8.2. HRSR 08-05-2019 - Laserfiche WebLink

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2 498470v2 JSB EL185-13 (3) in which the cited housing, maintenance, or building code violations have not been remedied after two notices to cure the noncompliance; and (4) has uncured housing, maintenance, and building code violations, satisfaction of which would cost more than 50 percent of the estimated market value for the building, excluding land value. ELIGIBLE APPLICANTS: Eligible applicants for this program must be the owner of the property at the time of the application or before disbursement of funds. ELIGIBLE PROGRAM COSTS: the Blighted Properties Demolition & Forgivable Residential Loan program can pay up to $25,000 of the demolition costs for a qualifying site. “Demolition costs” means the costs of demolition, destruction, removal, and clearance of all structures and other improvements on the project site, including interior remedial activities, and proper disposal thereof. As used in this subdivision, “structure” has the meaning given it in section 116G.03, subdivision 11. Costs incurred before the loan is awarded are not eligible for payment. TERMS: Loans for demolition costs may be made subject to the following terms and conditions: 1. The agreement to repay the loan must be a personal obligation of the property owner, payable primarily from an identified source of income of the property owner, or other security subject to review and approval by the HRA commission. 2. The loan shall bear interest at a rate equal to two percent; 3. If the property owner ceases to occupy the property as his/her/their primary residence prior to the fifth anniversary of the closing date, the property owner will immediately repay the principal amount of the loan and accrued interest to the date of repayment; 4. The principal amount of a loan may not exceed $25,000; 5. 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 will forgive the principal of the loan and interest accrued but unpaid thereon up to 100 percent of the original loan amount, not to exceed the costs of demolition, after 5 years of maintaining the property as an owner occupied dwelling. Upon request from the HRA, the property owner will provide evidence that the property has been owner occupied for 5 years. REQUIRED APPRAISALS OR ASSESSMENTS: Land appraisals of the current (as-is) and expected (post-construction) value of the site are required so that the HRA can determine the fair market value. 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