Laserfiche WebLink
Nuisance Standards: Homeowners must demonstrate compliance with the City of Elk River's <br />public nuisance ordinances. Properties improved using program funding must maintain these <br />standards throughout the life of the program loan or risk repayment, as determined by the HRA. <br />Housing Replacement Cost: When a home is determined to be unsuitable for rehabilitation due <br />to economic factors, other factors must be considered before denial of assistance to the household. <br />These factors include: <br />• Lack of other housing alternatives <br />• Cost of relocation <br />• Expense of housing alternatives <br />• Abnormal low market values due to depressed market <br />7. FINANCING TERMS & AMOUNTS <br />Loan rates: Loan rates escalate depending on amount of loan. 5 year loan will be set 2% below <br />prime rate, 10 year loan will be set 1% below prime rate, and 15 year loan will be set at prime rate. <br />All prime rates will be calculated on the date of bid opening. <br />• $5,000 to $10,000 must be 5 year loan <br />• $10,001 to $20,000 must be 5 or 10 year loan <br />• $20,001 to $25,000 can be 5, 10 or 15 year loan <br />Owners match: Projects can be above $25,000 but owners are required to cover remaining cost. <br />8. ELIGIBLEANELIGIBLE REHABILITATION ITEMS <br />Loans are only allowed to address certain rehabilitation items. Rehabilitation items will be <br />discussed with applicants during the initial property inspection. Eligible rehabilitation items <br />include: <br />• Removal of health, safety and/or other hazards to bring the structure into compliance with <br />the property rehabilitation standards used by CMHP. For example: electrical outlet <br />replacement, smoke/CO detectors, lead based paint remediation, etc. NOTE: these are <br />required if applicable to the project. <br />• Improvement/replacement of roofing, siding, plumbing, water supply, septic systems or <br />wiring may be eligible for repair <br />• Improvement of the structure's energy efficiency. For example: increasing <br />insulation, installing new windows and doors <br />• Modify or rehabilitate the housing unit to make it accessible for a disabled member of the <br />household. Accessibility Improvements may include: structural, exterior, bathroom, <br />kitchen and other improvements necessary to enable a handicapped person to function <br />independently in the residential setting. <br />• Landscaping <br />4431144 MUM EL185-26 <br />