HRA Res 2015-10
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY
COUNTY OF ANOKA
STATE OF MINNESOTA
RESOLUTION HRA 2015-10
A RESOLUTION MODIFYING THE COMPREHENSIVE HOUSING
REHABILITATION PROGRAM
BE IT RESOLVED by the Board of Commissioners (the “Commissioners”) of the Housing and
Redevelopment Authority in and for the City of Fridley, Minnesota (the “Authority”) as follows:
Section 1. Recitals.
1.01. The Authority has previously established, by HRA Resolution Nos. 3-1993, 4-1993,
16-1995, 8-1996, 19-1997, 2-1999, 15-2000, 5-2002 and 1-2003 housing rehabilitation programs
(collectively referred to as the “Comprehensive Housing Rehab Program”) that, among other
things, provide for the making of loans funded by the Authority in the City of Fridley.
Section 2. Findings.
2.01. The Authority hereby finds that the Comprehensive Housing Rehab Program promotes
the purposes of the Authority as those purposes are defined in Minnesota Statutes, Section
469.001, et. seq.) (the “Act”).
2.02. The Authority hereby finds that the Comprehensive Housing Rehab Program assists in
the preservation, maintenance, and provision of adequate housing stock, and further finds that
accomplishing this is a public purpose in that there are many residences in the City that require
rehabilitation.
2.03. The Authority hereby finds that to accomplish the goals of the Comprehensive Housing
Rehab Program: (i) the Revolving Rehab Loan Program and the Last Resort Emergency
Deferred Loan Program require changes to make them more attractive to facilitate greater
participation; and (ii) there needs to be established a Mobile Home Improvement Loan Program
to make low interest home improvement loans available to mobile home residents for basic home
improvements; and (iii) there needs to be established a Multi-Family Exterior Improvement Loan
Program to make low interest home improvement loans available to two to four unit property
owners to make improvements to their buildings.
Section 3. Modification of Program.
3.01. The Authority hereby amends the Comprehensive Housing Rehab Program as follows:
(i) Schedule A to this Resolution titled “Revolving Rehab Loan Program” is hereby
approved and adopted and the provisions shall supersede any conflicting provisions
contained in the Comprehensive Housing Rehab Program.
HRA Res. No. 2015-10 Page 2
(ii) Schedule B to this Resolution titled “Last Resort Emergency Deferred Loan
Program” is hereby approved and adopted and the provisions shall supersede any
conflicting provisions contained in the Last Resort Emergency Deferred Loan Program.
(iii) Schedule C to this Resolution titled “Mobile Home Improvement Loan Program”
is hereby approved and adopted.
(iv) Schedule D to this Resolution titled “Multi-Family Exterior Improvement Loan
Program” is hereby approved and adopted.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY THIS 1st DAY OF OCTOBER, 2015.
_________________________________
Lawrence R. Commers, Chairperson
ATTESTED:
________________________________
Walter T. Wysopal, Executive Director
MMB: 4823-2582-9673, v. 1
SCHEDULE A TO HRA RESOLUTION NO. 2015-10
REVOLVING REHAB LOAN PROGRAM
1. Program Intent: This Program is intended to address the home improvement financing
needs of eligible homeowners residing in the City of Fridley.
2. Interest Rate: 4.5%.
3. Amortization Type: Amortizing – Closed-end: requires borrowers to make monthly
payments of Principal and Interest.
4. Loan Amount: Minimum: $1,000; Maximum: $50,000.
5. 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.
6. Term:
Minimum: 1 Year
Maximum: 20 years
Generally, one year per $1,000 borrowed
No prepayment penalties apply
7. Eligible Borrowers: All borrowers must be a legal resident of the United States, as
evidenced by a social security number, including:
U.S. Citizens
Permanent Resident Aliens
Non-Permanent Resident Aliens
Tax identification numbers (ITIN) are not acceptable
Properties held in a contract-for-deed are eligible as long as both parties, the
purchaser and seller, both sign the mortgage and the contract for deed holder signs
a letter giving their approval of the project.
