7.4. HRSR 02-07-2022 - Laserfiche WebLink

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14. Debt-to-Income Ratio for Business Entities: None, but the business must have been in business for at least one year and show positive cash flow on the most recent Federal Tax Return. If a tax return hasn’t been filed and a Profit & Loss Statement and Budget must be provided along with the current Lease and verification that rent is being received (1 month verification). 15. Eligible Borrowers: All borrowers must be either a legal resident of the United States, as evidenced by a social security number, including U.S. citizens, permanent resident aliens and non-permanent resident alien OR a registered business with the MN Secretary of State. Borrower must not own more than 30 units in the City of Brooklyn Park. 16. Ineligible Borrowers: Homeowner Associations, applicants with no ownership interest, illegal residents or business entities not registered with the MN Secretary of State. Borrowers that own more than 30 units in the City of Brooklyn Park. 17. Eligible Properties: All 1-16 unit licensed rental properties used for residential purposes located within the City of Brooklyn Park. Individual condominium and townhome units are eligible. Properties held in a trust or Contract for Deed are eligible. 18. Ineligible Properties: Properties with more than 16 units, co-operatives, mobile homes and properties used for commercial purposes. 19. Eligible Improvements: Permanent interior and exterior improvements including, but not limited to: kitchen and bath remodel, roofing/gutters, siding, window/door replacement, plumbing (including sprinkler systems), electrical, energy star rated appliances, HVAC, water heating, painting, flooring, insulation, solar and improvements to common and play areas. 20. Ineligible Improvements: No swimming pools, hot tubs, saunas, whirlpools, furniture or funds for working capital, debt service or refinancing existing debts are allowed. CEE will refer to City Staff whenever eligibility of an improvement project is questionable. Improvements required to be done by a Homeowner Association. 21. Sweat Equity: Work may be performed by property owners on a "sweat equity" basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to compensate for labor or the rental or purchase of equipment needed to complete the project. Materials must be purchased and installed prior to the disbursement of the loan proceeds. When applicable, a signed city permit must be obtained. 22. Bids/Contractors: 1 contract bid required. All contractors must be properly licensed and registered with the Minnesota Department of Labor (if applicable). Permits must be obtained where required by the City of Brooklyn Park. 23. Multiple Loans: Only one Rental Rehabilitation Loan may be open at any time. 24. Post Install Inspection: Prior to the release of loan proceeds, the property is subject to inspection by a CEE representative or, where a permit is required, work must be off by a City inspector. 25. Disbursement of Funds: Funds are held by CEE and payment is made to the contractor upon completion of work. Down-payments may be made to the Contractor or Borrower on a case by case basis as approved by the City. An inspection will be performed by the City and/or CEE to verify completion of the