7.4 HRSR 08-03-2015 - Laserfiche WebLink

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Eligible Program Costs: The Demolition Loan Program can pay up to 75,000 of the acquisition and demolition costs for a qualifying site. "Demolition costs" means the costs of demolition, destruction,removal, and clearance of all structures and other improvements on the project site,including interior remedial activities, and proper disposal thereof. Terms Loans for acquisition and demolition costs may be made subject to the following terms and conditions: 1. The agreement to repay the loan may be a general obligation of the property owner,payable primarily from a dedicated source of revenue, or other security subject to review and approval by the HRA commission. 2. The term of the loan may not exceed 15 years; 3. The loan shall bear interest at a rate equal to two percent,but interest will not accrue during the first two years of the loan term. 4. The property owner shall make monthly payments beginning in the third year of the loan until the end of the term; 5. The principal amount of a loan may not exceed$75,000; 6. Loan proceeds shall be disbursed for eligible demolition costs as incurred or paid by the borrower and upon submission of invoices and other supporting documentation satisfactory to the commission; Forgiveness The HRA may forgive the principal of the loan and interest accrued but unpaid thereon,if any,up to 50 percent of the original loan amount, not to exceed the costs of demolition,upon completion of the project. Required Appraisals or Assessments Land appraisals of the current (as-is) and expected (pre-construction) value of the site are required so that the HRA can determine the fair market value and any public subsidy. Both appraisals must be done by an independent appraiser using accepted appraisal methodology. In lieu of an appraisal, the applicant may use the current and projected assessed values as determined by the local assessor. Values cannot be determined in any other manner. The value of the property after the proposed development is completed is also requested. Awarding Loans The HRA will award loans to projects that provide the highest return in public benefit for the public costs incurred and meet all of the statutory requirements. A total of 55 points can be received. In order to evaluate the applications for public benefits with respect to the costs incurred, the law specifies priorities that the HRA must consider. 1. The extent to which the existing property conditions threaten public safety. Maximum = 15 points 2. The length of vacancy of the property. Maximum = 5 points. 3. The development potential of the property. Maximum = 10 points 4. The proximity of the property to existing sufficient public infrastructure. Maximum = 5 points. 5. The applicant's financial condition and ability to repay the loan.