8. Ineligible Borrowers:
Foreign Nationals
Non-Occupant Co-Borrowers
Non-real person entities (such as Partnerships, Corporations, Trusts, etc.)
9. Eligible Properties: 1-4 unit residential properties located with the geographical
boundaries of the City of Fridley.
10. Ineligible Properties:
Non-owner occupied (aka Absentee Owned)
Dwellings with more than 4 units
Co-ops
Mobile Homes
Manufactured homes
Time shares
Properties used for commercial purposes
Properties held in the name of a trust
11. Ownership/Occupancy: Owner Occupied.
12. Loan-to-Value: Maximum: 115%.
13. Income Limits/Requirements: No income limits.
All income must be derived from within the United States.
14. Debt-to-Income Ratio: Max 50%
15. Multiple Loans per Property/Borrower: More than one loan per household/property is
permitted based upon the availability of funds and the borrower’s ability to qualify. The
cumulative outstanding balance of all Fridley loans on the property, including deferred
loans cannot exceed $50,000.
16. Eligible Improvements: Most Interior and Exterior Improvements
17. Ineligible Improvements: Work initiated before the loan has been approved and closed.
Recreational items including gazebos, pools, hot tubs, saunas, lawn sprinklers, play
ground equipment; Furniture and non permanent appliances; Funds used for working
capital, debt management, or to refinance existing loans; Personal property items, and
repairs to property used for business or trade purposes. Funds cannot be used to rent or
purchase equipment needed to complete the project.
18. Sweat Equity/Homeowner Labor: Work can be performed on a “sweat equity” basis.
Loan funds cannot be used to compensate for labor, only for materials. The homeowner
must demonstrate to CEE that they have the ability to complete the work within the
program time requirement. Materials must be purchased and installed prior to the
disbursement of the loan proceeds. When applicable, a signed city permit must be
obtained.
19. Pre-Property Inspection: None.
20. Post-Install Inspection: Prior to the release of loan proceeds, the property is subject to
inspection by a CEE inspector or, where a permit is required, work must be signed off by
a City inspector.
21. Contractors/ Permits: Contractors must be properly licensed to work in the City of
Fridley. Permits must be obtained when required by city ordinance.
22. Bids: 1 bid is required. Bids must detail the scope of the work to be completed, the
associated cost(s) and any rebates.
23. Work Completion: All work must be completed within 120 days of the loan closing.
However, when warranted, CEE may authorize extensions on a case by case basis as
warranted.
2
24. Underwriting: Applicants will be evaluated on a first-come first-served basis and will be
offered loan terms that are most favorable based on the applicant’s unique situation. In
addition to CEE’s standard underwriting criteria, applicants must:
Not have any payments more than 60-days late in the past 12 months;
No Bankruptcy in the past 18 Months (without reasonable explanation)
Be current on all mortgage payments
Be current on all real estate taxes
25. Disbursement of Funds: Funds are held by CEE in a non-interest bearing account and
payment is made to the contractor (or owner in sweat equity situations) upon completion
of work. An inspection will be performed by the City and/or CEE to verify satisfactory
completion of the work. The following items (and any additional as determined by CEE)
must be received prior to final disbursement of funds:
1. Final invoice from contractor (or materials list from supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit, where applicable
MMB: 4826-4898-5385, v. 1
3
SCHEDULE B TO HRA RESOLUTION NO. 2015-10
“LAST RESORT” EMERGENCY DEFERRED LOAN PROGRAM
1. 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.
2. Interest Rate: 0%.
3. Amortization Type: Deferred.
4. Loan Amount: Minimum: $500; Maximum: $10,000.
5. 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.
6. Term: The Deferred Loan is 100% due if the property ownership changes or a time
period of 20 years whichever comes first. The Authority, at its discretion, may extend
the maturity date of the Last Resort Loan.
No prepayment penalties apply
7. Eligible Borrowers: All borrowers must be a legal resident of the United States, as
evidenced by a social security number, including:
U.S. Citizens
Permanent Resident Aliens
Non-Permanent Resident Aliens
Tax identification numbers (ITIN) are not acceptable
Properties held in a contract-for-deed are eligible as long as both parties, the
purchaser and seller, both sign the mortgage and the contract for deed holder signs
a letter giving their approval of the project.
