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102218 EDA Meeting Packet EDA MEETING City Hall, 4401 Xylon Avenue North Monday, October 22, 2018 President Kathi Hemken Commissioner John Elder Commissioner Cedrick Frazier Commissioner Andy Hoffe Commissioner Jonathan London 1. Call to order – EDA Meeting of October 22, 2018 2. Roll call 3. Approval of Minutes:  September 10, 2018 4. Resolution approving contract with JACON, LLC for hazardous material abatement, demolition of site improvements, utility work, tree removal, well sealing, and site grading of 7215 62nd Avenue North (improvement project no. 1023) 5. Resolution approving contract for snow removal and maintenance services with Kenlawn Co. 6. Resolution approving Amendment 1 to Loan Origination Agreement between Center for Energy and Environment and EDA 7. Adjournment EDA Meeting Page 1 September 10, 2018 City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 EDA Minutes September 10, 2018 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 7:44 p.m. ROLL CALL Present: Absent: Kathi Hemken, President John Elder, Commissioner Cedrick Frazier, Commissioner Andy Hoffe, Commissioner Jonathan London, Commissioner Staff Present: Kirk McDonald, City Manager Aaron Chirpich, Community Development Specialist Tim Fournier, Police Chief Valerie Leone, City Clerk Susan Rader, Director of Parks and Recreation Jeff Sargent, Director of Community Development Stacy Woods, Assistant City Attorney APPROVAL OF MINUTES Item 3 Motion was made by Commissioner Elder, seconded by Commissioner Hoffe, to approve the minutes of August 13, 2018. Voting in favor: Hemken, Elder, Hoffe; and the following voted against the same: None; Abstained: Frazier; Absent: London. Motion carried. PROPOSED EDA LEVY Item 4 President Hemken introduced for discussion EDA Item 4, Resolution authorizing the proposed levy of a special levy benefit pursuant to Minnesota Statutes, Section 469.033, subdivision 6 and approval of a preliminary budget for fiscal year 2019. Mr. Kirk McDonald, city manager, stated the EDA is asked to approve a $300,000 levy for 2019. RESOLUTION 2018-13 Item 4 Commissioner Elder introduced the following resolution and moved its adoption “RESOLUTION AUTHORIZING THE PROPOSED LEVY OF A SPECIAL LEVY BENEFIT PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A PRELIMINARY BUDGET FOR FISCAL YEAR 2019.” The motion for the adoption of the foregoing resolution was seconded by Commissioner Hoffe, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Frazier, Hoffe; and the following voted against the same: None; Abstained: None; Absent: London; whereupon the resolution was declared duly passed and adopted , signed by the president which was attested to by the executive director. EDA Meeting Page 2 September 10, 2018 5355 OREGON AVE (IMP. PROJECT 1018) Item 5 President Hemken introduced for discussion EDA Item 5, Resolution approving contract with Robinson Environmental, Inc. for hazardous material abatement at 5355 Oregon Avenue (Improvement Project No. 1018). Mr. Aaron Chirpich, community development specialist, explained the EDA recently acquired the single-family home located at 5355 Oregon Avenue North as part of the scattered site housing program. He stated before the home can be demolished it is necessary to remove any hazardous materials. He reported requests for quotes were mailed to four contractors, and the city received two quotes. Robinson submitted the low quote of $3,149.20, and the contractor has performed similar work on three other scattered site properties. Staff recommends awarding the contract to Robinson Environmental. Mr. Chirpich stated EDA funds will be used to pay for the abatement work. It was noted that police and fire may use the structure for training purposes and neighbors would be notified prior to any training exercises. RESOLUTION 2018-14 Item 5 Commissioner Elder introduced the following resolution and moved its adoption “RESOLUTION APPROVING CONTRACT WITH ROBINSON ENVIRONMENTAL, INC. FOR HAZARDOUS MATERIAL ABATEMENT AT 5355 OREGON AVENUE (IMPROVEMENT PROJECT NO. 1018).” The motion for the adoption of the foregoing resolution was seconded by Commissioner Hoffe, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Frazier, Hoffe; and the following voted against the same: None; Abstained: None; Absent: London; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. 5212 PENNSYLVANIA AVENUE NORTH (IMP. PROJECT 1025) Item 6 President Hemken introduced for discussion EDA Item 6, Resolution approving purchase agreement for the acquisition of 5212 Pennsylvania Avenue North (Improvement Project No. 1025). Mr. Aaron Chirpich, community development specialist, stated the city has an opportunity to acquire 5212 Pennsylvania Avenue North for $145,500 as part of the city’s scattered site housing program. He stated the property is located in a priority redevelopment area north of the ice arena. Mr. Chirpich illustrated the interior and exterior of the home. He noted the city became aware of the availability of the property after a point-of- sale inspection was completed and the owner expressed a willingness to work with the city. Due to the age and condition of the home, staff is recommending demolition and sale of the property to a qualified developer for the construction of a new higher value single family home. He reported the 2018 assessed value is $154,000. Mr. Chirpich recommended that EDA funds be used for the acquisition and gap financing on the project. He projected the acquisition, demolition and site preparation costs to be $177,850 and that the lot could be sold for $65,000 leaving a gap of $112,850. He stated the increased taxable value of a new home valued in excess of $300,000 on the site will help recover the financial loss over a period of years. EDA Meeting Page 3 September 10, 2018 Council Member Frazier inquired whether the developer of the city -owned property near the railroad property may be interested in purchasing the lot. Mr. Chirpich stated staff will definitely make the prospective developer aware of the city-owned parcel as they may be interested in building on it in conjunction with the larger housing development. Mayor Hemken commended the city inspectors for identifying the property. RESOLUTION 2018-15 Item 6 Commissioner Frazier introduced the following resolution and moved its adoption “RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 5212 PENNSYLVANIA AVENUE NORTH (IMPROVEMENT PROJECT NO. 1025).” The motion for the adoption of the foregoing resolution was seconded by Commissioner Elder, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Frazier, Hoffe; and the following voted against the same: None; Abstained: None; Absent: London; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. 7311 62ND AVENUE N. (IMP. PROJECT 1022) Item 7 President Hemken introduced for discussion EDA Item 7, Resolution approving purchase and redevelopment agreement with Houston Homes, Inc. for the sale of 7311 62nd Avenue North (Improvement Project No. 1022). Mr. Aaron Chirpich, community development specialist, stated the public hearing is to consider sale of the vacant city-owned lot at 7311 62nd Avenue North to Houston Homes, Inc. for $55,000. He stated Requests for Proposals were sent to more than 20 home builders, and proposals were received from three contractors. He illustrated the primary attributes of the house designs of the three contractors. He explained the proposals are very similar, but staff rated the Houston proposal higher based on number of finished square feet, overall amenities, three car garage, and sales price. Mr. Chirpich stated the EDA has not previously sold a scattered site lot to Houston Homes, but the builder has a proven track record of custom homes in the cities of Monticello, Maple Grove, and Hanover. Mr. Chirpich reported t he land sale closing is anticipated to occur by the end of October. President Hemken opened the floor to comments. There was no one in the audience desirous of addressing the EDA for the public hearing. CLOSE HEARING Item 7 Motion was made by Commissioner Elder, seconded by Commissioner Hoffe, to close the public hearing. All present voted in favor. Motion carried. RESOLUTION 2018-16 Item 7 Commissioner Frazier introduced the following resolution and moved its adoption “RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH HOUSTON HOMES, INC. FOR THE SALE OF 7311 62ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 1022).” The motion for the adoption of the foregoing resolution was seconded by