8.1 HRSR 05-04-2015 - Laserfiche WebLink

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Housing and Redevelopment Authority (HRA) DEMOLITION LOAN CRITERIA The purpose of the HRA Demolition Loan Program is to provide loans to demolish blighted single-family, duplex or commercial properties in Elk River. Loan Amount The HRA loan (“Loan”) may be up to $15,000 and be evidenced by a Promissory Note (“Note”) in favor of the HRA. Loan Security The Note will be secured by a mortgage on the Applicant’s Property (“Property”) in favor of the City (“Mortgage”). The Mortgage may be subordinate in position behind the Applicant’s first mortgage on the Applicant’s Property. Interest Rate The interest rate shall be a fixed rate at 3%. The monthly payment shall be fixed at time of Closing. Loan Term The maximum term of any Loan shall be 10 years; however, the Loan shall become due upon sale, transfer of title, death or refinancing of the Applicant’s first mortgage, whichever occurs first. Loan Documents All Loan Documents, including the Note and Mortgage shall be in a form and substance acceptable to the HRA. Eligible Properties Elk River single-family, duplex or commercial properties that qualify as blighted. See the Blight Qualification standard below. Demolition Bids Applicants are encouraged to first consider the Elk River Fire Department's house burning/training program demolition option. If that option is not feasible, applicants must obtain three demolition bids. The demolition contractor will be required to obtain all necessary City permits, pay applicable fees and provide for appropriate handling and abatement of any hazardous materials encountered. All contractors must be licensed and insured. Blight Qualification (for Demolition Loan Only) Once an Applicant’s application is received, Elk River Code Enforcement/Housing Inspector will arrange, by appointment, an inspection of the applicable property of the Home/Commercial Building to establish if the Property is in a blighted condition according to the City’s criteria (“Blighted Condition”). In addition, the inspector will make a determination as to the potential presence of hazardous materials on the property and will obtain a statement from the Applicant about any knowledge of the property's use for production, storage, deposit, or disposal of any toxic or hazardous wastes or substances or asbestos products whatsoever, during the time the Applicant owned the property and before the date the Applicant purchased the property. If a property satisfies the City’s criteria for Blighted Condition, the application process can continue. If the property does not meet the City’s criteria of Blighted Condition, the City will notify the Applicant in writing indicating the reasons why the property cannot be considered as being in a Blighted Condition. 181302v1 3