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HRA Res 2021-03 Housing Rehabiliation Program HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION HRA 2021-03 A RESOLUTION MODIFYING THE COMPREHENSIVE HOUSING REHABILITATION PROGRAM BE IT RESOLVED by the Board of Commissioner Redevelopment Authority in and for the City of Section 1. Recitals. 1.01. The Authority has previously established, by numerous HRA Resolutions, housing rehabilitation programs (colleomprehensive Housing Rehab , provide for the making of loans funded by the Authority in 1.02 The Comprehensive Housing Rehabilitation Program includes the following loan programs: Multi-Family Improvement Loan Program; Mobile Home Improvement Loan Program; Revolving Rehab Loan Program; and Senior Deferred Loan Program 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. 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. HRA Resolution No. 2021 - 03Page 2 2.03. The Authority hereby finds that to accomplish the goals of the Comprehensive Housing Rehab Program, the Existing Programs require changes to make them more attractive to facilitate greater participation. 2.04. The Authority hereby finds that it is beneficial to the City and the school districts to encourage first time home buyers to move to the City by adopting a Down Payment Assistance Loan Program. 2.05. The Authority hereby finds that the following grant programs are necessary to accomplish the goals of the Comprehensive Housing Rehab Program: A Residential Major Project Grant Program to provide financial incentives for homeowners to do major remodeling projects of at least $35,000. A Residential Paint Rebate Grant Program to assist in eliminating blight by preserving and improving the appearance of neighborhoods. A Front Door Grant Program to incentivize ho their home and the City by making improvements on the street side of their home. Section 3. Modification of Program. 3.01. The Authority hereby restates and amends the Comprehensive Housing Rehab Program as follows: (i)Schedule A to this Resolution titled is hereby approved and adopted. (ii)Schedule B to this Resolution titled is hereby approved and adopted. proved and adopted. (iv)Schedule D to this Resolution titled approved and adopted. approved and adopted. hereby approved and adopted. hereby approved and adopted. hereby approved and adopted. HRA Resolution No. 2021 - 03Page 3 (ix)Schedule I to this Resolution titled approved and adopted. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY TH IN AND FOR THE CITY OF FRIDLEY THIS 7 DAY OF JANUARY, 2021. __________________________________________ ATTEST: ____________________________________________ HRA Resolution No. 2021 - 03Page 4 SCHEDULE A TO HRA RESOLUTION NO. 2021 - 03 MULTI-FAMILY 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: 2.0%. 3.Amortization Type: Amortizing - Closed-end: requires bo rrowers 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 bo 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: Minimum: 1 Year; Maximum: 6. 20 years Generally, one year per $1,000 borrowed No prepayment penalties apply nt of the United States, as 7.Eligible Borrowers: All borrowers must be a legal reside evidenced by a social security number, or: A legal business registered with the Minnesota Secretary of State and must have been in business for at least two (2) years 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. Properties held in a trust. 8.Ineligible Borrowers: Foreign Nationals Non-Occupant Co-Borrowers 9.Eligible Properties: 1-12 unit residential properties located within the geographical boundaries of the City of Fridley. 10.Ineligible Properties: Dwellings with more than 12 units Co-ops Mobile Homes Properties used for commercial purposes 11.Ownership/Occupancy: Owner occupancy not required. 12.Loan-to-Value: Maximum: 110%. HRA Resolution No. 2021 - 03Page 5 13.Income Limits/Requirements: No Income Limits. 14.Debt-to-Income Ratio: Max 50%. There is no Debt-to-Income Ratio if the property is in the name of a business, but the property and business must show a positive cash flow from the most recent tax return or profit and loss statement if in business for less than a year. 15.Multiple Loans per Property/Borrower: More than one loan per property is permitted outstanding balance of all loans in this Program on a property cannot exceed $50,000, the maximum loan amount limits. 