Commissioner Hoffe, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Frazier, Hoffe; and the following voted against the same: None; Abstained: None; Absent: London; whereupon the resolution was EDA Meeting Page 4 September 10, 2018 declared duly passed and adopted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner Frazier, seconded by Commissioner Hoffe, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 8:08 p.m. Respectfully submitted, Valerie Leone, City Clerk S:\102218 City Council Meeting\Q & R Award Demolition Contract for 7215 62nd Avenue 10-22-18.docx Request for Action October 22, 2018 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Aaron Chirpich, CD Specialist Agenda Title Resolution approving contract with JACON, LLC for hazardous material abatement, demolition of site improvements, utility work, tree removal, well sealing, and site grading of 7215 62nd Avenue North (improvement project no. 1023). Requested Action Staff requests approval of a resolution awarding a contract for hazardous material abatement, demolition of all site improvements, utility work, tree removal, well sealing, and site grading for the property located at 7215 62nd Avenue North, to the low and responsible bidder, JACON, LLC in the amount of $17,900. Policy/Past Practice When public bidding is required as part of the Scattered Site Housing Program, it is practice of staff to present contracts to the EDA for consideration. Background The EDA has recently acquired the single-family home located at 7215 62nd Avenue North as part of the Scattered Site Housing Program. The EDA has directed staff to take the necessary steps in preparing the home for demolition in order to facilitate redevelopment of the property. This contract award includes hazardous material abatement, demolition of all site improvements, replacement of the water service valve, lining of the sanitary sewer service, tree removal, sealing of two wells, and limited site grading. Requests for quotes were sent to six contractors. Staff received two bids and the results are as follows:  Nitti Rolloff Services, Inc. $27,100  JACON, LLC $17,900 Funding EDA funds will be used to pay for this contract award. Experience with Recommended Contractor The EDA has worked with the recommended contractor on one previous scattered site housing project. JACON, LLC was the selected contractor for demolition and site grading work at 7303 62nd Avenue. Staff had a good experience working with the contractor, and has no concerns with hiring them for this project. Attachments  Resolution  Bids Received  RFQ and Bid Specifications Agenda Section EDA Item Number 4 EDA RESOLUTION NO. 18-___ RESOLUTION APPROVING CONTRACT WITH JACON, LLC FOR HAZARDOUS MATERIAL ABATEMENT, DEMOLITION OF SITE IMPROVEMENTS, UTILITY WORK, TREE REMOVAL, WELL SEALING AND SITE GRADING OF 7215 62ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 1023) BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, the Economic Development Authority in and for the City of New Hope (“EDA”) purchased that certain real property located at 7215 62nd Avenue North, New Hope, MN (the “Property”) with the intentions of redeveloping the Property; and WHEREAS, City staff intends to redevelop the Property in accordance with the City’s scattered site housing program and policy and return the Property to the tax rolls for the benefit of all taxing jurisdictions; and WHEREAS, City staff is exercising due diligence to correct the Property’s blighted condition by performing an environmental cleanup of the Property to be followed by the demolition of all buildings on the Property, utility work, tree removal, well sealing and site grading of the Property; and WHEREAS, JACON, LLC submitted a proposal for hazardous material abatement, demolition of site improvements, utility work, tree removal, well sealing and site grading (“Work”) that meets all of the Project Specifications and is the low bid; and WHEREAS, it is in the best interests of the EDA to enter into a contract with JACON, LLC for the purpose of performing the Work; and WHEREAS, City staff is hereby seeking approval from the EDA of the selection of JACON, LLC as the duly qualified contractor to perform the Work. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That selection of JACON, LLC as the Contractor to perform the hazardous material abatement, demolition of all building and site improvements located at the Property, utility work, tree removal, well sealing and site grading of the Property pursuant to the Project Specifications is approved, it being in the best interest of the EDA and City to prepare the Property for redevelopment in accordance with the City’s scattered site housing program and policy. 3. That the payment of $17,900 to JACON, LLC to perform the Work is hereby approved. 4. The President, Executive Director, and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the hazardous material abatement, demolition, utility work, tree removal, well sealing and the re-grading of the Property in accordance with the contract to be prepared by the City Attorney. Dated the 22nd day of October, 2018. ____________________________________ Kathi Hemken, President Attest: _____________________________ Kirk McDonald, Executive Director P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11425 7215 62nd Ave. N\Resolution approving Demolition contract for 7215 62nd.docx I:\RFA\COMM DEV\2018\Council Meetings\10-22-18 Xylon Avenue Maintenance\Q - Xylon Avenue Maintenance Contract 10-22-18.docx Request for Action October 22, 2018 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Jeff Alger, CD Coordinator/Management Analyst; Jeff Sargent, CD Director Agenda Title Resolution approving contract for snow removal and maintenance services with Kenlawn Co. Requested Action Staff requests that the City Council approve a resolution approving a one-year contract for snow removal and landscaping/maintenance services along Xylon Avenue North between 42nd and 45th avenues and landscaping services along 45th Avenue North between Xylon and Winnetka avenues with Kenlawn Lawn & Landscape in the amount of $32,412. Policy/Past Practice It is a practice of staff to review maintenance needs that require additional funding with the City Council. The city has utilized contractors to maintain the area since December of 2016. Background The Xylon Avenue streetscape improvement project was approved in conjunction with the construction of the Hy-Vee grocery store, the first new development in the City Center zoning district. The streetscape project included many elements that were new to the city, including a civic plaza, arbors, raised planters, han ging plants, trash receptacles, and passive seating areas. Due to other priorities and the level of service required to manage and maintain the City Center area throughout all seasons, the public works department was unable to service and manage the area. A contractor was hired on December 1, 2016, to manage the following:  Removal of snow from the sidewalk on the west side of Xylon Avenue North, between city hall and the fire station, around the civic plaza area, and the areas around benches, bike racks, and trash receptacles.  Emptying trash receptacles and picking up litter.  Sweeping of general debris. The city paid $11,455 for the services in 2016 ($954.58 per month) and $13,271.64 for the services in 2017 ($1,105.97 per month). The plants, shrubs, and trees that were originally installed as part of the Xylon Avenue streetscape improvements by the Margolis Company were under warranty through the summer of 2018. That included the trimming, pruning, and replacement of dead plants, shrubs, and trees, and the installation of wood chips annually. With the expiration of that warranty, the scope of work required for the area has increase d substantially. As a result, staff requested bids from ten landscaping/snow removal contractors for 2019, with the following additions to the contract:  Landscaping care and replacement of trees, perennial plants, shrubs, and flowers. This includes trimming, pruning, and replacing overgrown, dead, or missing trees, plants, shrubs, and flowers. The cost of replacing trees, plants, shrubs, and flowers will be reimbursed to the contractor by the city. Item Number 5 Agenda Section EDA Request for Action, Page 2  Replacement of all wood chips by June 1. This includes all landscaped areas along Xylon Avenue North and all trees along Xylon and 45th avenues.  Specifications that trash must also be removed from all landscaped areas adjacent to Xylon Avenue North, including planting areas adjacent to Hy-Vee.  