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<br />Exhibit A19 #2860 Page 9 <br />Agreement between the City of Coon Rapids and Center for Energy and Environment <br /> <br />Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt <br />to income ratio in excess of 50% will be ineligible to receive financing. <br /> <br />Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments <br />history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be <br />current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at <br />least 18 months prior to loan closing (without reasonable explanation). 5) The redemption period on <br />prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) <br />Generally, no more than two 60-day late payments on credit report (without reasonable explanation. 7) <br />No defaulted government loans. <br /> <br />Multiple Loans per Property/Borrower: More than one loan per property/borrower is allowed, <br />however, the outstanding balance(s) of all city loans cannot exceed $50,000. <br /> <br />Eligible Use of Funds: Borrowers must obtain a Participation Agreement with the city. Eligible value <br />added improvements include additions, conversion of unfinished space (including garage), covered front <br />entry porch and/or enclosed entry and major remodeling of kitchens, bathrooms and basements. Other <br />types of improvements are also eligible as long as at least one of the value added improvements listed <br />above is included in the scope of work. The minimum project cost is $35,000. <br /> <br />Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless <br />due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, <br />saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), <br />and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT <br />allowed. <br /> <br />Bids: Only 1 bid is required. All contractors must be properly licensed and permits must be obtained <br />when required. <br /> <br />Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” <br />basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent or <br />buy tools/equipment or compensate for labor. <br /> <br />Post Installation Inspection: Permits must be obtained and signed off by a City inspector where <br />required; when not required, a post installation inspection will be performed by CEE to ensure the work <br />has been completed before any funds will be released. <br /> <br />Loan Security: All loans will be secured with a mortgage in favor of the City of Coon Rapids. Borrower <br />will pay all applicable title and filing fees. <br /> <br />Borrower Fees: Borrower will be responsible for a 1% origination Fee, $50 document preparation fee, <br />mortgage filing and service fees, flood certificate, credit report fees and any applicable closing fee which <br />may be financed in the loan amount. <br /> <br />Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans <br />based on a credit report, income verification and other criteria as deemed necessary through CEE’s <br />underwriting guidelines. CEE’s decision shall be final.