16.Eligible Improvements: Improvements that correct City code violations Improvements to the exterior of residential structures including but not limited to: roofing, solar, siding, painting, exterior windows & doors, driveways, parking improvements, signage, lighting, window/doors, awnings, sidewalks/steps, security systems, exterior garage repair and tuck pointing. Interior improvements include, but are not limited to: structural, ADA accessibility upgrades, fire prevention, HVAC, insulation, plumbing, electrical, flooring, permanent fixtures (cabinets/countertops). Any questionable improvements will be sent to the city for review. 17.Ineligible Improvements: Work initiated before the loan has been approved and closed. Recreational items including gazebos, pools, hot tubs, saunas, lawn sprinklers, playground equipment; Furniture and non-permanent appliances (unless part of a kitchen remodel); Funds used for working capital, debt management, or to refin ance existing loans; Personal property items, and repairs to property used for business or trade purposes. Funds cannot be used to purchase equipment needed to complete the project. 18.Sweat Equity/Homeowner Labor: Sweat equity is not permitted in this program 19.Property Inspection: None. 20.Post-Install Inspection: Prior to the release of loan proceeds, the property is subject to 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. Contractor must be properly licensed. 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. HRA Resolution No. 2021 - 03Page 6 24.Underwriting: In addition to CEE's standard underwriting criteria, applicants must: Not have any payments more than 90-days late in the past 12 months (without reasonable explanation); No Bankruptcy in the past 18 months (without approval by the HRA) Be current on all mortgage payments Be current on all real estate taxes 25.Disbursement of Funds: Funds are held by CEE 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 26.Borrower/Applicant Fees: Those fees in excess of $1,500.00 which include a 1% origination fee, preparation fee and all applicable mortgage filing fees, title work, credit report, flood insurance and any other applicable closing costs associated with the loan. HRA Resolution No. 2021 - 03Page 7 SCHEDULE B TO HRA RESOLUTION NO. 2021 - 03 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: 2.0%. 3.Amortization Type: Amortizing - Closed-end: requires borrowers to make monthly payments of Principal and Interest. 4.Loan Amount: Minimum: $500; Maximum: $10,000. 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 Properties held in a trust. 8.Ineligible Borrowers: Non-Occupant Co-Borrowers Business entities 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 4 units Co-ops Properties used for commercial purposes 11.Ownership/Occupancy: Owner Occupied. 12.Loan-to-Value: N/A. HRA Resolution No. 2021 - 03Page 8 13.Income Limits/Requirements: No Income Limits. 14.Debt-to-Income Ratio: Max 50%. 15.Multiple Loans per Property/Borrower: More than one loan per household/property is cumulative outstanding balance of all Fridley Mobile Home Improvement Loans on the property cannot exceed $10,000. 16.Eligible Improvements: Most permanent 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, playground equipment; Furniture and non-permanent appliances (unless part of a kitchen remodel); 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 purchase equipment needed to complete the project. 18.sis. Loan funds cannot be used to compensate for labor, only for materials and rental of equipment or tools 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. 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. 24.Underwriting: In addition to CEE's standard underwriting criteria, applicants must: Not have any payments more than 90-days late in the past 12 months without approval by the City; 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 and payment is made to the contractor (or owner in sweat equity situations) upon completion of work. An inspection will be HRA Resolution No. 2021 - 03Page 9 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 26.Borrower/Applicant Fees: 1% origination fee, preparation fee and all applicable mortgage filing fees, title work, credit report, flood insurance and any other applicable closing costs associated with the loan. HRA Resolution No. 2021 - 03Page 10 SCHEDULE C TO HRA RESOLUTION NO. 2021 - 03 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 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. Interest Rate: 0%. 2. 3.Amortization Type: Deferred. 4.Loan Amount: Minimum: $500; Maximum: $10,000. 