8. Ineligible Borrowers:
Foreign Nationals
Non-Occupant Co-Borrowers
Non-real person entities (such as Partnerships, Corporations, Trusts, etc.)
9. Eligible Properties: 1-4 unit residential properties located with the geographical
boundaries of the City of Fridley.
10. Ineligible Properties:
Non-owner occupied (aka Absentee Owned)
Dwellings with more than 4 units
Co-ops
Mobile Homes
Manufactured homes
Time shares
Properties used for commercial purposes
Properties held in the name of a trust
11. Ownership/Occupancy: Owner Occupied.
12. Loan-to-Value: Maximum: 125%.
13. Income Limits/Requirements: Less than 115% of current HUD based on household size.
All income must be derived from within the United States.
14. Debt-to-Income Ratio: Not Applicable.
15. Multiple Loans per Property/Borrower: More than one Last Resort Emergency Loan is
permitted based upon the availability of funds and the borrower’s ability to qualify. The
cumulative outstanding balance of all Last Resort Emergency Loans on the property
cannot exceed the maximum loan amount of $10,000.
16. Eligible Improvements: Eligible improvements will be determined through a required
analysis of the emergency condition of the property. CEE’s Rehabilitation Counselor will
perform the analysis to determine the severity of the situation and whether the intended
improvement is an emergency. 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.
Property Emergency Inspection Fees Apply and will be Invoiced to the City.
17. Ineligible Improvements: Work initiated before the loan has been approved and closed.
Recreational items including gazebos, pools, hot tubs, saunas, lawn sprinklers, play
ground equipment; Furniture and non permanent appliances; Funds used for working
capital, debt management, or to refinance existing loans; Personal property items, and
repairs to property used for business or trade purposes. Funds cannot be used to rent or
purchase equipment needed to complete the project.
18. Sweat Equity/Homeowner Labor: Sweat equity is not permitted in this program.
19. Pre-Property Inspection: A property inspection will be performed by a CEE
representative prior to the loan closing to determine that the project is an emergency as
defined by the description above of Eligible Improvements.
20. Post-Install Inspection: Prior to the release of loan proceeds, the property is subject to
inspection by a CEE inspector or, where a permit is required, work must be signed off by
a City inspector.
21. Contractors/ Permits: Contractors must be properly licensed to work in the City of
Fridley. Permits must be obtained when required by city ordinance.
2
22. Bids: 1 bid is required. Bids must detail the scope of the work to be completed, the
associated cost(s) and any rebates.
23. Work Completion: All work must be completed within 30 days of the loan closing.
However, when warranted, CEE may authorize extensions on a case by case basis as
warranted.
24. Underwriting: Applicants will be evaluated on a first-come first-served basis. Applicants
must not be able to qualify for any other financing to be eligible for the Emergency Last
Resort Program. In addition, applicants must also:
Be current on all mortgage payments
Be current on all real estate taxes and assessments
Not have any unpaid judgments or liens
Not have a pending Bankruptcy or foreclosure
25. Disbursement of Funds: Funds are held by CEE in a non-interest bearing account and
payment is made to the contractor (or owner in sweat equity situations) upon completion
of work. An inspection will be performed by the City and/or CEE to verify satisfactory
completion of the work. The following items (and any additional as determined by CEE)
must be received prior to final disbursement of funds:
1. Final invoice from contractor (or materials list from supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit, where applicable
MMB: 4829-9409-7961, v. 1
3
SCHEDULE C TO HRA RESOLUTION NO. 2015-10
MOBILE HOME IMPROVEMENT LOAN PROGRAM
1. Program Intent: The intent of this program is to make low-interest home improvement
loans available to Fridley residents to make basic mobile home improvements.
2. Interest Rate: 4.5%.
3. Amortization Type: Amortizing - Closed-end: requires borrowers to make monthly
payments of Principal and Interest.
4. Loan Amount: Minimum: $ 500; Maximum: $ 10,000.
5. 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.
