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be a problem if the property owner sells or is no longer living there before the 15-year period,as they <br /> • would have to pay back the principal with no interest. Mobile homes are different;the term is 10 <br /> years. Stipulations include a majority of ownership,the taxes current,and the property is covered by <br /> a mortgage. Mobile homes are required to be in a park or on a parcel of land owned by the <br /> applicant. <br /> Mr.Beeman asked what amount Mr.Roberts would recommend for leverage funds,and the timeline <br /> for a funding application. Mr. Roberts stated that regarding the timeline,the pre-application is <br /> normally due in the fall (October/November). If DEED likes the proposal, the HRA would be <br /> invited back to do a full application,and would be notified in May or June whether or not the project <br /> was funded. $400,000- $500,000 is the most that can be applied for,and could be a combination of <br /> owner-occupied,rental and commercial.As for leverage funds,he recommend 10—20 percent of <br /> project cost in leverage funding dollars. He stated that the more leverage funds the HRA or city has <br /> available,the better chance for funding. <br /> Discussion followed regarding the initial steps to determine an area in need, for a possible funding <br /> application. Commissioner Wilson stated that they would need to send out survey to see if there is a <br /> need,and if not,find something else to do. <br /> Mr.Roberts stated that Small Cities funding is very competitive. Often a community will not get <br /> funded the first time,unless there is a great need. Chair Wilson asked how they would decide who <br /> gets funding. Mr.Roberts stated that funds are on a first-come-first-served basis. This is local <br /> decision,not Tri-Cap decision. He stated as an example,if 20 homes are in need of rehab in area of <br /> 80-100 homes,they would likely get funded. He stated that conditions are attached to the funding <br /> and the HRA would need to create set of guidelines that spells out how to identify which applicants <br /> eligible. <br /> Mr.Roberts stated that Tri-Cap recommends a homeowner get 2-3 bids. The HRA could have a <br /> requirement that the homeowner go with the low bid. If they homeowner objected to the low bid, <br /> they could pay the difference themselves. Also,if homeowner would like additional work done,Tri- <br /> Cap asks that the contract finish the project work first and come back later to work directly with <br /> homeowner. <br /> Sometimes contractors ask for partial payment, and Tri-Cap will do that but they will hold back <br /> something to ensure that the work is completed. <br /> Mr. Roberts stated that some communities may decide to do tier system. In a very low income area, <br /> 100% of the work could be covered by the grant;and in a moderate income area,maybe 50%is paid <br /> by the grant and the rest is a low or zero interest loan with the homeowner. Options also include <br /> having a 10 year repayment period, 10%proration per year, or first 5 years have 100 payback. He <br /> explained that there are different ways to do the formula. This is a very valuable consideration when <br /> applying for funding. He stated that homeowners do sell their homes. If homeowner receives grant <br /> and only live for 6 months and decides to sell, they have profited/benefited from grant funds. Local <br /> community will put in deed restriction with payback terms. These funds could be recycled back for <br /> other projects. In commercial situations, funding could be structured with 1/3 the applicant's own <br /> resources; 1/3 a grant at 1%,interest;and 1/3 would be an outright grant. He stated there are many <br /> different variables and considerations. The city officials need to decide what is best fit for <br /> community. <br /> 5. Discuss and Determine which Housing Agency best fits the City's housing needs based on the <br /> • HRA's Housing Goals <br />