5.Total Project Cost/Match: It is the bo 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 due in full when the borrower sells, transfers ownership or 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: Non-Occupant Co-Borrowers Business entities 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 Properties used for commercial purposes HRA Resolution No. 2021 - 03Page 11 11.Ownership/Occupancy: Owner Occupied. 12.Loan-to-Value: Maximum: 125%. 13.Income Limits/Requirements: Less than 110% of current HUD based on household size and adjusted gross income from most recent tax return. If a tax return is not required to be filed, the income will be based on projected gross income. 14.Debt-to-Income Ratio: Not Applicable. 15.Multiple Loans per Property/Borrower: More than one Last Resort Emergency Loan is 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 perform the analysis to determine the severity of the situation and whether the intended improvemen t 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 (unless part of a kitchen remodel); 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 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. 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. HRA Resolution No. 2021 - 03Page 12 24.Underwriting: 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) Final inspec 2.tion 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 26.Borrower Fees: There is no 1% origination fee or document preparation fee. The only fees are mortgage/title filing fees, title work, credit report, flood certification and any other applicable closing costs associated with the loan. HRA Resolution No. 2021 - 03Page 13 SCHEDULE D TO HRA RESOLUTION NO. 2021 - 03 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: 2.0%. payments of Principal and Interest. 4.Loan Amount: Minimum: $1,000; Maximum: $50,000. 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 HRA Resolution No. 2021 - 03Page 14 11.Ownership/Occupancy: Owner Occupied. 12.Loan-to-Value: Maximum: 110%. 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 cumulative outstanding balance of all Fridley loans on the property, including deferred loans cannot exceed $50,000. 16.Eligible Improvements: Most permanent 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, playground equipment; Furniture and non-permanent appliances (unless part of a kitchen remodel); Funds used for working capital, debt management, or to refin ance existing loans; Personal property items, and repairs to property used for business or trade purposes. Funds cannot be used to purchase equipment needed to complete the project. 18.sis. Loan funds cannot be used to compensate for labor, only for materials and rental of equipment or tools 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. 19.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. Not have any payments more than 90-days late in the past 12 months (without approval from the City); No Bankruptcy in the past 18 Months (without reasonable explanation) Be current on all mortgage payments Be current on all real estate taxes HRA Resolution No. 2021 - 03Page 15 25.Disbursement of Funds: Funds are held by CEE 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.le Evidence of required City permit, where applicab 26.Borrower Fees: 1% origination fee and a document preparation fee, mortgage/title filing fees, title work, credit report, flood certification and any other applicable closing costs associated with the loan. HRA Resolution No. 2021 - 03Page 16 SCHEDULE E TO HRA RESOLUTION NO. 2021 - 03 SENIOR DEFERRED LOAN PROGRAM 1.Program Intent: The intent of the Senior Deferred Loan Program is to provide an incentive for Fridley seniors to make home improvements that will allow them to remain in their homes and/or update the homes for a future sale. 2.Interest Rate: 0%. 3.Amortization Type: Deferred (NOT FO RGIVEN). 4.Loan Amount: Minimum: $500; Maximum: $25,000. 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 due in full when the borrower sells, transfers ownership or 7.Eligible Borrowers: All borrowers must be a legal resident of the United States, as evidenced by a social security number, and one borrower must be at least 62 years of age, 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 Properties held in the name of a trust. 8.Ineligible Borrowers: Residents with no legal ownership in the subject property. 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 Properties used for commercial purposes 11.Ownership/Occupancy: Owner Occupied. HRA Resolution No. 2021 - 03Page 17 12.Loan-to-Value: Maximum: 110%. 13.Income Limits/Requirements: None. 14.Debt-to-Income Ratio: Not Applicable. 