7.7 HRSR 02-01-2016 - Laserfiche WebLink

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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 5 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 is eligible after 5 years of maintaining the property as an owner occupied dwelling.The applicant must submit a formal request for loan forgiveness to the HRA. I REQUIRED APPRAISALS OR ASSESSMENTS: Land appraisals of the current(as-is) F------{Formatted:Indent:Left: 0" i and expected(pre-construction)value of the site are required so that the HRA can determine the fair market value and any business 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 benefits for the public costs incurred and meet all of the statutory requirements. In order to evaluate the applications for public benefits with respect to the costs incurred,the law specifies priorities that the HRA must consider. Awards are based on the availability of funds. MODIFICATIONS TO THE POLICY:The HRA has the authority to review and amend or modify The Blighted Properties Demolition and Forgivable Residential Loan program policy and application as deemed appropriate. PREFERED SCORE:Precedence will placed on applications which meet a"preferred"score of 75 or more.To fulfill this requirement of reviewing applications in an objective and fair manner,the following criteria have been assigned maximum point values in order to systematically award loans. All assigned scores will be relative to scores awarded to other applications. 3