An alternate bid for winterizing the irrigation systems on Xylon Avenue North. After the request for bids was distributed, the city’s public works department made arrangements for city staff to begin emptying trash containers in the area. Those who were interested in bidding on the work were informed of the change and the item was removed from the contract. The current contractor did not submit a bid prior to the deadline for submissions. The city received two bids, which are summarized in the following table: KG Landscape Kenlawn Lawn & Landscape Snow removal services 11/1/18 to 10/31/19 $1,324.58/month; $15,895/year $1,458/month; $17,496/year Landscaping, trash removal, and sweeping services 11/1/18 to 10/31/19 $3,680.83/month; $44,170/year *Plant replacement labor not included $1,243/month; $14,916/year *Shredded natural hardwood mulch not included, installed at price of $82/yard, approximately $3,735 total Winterization of irrigation systems N/A TBD at later date Total $5,005.42/month $60,065/year $2,701/month; $32,412/year The low bid was received from Kenlawn Lawn & Landscape, a company based in New Hope that has been in operation since 1983. Staff met with the owner and walked through the area prior to receiving the bid. While the cost for the services is significantly higher than what the city is currently paying, the scope of work has increased substantially. The contractor also specializes in landscaping care and maintenance services. Staff received positive feedback from several references, some of which have been working with Kenlawn Lawn & Landscape for more than 30 years. Funding Funding for snow removal and landscaping/maintenance services in the City Center area would be provided through the EDA budget. Recommendation Staff recommends that the City Council approve a resolution approving a contract for snow removal and landscaping/maintenance services along Xylon Avenue North between 42nd and 45th avenues and landscaping services along 45th Avenue North between Xylon and Winnetka avenues with Kenlawn Lawn & Landscape in the amount of $32,412. Attachments  Resolution  Contract  Bid from Kenlawn Lawn & Landscape RESOLUTION NO. 18-___ RESOLUTION APPROVING CONTRACT FOR SNOW REMOVAL AND MAINTENANCE SERVICES WITH KENLAWN CO. BE IT RESOLVED by the City Council of the City of New Hope as follows: WHEREAS, the City’s Xylon Avenue streetscape between 42nd and 45th Avenues (“Xylon Avenue Streetscape”) requires snow removal and maintenance services beyond which City Public Works is currently able to dedicate; WHEREAS, City staff has determined that it is necessary to engage an outside firm to provide snow removal and maintenance services for the Xylon Avenue Streetscape (“Services”) at the City’s direction; WHEREAS, City staff sought quotes for outsourcing these Services; and WHEREAS, KENLAWN Co., a Minnesota corporation, submitted a proposal that meets all of the Service Specifications and is the low bid for these Services; WHEREAS, it is in the best interests of the City to enter into a contract with KENLAWN Co. for the purpose of performing the Services; and WHEREAS, City staff is hereby seeking approval from the City of the selection of KENLAWN Co. as the duly qualified contractor to perform the Services and approval of the proposed contract which is attached hereto as Exhibit A (“Contract”); WHEREAS, City staff and City Attorney have reviewed the proposed Contract and are agreeable with the terms, believing them to be in the best interest of the City to handle the Services; and WHEREAS, the City Council hereby approves the Contract attached as Exhibit A, it being in the best interest of the City to engage the snow removal and streetscape maintenance services of KENLAWN Co. NOW, THEREFORE, BE IT RESOLVED by the City Council in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That the Contract with KENLAWN Co., attached hereto as Exhibit A, is hereby approved. 3. The Mayor, City Manager and New Hope City staff are authorized and directed to sign the Contract and all other appropriate documents, and to take whatever additional actions are necessar y or desirable, to complete the Contract and engage the services of KENLAWN Co. Dated the 22nd day of October, 2018. ____________________________________ Kathi Hemken, Mayor Attest: __________________________ Valerie Leone, City Clerk 1 CITY OF NEW HOPE CONTRACT FOR SNOW REMOVAL AND LANDSCAPING/MAINTENANCE SERVICES FOR XYLON AVENUE NORTH BETWEEN 42ND AND 45TH AVENUES & LANDSCAPING SERVICES FOR 45TH AVENUE BETWEEN XYLON AND WINNETKA AVENUES For valuable consideration as set forth below, this Contract dated the 22nd day of October, 2018, is made and entered into between the City of New Hope, a Minnesota municipal corporation ("City") and KENLAWN CO., a Minnesota corporation ("Contractor"). 1. CONTRACT DOCUMENTS Contractor hereby promises and agrees to perform and comply with all the provisions of this Contract and the work specified in the two 2019 Requests for Bids, prepared by the City and attached hereto as Exhibit A, which together constitute a single bid (jointly referred to as the “Bid Specifications”) for the snow removal and landscaping/maintenance services for the City’s Xylon Avenue streetscape between 42nd and 45th Avenues and landscaping services for 45th Avenue, between Xylon and Winnetka Avenues, New Hope, Minnesota, (“Xylon Avenue Streetscape”). The Contract including Bid Specifications found on Exhibit A shall comprise the total agreement of the parties hereto. No oral order, objection or claim by any party to the other shall affect or modify any of the terms or obligations contained in this Contract. 2. THE SERVICES AND TERM The work to be performed by Contractor under this Contract (the "Services"), is defined in the Bid Specifications as the snow removal and seasonal maintenance services located on the Xylon Avenue Streetscape. The Term of this Contract shall be for twelve (12) months, commencing on November 1, 2018 and terminating on October 31, 2019. 3. CONTRACT PRICE The City agrees to pay Contractor the total sum of $32,412 ($2,701 per month for 12 months) in exchange for Contractor satisfactorily furnishing labor and materials for the Services. The cost of replacing trees, plants, shrubs, flowers, and wood chips will be reimbursed to the Contractor by the City. Contractor may submit invoices to the City on a monthly basis for the Services performed the previous month. Contractor may start performing Services upon its execution of this Contract and providing proof of insurance pursuant to paragraph 4. 2 4. INSURANCE Before beginning actual Services under this Contract, Contractor shall submit to the City and obtain the City's approval of a certificate of insurance on Standard Form C.I.C.C.-701 or ACORD 25 forms, showing the following insurance coverage and listing the Contractor as a loss payee under the policies: a. General Contractor Liability: $1,000,000.00 b. Automobile Liability for all Automobiles $1,000,000.00 c. Workman's Compensation: Statutory Amounts The City shall be named as an Additional Insured in regard to the General Contractor Liability forms where required by written contract on a primary and non-contributory basis, including completed operations. This certificate must provide for the above coverages to be in effect from the date of the Contract until 30 days after the Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30 days written notice to the City of intent to cancel. The certificate must further provide that Contractor’s insurance coverage is primary coverage notwithstanding any insurance coverage carried by the City that may apply to injury or damage relating to the maintenance or repair of the City streets or rights-of-way by either the City or any employee, agent, independent contractor or any other person or entity retained by the City to perform the Services described herein. All insurance is subject to the review and approval of the New Hope City Attorney. 5. LAWS, REGULATIONS AND SAFETY Contractor shall give all notices and comply with all laws, ordinances, rules and regulations applicable to performance under this Contract. Contractor shall provide adequate signs and/or barricades, and will take all necessary precautions for the protection of the Services and the safety of the public. 6. DAMAGES Contractor shall be solely liable for the full cost to repair any damage to property along the Xylon Avenue Streetscape that it causes, including but not limited to damage to the following property: concrete planters, benches, lighting and signage. 