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HomeMy WebLinkAbout2025.02.10 CCP WORKCOUNCIL/EDA WORK SESSION MEETING City Hall Council Chambers February 10, 2025 AGENDA 1. Active Discussion Items a. Local Affordable Housing Aid (LAHA) Program Options b. All Commission Meeting Page 1 of 51 Council Regular Meeting DATE: 2/10/2025 TO: Council/EDA Work Session FROM: Jesse Anderson, Community Development Director THROUGH: BY: Jesse Anderson, Community Development Director SUBJECT: Local Affordable Housing Aid (LAHA) Program Options Requested Council Action: Provide direction to City Staff regarding the use of Local Affordable Housing Aid (LAHA) funds. Background: Overview In 2023, the Minnesota Legislature established the Local Affordable Housing Aid (LAHA) program, funded through a Metro Area Sales and Use Tax for Housing. This new program aims to address housing challenges by providing emergency rental assistance, building or rehabilitating affordable housing, reducing homeownership disparities, and supporting nonprofit affordable housing owners and developers. For Hennepin County, the sales tax is expected to generate approximately $20 million annually. The first allocations arrived in late-2024. Brooklyn Center has been awarded $188,983.33 in LAHA funds. Staff have reviewed options for the LAHA funds and anticipates a higher amount to be received in 2025, but that amount has yet to be determined. Brooklyn Center is home to an aging housing stock, much of which requires significant maintenance and repairs to ensure safety, functionality, and long-term value. To address these needs, the City currently offers a Home Repair Program administered by Hennepin County using Community Development Block Grant (CDBG) funds. However, the program has close to 400 homeowners on a waitlist, highlighting a substantial unmet demand for repair assistance. To help address this backlog and support housing stability, staff proposes utilizing the $188,983.33 in 2024 Local Affordable Housing Aid (LAHA) funds to implement a new home improvement program. This initiative would provide additional resources to homeowners on the current waitlist while ensuring the preservation and improvement of Brooklyn Center’s housing stock. Currently, the city contracts with Center for Energy and Environment(CEE) for the low interest home rehab loan program. That program buys down the interest rate on the MHFA fix up fund loan program. Staff can utilize CEE to create another program similar to Hennepin County’s rehab program. The program would be a streamlined version due to there not being federal requirements. The 2025 allocation is anticipated to be higher than 2025, as more information is available, staff will work explore options for future funding. Future funding could potentially be used for a future housing project or transferred into a housing trust fund. Page 2 of 51 Staff have reviewed housing improvement programs from other cities to explore options. Fridley’s Programs 1. Home Improvement Loan Program • Purpose: Assist homeowners with permanent interior and exterior repairs. • Loan Amount: $1,000 to $50,000. • Interest Rate: 2%. • Eligibility: Owner-occupied 1–4 unit homes, including townhomes and condos. 2. Mobile Home Improvement Loan Program • Purpose: Provide funding for repairs to mobile homes. • Loan Amount: $500 to $10,000. • Interest Rate: 2%. • Eligibility: Owner-occupied mobile homes within Fridley. 3. Senior Deferred Loan Program • Purpose: Support homeowners aged 62+ with deferred loans for home repairs. • Loan Amount: $5,000 to $20,000. • Interest Rate: 0%. • Repayment: Forgiven after 30 years if the property remains owner-occupied. 4. Home Betterment Deferred Loan • Purpose: Assist low- to moderate-income homeowners with repairs and improvements. • Loan Amount: $5,000 to $20,000. • Interest Rate: 0%. • Repayment: Forgiven after 30 years if the property remains owner-occupied. 5. Emergency Deferred Loan Program • Purpose: Address urgent repairs to ensure safety and habitability. • Loan Amount: $500 to $10,000. • Interest Rate: 0%. • Repayment: Forgiven after 30 years if the property remains owner-occupied. Page 3 of 51 6. Down Payment/Closing Cost Assistance • Purpose: Assist first-time homebuyers with purchasing a home. • Loan Amount: $5,000–$10,000, depending on income level. • Interest Rate: 0%. • Repayment: Forgiven after 30 years if the property remains owner-occupied. 7. Multi-Family Improvement Loan • Purpose: Fund improvements for small multi-family properties (1–12 units). • Loan Amount: $5,000 to $50,000. • Interest Rate: 2%. • Eligibility: Properties must comply with Fridley’s rental housing licensing ordinance. Coon Rapids Programs 1. Coon Rapids Home Improvement Loan • Interest Rate: 3% for income ≤80% AMI; 5% for income >80% AMI. • Loan Amount: $2,000 to $50,000. • Term: 1 year per $1,000 borrowed, up to 20 years. • Eligibility: 1-4 unit owner-occupied properties; no income limit. • Use of Funds: Permanent property improvements; excludes luxury or recreation projects. • Special Requirements: Loans secured with a mortgage; credit and income verification required. 2. Coon Rapids Deferred Loan • Interest Rate: 0%. • Loan Amount: $1,000 to $15,000. • Term: Deferred until the property is sold, title transferred, or no longer occupied by the borrower. • Eligibility: Owner-occupied properties with income ≤60% AMI. • Use of Funds: Repairs to meet safety, energy efficiency, or building codes. 3. Emergency Repair Deferred Loan • Interest Rate: 0%. • Loan Amount: $1,000 to $10,000. Page 4 of 51 • Term: Deferred until the property is sold, title transferred, or no longer occupied. • Eligibility: For emergencies like structural issues or utility failures; no income limit. • Use of Funds: Address emergencies affecting habitability or safety. 4. Home for Generations II Loan • Interest Rate: 3% for income ≤80% AMI; 5% for income >80% AMI. • Loan Amount: $2,000 to $50,000 (minimum project cost $35,000). • Term: 1 year per $1,000 borrowed, up to 20 years. • Eligibility: Single-family owner-occupied homes at least 20 years old. • Use of Funds: Major renovations or additions that modernize or enhance property value. 5. CenterPoint Energy On-Bill Repayment Program • Interest Rate: Matches CEE's EZPAY Loan Program. • Loan Amount: Up to $10,000. • Term: Up to 5 years. • Eligibility: 1-4 unit owner-occupied properties that are CenterPoint Energy customers. • Use of Funds: Energy efficiency improvements like insulation, HVAC upgrades, and water heaters. 6. Down Payment/Closing Cost Assistance • Interest Rate: 0%. • Loan Amount: Up to $5,000. • Term: Deferred until the property is sold, title transferred, or no longer occupied. • Eligibility: First-time homebuyers with income ≤110% AMI. • Use of Funds: Down payment or closing costs for purchasing a home. Brooklyn Center's Current Programs: Hennepin County CDBG Funded Rehab Program Summary This program is federally funded with CDBG funding. Brooklyn Center’s waitlist is close to 400 households long. Loan Details: • Loans up to $30,000 for home repairs and maintenance • 0% interest, no monthly payments • Loans may be forgiven if the homeowner retains ownership and lives in the home Page 5 of 51 without transferring the title Eligibility: • Household income must meet specific limits: o 1 person: $68,500 o 2 people: $78,250 o 3 people: $88,050, etc. (up to 8 people: $129,100) Eligible Repairs: • Plumbing, electrical, painting, windows, doors, siding, roofing, flooring, and accessibility improvements, among others addressing health, safety, and maintenance. Non-Eligible Repairs: • Landscaping, additions, hot tubs, pools, and demolition. Brooklyn Centers Low Interest Fix up Fund Program • Loan Features: o Interest Rate: 3% fixed o Loan Term: 1 year per $1,000 borrowed, up to a maximum of 20 years o Loan Amount: $2,000 to $50,000 o Loan-to-Value Ratio: Maximum 110% of property value (including half the improvement value) • Eligibility: o Income Limit: $104,000 (adjusted annually by MHFA) o Debt-to-Income Ratio: Must not exceed 48% o Credit Requirements: Minimum score of 620, no recent mortgage delinquencies, and no outstanding judgments (except medical) o Eligible Properties: 1-4 unit owner-occupied properties in Brooklyn Center; excludes trusts, commercial properties, and manufactured homes o Eligible Borrowers: U.S. legal residents (ITINs not accepted) • Eligible Uses: o Repairs and improvements aligned with MHFA guidelines, including energy efficiency upgrades o Sweat equity is allowed for material costs (not labor or equipment rental) • Ineligible Uses: o Recreation/luxury projects (e.g., pools, playgrounds) o Furniture, appliances, and refinancing existing debt Application and Loan Process: • Applications are processed on a first-come, first-served basis Page 6 of 51 • Required documents: application form, income proof, identity proof, and project bids • Loan approval depends on credit history and underwriting review • Borrowers are responsible for a 1% origination fee and closing costs Next Steps If City Council would like staff to move forward with a home rehab forgivable loan program. Staff will work with CEE to develop guidelines and bring back those guidelines for approval. Budget Issues: There are no budgetary considerations. Funding can not be used to replace funding for existing programs. Inclusive Community Engagement: Antiracist/Equity Policy Effect: Strategic Priorities and Values: ATTACHMENTS: 1. FAQs for LAHA and SAHA_03192024 (2) 2. 