8.1. HRSR 08-03-2020 - Laserfiche WebLink

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BLIGHTED PROPERTIES DEMOLITION & FORGIVABLE RESIDENTIAL LOAN PROGRAM POLICY INTRODUCTION PURPOSE/BACKGROUND: The city of Elk River Housing and Redevelopment Authority (HRA) has developed a program to meet the untapped need for assistance with demolition and other redevelopment activities when either there is no current development plan or where future development visions are hindered by current blight. In some cases, despite a potential for future redevelopment,hazardous conditions or other public safety factors may become a community's immediate concern. Securing and maintaining vacant dilapidated structures is costly. Therefore,the Elk River HRA has created the Blighted Properties Demolition&Forgivable Residential Loan program to include loan funds for demolition activities when an imminent redevelopment opportunity does not currently exist. FUNDING AVAILABILITY: Available funding amounts vary per budget cycle. DEADLINES/REQUIREMENTS: Applications are due on the first Monday of each month. Completed applications and supporting documentation must be received by the city of Elk River by 4:30 p.m. on the due date to be considered for funding. APPLICATION FEE: The applicant must submit an application fee of$500 plus legal and any other out-of-pocket costs incurred by the HRA at the time of submittal. QUALIFYING PROJECTS: A project qualifies for a loan if the following conditions are met: 1.Upon completion of the proposed project,the structures on the property will be owner- occupied dwellings that align with the surrounding neighborhood. The dwelling will include at a minimum 1600 finished square feet with 2 bedrooms and 1.5 baths and a two-car garage; 2.The current structures constitute a threat to public safety because of inadequate maintenance, dilapidation, obsolescence, or abandonment; 3.Upon completion of the demolition,the HRA reasonably expects that the property will be improved and these improvements will result in redevelopment benefits to the municipality. 4.The structure must be defined per MN State Statue 117.025, Subdivision 7 as "structurally substandard". "Structurally substandard" means a building: (1) that was inspected by the local government and cited for one or more enforceable housing, maintenance, or building code violations; (2) in which the cited building code violations involve one or more of the following: (i) a roof and roof framing element; (ii) support walls, beams, and headers; (iii) foundation, footings, and subgrade conditions; (iv) light and ventilation; (v) fire protection,including egress; (vi) internal utilities,including electricity,gas, and water; 1 498470v2 JS13 ELI 85-13