7. INDEMNIFICATION To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the City, its agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, arising out of or resulting from the performance of Services, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or 3 death, or to injury or to destruction of tangible property (other than the Services itself) including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. 8.COSTS OF ENFORCEMENT Contractor agrees to reimburse the City for all costs incurred by the City in the enforcement of this Agreement, or any portion thereof, including court costs and reasonable attorneys’ fees. 9.ASSIGNMENT Contractor shall not assign or transfer, whether by an assignment or novation or otherwise, any of its rights, duties, benefits, obligations, liabilities or responsibilities without prior written consent of the City. 10.NOTICE The address of Contractor for purposes of giving notices and any other purpose under this Contract shall be 4301 Quebec Avenue North, New Hope, MN 55428. The address of the City for purposes of giving notices and any other purposes under this Contract shall be 4401 Xylon Avenue North, New Hope, MN 55428. IN WITNESS WHEREOF, the parties to this Contract have hereunto set their hands and seals as of the day and year first above written. City of New Hope, a Minnesota municipal corporation By: ____________________________________ Kirk McDonald Its: City Manager KENLAWN Co., a Minnesota corporation By: ____________________________________ Its: President 4 Exhibit A Bid Specifications See attached the two 2019 Bid Specifications regarding seasonal Streetscape Maintenance Services and Snow Removal. 2019 NEW HOPE REQUEST FOR BID SNOW REMOVAL SERVICES XYLON AVENUE STREETSCAPE The city of New Hope is accepting proposals for snow removal services on Xylon Avenue, between 42nd and 45th avenues. The city of New Hope reserves the right to accept and/or reject any and all proposals or to award multiple contracts as may be deemed in the best interest of the city. BACKGROUND AND PURPOSE OF THIS BID The purpose of this bid and requirement contract that results is to supply snow removal and potential salting services for Xylon Avenue, between 42nd and 45th avenues. The scope of work includes removal of all snow on the west sidewalk within the city of New Hope’s right-of way and the plaza located at the northeast corner of the intersection of Xylon and 42nd avenues. Snow plowing services will be performed seven (7) days per week, excluding holidays. DESCRIPTION OF SERVICES All work shall be performed within 24 hours of a snow event totaling 1.5” or more and on-call as needed. Contractor shall ensure that walkways, plazas, crosswalks, seating, and bike rack areas be cleared to permit access to the adjacent properties within the 24 hour period after a snow event totaling 1.5” or more. Contractor is responsible to supply all labor and equipment needed to properly and safely complete the work. At this time, the city of New Hope will not be requiring the application of salt or ice melt to the sidewalk areas. If at a later date, the application of ice melting products is deemed necessary, the contractor and the city of New Hope will come to a mutually agreed upon rate. 1. Snowfall: Snowfall of 1.5” or greater shall be plowed/removed from all sidewalks, plazas, entrances, and pedestrian accessible areas specified in the contract to permit the access and movement of pedestrians. This includes removing snow on top of and around benches, trash receptacles, and bike racks. It is the contractor’s responsibility to return to the property to keep the entrances, drive aisles, and sidewalks free from snow as needed. At no time shall there be a hazardous/life safety condition caused by excess snow or snow storage. 2. Approved Areas: Contractor will pile snow in areas approved by the city of New Hope. If snow accumulation exceeds the carrying capacity of designated areas, an offsite location will be designated by the city of New Hope. It will be the contractor’s responsibility to move the snow offsite to the designated location. 3. Salting & De-icing: As previously stated, the city of New Hope will not require the contractor to apply salting and de-icing products. If requested, contractor may be asked to provide salting and de-icing on grounds at a mutually agreed upon rate. This would be in addition to the normal storm accumulation specifications and should be considered to cover the same areas but only when requested by the city of New Hope. 4. Charges for Services: The contractor will submit a single contracted price for the seasonal snow removal services. The contract will be in effect November 1, 2018, through October 31, 2019. 5. Inspections: Contractor will inspect property for pre-existing damage and submit a report detailing all pre-existing damage by commencement of contract award. A pre-bid meeting is required prior to the acceptance of any bid by the city of New Hope. It is the contractor’s responsibility to set up a time when both the contractor and New Hope staff are able to review the site and answer any questions. 6. Damage: Contractor is required to make arrangements satisfactory to the city of New Hope to repair any damage to property, including but not limited to: concrete planters, benches, lighting, etc. 7. Equipment: All equipment used for snow removal must be in good working order. All cutting edges on snow plows must be equipped with a poly edge to reduce potential damage to the sidewalk and surrounding structures. 8. Insurance: Before beginning actual work, the contractor shall submit to the city and obtain the city’s approval of a certificate of insurance on Standard Form C.I.C.-701 or ACORD 25 forms, showing the following insurance coverage and listing the City as a loss payee under the policies: a. General Contractor Liability: $1,000,000 b. Automobile Liability for all automobiles: $1,000,000 c. Workman’s Compensation: Statutory Amounts This certificate must provide for the above coverages to be in effect from the date of the contract until 30 days after the Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30 day’s written notice to the city of intent to cancel. The certificate must further provide that the contractor’s insurance coverage is primary coverage notwithstanding any insurance coverage carried by the city that may apply to injury or damage relating to the maintenance or repair of the city’s streets or right-of-ways by either the city or any employee, agent, independent contractor, or any other person or entity retained by the city to perform the herein services. 9. Indemnification: The contractor agrees to indemnify, defend and hold the city harmless from any damages, including costs and attorney’s fees, from any claims, demands, actions or causes of action arising out of any act or omission on the part of the contractor or its agents, servants, vendors or employees in the performance of or with relation to any of the work or services performed or furnished by the contractor under this contract. 10. Contract: The contractor will be required to enter into a contract with the city of New Hope. This contract will be subject to review by the New Hope City Attorney and requires approval of the New Hope City Council. Contract Extension: Should the contract be extended beyond the original contract date, payment for any additional services will be based upon the number of snow removal services completed. The city of New Hope reserves the right to extend the contract prior to expiration for a year at a time up to and including a total of three years if mutually agreeable. The city will make payment as soon as possible after each invoice is received. It is expected that the contractor will issue monthly invoices. Invoices are to be issued in a timely manner and all billing under the contract must be completed by November 1, 2019. Please note: Billing for all work is to be sent to Jeff Alger, Community Development Coordinator/Management Analyst, at 4401 Xylon Avenue North, New Hope, MN 55428 11. Emergency Contacts: Contractor shall provide emergency telephone numbers that may be called any time, 24 hours a day, and seven days a week. Contractor will respond within two hours to any call made by the designated city official for snow removal services. 