonable explanation)
* Be current on all mortgage payments
* Be current on all real estate taxes
Page 10 of 11
City of Fridley HRA LOAN PROGRAM REVIEW - 2015 / 2016
October 29, 2015
Draft " Last Resort " Emergency Deferred Mobile Home Improvement Program Multi Family Exterior
Improvement Loan Commercial Loan Program
Closed End (Revolving Rehab)
Residential Advisor Visit
("RAV")CEE will assist any residential property owner in the City of Fridley
with assistance in prioritizing and evaluating improvements to
their property through a home visit. This service is available
regardless of whether the homeowner chooses to obtain a loan.
Prepared August 2015 by Nate Phelps Center for Energy and Environment Lending Center (612) 335 5881 nphelps@mncee.org 212 3rd Ave N Suite 560 Minneapolis, MN 55401
RAV's TBD
CEE will assist any residential property owner in the City of Fridley with assistance in prioritizing and evaluating
improvements to their property through a home visit. This service is available regardless of whether the homeowner
chooses to obtain a loan.
Page 11 of 11