8.1. HRSR 06-01-2020 - Laserfiche WebLink

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Loan proceeds shall be disbursed for eligible demolition costsDemolition Costs as incurred5. or paid by the borrower and upon submission of invoices and other supporting documentation satisfactory to the commissionExecutive Director. FORGIVENESS: The HRA will forgive the principal of the loan and interest accrued but unpaid thereonon the loan 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. upon the submission to the HRA’s Executive Director of: (i) a certificate of occupancy is issued by the City for the property; and (ii) a signed certificate from the first owner of the property certifying that the property will be owner-occupied and the property will qualify for homestead designation. In addition, the Borrower must receive a certificate of occupancy for the new building within 1 year from demolition. If the above conditions are not met, the loan will be due and payable in full. 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 andEXPECTED VALUE UPON COMPLETION: The applicant must submit evidence of the current assessed value of the property and the projected assessed valuesvalue of the property upon completion 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 priorities that the HRA must consider. Awards are based on the availability of funds. SIMULTANEOUS MICROLOANS The simultaneous use of different HRA microloan programs by any one borrower or for any one project is prohibited. CALL OF LOAN A loan shall become due and payable in full if the owner-occupant relocates outside of the city of Elk River prior to the maturity date of the loan. COST OF REVIEW The applicant will be responsible for all legal, recording, and other fees required for protection of a security interest in the loan, payable by a $500 processing fee, which is paid at the time of application, plus legal and any other out-of-pocket costs incurred by the HRA. In addition to the processing fee, all legal and filing fees shall be paid by the borrower at loan closing. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL All applicants shall first contact a primary lending institution which will be assisting with1. the financing of the overall project. 3 498470v2 JSB EL185-13