12. Location of Services: See the attached maps that indicate the location of the areas where snow services are to be under the contract. Note that benches and bike racks are located on both the east and west sides of Xylon Avenue. The city of New Hope will also be requesting a quote for an extra snow removal service if the city deems snow removal services are necessary and outside the parameters of the contract. 2019 NEW HOPE REQUEST FOR BID XYLON & 45TH AVENUE STREETSCAPE MAINTENANCE SERVICES The city of New Hope is accepting proposals for the seasonal maintenance of Xylon Avenue, between 42nd and 45th avenues and 45th Avenue, between Xylon and Winnetka avenues. The city of New Hope reserves the right to accept and/or reject any and all proposals or to award multiple contracts as may be deemed in the best interest of the city. BACKGROUND AND PURPOSE OF THIS BID The purpose of this bid and requirement contract is to supply sidewalk, landscape, and trash removal services for Xylon Avenue, between 42nd and 45th Avenues and 45th Avenue, between Xylon and Winnetka avenues. The scope of work includes the general maintenance of New Hope’s streetscape. The maintenance services will be performed three (3) days per week (generally Monday, Wednesday, and Friday), excluding holidays. DESCRIPTION OF SERVICES All work shall be performed to ensure that walkways, planters, and garbage receptacles are maintained to a high standard that beautify the landscape and compliment the surrounding area. 1. Trash Removal: The contractor will be responsible for trash removal services along the Xylon Avenue streetscape. The area shall be checked three (3) days per week (generally Monday, Wednesday, and Friday) and serviced on an as-needed basis, so as to avoid trash accumulating in the area. The contractor will be required to pick up loose trash within the streetscape area that is not located in a trash receptacle. This includes the grassed areas adjacent to the walking paths, debris caught in trees and shrubs, planter beds, and all concrete surfaces. The contractor is responsible for disposal of the trash. The city of New Hope is responsible for emptying trash receptacles. 2. Sweeping: The contractor will be required to sweep the entire streetscape on a bi-weekly basis. This includes all concrete pedestrian walkways. All horizontal surfaces including, but not limited to, sidewalks, planter tops, benches, trash receptacles, etc. that have accumulated debris shall be cleaned three (3) days per week (generally Monday, Wednesday, and Friday). Some examples include wood chips that have run out of a planter due to heavy rains, debris that has been dumped into a planter, cigarette butts, etc. 3. Weeding: The manual removal of weeds from all landscaped areas, including planter beds, landscaped areas, and cracks between sidewalks, shall be performed on a weekly basis. 4. Landscaping Care & Replacement: The contractor will be responsible for caring for trees, perennial plants, shrubs, and flowers. This includes trimming, pruning, and replacing overgrown, dead, or missing trees, plants, shrubs, and flowers. The cost of replacing trees, plants, shrubs, and flowers will be reimbursed to the contractor by the city. 5. Wood Chips: The contractor will be responsible for spreading wood chips around all trees, in all planter beds, and around all plantings and landscaping. The cost of the wood chips will be reimbursed to the contractor by the city. The wood chips shall be installed by June 1, 2019. 6. Equipment: The contractor is responsible to supply all labor and equipment needed to properly and safely complete the work. 7. Charges for Services: The contractor will submit a single contracted price for the seasonal streetscape maintenance and trash removal services. The contract will be in effect November 1, 2018, through October 31, 2019. The contractor may submit invoices to the city of New Hope on a monthly basis for the work performed the previous month and for any replacement trees, plants, shrubs, or flowers. 8. Inspections: Contractor will inspect property for pre-existing damage and submit a report detailing all pre-existing damage by commencement of contract award. A pre-bid meeting is required prior to the acceptance of any bid by the city of New Hope. It is the contractor’s responsibility to set up a time when both the contractor and New Hope staff are able to review the site and answer any questions. 9. Damage: Contractor is required to make arrangements satisfactory to the city of New Hope to repair any damage to property, including but not limited to: concrete planters, benches, lighting, etc. 10. Equipment: All mechanical equipment that will be used for the maintenance of the streetscape must be in good working order. 11. Insurance: Before beginning actual work, the contractor shall submit to the city and obtain the city’s approval of a certificate of insurance on Standard Form C.I.C.-701 or ACORD 25 forms, showing the following insurance coverage and listing the City as a loss payee under the policies: a. General Contractor Liability: $1,000,000 b. Automobile Liability for all automobiles: $1,000,000 c. Workman’s Compensation: Statutory Amounts This certificate must provide for the above coverages to be in effect from the date of the contract until 30 days after the Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30 day’s written notice to the city of intent to cancel. The certificate must further provide that the contractor’s insurance coverage is primary coverage notwithstanding any insurance coverage carried by the city that may apply to injury or damage relating to the maintenance or repair of the city’s streets or rights-of-ways by either the city or any employee, agent, independent contractor, or any other person or entity retained by the city to perform the herein services. 12. Indemnification: The contractor agrees to indemnify, defend and hold the city harmless from any damages, including costs and attorney’s fees, from any claims, demands, actions or causes of action arising out of any act or omission on the part of the contractor or its agents, servants, vendors or employees in the performance of or with relation to any of the work or services performed or furnished by the contractor under this contract. 13. Contract: The contractor will be required to enter into a contract with the city of New Hope. This contract will be subject to review by the New Hope City Attorney and requires approval of the New Hope City Council. Contract Extension: Should the contract be extended beyond the original contract date, payment for any additional services will be based upon the number of maintenance and trash removal services completed. The city of New Hope reserves the right to extend the contract prior to expiration for a year at a time up to and including a total of three years if mutually agreeable. The city will make payment as soon as possible after each invoice is received. It is expected that the contractor will issue monthly invoices. Invoices are to be issued in a timely manner and all billing under the contract must be completed by November 1, 2019. Please note: Billing for all work is to be sent to Jeff Alger, Community Development Coordinator/Management Analyst, at 4401 Xylon Avenue North, New Hope, MN 55428 14. Emergency Contacts: Contractor shall provide emergency telephone numbers that may be called any time, 24-hours a day, and seven days a week. Contractor will respond within two hours to any call made by the designated city official for maintenance and trash removal services. 