2025-local-affordable-housing-aid-preliminary-distribution-factors-summary 3. Coon Rapids Example 4. Fridley Example Page 7 of 51 1 Local and Statewide Affordable Housing Aid Frequently Asked Questions In 2023, the Minnesota Legislature authorized aid payments to counties, cities and Tribal Nations and in 2024 the legislature adopted changes to the aid programs. The goal is to fund affordable housing projects and help organizations provide affordable and supportive housing. Local Affordable Housing Aid (LAHA) is aid to metropolitan local governments of seven counties and 63 cities. LAHA is funded through a new dedicated sales tax in the seven-county metropolitan area. As sales taxes will vary, the amount of LAHA distributed will also vary. Statewide Affordable Housing Aid (SAHA) is funded by state funds appropriated to the Department of Revenue. All Minnesota counties, Tribal Nations and 37 cities will be eligible to receive this aid. Aid payments are made directly to local governments. In the metro, aid is funded by the sales tax for housing. Statewide, aid is funded by state appropriations. Throughout the document, “housing aid” is used when the response applies to both LAHA and SAHA. The information provided in this document does not constitute legal advice and is sub ject to change. If there are questions regarding how program requirements or criteria apply in specific circumstances, please consult with your own legal counsel. Overview and Requirements Why is there a difference between SAHA and LAHA? The primary differences between LAHA and SAHA are the way they are funded, when funding will be disbursed and to whom. Both aid projects have the same eligible uses and requirements except for market rate housing. This is only available in certain non-metropolitan areas using SAHA. What are the eligible uses of housing aid programs? Qualifying projects for aids payable in 2023 are: June 14, 2024 Page 8 of 51 2 •Emergency rental assistance for households earning less than 80% of area median income (AMI) as determined by the U.S. Department of Housing and Urban Development (HUD) •Financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable and supportive housing •Development of market rate residential rental properties outside of the metro area if certain conditions are met •Projects designed for the purpose of construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, permanent financing, interest rate reduction, refinancing and gap financing of affordable housing For aids payable in 2024, qualifying projects are those listed above plus: •Financing the operations and management of financially distressed residential properties •Funding of supportive services including staffing for supportive housing, which includes financial support to nonprofit services providers and capitalized reserves •Costs of operating emergency shelter facilities, including services For more information, read the complete list of LAHA qualifying projects and SAHA qualifying projects. What is gap financing? Gap financing is the difference between the property costs (including acquisition, demolition, rehabilitation and construction) and •The market value of the property upon sale OR •The amount the target household can afford for housing (based on industry standards and practices) What are the affordability requirements of LAHA and SAHA? Specific income requirements are provided for: •Emergency Rental Assistance o Less than 80% of AMI •Homeownership o At or below 115% of the greater of state or area median income o Priority for those at or below 80% •Rental Housing o At or below 80% of the greater of state or area median income Page 9 of 51 3 o Priority for those at or below 50% State and area median incomes are determined by HUD. While there are no income requirements or income qualification for projects support ing nonprofits, organizations should be providing affordable or supportive h ousing. Some non-metropolitan communities may be eligible to spend aid on market rate developments. There are no income requirements for market rate housing under this category. Are there other requirements if using these funds? Yes. If LAHA or SAHA is used for new construction of a building with more than four units, the building must be constructed, converted or otherwise adapted to include accessibility features, such as sensory-accessible (see subd. 4). Documentation will be required for reporting and compliance. State Agency Roles and Reporting Requirements What roles do the Department of Revenue and Minnesota Housing play in distributing and tracking local housing aid? The Department of Revenue calculates and distributes the amount of aid available to each government. Revenue also accepts applications from eligible Tribal Nations. Minnesota Housing’s statutory role relates to reporting and compliance. First reports are due by December 1, 2025. While not required by the legislation, Minnesota Housing is hiring staff to support housing aid programs with technical assistance and coordination. Does a city, county or Tribe need to apply to receive the funds? For cities and counties there is no application process. Revenue will distribute aid according to statutory requirements. Tribal Nations must apply to receive funds annually. Tribes should work with Revenue to meet this annual requirement. Does a city, county or Tribe need to seek preapproval before spending the funds? No. Approval is not needed before spending funds. However, funds must be used on qualifying projects and expenditures should be documented to avoid repayment or recapture. Will Minnesota Housing be developing a program guide for housing aid? No. Housing aid is not a grant or loan program and is not subject to a program guide. Page 10 of 51 4 Minnesota Housing will support housing aid programs through guidance and staff support. What are the reporting requirements for the funds? Beginning in 2025, housing aid recipients must submit a report to Minnesota Housing every year by December 1. The report must include documentation of: •Certification that the aid recipient will use the aid funds to supplement and not supplant its existing locally-funded housing expenditures •Qualifying projects completed or planned with the funds •Location of unspent funds •Inability to spend on a qualifying project prior to the deadline (if funds deposited into a local housing trust fund) •Accessibility requirements (for project of four or more units) •Relevant resolution and certifications for market rate developments in non-metropolitan communities •Relevant documentation of locally-funded housing expenditures in prior years, including public notice requirements Additional guidance on the report’s format will be provided in the future. Do metropolitan counties need to submit a report for LAHA and one for SAHA? Minnesota Housing is determining if the reports must remain separate. However, if they do, the report format will be the same or substantially similar for LAHA and SAHA. What happens if a city, county or Tribal Nation does not submit a report or does not spend the funds? Reports are due by December 1 every year. The first report is due on December 1, 2025. If the aid recipient fails to submit a report, does not spend funds during the required timeframe, or spends funds on an ineligible project, they must repay the funds. Revenue may also suspend payments to these entities. Detailed information can be found in 477A.35, Subd 6 and 477A.36, Subd. 6. What happens to the aid funds if they are returned or recaptured? If returned, aid funds would be deposited with one or more of Minnesota Housing’s programs. This includes Family Homeless Prevention and Assistance Program (FHPAP), the Economic Development Page 11 of 51 5 and Housing Challenge Program (Challenge), and the Workforce and Affordable Homeownership Development Program as specified in law. Will Minnesota Housing be monitoring the use of housing aid prior to the reporting deadline for cities and counties? Minnesota Housing will not require reporting prior to December 1, 2025, when the first report is due from cities and counties. However, Minnesota Housing will be checking in with local governments to offer support and track spending progress. Definitions and Clarifications What is a Tier I and a Tier II city? The terms Tier I and Tier II are used to determine cities that will receive aid. A Tier I city is a statutory or home rule charter city that is a city of the first, second or third class. For LAHA, it must be in a metropolitan county. For SAHA, it must not be in a metropolitan county. Read the full definition of cities and classes. A Tier II city is a statutory or home rule charter city that is a city of the fourth class and not located in a metropolitan county (see subd. 4). The bill requires aid be spent on a qualified project. What is the definition of spent? If a project is started but not completed, are the funds considered to be spent? The definition of spent was clarified in 2024 session law. Funds must be committed to a qualifying project by December 31 in the third year following the year the aid was received (for aid received in 2024, this would be December 31, 2027) and expended by December 31 the fourth year after the aid was received. Is SAHA funding from appropriations ongoing? The following table reflects amounts appropriated to SAHA through the fiscal year ending in 2027. The appropriations are set at a base level with one-time increases in the first two years. SAHA Appropriations Fiscal Year Ending 6/30/24 FYE 6/30/2025 FYE 6/30/2026 FYE 2027 and each year after To the 87 counties in Minnesota $ 13,050,000 $ 13,050,000 $ 5,550,000 $ 5,550,000 Page 12 of 51 6 SAHA Appropriations Fiscal Year Ending 6/30/24 FYE 6/30/2025 FYE 6/30/2026 FYE 2027 and each year after To the 37 cities in Greater Minnesota $ 4,500,000 $ 4,500,000 $ 2,000,000 $ 2,000,000 To the 7 eligible Tribal Nations $ 2,700,000 $ 2,700,000 $ 1,200,000 $ 1,200,000 To Minnesota Housing for the Tier II Cities Grants program $ 2,250,000 $ 2,250,000 $ 1,250,000 $ 1,250,000 TOTAL $ 22,500,000 $ 22,500,000 $ 10,000,000 $ 10,000,000 How were the funding allocations determined? Revenue determined allocations based on distribution formulas. For counties and cities, these formulas consider cost -burdened households and total population. For Tribal Nations, funds are distributed to Tribes that apply by the deadline. Will Tier II cities receive a disbursement of SAHA? Tier II cities will not receive a direct disbursement of SAHA. However, the Legislature appropriated $4.5 million for Tier II cities . Funds will be available as grants in the competitive process for a range of rental, homeownership and housing stability activities with a minimum award size of $25,000. Minnesota Housing will be preparing a program guide, a list of eligible Tier II cities and a request for proposals (RFP) in 2024. Qualifying Projects and Expenses What portion of the housing aid funds can be used for staffing costs and administrative costs? Administrative costs and staffing costs are not listed as an eligible project . Therefore, the funds are not able to be used for these costs. If funds are used for Emergency Rental Assistance (ERA), what portion can be used for navigation, services and administration related to ERA provision and programs? Navigation and services related to providing ERA are eligible aid expenses. However, there is no allowance for administrative costs using housing aids. . Page 13 of 51 7 If aid funds are used for demolition or removal of existing structures, does affordable housing need to be constructed on the site? Yes. The expense