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<br /> <br /> <br />6.Loan proceeds shall be disbursed for eligible demolition costs as incurred or paid by the <br />borrower and upon submission of invoices and other supporting documentation <br />satisfactory to the commission; <br /> <br />FORGIVENESS: <br />The HRA may forgive the principal of the loan and interest accrued but <br />unpaid thereon, if any, up to 50 percent of the original loan amount, not to exceed the costs of <br />demolition, upon completion of the project. The applicant is eligible to request forgiveness after <br />5 years of maintaining the property as an owner occupied dwelling. The applicant must submit a <br />formal request for loan forgiveness to the HRA. <br /> <br />REQUIRED APPRAISALS OR ASSESSMENTS: <br />Land appraisals of the current (as-is) <br />and expected (pre-construction) value of the site are required so that the HRA can determine <br />the fair market value. 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 <br />assessed values as determined by the local assessor. Values cannot be determined in any other <br />manner. The value of the property after the proposed development is completed is also <br />requested. <br /> <br />AWARDING LOANS: <br /> The HRA will award loans to projects that provide the highest return <br />in public benefits for the public costs incurred and meet all of the statutory requirements. In <br />order to evaluate the applications for public benefits with respect to the costs incurred, the law <br />specifies priorities that the HRA must consider. Awards are based on the availability of funds. <br /> <br />MODIFICATIONS TO THE POLICY: <br />The HRA has the authority to review and amend or <br />modify The Blighted Properties Demolition and Forgivable Residential Loan program policy <br />and application as deemed appropriate. <br /> <br />PREFERED SCORE: <br />Precedence will be placed on applications which meet a “preferred” <br />score of 75 or more. To fulfill this requirement of reviewing applications in an objective and <br />fair manner, the following criteria have been assigned maximum point values in order to <br />systematically award loans. All assigned scores will be relative to scores awarded to other <br /> <br />applications. <br /> <br /> <br />3 <br /> <br />