15.Multiple Loans per Property/Borrower: More than one Senior Deferred Loan is permitted outstanding balance of all Senior Deferred Loans on the property cannot exceed the maximum loan amount allowed per program guidelines. 16.Eligible Improvements: Most permanent 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, playground 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 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 prior to the loan closing to determine project eligibility and prioritization. 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. 24.Underwriting: Applicants must: 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 HRA Resolution No. 2021 - 03Page 18 25.Disbursement of Funds: Funds are held by CEE 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: Final invoice from contractor (or materials list from 1. 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 26.Borrower/Applicant Fees: 1% origination fee, preparation fee and all applicable mortgage filing fees, title work, credit report, flood insurance and any other applicable closing costs associated with the loan. HRA Resolution No. 2021 - 03Page 19 SCHEDULE F TO HRA RESOLUTION NO. 2021 - 03 DOWN PAYMENT ASSISTANCE LOAN PROGRAM 1.Program Intent: Provide incentive for first time home buyers to move to Fridley. 2.Interest Rate: 0%. 3.Amortization Type: Deferred (NOT FORGIVEN). 4.Loan Amount: Up to $5,000. necessary to finance acquisition. 6.Term: The loan is 100% due when the borrower(s) sell(s), transfers ownership or no longer occupies the property as the borrower(s) primary residence. 7.Eligible Borrowers: All borrowers must be a legal resident of the United States, as evidenced by a social security number and a first time homebuyer as defined by HUD. All borrower(s) MUST attend a Home Stretch workshop or other valid first time homebuyer course as approved by HUD. 8.Ineligible Borrowers: Non-First Time Homebuyers Non-Occupant Co-Borrowers Business Entities. 9.Eligible Properties: 1-4 unit residential properties located in the City of Fridley and will be homesteaded by the borrower. 10.Ineligible Properties: Properties with more than 4 units Co-Ops Mobile Homes Properties used for commercial purposes Property that will not be homesteaded by the borrower 11.Ownership/Occupancy: Owner Occupied. 12.Loan-to-Value: Maximum: 110%. 13.Income Limits/Requirements: Less than or equal to 110% of current HUD based on household size and Adjusted Gross Income from most recent tax return. If a tax return is not required to be filed the income will be based on projected gross income. 14.Debt-to-Income Ratio: Not Applicable. 15.Multiple Loans per Property/Borrower: Only one loan, but if ownership changes the new owner is eligible. If borrower purchases a new home in the City of Fridley, they are eligible if considered a First Time Homebuyer. The cumulative outstanding balance of all Fridley loans on the property, including deferred loans cannot exceed $50,000. HRA Resolution No. 2021 - 03Page 20 16.Eligible Improvements: Funds may only be used for down-payment and/or closing costs. The borrower(s) can NOT receive any portion of these funds as cash. 17.Ineligible Improvements: Not applicable. 18.Sweat Equity/Homeowner Labor: Not applicable. 19.Pre-Property Inspection: Not applicable. 20.Post-Install Inspection: Not applicable. 21.Contractors/Permits: Not applicable. 22.Bids: Not applicable, 23.Work Completion: Not applicable. 24.Underwriting: Borrower(s) must meet first mortgage lender r equirements and submit: Copy of Purchase Agreement First mortgage loan estimate and/or closing disclosure Appraisal or determination of value Certificate of eligible homebuyers course. 25.Disbursement of Funds: Funds will be disbursed to the title company. 26.Borrower Fees: All applicable mortgage filing fees to paid at closing (with title agent). HRA Resolution No. 2021 - 03Page 21 SCHEDULE G TO HRA RESOLUTION NO. 2021 - 03 RESIDENTIAL MAJOR PROJECT GRANT PROGRAM 1.Program Intention: This Program is intended to provide financial incentives for homeowners to do major remodeling projects of at least $35,000. 2.Grant Amount: Maximum: $5,000. funds necessary to complete the project. 4.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. 5.Ineligible Borrowers: Non-Occupant Business Entities. 6.Eligible Properties: 1 and 2 unit residential properties at least 20 years old located in Fridley and homesteaded by the owner. 7.Ineligible Properties: Properties with more than 2 units Non-owner occupied Mobile homes Properties used for commercial purposes. 8.Ownership/Occupancy: Owner occupied. 9.Income Limits: None. 10.Debt to Income Ratio: N/A. 11.Multiple Grants Per Property/Borrower: Maximum Grant in any 12-month period cannot exceed $5,000. 