6. Term: Minimum: 1 Year; Maximum: 10 years
Generally, one year per $1,000 borrowed
No prepayment penalties apply
7. Eligible Borrowers: All borrowers must be a legal resident of the United States, as
evidenced by a social security number, including:
U.S. Citizens
Permanent Resident Aliens
Non-Permanent Resident Aliens
Tax identification numbers (ITIN) are not acceptable
Properties held in a contract-for-deed, or equivalent security for mobile homes, are
eligible as long as both parties, the purchaser and seller, both sign the mortgage and
the contract for deed holder signs a letter giving their approval of the project.
8. Ineligible Borrowers:
Foreign Nationals
Non-Occupant Co-Borrowers
Non-real person entities (such as Partnerships, Corporations, Trusts, etc.)
9. Eligible Properties: Residential mobile homes located with the geographical boundaries
of the City of Fridley.
10. Ineligible Properties:
Non-owner occupied (aka Absentee Owned)
Dwellings with more than 2 units
Co-ops
Manufactured homes
Time shares
Properties used for commercial purposes
Properties held in the name of a trust
11. Ownership/Occupancy: Owner Occupied.
12. Loan-to-Value: Maximum: 115%.
13. Income Limits/Requirements: No Income Limits.
All income must be derived from within the United States.
14. Debt-to-Income Ratio: Max 50%.
15. Multiple Loans per Property/Borrower: More than one loan per household/property is
permitted based upon the availability of funds and the borrower’s ability to qualify. The
cumulative outstanding balance of all Fridley Mobile Home Improvement Loans on the
property cannot exceed $10,000.
16. Eligible Improvements: Most Interior and Exterior improvements.
17. Ineligible Improvements: Work initiated before the loan has been approved and closed.
Recreational items including gazebos, pools, hot tubs, saunas, lawn sprinklers, play
ground equipment; Furniture and non permanent appliances; Funds used for working
capital, debt management, or to refinance existing loans; Personal property items, and
repairs to property used for business or trade purposes. Funds cannot be used to rent or
purchase equipment needed to complete the project.
18. Sweat Equity/Homeowner Labor: Work can be performed on a “sweat equity” basis.
Loan funds cannot be used to compensate for labor, only for materials. The homeowner
must demonstrate to CEE that they have the ability to complete the work within the
program time requirement. Materials must be purchased and installed prior to the
disbursement of the loan proceeds. When applicable, a signed city permit must be
obtained.
19. Pre-Property Inspection: None.
20. Post-Install Inspection: Prior to the release of loan proceeds, the property is subject to
inspection by a CEE inspector or, where a permit is required, work must be signed off by
a City inspector.
21. Contractors/ Permits: Contractors must be properly licensed to work in the City of
Fridley. Permits must be obtained when required by city ordinance.
22. Bids: 1 bid is required. Bids must detail the scope of the work to be completed, the
associated cost(s) and any rebates.
23. Work Completion: All work must be completed within 120 days of the loan closing.
However, when warranted, CEE may authorize extensions on a case by case basis as
warranted.
24. Underwriting: Applicants will be evaluated on a first-come first-served basis and will be
offered loan terms that are most favorable based on the applicants unique situation. In
addition to CEE's standard underwriting criteria, applicants must:
Not have any payments more than 60-days late in the past 12 months;
No Bankruptcy in the past 18 months(without reasonable explanation)
2
Be current on all mortgage payments
Be current on all real estate taxes
25. Disbursement of Funds: Funds are held by CEE in a non-interest bearing account and
payment is made to the contractor (or owner in sweat equity situations) upon completion
of work. An inspection will be performed by the City and/or CEE to verify satisfactory
completion of the work. The following items (and any additional as determined by CEE)
must be received prior to final disbursement of funds:
1. Final invoice from contractor (or materials list from supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit, where applicable
MMB: 4837-7548-3945, v. 1
3
SCHEDULE D TO HRA RESOLUTION NO. 2015-10
MULTI-FAMILY EXTERIOR IMPROVEMENT LOAN PROGRAM
1. Program Intent: The intent of this program is to make low-interest home improvement
loans available to Fridley multi unit property owners to make improvements to their
buildings.
