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City of Fridley HRA LOAN PROGRAM REVIEW - 2015 / 2016 Program Overview October 29, 2015 Draft " Last Resort " Emergency Deferred Mobile Home Improvement Program Multi Family Exterior Improvement Loan Commercial Loan Program STATUS PENDING JAN 2016 SEE OLD GUIDELINES PENDING JAN 2016 PENDING JAN 2016 PROPOSAL FOR SEPT 2016 Program Intent The intent of the Fridley Last Resort , Emergency Deferred Loan Program is to provide funds to owner-occupants of properties who face emergency home repairs and are unable to obtain funds to repair the problem(s) through traditional funding (loan) sources. With this in mind, applicant’s eligibility for other financing will be analyzed prior to consideration of the Last Resort , Emergency Deferred Loan Program. If the applicant qualifies for other program financing, then the applicant will not be eligible for the Emergency Deferred Loan Program. An Emergency is defined as a condition that makes a house uninhabitable, extremely dangerous to the occupants, or is capable of causing severe health problems. The intent of the Mobile Home loan program is to make low- interest home improvement loans available to Fridley residents to make basic home improvements. The intent of the Multi Family Home Improvement loan program is to make low-interest home improvement loans available to Fridley multi unit property owners to make improvements to their buildings. The intent of the Commercial loan program is to make low-interest loans available to Fridley business owners to make building improvements Interest Rate 0% 4.5%?)4.5%TBD by Fridley HRA : 2 % Amortization Type Deferred Amortizing - Closed-end: requires borrowers to make monthly payments of Principal and Interest Amortizing - Closed-end: requires borrowers to make monthly payments of Principal and Interest Amortizing - Closed-end: requires borrowers to make monthly payments of Principal and Interest Loan Amount Minimum: $500 Maximum: $10,000 Minimum: $ 500 Maximum: $ 10,000 Minimum: $1,000 Maximum: $ 50,000 Minimum: $ 1,000 (TBD by HRA) Maximum: $ 50,000 (TBD by HRA) Total Project Cost/Match It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the requested loan amount, the borrower must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the requested loan amount, the borrower must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the requested loan amount, the borrower must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the requested loan amount, the borrower must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. Term The Deferred Loan is 100% due if the property ownership changes or a time period of 20 years whichever comes first. * No prepayment penalties apply Minimum: 1 Year Maximum: 10-years * Generally 1 year per $1,000 borowed * No prepayment penalties apply Minimum: 1 Year Maximum: 20-years * No prepayment penalties apply Minimum: 1 Year Maximum: 10-years Generally, one year per $1,000 borrowed. Should the Borrower leave the business or move the business from Fridley, the loan will be immediately due and payable in full. * No prepayment penalties apply SEPTEMBER 2015 DRAFT - The City of Fridley Housing and redevelopment Authority has made funds available to improve homes in the City of Fridley. There are 2 programs currently active and 3 under review: a residential revolving closed-end loan, a Last Resort Loan Deferred Loan program, a Mobile home Improvement Loan Program, a 1-12 Unit Multi Family program and a Commercial Loan program. Minimum: 1 Year Maximum: 20-years Generally, one year per $1,000 borrowed * No prepayment penalties apply It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the requested loan amount, the borrower must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. ACTIVE OCTOBER 13, 2015 Closed End (Revolving Rehab) Minimum: $1,000 Maximum: $50,000 4.5% Amortizing - Closed-end: requires borrowers to make monthly payments of Principal and Interest This Program is intended to address the home improvement financing needs of eligible homeowners residing in the City of Fridley Page 6 of 11