12.Eligible Improvements/Use of Funds: Qualifying Projects include the following: Building an addition Building a sun room Finishing previously unfinished space Constructing a covered front porch Converting a garage into livable space HRA Resolution No. 2021 - 03Page 22 Major kitchen, bathroom or basement remodel Adding a bathroom Reconfiguring living space Exterior Upgrade Projects including the following: Altering the roofline on the front of the house Constructing columns at the front door Building a covered front porch Enhancing the front of the house with brick, stone, or shakes Upgrading the front door and/or garage door if it faces the street Landscaping (landscape design assistance required) Other elements as approved by the HRA Projects including two or more exterior upgrades are eligible for a grant of up to 10% of the project cost, not to exceed $5,000. Projects that do not include eligible exterior upgrades are limited to a grant of up to 5% of the project cost, not to exceed $2,500. 13.Ineligible Improvements: Any work initiated before the Grant approval will not be eligible for reimbursement. Grant funds cannot be used to compensate for labor, only for materials and rental of equipment or tools to complete the project. Materials must be purchased and installed prior to the disbursement of the Grant proceeds. When applicable, a signed City permit must be obtained. 15.Property Inspection: A property inspection will be performed to determine project eligibility. 16.Post-Install Inspection: Prior to the release of grant proceeds, the property is subject to inspection by a HRA inspector or, where a permit is required, work must be signed off by a City inspector. 17.Contractors/ Permits: Contractors must be properly licensed to work in the City of Fridley. Permits must be obtained when required by City ordinance. 18.Bids: 1 bid is required. Bids must detail the scope of the work to be completed, the associated cost(s) and any rebates. 19.Work Completion: All work must be completed within 120 days of the Grant approval. However, when warranted, HRA may authorize extensions on a case by case basis. 20.Underwriting: Applicant must demonstrate ownership of property, that it is homesteaded and that the remodeling plans have been reviewed by an architect or designer. 21.Disbursement of Funds: Funds are held by HRA 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 HRA to verify satisfactory completion of the work. The following ite ms (and any additional as determined by HRA) must be received prior to final disbursement of funds: HRA Resolution No. 2021 - 03Page 23 1.Final invoice from contractor (or materials list from supplier) 2.Final inspection verification by HRA (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 22.Applicant Fees: None. 23.Administrator: HRA. HRA Resolution No. 2021 - 03Page 24 SCHEDULE H TO HRA RESOLUTION NO. 2021 - 03 RESIDENTIAL PAINT REBATE GRANT PROGRAM 1.Residential Paint Rebate Program Intention: This Program is intended to assist in eliminating blight by preserving and improving the appearance of neighborhoods. 2.Grant Amount: Not to exceed $500 for a single-family residence with up to an additional $350 for each additional unit. Maximum amount: $1,400. funds necessary to complete the project. 4.Eligible Borrowers: Applicant must have title to the property. 5.Ineligible Borrowers: Non-Occupant Business Entities. 6.Eligible Properties: 1-4 unit owner-occupied residential properties located within Fridley. 7.Ineligible Properties: Properties with more than 4 units Non-owner occupied Mobile homes Properties used for commercial purposes. 8.Ownership/Occupancy: Owner occupied. 9.Income Limits: Less than 110% of current HUD based on household size and adjusted gross income from most recent tax return. If a tax return is not required to be filed, the income will be based on projected gross income. 10.Debt to Income Ratio: N/A. 11.Multiple Grants Per Property/Borrower: Maximum Grant in any 12-month period cannot exceed $1,400. 12.Eligible Improvements/Use of Funds: Cost of materials and supplies for exterior painting only. 13.Ineligible Improvements: See 12 above. 14.Sweat Equity/Homeowner Labor: Work can basis. Grant funds cannot be used to compensate for labor, only for materials and rental of equipment or tools to complete the project. Materials must be purchased and installed prior to the disbursement of the Grant proceeds. When applicable, a signed City permit must be obtained. Property Inspection: N/ 15.A. HRA Resolution No. 2021 - 03Page 25 16.Post-Install Inspection: Prior to the release of grant proceeds, the property is subject to inspection by a HRA inspector or, where a permit is required, work must be signed off by a City inspector. 