15. Location of Services: See the attached maps that indicate the location of the areas maintenance services are to be under the contract. Note that trash receptacles are located on both the east and west sides of Xylon Avenue. I:\RFA\COMM DEV\2018\Council Meetings\10-22-18 Center for Energy & Environment\Q - Center for Energy & Environment 10-22-18.docx Request for Action October 22, 2018 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Jeff Alger, CD Coordinator/Management Analyst; Jeff Sargent, CD Director Agenda Title Resolution approving Amendment 1 to Loan Origination Agreement between Center for Energy and Environment and EDA Requested Action Staff requests that the Economic Development Authority (EDA) approve a resolution approving a contract with the Center for Energy and Environment (CEE) to offer housing loan/grant programs to New Hope residents. The current agreement expires on December 31, 2018. Policy/Past Practice It is a practice of the EDA to review and approve housing loan/grant programs that will be offered within the city. Background In 2011, the city moved the administration of housing loan/grant programs that it offers from the Greater Metropolitan Housing Corporation to the CEE. In 2012, CEE began administering the Minnesota Fix-Up Fund and Home Energy Squad Visits in New Hope. Later that year, the City Council agreed to offer additional programs, including a Revolving Loan Program, Interest Subsidy Grant Program, and Emergency Deferred Loan Program. The city entered into a contract with CEE from January 1, 2013, to December 31, 2015, and budgeted the following for the program: Revolving Loan Program: $42,000 Interest Subsidy Grant Program: $5,000 Emergency Deferred Loan Program: $15,000 Home Energy Squad Visits: $15,000 Loan Program Administration Fees: $8,000 Total Program Budget: $85,000 As loans were paid back to the city from property owners through the Revolving Loan Program and Emergency Deferred Loan Program, funds were allocated to a general EDA fund, not a specific CEE program fund. When the contract with CEE was renewed at the end of 2015, the city decreased funds available through the Revolving Loan Program by $4,310, decreased funds available through the Interest Subsidy Grant Program by $566, and decreased funds available for loan program administration by $800. No changes were made to funding for the Emergency Deferred Loan Program. Funding for the Home Energy Squad Visit Program was separated from the group of loans/grants. The city entered into a contract with CEE from January 1, 2016, to December 31, 2018, and budgeted the following for the program: Item Number 6 Agenda Section EDA Request for Action, Page 2 Revolving Loan Program: $37,690 Interest Subsidy Grant Program: $4,434 Emergency Deferred Loan Program: $15,000 Loan Program Administration Fees: $7,200 Total Program Budget: $64,324 Since January 1, 2016, the city has issued four loans through the Revolving Loan Program. No funds have been distributed through the Interest Subsidy Grant Program or Emergency Deferred Loan Program. As a result, funds available through the Revolving Loan Program are limited. Previously, when the city received monthly payments from residents repaying the loans, the funds were deposited into the general EDA fund. In order to better track funds available for the CEE loan program, it was determined that existing funds for the program would be transferred to an account separate from the general EDA fund. Since the program is a “revolving loan program,” payments that are received, including interest, will be transferred back into the CEE loan fund and made available to the public. Staff met with Jim Hasnik, CEE Lending Manager, on April 18, 2018, to discuss the potential renewal of the contract, which expires at the end of 2018. Improved marketing of the program was also discussed. CEE agreed to create a flyer unique to New Hope that is being distributed with new resident packets. Staff also made improving access and visibility of the program a priority with the city’s website redesign. As discussed at the September 17, 2018, work session, the CEE recommended the following program changes:  Increase the minimum loan amount for the Revolving Loan Program from $1,500 to $2,000 to be consistent with the Interest Subsidy Grant Program. The Minnesota Housing Finance Agency (MHFA) has a minimum loan amount of $2,000.  Increase the maximum loan amount for the Interest Subsidy Grant Program from $10,000 to $15,000. Increasing the maximum loan amount would allow for the financing of additional improvements. The cost of a new roof and/or siding can easily exceed $10,000. The same can be said for windows, exterior steps/driveways, remodeling a bathroom, and much more.  Increase the Area Median Income (AMI) limit from $75% to 80% for the Emergency Deferred Loan Program to remain consistent with most other city programs and help residents who cannot afford to fix something that affects their safety and ability to remain in their home.  Update the credit requirements for the Revolving Loan Program to be consistent with MHFA, CEE, and other city guidelines.  Allow more than one loan per borrower as long as the outstanding amounts do not exceed the program maximum loan limit. This would help residents if they make one improvement and something else comes up that needs to be repaired. Some residents may not have the funds to pay off an existing loan in order to take out another.  Require only one bid for the Revolving Loan Program. Most borrowers already know who they want to use for their project and requiring a second estimate only delays the loan process. CEE verifies that the selected contractor is properly licensed and has the experience to determine if a bid is out of line.  There are two changes to the Administration Fees for the program. There would be a 1% origination fee to the borrower for the Revolving Loan Program. This is consistent with the MHFA interest subsidy and other city programs. The $500 annual administration fee would cover staffing City Day, attending meetings, writing and amending contracts, and assisting in marketing efforts. Request for Action, Page 3 The attached “program overview” matrix lists details and proposed changes to the Revolving Loan Program, Emergency Deferred Loan Program, and Interest Subsidy Grant Program. Funding Funding for the program would be provided through the EDA budget. Recommendation Staff recommends the following: 1. Renewing the revised three-year contract with CEE, from January 1, 2019, to December 31, 2021. Program details and proposed changes are highlighted in yellow on the attached “program overview” matrix. The contract has been reviewed by the assistant city attorney. 2. Allocating $80,000 to the program for the three-year duration of the contract. Any remaining funds from the previous contract ($21,000 available as of October 8, 2018) would be allocated towards the $80,000. 3. As payments and interest are received from the Revolving Loan Program and Emergency Deferred Loan Program, the funds would be revolved back into the CEE loan fund to be made available to the public. 4. Instead of allocating a certain amount of money to each individual program, allowing residents to utilize the $80,000 available for any of the programs that are offered. Since January 1, 2016, no funds have been distributed through the Interest Subsidy Grant Program or Emergency Deferred Loan Program and the funds available for the Revolving Loan Program have been depleted. Attachments  Resolution  Contract  Matrix depicting program details and changes proposed by CEE  Loan program activity report  Loans issued since January 1, 2016  Home improvement programs flyer CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 18-___ RESOLUTION APPROVING AMENDMENT 1 TO LOAN ORIGINATION AGREEMENT BETWEEN CENTER FOR ENERGY AND ENVIRONMENT AND EDA BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope (“EDA”) as follows: WHEREAS, the EDA desires to continue to promote, encourage and facilitate proper maintenance and repairs of houses within the City; WHEREAS, the EDA desires to renew its most recent contract with the Center for Energy and Environment (“CEE”) which was dated effective January 1, 2016, so as to ensure that the CEE continues to effectively administer the following loan programs offered by the EDA to homeowners of the City: (1) Revolving Loan Program; (2) Interest Subsidy Grant Program; and (3) Emergency Deferred Loan Program; WHEREAS, the City Attorney and City Staff have reviewed the attached Amendment 1 to the Loan Origination Agreement including Program Guidelines for the above-referenced programs which are acceptable; and WHEREAS, it is in the best interests of the EDA and the City to enter into a contract with CEE and continuing the loan origination administration services provided by the CEE. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That the EDA shall continue to work with the Center for Energy and Environment regarding loan origination administration pursuant to the terms of the Amendment 1 to Loan Origination Agreement attached hereto as Exhibit A, which is hereby approved. 