2. Interest Rate: 4.5%.
3. Amortization Type: Amortizing - Closed-end: requires borrowers to make monthly
payments of Principal and Interest.
4. Loan Amount: Minimum: $1,000; Maximum: $ 50,000.
5. 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.
6. Term: Minimum: 1 Year; Maximum: 10 years
Generally, one year per $1,000 borrowed
No prepayment penalties apply
7. Eligible Borrowers: All borrowers must be a legal resident of the United States, as
evidenced by a social security number, including:
U.S. Citizens
Permanent Resident Aliens
Non-Permanent Resident Aliens
Tax identification numbers (ITIN) are not acceptable
Properties held in a contract-for-deed are eligible as long as both parties, the
purchaser and seller, both sign the mortgage and the contract for deed holder signs
a letter giving their approval of the project.
8. Ineligible Borrowers:
Foreign Nationals
Non-Occupant Co-Borrowers
Non-real person entities (such as Partnerships, Corporations, Trusts, etc.)
9. Eligible Properties: 2-4 unit residential properties located within the geographical
boundaries of the City of Fridley.
10. Ineligible Properties:
Dwellings with more than 4 units
Co-ops
Mobile Homes
Manufactured homes
Time shares
Properties used for commercial purposes
Properties held in the name of a trust
11. Ownership/Occupancy: Owner occupancy not required.
12. Loan-to-Value: Maximum: 115%.
13. Income Limits/Requirements: No Income Limits.
All income must be derived from within the United States.
14. Debt-to-Income Ratio: Max 50%.
15. Multiple Loans per Property/Borrower: More than one loan per property is permitted
based upon the availability of funds and the borrower’s ability to qualify. The cumulative
outstanding balance of all loans in this Program on a property cannot exceed $50,000.
16. Eligible Improvements:
Improvements that correct City code violations
Improvements to the exterior of residential structures including but not limited to:
siding, painting, exterior windows & doors, and tuck pointing.
17. Ineligible Improvements: Work initiated before the loan has been approved and closed.
Recreational items including gazebos, pools, hot tubs, saunas, lawn sprinklers, play
ground equipment; Furniture and non permanent appliances; Funds used for working
capital, debt management, or to refinance existing loans; Personal property items, and
repairs to property used for business or trade purposes. Funds cannot be used to rent or
purchase equipment needed to complete the project.
18. Sweat Equity/Homeowner Labor: Sweat equity is not permitted in this program
19. Pre-Property Inspection: None.
20. Post-Install Inspection: Prior to the release of loan proceeds, the property is subject to
inspection by a CEE inspector or, where a permit is required, work must be signed off by
a City inspector.
21. Contractors/ Permits: Contractors must be properly licensed to work in the City of
Fridley. Permits must be obtained when required by city ordinance.
22. Bids: 1 bid is required. Bids must detail the scope of the work to be completed, the
associated cost(s) and any rebates.
23. Work Completion: All work must be completed within 120 days of the loan closing.
However, when warranted, CEE may authorize extensions on a case by case basis as
warranted.
24. Underwriting: Applicants will be evaluated on a first-come first-served basis and will be
offered loan terms that are most favorable based on the applicants unique situation. In
addition to CEE's standard underwriting criteria, applicants must:
Not have any payments more than 60-days late in the past 12 months;
No Bankruptcy in the past 18 months (without reasonable explanation)
Be current on all mortgage payments
Be current on all real estate taxes
2
25. Disbursement of Funds: Funds are held by CEE in a non-interest bearing account and
payment is made to the contractor (or owner in sweat equity situations) upon completion
of work. An inspection will be performed by the City and/or CEE to verify satisfactory
completion of the work. The following items (and any additional as determined by CEE)
must be received prior to final disbursement of funds:
1. Final invoice from contractor (or materials list from supplier)
2. Final inspection verification by CEE (if necessary)
3. Completion certificate(s) signed by borrower and contractor
4. Lien waiver for entire cost of work and
5. Evidence of required city permit, where applicable
MMB: 4817-5638-5321, v. 1
3