must be tied to affordable housing for eligible households. Demolition or clearing of land alone, including for speculative or future development of eligible housing, is not an eligible project. Can funds be used for planning activities (soft costs) for new construction and preservation affordable housing projects? Soft costs are only eligible as part of a qualifying project. General or speculative planning activities unrelated to a qualifying project are not an allowed use of funds. Can funds be used for downpayment assistance for homebuyers? Qualifying projects include homeownership projects for income-eligible households. Downpayment assistance may be provided as permanent financing or gap financing, depending on program requirements established by the aid recipient. Can the housing aid funds immediately be deposited into a Local Housing Trust Fund? Funds can be held in a local housing trust fund while recipients determine if a project qualifies. Funds must be spent on a qualifying project by the deadline in statute . Funds remaining in a local housing trust fund past the deadline will only be considered “spent” on a qualifying project if the aid recipient demonstrates that it could not spend funds by the deadline due to factors outside their control. Can funds be transferred to a county or regional Housing and Redevelopment Authority (HRA) if they are spent on qualifying projects? Yes. Funds can be transferred to a county or regional HRA if they are spent on qualifying projects. The original aid recipient is still responsible for all requirements related to the funds, including reporting. Can funds be used for developing new infrastructure, such as utilities and roads, or upgrading existing infrastructure if the infrastructure serves affordable housing? Potentially. The infrastructure would need to be part of a qualifying project. All requirements related to project type, income affordability and other accessible requirements would also need to be met. Speculative site and infrastructure development would not be eligible. Page 14 of 51 8 Infrastructure development or improvement for sites that include development uses not allowed under this aid program would not be eligible. What are some examples of expenditures ineligible for housing aid? Housing aid should be used for projects that create and preserve affordable housing or stabilize the housing of low-income people. This does not include: •Conducting a housing or zoning study •Costs to create a Housing Improvement Area •Staff and services related to general housing quality and licensure, such as code enforcement •Staff and administrative costs for operation of an HRA or county or city housing department •Commercial, industrial or public space development projects •Projects located outside of Minnesota Housing aid received by Greater Minnesota counties, cities and Tribes in 2023 cannot be used for emergency shelter. However, for aid received in 2024 and after, shelter is an eligible project type. If funds are used to support a nonprofit organization, do they need to be tracked to qualifying projects? Housing aid can be used to provide financial support to a nonprofit affordable housing provider in their mission to provide safe, dignified, affordable and supportive housing. If aid is used in this manner, providing support to the eligible nonprofit is the qualifying project. The aid recipient should document that the funds were used to support the organization’s mission. Can a county or city use other state or federal funding as part of a development fin ancing package that includes housing aid funds? Yes. State and federal funding can be used as a part of the project’s development financing package. If the funds are held in a Local Housing Trust Fund, can they be used as a match in Minnesota Housing’s Local Housing Trust Funds Matching Grants program? No. Housing aid cannot be used as matching funds in the Local Housing Trust Fund Grants program. Only new public revenue, defined as local income committed to the Local Housing Trust Fund on or after June 29, 2021, can be used as matching funds. Can a county use its funds within cities that have also received hous ing aid? Yes. Counties can spend the funds on qualifying projects anywhere in the county, including cities that directly receive aid. Regional collaboration is encouraged to maximize the aid’s impact. Page 15 of 51 9 A county receiving aid should consult with the cities where projects are planned (see subd. 7). Can aid funds be used to reimburse prior expenditures on eligible projects? No. An aid recipient may not use aid money to reimburse itself for prior expenditures. Will the aid funds trigger other state funding requirements, such as prevailing wage? For questions on labor and wage requirements, contact the Department of Labor and Industry. For questions on the use of sales tax proceeds, contact the Department of Revenue. Page 16 of 51 Minnesota Revenue, Property Tax Division Rev. 07/2024 Summary of Local Affordable Housing Aid (LAHA) Preliminary Distributions Factors Certified for 2025 The annual appropriation for Local Affordable Housing Aid comes from a sales and use tax imposed within metropolitan counties as defined in Minnesota Statutes, section 473.121, subdivision 4. The counties are Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. These counties and the cities with a population over 10,000 within these counties are eligible to receive aid. Proceeds from the sales and use tax will be deposited in the Housing Assistance Fund and distributed as follows: • 25% to the metropolitan city aid account • 50% to the metropolitan county aid account • 25% to the state rent assistance account Note: The amount distributed to the state rent assistance account is separate from the Local Affordable Housing Aid program and administered by the Minnesota Housing Finance Agency. This summary is for the preliminary distributions factors that must be certified by August 1 of the year prior to aid payment. The distribution factors are preliminary because at the time aid is calculated in June 2025, the factors will be updated to use the data available as of May 1, 2025. Aid amounts will be calculated using the account balances as of June 1, 2025, and posted before the first-half payment is made on July 20, 2025. 2024 Law Changes Local Affordable Housing Aid was created by the 2023 Legislature and was amended by the 2024 Legislature. Amendments by the 2024 Legislature included: • Adding a definition of locally funded housing expenditures to include use of unrestricted local government money on a wide variety of housing-related expenditures. • Amending use of proceeds by adding the funding of operations and supportive services to the list of projects on which the aid may be spent, including costs of operating an emergency shelter, transitional housing, supportive housing, or publicly owned housing. • Amending qualifying projects by deeming funds committed to a project within three years of receipt as spent for the purpose of the three-year spending deadline, provided that the funds are expended in the following year. Requiring of reports to Minnesota Housing of current expenditures and cuts to those expenditures • Requiring that aid recipients must commit to using the aid to supplement, not supplant, their existing locally funded housing budgets. Local governments must also report to Minnesota Housing on their locally funded housing expenditures and any cuts to those expenditures. • Beginning with aid paid in 2025, requiring Minnesota Housing to notify the Department of Revenue if an aid recipient fails to meet the requirements of the new Minnesota Statutes 2023 Supplement, section 477A.35, subdivision 5a. If that happens, the aid recipient must repay the aid they received to the Minnesota Housing Finance Agency, which is the same consequence for using funds for a project that does not qualify. The Department of Revenue must stop aid payments upon the aid recipient’s request. Page 17 of 51 Minnesota Revenue, Property Tax Division Rev. 07/2024 Counties The county distribution factor is the number of households in a county that are cost-burdened divided by the total cost-burdened households in the seven metropolitan counties. A “cost-burdened household” is one in which the gross rent is 30 percent or more of household income or in which homeownership costs are 30 percent or more of household income. For 2025 preliminary distribution factors, the data used was used the most recent estimates provided by the American Community Survey of the United States Census Bureau as of May 1, 2024. This was the five-year estimate ending in 2022 from Table DP04, Selected Housing Characteristics, as accessed at https://data.census.gov/table?q=DP04&tid=ACSDP5Y2022.DP04 and then filtering by Geography > County > Minnesota > All Counties in Minnesota. The characteristics used were: • Selected Monthly Owner Costs as a Percentage of Household Income, Housing Units with a Mortgage, 30.0% to 34.9% • Selected Monthly Owner Costs as a Percentage of Household Income, Housing Units with a Mortgage, 35.0% or more • Selected Monthly Owner Costs as a Percentage of Household Income, Housing Units without a Mortgage, 30.0% to 34.9% • Selected Monthly Owner Costs as a Percentage of Household Income, Housing Units without a mortgage, 35.0% or more • Gross Rent as a Percentage of Housing Income, Occupied Units Paying Rent, 30.0% to 34.9% • Gross Rent as a Percentage of Housing Income, Occupied Units Paying Rent, 35.0% or more% Cities The city distribution factor is the number of households in a city that are cost-burdened divided by the total cost-burdened households in eligible cities. A “cost-burdened household” is one in which the gross rent is 30 percent or more of household income or in which homeownership costs are 30 percent or more of household income. For 2025 preliminary distribution factors, the data used was used the most recent estimates provided by the American Community Survey of the United States Census Bureau as of May 1, 2024. This was the five-year estimate ending in 2022 from Table DP04, Selected Housing Characteristics, as accessed at https://data.census.gov/table?q=DP04&tid=ACSDP5Y2022.DP04 and then filtering by Geography > Place > Minnesota > All Places in Minnesota. The characteristics used were: • Selected Monthly Owner Costs as a Percentage of Household Income, Housing Units with a Mortgage, 30.0% to 34.9% • Selected Monthly Owner Costs as a Percentage of Household Income, Housing Units with a Mortgage, 35.0% or more • Selected