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7. Loan Security: The loan will be secured with a mortgage in favor of the EDA. <br />8. Credit / Underwriting Requirements: All mortgages and property taxes must be <br />current. No outstanding judgements, liens or pending Bankruptcy or Foreclosure. <br />9. Debt-to-Income Ratio: None <br />10. Eligible Borrowers: All borrowers must be legal residents of the United States, as <br />evidenced by a social security number, including U.S. citizens, permanent resident <br />aliens and non-permanent resident aliens. Individual Tax identification numbers are <br />not acceptable. At least one borrower must be at least 62 years of age. <br />11. Ineligible Borrowers: Applicants with no ownership interest, business entities, <br />foreign nationals and non-occupant co-borrowers <br />12. Eligible Properties: All 1-4 unit owner-occupied properties located within the <br />geographical boundaries of the City of Brooklyn Park. Condominiums and townhomes <br />are eligible for this program if their individual unit’s interior is not covered by the <br />owner’s association as stated in the association by laws. Properties held in a trust or <br />contract for deed are eligible. <br />13. Ineligible Properties: Non-owner-occupied, properties with more than 4 units, co- <br />operatives, mobile homes and properties used for commercial purposes. <br />14. Eligible Improvements: CEE shall perform an inspection to determine project <br />eligibility and prioritization. If there are no health, safety or code violations the <br />borrower may use the funds for any permanent exterior or interior improvements. <br />15. Ineligible Improvements: No saunas, whirlpools, furniture, skylights, non-built-in <br />appliances (unless part of a kitchen remodel), or funds for working capital, debt service <br />or refinancing existing debts are allowed. CEE will refer to City Staff whenever <br />eligibility of an improvement project is questionable. <br />16. Sweat Equity: Work may be performed by property owners on a "sweat equity" basis. <br />Loan funds may be used only for the purchase of materials. Loan funds cannot be <br />used to compensate for labor, only for materials. Materials must be purchased and <br />installed prior to the disbursement of the loan proceeds. When applicable, a signed <br />city permit must be obtained. <br />17. Bids/Contractors: 1 contract bid required. All contractors must be properly licensed <br />and registered with the Minnesota Department of Labor (if applicable). Permits must <br />be obtained where required by the City of Brooklyn Park. <br />18. Multiple Loans: More than one loan per household/ property is permitted based upon <br />the availability of funds and the borrower’s ability to qualify. The cumulative <br />outstanding balance of all Senior Deferred Loans can not exceed the program <br />maximum loan amount. The cumulative outstanding balance of all Brooklyn Park <br />loans cannot exceed $50,000. <br />19. Post Install Inspection: Prior to the release of loan proceeds, the property is subject <br />to inspection by a CEE representative or, where a permit is required, work must be off <br />by a City inspector. <br />20. Disbursement of Funds: Funds are held by CEE and payment is made to the <br />contractor upon completion of work. An inspection will be performed by the City and/or <br />CEE to verify completion of the work. The following items (and any additional as <br />determined by CEE) must be received prior to disbursement of funds: <br />a. Final invoice from contractor (or receipts from supplier)) <br />b. Final inspection verification by CEE (if necessary)