8.1. HRSR 01-06-2020 - Laserfiche WebLink

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(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. (4)(5) Applicants must submit evidence that the property is “structurally Comment \[FGA1\]: Amanda, could the City substandard” in the form of a property inspection report. property inspector perform the inspection for a fee to be reimbursed by the applicant or do you want the ELIGIBLE APPLICANTS: Eligible applicants for this program must be either:must be the applicant to hire a third party? owner of the property at the time of the application or before disbursement of funds. 1. An iIndividual who will build, own and occupy a new owner-occupied dwelling following the demolition of the existing structures; or 2. Contractor who will build an owner-occupied home on the property following the Comment \[FGA2\]: Does the builder need to have demolition of the structure. a contract with a future purchaser or just want to build on the property? Property owners, unless licensed in the trade specified, may not put any sweat equity into the demolition or construction of the foundation, wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC systems or interior carpentry. ELIGIBLE PROGRAM COSTS: Tthe 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 Comment \[FGA3\]: Who’s obligated the repay? security subject to review and approval by the HRA commission.board of commissioners. The property owner (current or future) or the 2. The loan shall bear interest at a rate equal to two three percent; contractor? I’ve assumed the property owner. 3. If the property owner ceases to occupy the property as his/her/their primary residence be Does the HRA currently require any mortgage or occupied as a primary residence or is offered for rent prior to the fifth anniversary of the other document securing the loan? If so, is the closing date, the property owner will immediately repay the principal amount of the loan and mortgage on the property? What if the builder obtains the loan? Maybe this is treated as a grant. 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 Comment \[FGA4\]: Are there any design to the commission. requirements other than meeting zoning 5.6. If the applicant is a builder, upon sale of the property, the future property owner agreeswill requirements? enter into an agreement to pay back the loan if the property is not owner-occupied for five Comment \[FGA5\]: One option would be to have years. the property ineligible for a city rental license until any outstanding debt is repaid. 2 498470v2 JSB EL185-13 Formatted: Not Highlight