8.1. HRSR 02-03-2020 - 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 substandard” in the form of a property inspection report. Commented \[FGA1\]: Amanda, could the City property inspector perform the inspection for a fee to be reimbursed by the applicant or do you want the applicant to hire a third party? ELIGIBLE APPLICANTS: Eligible applicants for this program must be either:must be the 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 demolition of the structure. Commented \[FGA2\]: Does the builder need to have 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. Commented \[WU3\]: Refer to attorney? Is this necessary? 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. Commented \[WU4\]: Require two bids “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: Commented \[WU5\]: Stopped Here 1/6/2020 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.board of commissioners. Commented \[FGA6\]: Who’s obligated the repay? The property owner (current or future) or the contractor? I’ve assumed the 2. The loan shall bear interest at a rate equal to two three percent; property owner. 3. If the property owner ceases to occupy the property as his/her/their primary residence be occupied as a primary residence or is offered for rent prior to Does the HRA currently require any mortgage or other document the fifth anniversary of the closing date, the property owner will immediately repay the securing the loan? If so, is the mortgage on the property? What if principal amount of the loan and accrued interest to the date of repayment; the builder obtains the loan? Maybe this is treated as a grant. 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. Commented \[FGA7\]: Are there any design requirements other than meeting zoning requirements? 5.6. If the applicant is a builder, upon sale of the property, the future property owner agreeswill enter into an agreement to pay back the loan if the property is not owner-occupied for five years. Commented \[FGA8\]: One option would be to have the property ineligible for a city rental license until any outstanding debt is repaid. 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 2 498470v2 JSB EL185-13