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Request for Action <br />ToItem Number <br />Housing and Redevelopment Authority7.7 <br />Agenda Section Meeting DatePrepared by <br /> <br />General BusinessMay 1, 2017Amanda Othoudt, EDD <br />Item Description <br />Reviewed by <br />HRAFinancial Policy Annual ReviewCal Portner, City Administrator <br />Reviewed by <br /> <br />Action Requested <br /> <br />Consider the changes made to the HRABlighted Properties Commercial/Industrial Forgivable Loan <br />Program and the HRA Blighted Properties Residential Properties Forgivable Loan Program. <br />Background/Discussion <br />Staff, in conjunction with our attorney and financial advisor, rHRA loan <br />programs and policies and made the following changes: <br />Changes to the HRA Blighted Properties Commercial/Industrial Forgivable Loan Progra include: <br />1.Changed loan amount from $75,000 to $74,999. <br />2.Added that the policy requires Entity Guarantees. <br />3.Jobs created must be maintained for a period of 2 years from the benefit dateinstead of the date <br />of closing as defined in Minnesota Statutes, Section 116J.993, Subdivision <br />4.Updated reference to MN Statutes. <br />Changes to the HRA Blighted Properties Residential Properties Fo <br />1.Principal amount of the loan changed from $75,000 to $15,000. <br />2.Application fee increased from $100 to $500 plus legal and any o <br />by the HRA. <br />3.Changes to the general terms of the program allowing a clawback <br />property owner fails to occupy the property as their primary residence for less <br />4.The HRA will forgive the loan principal and interest accrued but unpaid thereon, up to 100 <br />percent of the original loan amount, not to exceed the costs of 5 years of <br />maintaining the property as an owner occupied dwelling. Upon request from the HRA, the <br />property owner will provide evidence that the property has been owner-occupied for 5 years. <br />5.Removed the request for an extension of the loan. <br />Financial Impact <br /> <br />None <br /> <br />Attachments <br />HRA Blighted Properties Commercial/Industrial Forgivable Loan Pr <br />HRA Blighted Properties Residential Properties Forgivable Loan P <br />