Monthly Owner Costs as a Percentage of Household Income, Housing Units without a Mortgage, 30.0% to 34.9% • Selected Monthly Owner Costs as a Percentage of Household Income, Housing Units without a mortgage, 35.0% or more • Gross Rent as a Percentage of Housing Income, Occupied Units Paying Rent, 30.0% to 34.9% • Gross Rent as a Percentage of Housing Income, Occupied Units Paying Rent, 35.0% or more% Page 18 of 51 Exhibit A23 #4054 Page 1 Agreement between the City of Coon Rapids and Center for Energy and Environment EXHIBIT A23 PROGRAM GUIDELINES This document includes guidelines for the COON RAPIDS LOAN PROGRAMS Page 19 of 51 Exhibit A23 #4054 Page 2 Agreement between the City of Coon Rapids and Center for Energy and Environment COON RAPIDS LOAN PROGRAM GUIDELINES The Coon Rapids Loan Program is designed to supplement existing loan programs available from MHFA, CEE, private lenders and other housing resources. This program is not intended to be the sole source of improvement funds available to the City. Center for Energy and Environment shall serve as the administrator for the Coon Rapids Loan Program and will secure the most beneficial financing based on the borrower’s needs independent of the funding source. Coon Rapids Home Improvement Loan Interest Rate: Income Rate >80%5% <=80%3% ***Income to determine interest rate is determined by projected gross income for the next 12 months and household size. Additionally, any rate that has been disclosed will be honored if the program rate has been changed during the loan process (as required by law). Amortization Type: Amortizing, closed-end (Monthly Payments Required). Loan Amount: Minimum of $2,000 and Maximum of $50,000. Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire project as outlined in the bid(s). Additional funds may come from the applicant’s personal savings, gifts, or other NON City loans. Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum term will be 20 years. Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of the City of Coon Rapids. Individual townhomes, twin homes and condominiums. Properties held in a trust are eligible. Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes, properties in a Contract-for-Deed and properties used for commercial purposes. Page 20 of 51 Exhibit A23 #4054 Page 3 Agreement between the City of Coon Rapids and Center for Energy and Environment Eligible Borrowers: All borrowers must be legal residents 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 (TIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and Properties in the name of a business. Ownership/Occupancy: Owner- occupied only. Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 100% of the property value. Half of the improvement value may be added to the initial property value. Value can be established by the Property Tax Statement or an Appraisal dated within the past 12 months. Income Limit: None. Property Value Limit: $400,000 based on the Estimated Property Value from the most recent property tax statement. Value to be updated annually. Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt to income ratio in excess of 50% will be ineligible to receive financing. Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing (without reasonable explanation). 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late payments on credit report (without reasonable explanation). 7) No defaulted government loans. Multiple Loans per Property/Borrower: More than one loan per property/borrower is allowed, however, the outstanding balance(s) of any amortizing loans through the Coon Rapids Home Improvement Loan Program cannot exceed $25,000 and the total of all city funds cannot exceed $50,000. Eligible Use of Funds: Projects eligible through MHFA and CEE home improvement programs. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed and permits must be obtained when required. Page 21 of 51 Exhibit A23 #4054 Page 4 Agreement between the City of Coon Rapids and Center for Energy and Environment Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent tools/ equipment or compensate for labor. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the City of Coon Rapids. Borrower will pay all applicable title and filing fees. Borrower Fees: Borrower will be responsible for a 1% origination fee, document preparation fee, mortgage filing and service fees, flood certificate, credit report fees and any applicable closing fee, which may be financed in the loan amount. Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. CEE’s decision shall be final. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. Coon Rapids Deferred Loan Interest Rate: 0% Loan Amount: Minimum loan is $1,000. Maximum loan is $15,000. Total Project Cost: 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 original loan amount, the borrower is responsible to provide proof of having funds to pay for the remaining portion. Loan term: Loan will be deferred until the borrower sells, transfers title of the property or is no longer occupied by the borrower, at which time 100% of the loan is due. Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of the City of Coon Rapids. Individual townhomes, twin-homes and condominiums. Properties held in a trust are eligible. Ineligible Properties: Dwellings that are more than 4 units (these would be considered apartment and hence commercial properties), cooperatives, manufactured homes, properties held in a Contract-for- Deed and properties used for commercial purposes. Page 22 of 51 Exhibit A23 #4054 Page 5 Agreement between the City of Coon Rapids and Center for Energy and Environment Eligible Borrowers: Owners of 1-4 unit properties within the City of Coon Rapids who meet the program guideline criteria. Ineligible Borrowers: Includes, but are not limited to nonresident owners, non-occupant co-borrowers, properties held in the name of a business. Ownership / Occupancy: Owner-occupied only. Loan- to-Value Ratio: 100% Income Limit: 60% of adjust gross income based on household size and most recent tax return. If a tax return is not required to be filed by the borrower(s), the income will be determined by the projected income over the next 12 months. Property Value Limit: $400,000 based on the Estimated Property Value from the most recent property tax statement. Value to be updated annually. Debt- to-Income Ratio: N/A Multiple Loans per Property/Borrower: Multiple loans on a property are allowed if the outstanding balance is within the maximum loan limit. The maximum combined balances of all Coon Rapids loans cannot exceed $50,000. Eligible Improvements: General, permanent improvements including alterations, renovations or repairs upon or in connection with existing structures which correct defects or deficiencies in the property affecting directly to the minimum building code housing standards or the safety, habitability, energy consumption or accessibility to the property. CEE will identify and prioritize projects. Ineligible Improvements: Work initiated prior to the loan being approved and closed. Personal property items, including appliances, furniture, hot tubs, swimming pools, and other luxury items, exterior plumbing (e.g. sprinkler systems), non-permanent landscaping fixtures (e.g. potted plants, furniture, bird feeders), repairs to property used for business or trade purposes, refinancing existing indebtedness, and labor costs of borrowers and/or residents. CEE will refer to the city whenever eligibility of an improvement project is questionable. Bidding: Only 1 bid is required. All contractors must be properly licensed. Permits must be obtained when required by City ordinance. Sweat Equity: Not permitted. Property Inspection: Required. Eligible improvements will be determined through an analysis of the property. A CEE representative will perform the analysis to prioritize eligible improvements. Post Installation Inspection: Properties are subject to a post installation inspection by a CEE staff member when a permit is not required. Where a permit is required, the work must be signed-off by a City inspector prior to release of funds. Page 23 of 51 Exhibit A23 #4054 Page 6 Agreement between the City of Coon Rapids and Center for Energy and Environment Work Completion: All work must be completed within 120 days of loan closing. Extensions may be granted by CEE. Underwriting Decision: Must be current on all mortgages and property taxes. Borrower Fees: Borrower will be responsible for mortgage filing and service fees, flood certificate, credit report fees and any applicable closing fee, which may be financed in the loan amount. Emergency Repair Deferred Loan Interest Rate: 0% Loan Amount: Minimum loan is $1,000. Maximum loan is $10,000. Total Project Cost: 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 original loan amount, the borrower is responsible to provide proof of having funds to pay for the remaining portion. Loan term: Loan will be deferred until the borrower sells, transfers title of the property or is no longer occupied by the borrower, at which time 100% of the loan is due. Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of the City of Coon Rapids. Individual townhomes, twin homes and condominiums. Properties held in a trust are eligible. Ineligible Properties: Dwellings that are more than 4 units (these would be considered apartment and hence commercial properties), cooperatives, manufactured homes, properties held in a Contract-for- Deed and properties used for commercial purposes. Eligible Borrowers: Owners of 1-4 unit properties within the City of Coon Rapids who meet the program guideline criteria. The borrower must not be eligible for any other financing administered by CEE (including Coon Rapids Programs) in order to obtain an Emergency Repair Deferred Loan. Ineligible Borrowers: Includes, but are not limited to nonresident owners, non-occupant co-borrowers, properties held in the name of a business. Ownership / Occupancy: Only owner-occupied. Loan- to-Value Ratio: Not applicable. Income Limit: None. Page 24 of 51 Exhibit A23 #4054 Page 7 Agreement between the City of Coon Rapids and Center for Energy and Environment Property Value Limit: $400,000 based on the Estimated Property Value from the most recent property tax statement. Value to be updated annually. Debt- to-Income Ratio: N/A Multiple Loans per Property/Borrower: Multiple emergency loans on a property are allowed if the balance is within the overall maximum loan limit. Eligible Improvements: An emergency is defined as an imminent condition that makes a house uninhabitable, dangerous to the occupants, or is capable of causing severe health problems. Repairs that will remedy such emergency repairs are eligible. Examples of eligible repairs include, but are not limited to, water lines, sewer service, fire hazards, repair to exterior steps, railings, retaining walls, water seepage into basement, structural problems, or replacement of a furnace or hot water heater. Ineligible Improvements: Work initiated prior to the loan being approved and closed. Personal property items, including appliances, furniture, hot tubs, swimming pools, and other luxury items, exterior plumbing (e.g. sprinkler systems), non-permanent landscaping fixtures (e.g. potted plants, furniture, bird feeders), repairs to property used for business or trade purposes, refinancing existing indebtedness, and labor costs of borrowers and/or residents. CEE will refer to the city whenever eligibility of an improvement project is questionable. Bidding: Only 1 bid is required. All contractors must be properly licensed. Permits must be obtained when required by City ordinance. Sweat Equity: Not permitted. Property Inspection: Required. Eligible improvements will be determined through an analysis of the property. A CEE staff member will perform the analysis to determine the severity of the situation. Post Installation Inspection: Properties are subject to a post installation inspection by a CEE staff member when a permit is not required. Where a permit is required, the work must be signed-off by a City inspector prior to release of funds. Work Completion: All work must be completed within 30 days of loan closing. Extensions may be granted by CEE. Underwriting Decision: CEE will review the application and submitted documentation for consideration for other home improvement programs prior to considering the application for the Emergency Repair Deferred Loan Program. CEE will approve or deny loans based on income verification and other criteria. This is a last resort program. The borrower must not be eligible for any other financing administered by CEE in order to obtain an Emergency Repair Deferred loan. CEE’s decision shall be final. Borrower Fees: Borrower will be responsible for mortgage filing and service fees, flood certificate, credit report fees and any applicable closing fee, which may be financed in the loan amount. Page 25 of 51 Exhibit A23 #4054 Page 8 Agreement between the City of Coon Rapids and Center for Energy and Environment Home for Generations II Loan Interest Rate: 3% or 5% (mirroring the Home Improvement Loan program) >80% 5% <=80% 3% Additionally, any rate that has been disclosed will be honored if the program rate has been changed during the loan process (as required by law) Amortization Type: Amortizing. (Monthly Payments Required). Loan Amount: Minimum of $2,000 and Maximum of $50,000. Minimum project cost is $35,000. Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire project as outlined in the bid(s). Additional funds may come from the applicant’s personal savings, gifts, or other Non-City loans. Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum term will be 20 years. Eligible Properties: Single family, owner-occupied properties located within the geographical boundaries of the City of Coon Rapids. Property must be at least 20 years old. Individual townhomes, twin homes and condominiums are eligible. Properties held in a trust are eligible. Ineligible Properties: Dwellings with more than one unit, cooperatives, manufactured homes, properties in a Contract-for-Deed and properties used for commercial purposes. Eligible Borrowers: Borrowers must obtain a Home for Generation II Participation Agreement from the City of Coon Rapids. All borrowers must be legal residents 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 (TIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and Properties held in the name of a business. Ownership/Occupancy: Owner-occupied only. Page 26 of 51 Exhibit A23 #4054 Page 9 Agreement between the City of Coon Rapids and Center for Energy and Environment Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 100% of the property value. Half of the improvement value may be added to the initial property value. Value can be established by the Property Tax Statement or an Appraisal dated within the past 12 months. Income Limit: None. Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt to income ratio in excess of 50% will be ineligible to receive financing. Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing (without reasonable explanation). 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late payments on credit report (without reasonable explanation. 7) No defaulted government loans. Multiple Loans per Property/Borrower: More than one loan per property/borrower is allowed, however, the outstanding balance(s) of all city loans cannot exceed $50,000. Eligible Use of Funds: Borrowers must obtain a Participation Agreement with the city. Eligible improvements include additions, conversion of unfinished space (including garage), covered front entry porch and/or enclosed entry and major remodeling of kitchens, bathrooms and basements. Other types of improvements are also eligible as long as at least one of the improvements listed above is included in the scope of work. The minimum project cost is $35,000. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed and permits must be obtained when required. Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent or buy tools/equipment or compensate for labor. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the City of Coon Rapids. Borrower will pay all applicable title and filing fees. Page 27 of 51 Exhibit A23 #4054 Page 10 Agreement between the City of Coon Rapids and Center for Energy and Environment Borrower Fees: Borrower will be responsible for a 1% origination Fee, document preparation fee, mortgage filing and service fees, flood certificate, credit report fees and any applicable closing fee which may be financed in the loan amount. Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. CEE’s decision shall be final. Work Completion: All work must be completed within 180 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. CenterPoint Energy On-Bill Repayment Program Interest Rate:Match CEE interest rate for the EZPAY Loan Program Amortization Type: Amortizing (Monthly Payments Required). Loan Amount: Up to $10,000. Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire project as outlined in the bid(s). Additional funds may come from the applicant’s personal savings, gifts, or other Non-City loans. Loan term: Generally, one year per $1,000 borrowed. Up to 5 years. Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of the City of Coon Rapids. Individual Townhomes, Twin-homes and Condominiums are eligible. Properties held in a Trust are eligible. Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes, time shares, properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents 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 (TIN) ARE NOT ACCEPTABLE. **Must be an eligible CenterPoint Energy customer.*** Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and Properties held in the name of a business. Ownership/Occupancy: Owner- occupied only. Loan - to - Value Ratio: N/A Page 28 of 51 Exhibit A23 #4054 Page 11 Agreement between the City of Coon Rapids and Center for Energy and Environment Income Limit: None Debt - to - Income Ratio: N/A Credit Requirements: All borrowers must be current on their CenterPoint Energy utility bill and have not had more than 1 late payment in the last 12 months. All mortgage payments and property taxes must be current. Borrowers must have a minimum credit score of 620. Multiple Loans per Property/Borrower: Only one CenterPoint On-Bill Repayment loan is permitted at a time and the total of all city funds cannot exceed $50,000. Eligible Use of Funds: Projects eligible through the CenterPoint Energy On-Bill Repayment Program. These include, but are not limited to (Efficiency requirements are subject to change per CenterPoint): •Furnace >= 92% AFUE •Boiler >=83.5% efficiency •Programmable thermostat with eligible heating system •Water Heater >=.67 EF •Wall Insulation •Attic Insulation & Air Sealing (R-Value>= 44) ***Other improvements are eligible to be included as long as at least one eligible energy conservation improvement is being done. These include, but are not limited to: •Air conditioning (no window units) •Energy Star Windows/Doors •Ventilation/Bath Fans •Electrical updates required due to energy improvement •Asbestos and Radon mitigation •HVAC cleaning •Other health and safety issues Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Improvements that are not an eligible energy conservation improvement or other improvements listed as an eligible improvement. Funds used for working capital, debt management, or to refinance existing loans. Bids: Only 1 bid is required. All contractors must be properly licensed and permits must be obtained when required. Contractor must be participating in the CenterPoint Energy On-Bill Repayment Program. Sweat Equity / Homeowner Labor: Not permitted. Post Installation Inspection: N/A Loan Security: N/A. Page 29 of 51 Exhibit A23 #4054 Page 12 Agreement between the City of Coon Rapids and Center for Energy and Environment Borrower Fees: Borrower shall be responsible for a document preparation fee and applicable credit report fees which may be financed in the loan amount. Underwriting Decision: CEE will approve or deny loans based on a credit report score and other criteria as deemed necessary through CEE’s underwriting guidelines. CEE’s decision shall be final. Borrower must also meet all CenterPoint Energy On-Bill Loan Repayment requirements. Disbursement of Funds: Funds will be disbursed to the borrower. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. Loan Security: None. Loan will be paid per the CenterPoint Energy On-Bill Repayment Program. Loan Servicing: All CenterPoint Energy On-Bill Repayment loans are serviced by CEE or CRF. Down-Payment/Closing Cost Assistance Interest Rate: 0%. Loan Amount: Up to $5,000. Term: Loan will be deferred until the borrower sells or transfers title of the property or is no longer occupied by the borrower, at which time 100% of the loan is due. Eligible Borrowers: The borrowers must be legally residing in the United States (based on approval of 1st mortgage lender). The homebuyer(s) MUST attend a Home Stretch workshop or other valid homebuyers course offered through an approved counseling agency by the US Department of Housing and Urban Development and provide evidence prior to closing. Borrowers must be considered as a first- time homebuyer. Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and Properties held in the name of a business. Eligible Properties: 1-4 unit residential properties located with the geographical boundaries of the City of Coon Rapids. Single family homes, townhomes, twin-homes and condominiums. Properties held in a trust are eligible. Ineligible Properties: Non-owner occupied (aka absentee-owned), unless the property is the property being purchased and will become owner-occupied, dwellings with more than 4 dwelling units, Page 30 of 51 Exhibit A23 #4054 Page 13 Agreement between the City of Coon Rapids and Center for Energy and Environment Cooperatives, Manufactured homes, properties held in a Contract-for-Deed and properties used for commercial purposes. Ownership/Occupancy: Must be owner-occupied after time of purchase. Loan-to-Value: 100%. Income Limits: 110% AMI based on household size and adjusted gross income from most recent tax return. If a tax return is not required to be filed by the borrower(s) then income will be determined by the projected income over the next 12 months. Debt-to-Income Ratio: N/A Multiple Loans per Property / Borrower: Borrowers may only obtain one purchase assistance deferred loan from this program. If ownership changes, the new owner is eligible. If a previous recipient purchases a new qualifying home, they would be eligible again at that new property if the borrower(s) would be considered as a first-time homebuyer at that time. Eligible Improvements: These funds may only be used for down-payment or closing cost related to the purchase of the subject property. Underwriting: Amount and approval of loan will be determined based on the 1st mortgage approval. In order to determine eligibility, CEE requires the following documentation from the 1st mortgage lender: 1) A CEE application 2) Certification that all homebuyers have completed a Home Stretch or other Homebuyers course offered through a counseling agency approved by the US Department of Housing and Urban Development 2) A copy of the whole/complete Purchase Agreement 3) A copy of the Appraisal or determination of value 4) A copy of the Title Commitment 5) A copy of the 1st mortgage pre-approval/commitment letter 6) A copy of the 1st Mortgage loan estimate, closing disclosure or similar closing cost / financing statement. Disbursement of Funds: Funds will be disbursed to the closing agent, for the benefit of the borrower, in coordination with the purchase closing. Borrower Fees: Borrower will be responsible for mortgage filing and service fees, flood certificate, credit report fees and any applicable closing fee which may be financed in the loan amount. Page 31 of 51 Exhibit A23 #4054 Page 14 Agreement between the City of Coon Rapids and Center for Energy and Environment General Program Conditions Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify. Applicants must provide a completed application package including the following in order to be considered for funding. ➢Completed and signed application form ➢Proof of income ➢Bids or estimates for proposed projects ➢Other miscellaneous documents loan officers may require. Loan Security: All loans that will be secured with a mortgage will be in favor of the City of Coon Rapids. Contractors/Permits: Contractors must be properly licensed. Permits must be obtained when required by city ordinance. Program Costs: Loan origination, post installation inspection and remodeling advisor visit fees will be paid out of the Program Budget. Loan program marketing efforts will be billed directly to the City of Coon Rapids and is a separate expense should the city choose to commission CEE for marketing support. Borrowers will pay all mortgage filing fees and related closing costs. Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the completion of the work. The following items must be received prior to final disbursement of funds: •Final invoice or proposal from contractor (or materials receipt from supplier); •Final inspection verification by a City Inspector (or CEE); •Completion certificate(s) signed by borrower and contractor; •Lien waiver for entire cost of work; •Evidence of city permit (if required) ***Funds will be disbursed to the homeowner at closing for the CenterPoint On-Bill Repayment Program. Page 32 of 51 Exhibit A-24 Page 1 EXHIBIT A-24 PROGRAM GUIDELINES This document includes guidelines for the FRIDLEY LOAN PROGRAMS Page 33 of 51 Exhibit A-24 Page 2 FRIDLEY LOAN PROGRAM GUIDELINES The Fridley Loan Programs are designed to supplement existing loan programs available from MHFA, CEE, private lenders and other housing resources. Center for Energy and Environment shall serve as the administrator for the Fridley Loan Programs and will secure the most beneficial financing based on the borrower’s needs independent of the funding source. Funding for these programs are provided by the City of Fridley Housing and Redevelopment Authority (HRA). Home Improvement Loan Interest Rate:2% Amortization Type: Amortizing (Monthly Payments Required). Loan Amount: Minimum of $1,000 and Maximum of $50,000. Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire project as outlined in the bid(s). Additional funds may come from the applicant’s personal savings, gifts, or other non-City loans. Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum term will be 20 years. Eligible Properties: 1-4 unit owner-occupied properties located within the City of Fridley, including individual townhomes, twin homes, and condominiums. Properties held in a trust or Contract for Deed are eligible. Ineligible Properties: Properties with more than four units, cooperatives, manufactured homes, or properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States. Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and Properties in the name of a business. Ownership/Occupancy: Owner- occupied only. Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 110% of the property value. Half of the improvement value may be added to the initial property value. Value can be established by the Property Tax Statement, or an Appraisal dated within the past 12 months. Page 34 of 51 Exhibit A-24 Page 3 Income Limit: None. Debt - to - Income Ratio: 50% Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing (without reasonable explanation). 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late payments on credit report (without reasonable explanation). 7) No defaulted government loans. Multiple Loans per Property/Borrower: More than one loan per property/borrower is allowed, however, the outstanding balance(s) for this loan CANNOT exceed $50,000. The outstanding balance of ALL Fridley loans CANNOT exceed $75,000. Eligible Use of Funds: Most permanent interior and exterior improvements. The HRA shall be asked to approve uses of funds when eligibility is uncertain. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed or registered and permits must be obtained when required. Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to purchase tools/ equipment or compensate for labor. Rental of equipment to complete the project is eligible. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the City of Fridley. Borrower Fees: Borrower will be responsible for a 1% origination fee, title report, document preparation fee, mortgage filing and service fees, credit report fees and any applicable closing fee. Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. CEE’s decision shall be final. Page 35 of 51 Exhibit A-24 Page 4 Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case-by-case basis. Mobile Home Improvement Loan Interest Rate:2% Amortization Type: Amortizing (Monthly Payments Required). Loan Amount: Minimum of $500 and Maximum of $10,000. Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire project as outlined in the bid(s). Additional funds may come from the applicant’s personal savings, gifts, or other non-City loans. Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum term will be 10 years. Eligible Properties: Residential Mobile Homes located in the City of Fridley. Ineligible Properties: Properties which are not a Residential Mobile Home. Eligible Borrowers: All borrowers must be legal residents of the United States. Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and Properties in the name of a business. Ownership/Occupancy: Owner- occupied only. Loan - to - Value Ratio: N/A Income Limit: None. Debt - to - Income Ratio: 50% Credit Requirements: 1) All loans secured to the property must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation). 2) No outstanding judgements or collections. 3) Bankruptcy must have been discharged for at least 18 months prior to loan closing (without reasonable explanation). 4) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 5) Generally, no more than two 60- day late payments on credit report (without reasonable explanation). 6) No defaulted government loans. Page 36 of 51 Exhibit A-24 Page 5 Multiple Loans per Property/Borrower: More than one loan per property/borrower is allowed, however, the outstanding balance(s) of this program CANNOT exceed $10,000. The outstanding balance of ALL Fridley loans CANNOT exceed $75,000. Eligible Use of Funds: Most permanent interior and exterior improvements. The HRA shall be asked to approve uses of funds when eligibility is uncertain. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed or registered and permits must be obtained when required. Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to purchase tools/ equipment or compensate for labor. Rental of equipment to complete the project is eligible. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a lien in favor of the City of Fridley Housing and Redevelopment Authority. Borrower Fees: Borrower will be responsible for a 1% origination fee, document preparation fee, title filing and service fees, credit report fees and any applicable closing fee. Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. CEE’s decision shall be final. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case-by-case basis. Page 37 of 51 Exhibit A-24 Page 6 Senior Deferred Loan Interest Rate: 0% Amortization Type: Deferred Loan Amount: Minimum loan is $5,000. Maximum loan is $20,000. Total Project Cost: 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 original loan amount, the borrower is responsible to provide proof of having funds to pay for the remaining portion. Loan term: 30 years. If the borrower has not sold or transferred title and still occupies the property 30 years from the date of the loan, the loan is 100% forgiven. If the borrower sells or transfers title of the property or the property is no longer occupied by the borrower prior to 30 years, the loan is 100% due and payable. Eligible Properties: 1-4 unit owner-occupied properties located within the City of Fridley. Individual townhomes, twin-homes and condominiums are eligible. Properties held in a Trust or Contract for Deed are eligible. Ineligible Properties: Dwellings that are more than 4 units, cooperatives, manufactured homes, and properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States. At least one of the property owners must be at least 62 years of age. Ineligible Borrowers: Includes, but are not limited to nonresident owners, non-occupant co-borrowers, properties held in the name of a business. Ownership / Occupancy: Owner-occupied only. Loan- to-Value Ratio: 110% Income Limit: 60% AMI based on household size and Adjusted Gross Income from the most recent Federal Tax Return. If a tax return is not required to be filed, the income will be based on projected gross income. Debt- to-Income Ratio: N/A Multiple Loans per Property/Borrower: Multiple loans on a property are allowed ; however, the outstanding balance of ALL Fridley loans CANNOT exceed $75,000. ONLY ONE DEFFERED LOAN CAN BE OUTSTANDING AT A TIME. Page 38 of 51 Exhibit A-24 Page 7 Eligible Improvements: Most permanent exterior or interior improvements determined by a site visit. The HRA shall be asked to approve uses of funds when eligibility is uncertain. Ineligible Improvements: Work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bidding: Only 1 bid is required. All contractors must be properly licensed or registered. Permits must be obtained when required by City ordinance. Sweat Equity: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to purchase tools/ equipment or compensate for labor. Rental of equipment to complete the project is eligible. Property Inspection: Required. Eligible improvements will be determined through an analysis of the property. A CEE representative will perform the analysis to prioritize eligible improvements. Post Installation Inspection: Properties are subject to a post installation inspection by a CEE representative when a permit is not required. Where a permit is required, the work must be signed-off by a City inspector prior to release of funds. Work Completion: All work must be completed within 120 days of loan closing. Extensions may be granted by CEE. Underwriting Decision: Must be current on all mortgages and property taxes, no outstanding tax liens or in the process of Bankruptcy or Foreclosure. Borrower Fees: Borrower will be responsible for a 1% origination fee, title report, document preparation fee, mortgage filing and service fees, credit report fees and any applicable closing fee. Page 39 of 51 Exhibit A-24 Page 8 Home Betterment Deferred Loan Interest Rate: 0% Amortization Type: Deferred Loan Amount: Minimum loan is $5,000. Maximum loan is $20,000. Total Project Cost: 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 original loan amount, the borrower is responsible to provide proof of having funds to pay for the remaining portion. Loan term: 30 years. If the borrower has not sold or transferred title and still occupies the property 30 years from the date of the loan, the loan is 100% forgiven. If the borrower sells or transfers title of the property, or if the property is no longer occupied by the borrower prior to 30 years, the loan is 100% due and payable. Eligible Properties: 1-4 unit owner-occupied properties located within the City of Fridley. Individual townhomes, twin-homes and condominiums are eligible. Properties held in a Trust or Contract for Deed are eligible. Ineligible Properties: Dwellings that are more than 4 units, cooperatives, manufactured homes, and properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States. Ineligible Borrowers: Includes, but are not limited to nonresident owners, non-occupant co-borrowers, properties held in the name of a business. Ownership / Occupancy: Owner-occupied only. Loan- to-Value Ratio: 110% Income Limit: 80% AMI based on household size and Adjusted Gross Income from the most recent Federal Tax Return. If a tax return is not required to be filed, the income will be based on projected gross income. Debt- to-Income Ratio: N/A Multiple Loans per Property/Borrower: Multiple loans on a property are allowed if the outstanding balance does not exceed $25,000. The outstanding balance of ALL Fridley loans CANNOT exceed $75,000. ONLY ONE DEFFERED LOAN CAN BE OUTSTANDING AT A TIME. Page 40 of 51 Exhibit A-24 Page 9 Eligible Improvements: Most permanent exterior or interior improvements determined by a site visit. . The HRA shall be asked to approve uses of funds when eligibility is uncertain. Ineligible Improvements: work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bidding: Only 1 bid is required. All contractors must be properly licensed or registered. Permits must be obtained when required by City ordinance. Sweat Equity: Work may be performed by property owners on a “sweat equity” basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to purchase tools/ equipment or compensate for labor. Rental of equipment to complete the project is eligible. Property Inspection: Required. Eligible improvements will be determined through an analysis of the property. A CEE representative will perform the analysis to prioritize eligible improvements. Post Installation Inspection: Properties are subject to a post installation inspection by a CEE representative when a permit is not required. Where a permit is required, the work must be signed-off by a City inspector prior to release of funds. Work Completion: All work must be completed within 120 days of loan closing. Extensions may be granted by CEE. Underwriting Decision: Must be current on all mortgages and property taxes, no outstanding tax liens or in the process of Bankruptcy or Foreclosure. Borrower Fees: Borrower will be responsible for a 1% origination fee, title report, document preparation fee, mortgage filing and service fees, credit report fees and any applicable closing fee. Emergency Deferred Loan Interest Rate: 0% Amortization type: Deferred Loan Amount: Minimum loan is $500. Maximum loan is $10,000. Page 41 of 51 Exhibit A-24 Page 10 Total Project Cost: 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 original loan amount, the borrower is responsible to provide proof of having funds to pay for the remaining portion. Loan term: 30 years. If the borrower has not sold or transferred title and still occupies the property 30 years from the date of the loan, the loan is 100% forgiven. If the borrower sells, transfers title of the property or the property is no longer occupied by the borrower prior to 30 years, the loan is 100% due and payable. Eligible Properties: 1–4-unit owner-occupied properties located within the geographical boundaries of the City of Fridley. Individual townhomes, twin homes, and condominiums. Properties held in a Trust or Contract for Deed are eligible. Ineligible Properties: Properties with more than four units, cooperatives, manufactured homes, or properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States. Ineligible Borrowers: Includes, but are not limited to nonresident owners, non-occupant co-borrowers, properties held in the name of a business. Ownership / Occupancy: Owner-occupied only. Loan- to-Value Ratio: 125% Income Limit: 110% AMI based on household size and Adjusted Gross Income from the most recent Federal Tax Return. If a tax return is not required to be filed, the income will be based on projected gross income. Debt- to-Income Ratio: N/A Multiple Loans per Property/Borrower: Multiple Emergency Deferred Loans are permitted based upon availability of funds. The cumulative outstanding balance of this program CANNOT exceed $10,000. The maximum outstanding balance of ALL Fridley loans is $75,000. More than 1 deferred loan can be outstanding for this program. Eligible Improvements: Those which address an emergency. An emergency is defined as an imminent condition that makes a house uninhabitable, dangerous to the occupants, or can cause severe health problems. Repairs that will remedy such emergency repairs are eligible. Examples of eligible repairs include, but are not limited to, water lines, sewer service, fire hazards, repair to exterior steps, railings, retaining walls, water seepage into basement, structural problems, or replacement of a furnace or hot water heater. Ineligible Improvements: Any improvement not addressing an emergency (as defined above). Bidding: Only 1 bid is required. All contractors must be properly licensed or registered with the MN Department of Labor. Permits must be obtained when required by City ordinance. Page 42 of 51 Exhibit A-24 Page 11 Sweat Equity: Not permitted. Property Inspection: Required. Eligible improvements will be determined through an analysis of the property. A CEE staff member will perform the analysis to determine the severity of the situation. Post Installation Inspection: Properties are subject to a post installation inspection by a CEE staff member when a permit is not required. Where a permit is required, the work must be signed-off by a City inspector prior to release of funds. Work Completion: All work must be completed within 30 days of loan closing. Extensions may be granted by CEE. Underwriting Decision: This is a last resort program. The borrower must not be eligible for any other financing administered by CEE to obtain an Emergency Deferred loan. Borrower must be current on all mortgage payments and property taxes and not have a pending Bankruptcy or Foreclosure. Borrower Fees: Borrower will be responsible for a 1% origination fee, title report, document preparation fee, mortgage filing and service fees, credit report fees and any applicable closing fee. Down-Payment/Closing Cost Assistance Interest Rate: 0%. Loan Amount: $5,000 for households earning more than 80% but less than 110% AMI; $10,000 for households earning 80% AMI or less Amortization Type: Deferred Term: 30 years. If the borrower has not sold or transferred title and still occupies the property 30 years from the date of the loan, the loan is 100% forgiven. If the borrower sells or transfers title of the property, or the property is no longer occupied by the borrower prior to 30 years, the loan is 100% due and payable. Eligible Borrowers: All