17.Contractors/ Permits: Contractors must be properly licensed to work in the City of Fridley. Permits must be obtained when required by City ordinance. 18.Bids: N/A. 19.Work Completion: All work must be completed within 120 days of the Grant approval. However, when warranted, HRA may authorize extensions on a case by case basis. 20.Underwriting: Applicant must demonstrate ownership of property. 21.Disbursement of Funds: Grant is payable upon completion of work. An inspection will be performed by the HRA to verify completion and the following items must be received prior to disbursement: 1.Invoice(s) for cost of materials and supplies used for painting the exterior. 2.Completion of the exterior painting project. 3.Lien waiver for cost of completed project. 4.Evidence of required City permit, when applicable. 22.Applicant Fees: None. 23.Administrator: HRA. HRA Resolution No. 2021 - 03Page 26 SCHEDULE I TO HRA RESOLUTION NO. 2021 - 03 FRONT DOOR GRANT PROGRAM 1.Program Intention: This Program is intended to incentivize homeowners to increase the their home. Grants are for Basic Projects and Beautification Projects described in detail in No. 12 below. 2.Grant Amount: Minimum: $1,000; Maximum: $5,000. funds necessary to complete the project. 4.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. 5.Ineligible Borrowers: Non-Occupant Business Entities. 6.Eligible Properties: 1 and 2 unit residential properties with an assessed market value of less than $400,000 located in Fridley and homesteaded by the owner. 7.Ineligible Properties: Properties with more than 2 units Non-owner occupied Mobile homes Properties used for commercial purposes. 8.Ownership/Occupancy: Owner occupied. 9.Income Limits: None. 10.Debt to Income Ratio: N/A. 11.Multiple Grants Per Property/Borrower: Maximum Grant in any 12-month period cannot exceed $5,000. 12.Eligible Improvements/Use of Funds: Basic Projects include the following: Roof Siding Painting HRA Resolution No. 2021 - 03Page 27 Soffit Facia Trim Windows Chimney repair; tuck-pointing, repointing Beautification Projects including the following: Front door, storm door and/or garage door Sidelight windows by front door Columns at front door Covered front porch Brick, stone or shakes Permanent landscaping Driveway and Sidewalk repair and replacement Window boxes and shutters Screening of utility boxes, garbage/recycling cans Fence Grants are 25% of a Beautification Project and 15% of a Basic Project. However, a property must have a Beautification Project to allow for a Basic Project to be grant eligible. The Projects must be visible from the street in front of the residence. 13.Ineligible Improvements: Any work initiated before the Grant approval will not be eligible for reimbursement. Grant funds cannot be used to compensate for labor, only for materials and rental of equipment or tools to complete the project. Materials must be purchased and installed prior to the disbursement of the Grant proceeds. When applicable, a signed City permit must be obtained. Property Inspection: A property inspection will be perfo 15.rmed to determine project eligibility. 16.Post-Install Inspection: Prior to the release of grant proceeds, the property is subject to inspection by a HRA inspector or, where a permit is required, work must be signed off by a City inspector. 17.Contractors/ Permits: Contractors must be properly licensed to work in the City of Fridley. Permits must be obtained when required by City ordinance. 18.Bids: 1 bid is required. Bids must detail the scope of the work to be completed, the associated cost(s) and any rebates. 19.Work Completion: All work must be completed within 120 days of the Grant approval. However, when warranted, HRA may authorize extensions on a case by case basis. HRA Resolution No. 2021 - 03Page 28 20.Underwriting: Applicant must demonstrate ownership of property and that it is homesteaded. 21.Disbursement of Funds: Funds are held by HRA 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 HRA to verify satisfactory completion of the work. The following items (and any additional as determined by HRA) must be received prior to final disbursement of funds: 1.Final invoice from contractor (or materials list from supplier) 2.Final inspection verification by HRA (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 22.Applicant Fees: None. 23.Administrator: HRA. 4847-6413-4869, v. 1