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<br /> <br />BLIGHTED PROPERTIES DEMOLITION & <br />FORGIVABLE RESIDENTIAL LOAN PROGRAM POLICY <br /> <br />INTRODUCTION <br /> <br />PURPOSE/BACKGROUND: The city of Elk River Housing and Redevelopment Authority <br />(HRA) has developed a program to meet the untapped need for assistance with demolition and <br />other redevelopment activities when either there is no current development plan or where future <br />development visions are hindered by current blight. <br /> <br />In some cases, despite a potential for future redevelopment, hazardous conditions or other public <br />safety factors may become a community’s immediate concern. Securing and maintaining vacant <br />dilapidated structures is costly. Therefore, the Elk River HRA has created the Blighted Properties <br />Demolition & Forgivable Residential Loan program to include loan funds for demolition activities <br />when an imminent redevelopment opportunity does not currently exist. <br /> <br />FUNDING AVAILABILITY: Available funding amounts vary per budget cycle. <br /> <br />DEADLINES/REQUIREMENTS: Applications are due on the first Monday of each <br />month. Completed applications and supporting documentation must be received by the city of <br />Elk River by 4:30 p.m. on the due date to be considered for funding. <br /> <br />APPLICATION FEE: The applicant must submit an application fee of $500 plus legal and any <br />other out-of-pocket costs incurred by the HRA at the time of submittal. <br /> <br />QUALIFYING PROJECTS: A project qualifies for a loan if the following conditions are met: <br /> <br />1. Upon completion of the project, the property and structures will be owner-occupied <br />dwellings; <br />2. The structures constitute a threat to public safety because of inadequate maintenance, <br />dilapidation, obsolescence, or abandonment; <br />3. Upon completion of the demolition, the HRA reasonably expects that the property will be <br />improved and these improvements will result in redevelopment benefits to the <br />municipality. <br />4. The structure must be defined per MN State Statue 117.025, Subdivision 7 as “structurally <br />substandard”. "Structurally substandard" means a building: <br />(1) that was inspected by the local government and cited for one or more <br />enforceable housing, maintenance, or building code violations; <br />(2) in which the cited building code violations involve one or more of the following: <br />(i) a roof and roof framing element; <br />(ii) support walls, beams, and headers; <br />(iii) foundation, footings, and subgrade conditions; <br />(iv) light and ventilation; <br />(v) fire protection, including egress; <br />(vi) internal utilities, including electricity, gas, and water; <br />(vii) flooring and flooring elements; or <br />(viii) walls, insulation, and exterior envelope; <br />1 <br />498470v2 JSB EL185-13 <br />