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conditions: <br /> 1. The agreement to repay the loan may be a general obligation of the property owner, payable primarily <br /> from a dedicated source of revenue, or other security subject to review and approval by the HRA <br /> commission. <br /> 2. The term of the loan may not exceed 15 years; <br /> 3. The loan shall bear interest at a rate equal to two percent,but interest will not accrue during the first <br /> two years of the loan term. <br /> 4. The property owner shall make monthly payments beginning in the third year of the loan until the end <br /> of the term; <br /> 5. The principal amount of a loan may not exceed$75,000; <br /> 6. Loan proceeds shall be disbursed for eligible demolition costs as incurred or paid by the borrower and <br /> upon submission of invoices and other supporting documentation satisfactory to the commission; <br /> FORGIVENESS: The HRA may forgive the principal of the loan and interest accrued but unpaid <br /> thereon, if any,up to 50 percent of the original loan amount, not to exceed the costs of demolition,upon <br /> completion of the project is eligible after 5 years of maintaining the property as an owner occupied <br /> dwelling. The applicant must submit a formal request for loan forgiveness to the HRA. <br /> REQUIRED APPRAISALS OR ASSESSMENTS: Land appraisals of the current(as-is) and expected <br /> (pre-construction) value of the site are required so that the HRA can determine the fair market value and <br /> any business subsidy. Both appraisals must be done by an independent appraiser using accepted <br /> appraisal methodology. In lieu of an appraisal, the applicant may use the current and projected assessed <br /> values as determined by the local assessor. Values cannot be determined in any other manner. The value <br /> of the property after the proposed development is completed is also requested. <br /> iii <br />