borrowers must be legal residents of the United States. The homebuyer(s) MUST attend a Home Stretch workshop or other valid homebuyers course offered through an approved counseling agency by the US Department of Housing and Urban Development and provide evidence prior to closing. Borrowers must be considered a first- time homebuyer. Ineligible Borrowers: Including but not limited to: Foreign Nationals, Non-Occupant Co-Borrowers, and Properties held in the name of a business. Page 43 of 51 Exhibit A-24 Page 12 Eligible Properties: 1–4-unit residential properties located with the geographical boundaries of the City of Fridley. Individual Townhomes, twin-homes, and condominiums are eligible. Ineligible Properties: Non-owner occupied (aka absentee-owned), unless the property is the property being purchased and will become owner-occupied, dwellings with more than 4 dwelling units, Cooperatives, Manufactured homes, properties held in a Contract-for-Deed and properties used for commercial purposes. Ownership/Occupancy: Must be owner-occupied after time of purchase. Loan-to-Value: 110%. Income Limits: 110% AMI based on household size and adjusted gross income from most recent tax return. If a tax return is not required to be filed by the borrower(s) then income will be determined by the projected income over the next 12 months. Debt-to-Income Ratio: N/A Multiple Loans per Property / Borrower: Borrowers may only obtain one purchase assistance deferred loan from this program. If ownership changes, the new owner is eligible. If a previous recipient purchases a new qualifying home, they would be eligible again at that new property if the borrower(s) would be considered as a first-time homebuyer at that time. ONLY ONE DEFERRED LOAN CAN BE OUTSTANDING AT A TIME. Eligible Use of Funds: These funds may only be used for down-payment or closing cost related to the purchase of the subject property. Underwriting: Amount and approval of loan will be determined based on the 1st mortgage approval. In order to determine eligibility, CEE requires the following documentation from the 1st mortgage lender: 1) Application 2) Certification that all homebuyers have completed a Home Stretch or other Homebuyers course offered through a counseling agency approved by the US Department of Housing and Urban Development 3) A copy of the whole/complete Purchase Agreement 4) A copy of the Appraisal or determination of value 5) A copy of the Title Commitment 6) A copy of the 1st mortgage pre-approval/commitment letter 6) A copy of the 1st Mortgage loan estimate, prelim-closing disclosure Disbursement of Funds: Funds will be disbursed to the closing agent, for the benefit of the borrower, in coordination with the purchase closing. Page 44 of 51 Exhibit A-24 Page 13 Borrower Fees: Borrower will be responsible for mortgage filing and service fees, flood certificate, credit report fees and any applicable closing fee which may be financed in the loan amount. Multi-Family Improvement Loan Interest Rate:2% Amortization Type: Amortizing (Monthly Payments Required). Loan Amount: Minimum of $5,000 and Maximum of $50,000 (city may allow higher amounts on a case- by-case basis). Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire project as outlined in the bid(s). Additional funds may come from the applicant’s personal savings, gifts, or other non-City loans. Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum term will be 20 years. Eligible Properties: 1–12-unit residential properties located within the geographical boundaries of the City of Fridley. Properties held in a Trust or Contract for Deed are eligible. Properties must be in compliance with the City of Fridley’s Rental Housing Licensing ordinance. Ineligible Properties: Properties with more than 12 units, cooperatives, manufactured homes, or properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States OR a registered business with the MN Secretary of State. A business must have been in business for at least 2 years. Ineligible Borrowers: A person or business with no ownership of the property. Ownership/Occupancy: Owner- occupied or Absentee-owned. Loan - to - Value Ratio: 110%. Half of the improvement value may be added to the initial property value. Value can be established by the Property Tax Statement, or an Appraisal dated within the past 12 months. Income Limit: None. Debt - to - Income Ratio: 50%. Not applicable if property is owned by a business but must show positive cash flow from most recent tax return or Profit and Loss Statement. Page 45 of 51 Exhibit A-24 Page 14 Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation). 2) All real estate taxes must be current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing (without reasonable explanation). 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late payments on credit report (without reasonable explanation). 7) No defaulted government loans. Multiple Loans per Property/Borrower: More than one loan per property/borrower is allowed, however, the outstanding balance(s) for this loan CANNOT exceed $50,000. The outstanding balance of ALL Fridley loans CANNOT exceed $75,000. Eligible Use of Funds: Improvements that correct city code violations or health and safety concerns. Permanent Exterior Improvements including, but not limited to roofing, siding, windows, painting, doors, driveways, parking lots, awnings, sidewalks/steps, garage repair, security solar systems and tuck pointing. Interior improvements including but not limited to structural work, HVAC, accessibility improvements, plumbing, electrical, insulation, lawn sprinkler systems, flooring, permanent fixtures (cabinets/counters). Questionable improvements will be brought to the city for approval. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed or registered and permits must be obtained when required. Sweat Equity / Homeowner Labor: Not permitted. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the City of Fridley. Borrower Fees: Borrower will be responsible for a 1% origination fee, title report, document preparation fee, mortgage filing and service fees, credit report fees and any applicable closing fee. Underwriting Decision: Applicants must have acceptable credit history, unless in the name of a business. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE’s underwriting guidelines. CEE’s decision shall be final. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case-by-case basis. Page 46 of 51 Exhibit A-24 Page 15 General Program Conditions Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify. Applicants must provide a completed application package including the following in order to be considered for funding. ➢Completed and signed application form ➢Proof of income ➢Bids or estimates for proposed projects ➢Other miscellaneous documents loan officers may require. Loan Security: All loans that will be secured with a mortgage will be in favor of the City of Fridley Housing and Redevelopment Authority. Program Costs: Loan origination, post installation inspection and remodeling advisor visit fees will be paid out of the Program Budget. Loan program marketing efforts will be billed directly to the Fridley HRA and is a separate expense should the city choose to commission CEE for marketing support. Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the completion of the work. The following items must be received prior to final disbursement of funds: •Final invoice or proposal from contractor (or materials receipt from supplier); •Final inspection verification by a City Inspector (or CEE); •Completion certificate(s) signed by borrower and contractor; •Lien waiver for entire cost of work; •Evidence of city permit (if required) Page 47 of 51 Council Regular Meeting DATE: 2/10/2025 TO: Council/EDA Work Session FROM: Barb Suciu, City Clerk THROUGH: Daren Nyquist, Deputy City Manager BY: Barb Suciu, City Clerk SUBJECT: All Commission Meeting Requested Council Action: Discussion on reassembling the All Commission Meeting Background: The City Council has suggested re-implementing the All Commission meeting. If you recall, the last time this event was held was in 2019. With the onset of COVID in 2020 and other changes in the city, it hasn't happened. The event was typically held in April. The purpose of the event was to allow an opportunity for all commissions to present what was happening in their commission. There is an example of the agenda for this event that was included in the packet for your review. Questions to the City Council: • Does the City Council want to re-implement the All Commission Event? • If yes, what date would the council propose having the event? • Comments on the proposed agenda Budget Issues: Inclusive Community Engagement: Antiracist/Equity Policy Effect: Strategic Priorities and Values: ATTACHMENTS: 1. 2019 Agenda 2. 2025 Agenda example Page 48 of 51 Page 49 of 51 Council/Commissions Joint Meeting Brooklyn Center Community Center – Constitution Hall April 2, 2019 AGENDA 1. Refreshments/Reception – 5:45 p.m. Please join your fellow commissioners for refreshments and partake in a Photo Shoot for Brooklyn Center’s street banners. 2. Welcome and Introductions – Mayor Elliott 6:15 p.m. 3. Presentations by Commissions/Council Feedback – 6:20 p.m. A. Presentations  Charter  Financial  Housing  Northwest Suburbs Cable Communications  Park and Recreation  Planning  Shingle Creek and West Mississippi Watershed Management  Sister Cities  MAC 4. Comments/Questions – City Council 5. Certificate of Perfect Attendance Presentation Charter Commission Housing Commission Park & Recreation Commission - Donald Bumgarner - Joan Schonning - Travis Bonovsky - Gail Ebert - Michael Stokes - Jill Dalton - Kathryn Ellgren - Paul Oman - Thomas Shinnick - Mark Goodell - Judy Thorbus - Judy Thorbus - Jerome Witalka 6. Closing Remarks/Adjourn – 8:00 p.m. Page 50 of 51 Council/Commissions Joint Meeting Brooklyn Center Community Center – Constitution Hall XXXXXXX AGENDA 1. Refreshments/Reception – 5:45 p.m. 2. Welcome and Introductions – Mayor Graves 6:00 p.m. 3. Presentations by Commissions/Council Feedback – 6:05 p.m. A. Presentations (90 minutes) ▪Charter ▪Cultural and Public Arts ▪Financial ▪Housing ▪Multi-Cultural Advisory Committee ▪Northwest Suburbs Cable Communications ▪Park and Recreation ▪Planning ▪Shingle Creek and West Mississippi Watershed Management ▪Sister Cities 4. Strategic Priorities Update (10 minutes) 5. Comments/Questions – City Council (10 minutes) 6. Certificate of Perfect Attendance Presentation - ? 7. Closing Remarks/Adjourn – 8:00 p.m. Page 51 of 51