HR SPECIAL MEETING AGENDA 01-14-2019

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Exhibit A Page 4 Agreement between Elk River HRA and Center for Energy and Environment Post Installation Inspection: : Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by a City of Elk River representative to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the Elk River Housing and Redevelopment Authority. Borrower will pay all applicable title and filing fees, which may be financed in the loan amount. Borrower Fees: Borrower will be responsible for a 1% origination Fee, $50 Document Preparation Fee, mortgage filing and service fees, flood certificate, credit report fees and any other applicable closing costs, all which may be financed in the loan amount. Underwriting Decision: Applicants must have acceptable credit history (see CreditRequirements). CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. CEE shall refer to the Elk River HRA for any questionable situations. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. General Program Conditions Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify. Applicants must provide a completed application package including, but not limited to:  Completed and signed application form  Proof of income  Bids or estimates for proposed projects  Valid Identification  Other miscellaneous documents CEE may require. Program Costs: Loan origination, remodeling advisor visit fees and other administrative fees will be paid out of the Program Budget. Loan program marketing efforts will be billed directly to the City of Elk River Housing and Redevelopment Authority. Should the HRA choose to commission CEE for marketing support it will be a separate expense.. Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a city inspector and/or representative to verify the completion of the work. The following items must be received prior to final disbursement of funds: • Final invoice or proposal from contractor (or materials list from supplier); • Final inspection verification by a City Inspector or representative;