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Suitability for Rehabilitation: CMHP must make a determination that a specific home is a <br /> suitable candidate for rehabilitation in order to receive program funding. The determination will <br /> be based on structural viability, after rehabilitation market value, historical significance, cost of <br /> rehabilitation and housing replacement cost. <br /> Nuisance Standards: Homeowners must demonstrate compliance with the City of Elk River's <br /> public nuisance ordinances. Properties improved using program funding must maintain these <br /> standards throughout the life of the program loan or risk repayment, as determined by the HRA. <br /> Housing Replacement Cost: When a home is determined to be unsuitable for rehabilitation due <br /> to economic factors, other factors must be considered before denial of assistance to the <br /> household. These factors include: <br /> • Lack of other housing alternatives <br /> • Cost of relocation <br /> • Expense of housing alternatives <br /> • Abnormal low market values due to depressed market <br /> 7. FINANCING TERMS &AMOUNTS <br /> Loan rates: Loan rates escalate depending on amount of loan. 5 year loan will be set 2% below <br /> prime rate, 10 year loan will be set 1% below prime rate, and 15 year loan will be set at prime <br /> rate. All prime rates will be calculated on the date of bid opening. <br /> • $5,000 to$10,000 must be 5 year loan <br /> • $10,001 to $20,000 must be 5 or 10 year loan <br /> • $20,001 to $25,000 can be 5, 10 or 15 year loan <br /> Owners match: Projects can be above $25,000 but owners are required to cover remaining cost. <br /> 8. ELIGIBLE/INELIGIBLE REHABILITATION ITEMS <br /> Loans are only allowed to address certain rehabilitation items. Rehabilitation items will be <br /> discussed with applicants during the initial property inspection. Eligible rehabilitation items <br /> include: <br /> • Removal of health, safety and/or other hazards to bring the structure into compliance with <br /> the property rehabilitation standards used by CMHP. For example: electrical outlet <br /> replacement, smoke/CO detectors, lead based paint remediation, etc. NOTE: these are <br /> required if applicable to the project. <br /> • Improvement/replacement of roofing, siding, plumbing, water supply, septic systems or <br /> wiring may be eligible for repair <br /> • Improvement of the structure's energy efficiency. For example: increasing <br /> insulation, installing new windows and doors <br /> 4 <br /> 4431140 MJM EL 185-26 <br />