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.
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