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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 /> FORGIVENESS: 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 /> REQUIRED APPRAISALS OR ASSESSMENTS: 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 /> AWARDING LOANS: 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 /> MODIFICATIONS TO THE POLICY: 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 /> PREFERED SCORE: 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 /> applications. <br /> 3 <br />