HomeMy WebLinkAbout2025.02.24 CCP WORKCOUNCIL/EDA WORK SESSION
MEETING
City Hall Council Chambers
February 24, 2025
AGENDA
1. Active Discussion Items
a. 2024 East Palmer Lake Traffic Calming Project & Draft Speed Table Policy
b. Local Affordable Housing Aid (LAHA) Program Options
2. Adjournment
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Council Regular Meeting
DATE: 2/24/2025
TO: Council/EDA Work Session
FROM: Kory Andersen Wagner, Public Works Planner
THROUGH: Kory Andersen Wagner, Public Works Planner
BY: Kory Andersen Wagner, Public Works Planner
SUBJECT: 2024 East Palmer Lake Traffic Calming Project & Draft Speed Table
Policy
Requested Council Action:
Staff will present an update on the East Palmer Lake Neighborhood Traffic Calming
Project and introduce the draft Speed Table Policy for review and discussion.
Background:
The East Palmer Lake Neighborhood Traffic Calming Project was initiated in 2024 to
address vehicle speeds and pedestrian safety concerns. The project piloted temporary
speed tables and delineated posts to evaluate their effectiveness in reducing speeds
and enhancing safety in residential areas. Community feedback and data collection
were integral parts of the process to assess the impact of these interventions. Project
data will be presented as part of this update.
The City of Brooklyn Center has also developed a draft Speed Table Policy to formalize
guidelines for installing and using speed tables citywide. The policy establishes criteria
for eligibility, location requirements, and petition processes to ensure consistency and
equity in traffic-calming measures.
Budget Issues:
Inclusive Community Engagement:
Antiracist/Equity Policy Effect:
Strategic Priorities and Values:
ATTACHMENTS:
1. DRAFT Speed Table Policy 2025
2. DRAFT Petition Template 2025
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DRAFT Speed Table Guidelines – February 2025
Purpose
The purpose of these guidelines is to establish criteria for the installation and use of speed tables
within the City of Brooklyn Center to enhance public safety, manage traffic speeds, and promote a
livable community environment.
Definition
A speed table is a flat-topped, elongated traffic-calming device with gentle ramps, designed to slow
vehicles to around 20-30 mph. Unlike a speed bump, which is narrower and causes an abrupt jolt,
speed tables provide a smoother experience, making them more suitable for roads where moderate
speed reduction is needed.
Eligibility Guidelines
1. The location must meet Manual on Uniform Traffic Control Devices (MUTCD) guidelines for
installing a speed table.
2. Speed tables may be considered on local residential streets with posted speed limits of up
to 30 mph and an average annual daily traffic (AADT) volume of up to 4,000 vehicles.
3. Additionally, the location must meet one of the following two criteria:
o The 85th percentile speed is at least 10 mph over the posted speed limit.
o The location has an average of 3 crashes per year.
4. The location must meet all the following criteria:
o Not on a public transit route.
o Not a Municipal State Aid (MSA) road; it must be a local residential street.
o Not on an emergency response route unless approved by the City’s Fire and Police
Departments.
o Alternative measures have been considered and deemed unfeasible or unfit for the
context.
o Approved by the City’s Public Works Director.
o Financially feasible.
5. Exception:
o If the location abuts a pedestrian activity area (e.g., school zone, park), it may be
considered despite not meeting the speeding or crash history criteria.
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o In such cases, the location must meet all criteria outlined under the fourth bullet of
the Eligibility Guidelines.
o Additionally, a petition must demonstrate support from at least 51% of property
owners within 500 feet of the proposed speed table, acknowledging potential
impacts on snowplowing operations. The petition must be approved by a majority
vote of the City Council. Council approval is not required for locations meeting
standard speed and crash criteria.
Petition Process for Speed Table Installation
1. Initial Request for Traffic Calming
o A resident or business owner must submit a request to the Brooklyn Center Public
Works Department.
2. Initial Evaluation by Public Works
o Public Works will conduct a speed and crash data evaluation to determine whether
traffic calming is warranted.
o If not warranted, Public Works will determine whether the location qualifies for the
petition exception.
o Tentative locations for speed tables will be identified.
o The petitioner will receive a list of properties within 500 feet of the proposed speed
table location.
3. Organizing the Petition
o The standard City-created petition form must be used.
o Forms are available at Brooklyn Center City Hall or via email at
publicworks@brooklyncentermn.gov.
4. Petition Requirements
o At least 51% of units within 500 feet must sign the petition.
o Each eligible property unit (including owner-occupied homes and rental units) gets
one vote.
o Rental unit votes count equally with property owner votes.
o Signatures must include:
Printed name
Property address
Date of signing
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o The petitioner must ensure the validity of collected signatures.
o Collect signatures within 183 days of receiving this petition form.
5. Submission and Verification
o Completed petitions must be submitted to the Public Works Department for
validation.
o Public Works will confirm that the 51% support threshold is met.
6. Petition Rejection and Failed Petitions
o A petition may be rejected due to insufficient support, missing information, or late
submission.
o Petitioners have 10 days to correct clerical issues (except late submissions).
o If a petition is rejected, the area must wait 12 months before initiating another
petition.
