8.1. SR 06-01-2015 - Laserfiche WebLink

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percent or more of the assessor's current year's estimated market value. Loan Structure All Housing and Redevelopment Authority Blighted Properties Forgivable Loans shall be structured as direct loans. Applicant must provide at least 50% of project cost through other means. Equity down payment requirements may vary depending on project and primary lending institution. Blighted Properties Forgivable Loan funds may be used as equity upon approval of primary lending institution The HRA may require additional agreements to be signed by the borrower (i.e. mortgage, promissory note, security agreement, personal guarantees, business subsidy agreement). Other HRA Incentives Projects can combine the Blighted Properties Forgivable Loan with all other incentives (i.e.: Micro Loan Program, Tax Abatement, TIF, etc.) Evaluate Building(s) Existing Condition An evaluation must be conducted to determine if the building(s) is structurally substandard by a licensed structural engineer with experience in inspection and facility assessment projects. Structurally substandard shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors,which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. Deliver a written narrative analysis of the property describing why the property does or does not meet the criteria as "structurally substandard" as established in Minnesota Statutes Section 117.025, subdivision 7. Call of Loan Blighted Properties Forgivable Loan terms are set by the HRA. Projects which don't meet the terms may be required to repay all or a portion of the loan as determined in the loan agreement. A extension may be granted upon review of the Housing and Redevelopment Authority on a case by case basis, except as otherwise required by law. Repayment terms will vary depending on the use of funds and collateral securing the loan. Specific repayment terms will be defined in the loan agreement in the event repayment of part or the entire Blighted Properties Forgivable Loan is required. A loan shall become due and payable in full if a business relocates outside of the city of Elk River prior to the maturity date of the loan or if the jobs created are not maintained for a period of 2 years from the date of closing. VIII. LOAN SECURITY AND GUARANTEES Applicant must secure the loan by providing the HRA with a minimum of a subordinate mortgage upon the building and/or assets or other approved collateral. Blighted Properties Forgivable Loan Policy&Guidelines P D W E H E D D Y Page 4 of 15 4A f U R E