7. City Council Review
o If the petition meets requirements, Public Works will present it to the City Council
for approval (only necessary for pedestrian activity exceptions).
8. Notification and Installation Timeline
o Residents in the affected area will be notified of the City Council decision and
anticipated installation timeline.
Installation Guidelines
1. Roadway Type:
o Speed tables may be installed on local, non-State Aid collector streets, mid-block
or at intersections.
o They may be placed on one-lane one-way or two-lane two-way streets.
2. Road Geometry:
o Speed tables will not be placed on streets with steep grades (>8%), sharp curves, or
limited sight distances.
Design Guidelines
1. Dimensions:
o Typical speed table sizes:
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10.5 feet width x 24-foot length x 3-4 inches in height.
14 feet width x 24-foot length x 3-4 inches in height.
21 feet width x 24-foot length x 3-4 inches in height.
2. Markings and Signage:
o Appropriate signage and pavement markings will be installed per MUTCD standards.
Placement Guidelines
• Speed tables will be placed at appropriate intervals based on road conditions, traffic
volume, and design considerations.
• The Institute of Transportation Engineers (ITE) recommends a spacing of 260-500 feet.
Maintenance and Review
1. Maintenance:
o The City will maintain speed tables and signage.
2. Review and Removal:
o Speed tables may be removed or adjusted based on changes in traffic patterns or
other considerations.
Exceptions and Special Considerations
• Special Events: Temporary speed tables may be used for special events, construction
zones, or other short-term needs. All such uses must be authorized by the Public Works
Director.
FAQ
1. Why limit speed tables to roads signed for 30 mph and under?
o Speed tables are most effective at controlling speeds between 20-30 mph. At higher
speeds, they can cause vehicle damage and disrupt traffic flow, making them
unsuitable for roads with higher speed limits.
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City of Brooklyn Center Petition for Speed Table Installation
Proposed Location:
[Insert Street Name and Specific Location Details]
Purpose:
This petition is to formally request the installation of speed tables at the proposed location. Speed tables are traffic
calming measures designed to reduce vehicle speeds and improve safety. By signing below, residents
acknowledge and agree to the following considerations:
Resident Agreement
We, the undersigned, understand and agree to the following tradeoffs associated with speed table installation:
1. Impact on Snowplowing Operations:
o Speed tables may increase snowplowing complexity, potentially leading to slower snow removal
times, changes in plowing patterns on the impacted roadway, and not as clean a plow on the first
days after a plowable snow fall.
2. Reduced Vehicle Speeds:
o The speed table will reduce vehicle speeds, which may alter traffic patterns in the area.
3. Potential Noise Increase:
o The slowing and accelerating of vehicles over speed tables may lead to an increase in localized
traffic noise.
4. Emergency Response Times:
o While speed tables are designed to accommodate emergency vehicles, there may be minor
impacts on emergency response times.
BC Public Works to Insert Location Map
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Petition Requirements
• At least 51% of properties within 500 feet of the proposed speed table location must sign to demonstrate
sufficient support.
• Only one vote per property unit (owner-occupied or rental) is allowed.
• Signatures must include:
o Printed Name
o Address of the Property Unit
o Date of Signing
Petitioner Responsibility
• The petitioner is responsible for ensuring all signatures collected are valid and provided by the property
owner/homeowner/leaseholder. Invalid signatures may result in the disqualification of the petition and
future restrictions on initiating similar processes.
Submission Instructions
• Collect signatures within 183 days of receiving this petition form.
• Submit the completed petition to the City of Brooklyn Center Public Works Department via email or in
person for validation.
For questions, please contact:
publicworks@brooklyncentermn.gov
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Signatures
By signing below, I acknowledge the above tradeoffs and express my support for the installation of a speed table at
the proposed location.
# Printed Name Signature Address Date
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# Printed Name Signature Address Date
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# Printed Name Signature Address Date
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# Printed Name Signature Address Date
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# Printed Name Signature Address Date
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# Printed Name Signature Address Date
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# Printed Name Signature Address Date
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Council Regular Meeting
DATE: 2/24/2025
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.
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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.
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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.
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• 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
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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
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• 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
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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
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•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
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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.
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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
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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
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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. .
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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 29 of 62
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 30 of 62
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 31 of 62
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 32 of 62
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 33 of 62
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 34 of 62
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 35 of 62
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 36 of 62
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 37 of 62
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 38 of 62
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 39 of 62
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 40 of 62
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 41 of 62
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 42 of 62
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 43 of 62
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 44 of 62
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 45 of 62
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 46 of 62
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 47 of 62
Exhibit A-24 Page 1
EXHIBIT A-24
PROGRAM GUIDELINES
This document includes guidelines for the
FRIDLEY LOAN PROGRAMS
Page 48 of 62
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 49 of 62
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 50 of 62
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 51 of 62
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 52 of 62
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 53 of 62
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 54 of 62
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 55 of 62
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 56 of 62
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 57 of 62
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 58 of 62
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 59 of 62
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.
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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.
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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)
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