3. The President and Executive Director and the New Hope City staff are authorized and directed to take whatever additional actions are necessary to enter into the Amendment 1 to Loan Origination Agreement attached hereto as Exhibit A. Dated the 22nd day of October, 2018. ____________________________________ Kathi Hemken, President Attest: __________________________ Kirk McDonald, Executive Director EXHIBIT A Amendment 1 to Loan Origination Agreement and Program Guidelines See attached. AMENDMENT 1 to the LOAN ORIGINATION AGREEMENT Between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE And CENTER FOR ENERGY AND ENVIRONMENT City of New Hope Home Improvement Loan Program The Agreement made the day of , 2018 by and between the Economic Development Authority in and for the City of New Hope, with offices at 4401 Xylon Avenue N, New Hope, MN 55428, (the “Authority”), and CENTER FOR ENERGY AND ENVIRONMENT, with its offices at 212 3rd Avenue North, Suite 560, Minneapolis, Minnesota 55401 (“CEE”) is hereby amended. 1.Services/Scope of Work of the agreement shall read: 1.1 CEE shall in conjunction with the Authority develop and deliver the City of New Hope Home Improvement Loan Program (hereinafter the “Program”) and more fully described in Exhibit A1 attached hereto. All activities delivered under the Program shall be coordinated with the Authority’s designated Program Manager. 2.Compensation of the agreement shall read: 2.1 The Authority shall compensate CEE for services provided under this agreement according to the following schedule and more fully described in Exhibit B1 attached hereto: Loan Origination Fee $550 Interest Subsidy Fee $125 Post Inspection Fee $100 Property Inspection Fee $100 Annual Administration Fee $500 The Annual Administration Fee shall be payable on January 1st of each year the contract is active. 3.Term and Termination of the agreement shall read: 3.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on January 1, 2019 and continue through December 31, 2021. All other sections of the contract shall remain as written in the original and amended agreements. IN WITNESS WHEREOF, the parties hereunder set their hands as of the date written below: ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE CENTER FOR ENERGY AND ENVIRONMENT By ___________________________ By __________________________ President Date __________________________ Date _________________________ #2797 By ___________________________ TAX ID 41-1647799 Date __________________________ EXHIBIT A1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit A Page 1 CEE Doc #2797 2018 EXHIBIT A1 PROGRAM GUIDELINES This document includes guidelines for the: REVOLVING LOAN PROGRAM, INTEREST SUBSIDY GRANT PROGRAM, and the EMERGENCY DEFERRED LOAN PROGRAM. EXHIBIT A1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit A Page 2 CEE Doc #2797 2018 CITY OF NEW HOPE PROGRAM GUIDELINES The ECONOMIC DEVELOPMENT AUTHORITY in and for the City of New Hope is making funds available for New Hope homeowners to make improvements to their properties. This program consists of 3 distinct loan offerings, the Revolving Loan, the Interest Subsidy Grant and the Emergency Deferred Loan. The New Hope 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 City of New Hope programs and will secure the most beneficial financing based on the borrower’s needs independent of the funding source. Revolving Loan Program Interest Rate: 4% fixed Amortization Type: Amortizing. Closed-end (Monthly Payments Required) Loan Amount: Minimum loan size of $2,000 and maximum of $15,000. 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 borrower’s personal savings, bona fide gifts, or other NON-New Hope EDA 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: 1-4 unit properties located within the geographical boundaries of the City of New Hope. Townhomes and Condominiums are eligible. Ineligible Properties: Dwellings with more than four units (as these would be considered “apartments” and hence commercial properties, co-ops, manufactured homes, time shares, properties held in the name of a trust, contract for deeds, and 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 (ITIN) ARE NOT ACCEPTABLE. EXHIBIT A1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit A Page 3 CEE Doc #2797 2018 Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers, and Properties held in the name of a trust. Ownership/Occupancy: Owner- occupied and absentee owned are eligible. Contracts for Deed are not eligible. 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. Income Limit: No maximum income limit. All income must be derived in the United States. 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 denied loan financing. Credit Requirements: 1) All mortgage payments must be current and reflect 0 x30 payment history in the past 12 month period. 2) All real estate taxes must be current. 3) A reasonable explanation for any judgments and collections is required and may not have been placed within 12 months prior to the application date. 4) Bankruptcy must have been discharged for at least 12 months. Borrowers with late payments after bankruptcy may be declined based on an evaluation of the borrowers situation and ability to repay. 5) The redemption period on prior foreclosures must have occurred at least 12 months prior to the loan application date. Multiple Loans per Borrower/Property: Multiple loans per borrower are eligible as long as the total outstanding balance of any existing and new loan doesn’t exceed the maximum eligible loan amount and must be current on all payments. Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that improve the basic livability of the property including the garage. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a kitchen remodel), and funds for working capital, debt service or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed. Permits must be obtained where 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 tools or equipment or compensate for labor. The property owner will provide evidence to CEE that they have the ability to complete the work. Property Inspection: Not required. Post Installation Inspection: Not required EXHIBIT A1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit A Page 4 CEE Doc #2797 2018 Loan Security: All loans will be secured with a mortgage in favor of The ECONOMIC DEVELOPMENT AUTHORITY in and for the City of New Hope Underwriting Decision: Applicants must have acceptable credit history: Generally, borrowers may not have more than three 90 day late payments in the past 12 months (without reasonable explanation), or have had a bankruptcy in the previous 18 months. Applicants must also be current on all mortgage payments and real estate property taxes. CEE will approve or deny loans based on a credit report, income verification and other criteria as outlined in the program guidelines.. Loan Costs: Administrative fees will be paid from the E.D.A.’s Administrative Budget for this program.. Borrowers will pay all applicable closing fees, which includes a 1% Origination Fee. All closing fees may be financed as part of the loan. 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. Interest Subsidy Grant Program CEE will utilize City funds to write down the interest rate on the Minnesota Housing Finance Agency’s (MHFA) Community Fix-Up Loan Program. The intent of the program is to make the interest rates on MHFA funded loans and City funded loans more consistent and leverage additional dollars for the E.D.A. Underwriting Decision: Underwriting of these loans will follow the MHFA procedural manuals and normal and prudent underwriting criteria. Interest Rate: The ECONOMIC DEVELOPMENT AUTHORITY in and for the City of New Hope will subsidize or buy down the current MHFA Community Fix Up Fund interest rate to 4%. Amortization Type: Not applicable. These funds are used to permanently write down the interest rate on the MHFA Community Fix Up Loan, therefore these funds are a grant and are not recollected by the City. Loan Amount: Minimum loan amount $2,000 maximum loan amount $15,000. Income Limit: Per MHFA guidelines, an eligible borrower must have an annual household income of less than the current MHFA Community Fix-Up Loan Program income limit. Loan Term: Generally, one year per $1,000 borrowed. The maximum term will be 10 years. EXHIBIT A1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit A Page 5 CEE Doc #2797 2018 Eligible Properties: 1-4 unit properties, including Condominimums and Townhomes, located in the City of New Hope. Ineligible Properties: Dwellings with more than four units (as these would be considered “apartments” and hence commercial properties), co-ops, manufactured homes, time shares, properties held in the name of a trust, and 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 (ITIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers, and Properties held in the name of a trust. Ownership/Occupancy: Owner- occupied only per MHFA. Contracts for Deed are not eligible. Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, must not exceed 110% of the property value per MHFA guidelines. Debt - to Income Ratio: Per current MHFA guidelines at the time of closing, an applicant must prove the ability to repay the loan and have a debt to income ratio less than 48%. Credit Requirements: Follow MHFA guidelines. Multiple Loans per Property: The Interest Subsidy Loan Program is limited to one-loan per borrower; therefore a loan for multiple properties would not be permitted. Multiple Loans per Borrower: One loan per borrower. Eligible Improvements: Per current MHFA guidelines at the time of closing, loans may be used to finance most interior or exterior improvements, including the garage. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-permanent appliances, and funds for working capital, debt service or refinancing existing debts are NOT allowed. Bids: 1 bid is required. All contractors must be properly licensed. 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 or equipment or compensate for labor. Property Inspection: Not Required. Post Installation Inspection: Random as chosen by MHFA. EXHIBIT A1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit A Page 6 CEE Doc #2797 2018 Loan Servicing: MHFA will be responsible for servicing the loans. Loan Security: As required by the MHFA, all loans will be will be secured with a mortgage. Loan Costs: Administrative fees will be paid from the E.D.A.’s Administrative Budget for this program. Servicing costs will be paid by MHFA. Borrowers will pay all applicable closing fees, which includes a 1% Origination Fee. Underwriting Decision: Follows MHFA guidelines. Work Completion: All work must be completed within 270 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. Emergency Deferred Loan Program The Emergency Deferred Loan Program is designed specifically for homeowners in the City of New Hope that have emergency home improvement needs but do not qualify for other home improvement loan or grant programs. Applicants will be considered for this program only after it is determined that they are not eligible for all other traditional home improvement program options that CEE administers. Interest Rate: 0% deferred loan Amortization Type: Deferred. No payment is due as long as the borrower retains ownership for a period greater than 10 years. If the property is sold or ownership changes within 10 years of the closing date, 100% of the amount borrowed is due. Loan Amount: Minimum loan amount $1,000; Maximum loan amount of $5,000. 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 borrower’s personal savings, bona fide gifts, or other NON New Hope EDA loans. Because this is a “last resort” program, other ECONOMIC DEVELOPMENT AUTHORITY in and for the City of New Hope loan programs are not an eligible source. Loan Term: The loan is 100% forgiven if the borrower retains ownership and occupancy of the property for a period greater than 10 years. The loan will be 100% due upon sale or transfer of ownership within 10 years of the loan closing. Eligible Properties: Funding will be available in the form of a deferred payment loan up to $5,000 for 1-4 unit, owner-occupied properties. EXHIBIT A1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit A Page 7 CEE Doc #2797 2018 Ineligible Properties: Dwellings with more than four units (as these would be considered “apartments” and hence commercial properties), condominiums that are “Condo-hotels”, co-ops, manufactured homes, time shares, properties held in the name of a trust, and 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 (ITIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers, and Properties held in the name of a trust. Ownership/Occupancy: Properties must be owner- occupied. Contracts for Deed are not eligible. Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan must not exceed 110% of the property value. Income Limit: Annual household income will be calculated based on current gross income projected forward 12 months. The household limit is 80% of the current AMI. Debt-to-Income: N/A. Credit Requirements: This is a “last resort” program: the borrower must not be eligible for any other financing program CEE administers in order to obtain an Emergency Deferred Loan. Multiple Loans per Borrower/Property: One loan per borrower. If the property transfers ownership the new owner(s) are eligible to participate one time. Loan Security: All deferred loans will be secured with a mortgage or lien in favor of the ECONOMIC DEVELOPMENT AUTHORITY in and for the City of New Hope. Borrower will pay all filing fees. Eligible Improvements: An emergency is defined as an imminent condition that makes the house dangerous or uninhabitable. CEE will determine whether the proposed improvement is an emergency based on a site visit to the property. CEE’s decision on project eligibility shall be final. Ineligible Use of Funds: Projects that do not meet the definition of “Emergency” as previously outlined. Payment for work initiated prior to the loan being approved and closed. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non- permanent appliances, and funds for working capital, debt service or refinancing existing debts are NOT allowed. Bids: 2 bids are required when the work from any one contractor exceeds $5,000. All contractors must be properly licensed. Permits must be obtained where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed. EXHIBIT A1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit A Page 8 CEE Doc #2797 2018 Sweat Equity / Homeowner Labor: Work may NOT be performed by property owners on a “sweat equity” basis. Property Inspection: Required prior to loan approval to determine the situation is an emergency. 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 ECONOMIC DEVELOPMENT AUTHORITY in and for the City of New Hope. Borrower will pay all applicable closing fees, which includes a 1% Origination Fee. All closing fees may be financed in the loan amount.. Work Completion: All work must be completed within 30 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. 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. Contractors/Permits: Contractors must be properly licensed. Permits must be obtained when required by city ordinance. Program Costs: Loan origination, post installation inspection and property inspection fees will be paid out of the E.D.A. in and for the City of New Hope Program Administrative Fund. Loan program marketing efforts will be billed directly to E.D.A. in and for the New Hope and is a separate expense should the E.D.A. in and for the City of New Hope choose to commission CEE for marketing support. Borrowers will pay all mortgage filing fees and related closing costs. 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 must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. Disbursement Process: The Interest Subsidy Grant and the Revolving Loan funds will be disbursed to the borrower after the loan closing and rescission period. EXHIBIT A1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit A Page 9 CEE Doc #2797 2018 The Emergency Deferred Loan payment to the contractor 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 Emergency Program work. The following items must be received prior to final disbursement of funds:  Final invoice or proposal from contractor (or materials list 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 required city permit. EXHIBIT B1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit B Page 1 CEE Doc #2797 2018 EXHIBIT B1 TOTAL PROGRAM BUDGET $80,000 EXHIBIT B1 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF NEW HOPE and CENTER FOR ENERGY AND ENVIRONMENT Exhibit B Page 2 CEE Doc #2797 2018 EDA IN AND FOR THE CITY OF NEW HOPE HOME IMPROVEMENT PROGRAM BUDGET A. Total E.D.A. in and for the City of New Hope Program Fund Allocation: __ $80,000___ B. Use of Funds Program Fund Allocation and Administration Fees _ __ $80,000___ Revolving Loan Interest Subsidy Grant Emergency Deferred Loan Administration Fees Budget Notes: 1. Funds may be transferred between Budget Categories in this Exhibit that do not change the Total Contract Amount without approval by the E.D.A. in and for the City of New Hope. 2. Administrative services performed by CEE will initially be funded from the Total budget as stated above and paid in accordance with the following Administration Fee schedule: (1) Origination: Revolving and Emergency Loans $550.00 per loan closed (2) Origination: Interest Subsidy Grants $1 25.00 per loan closed (3) Post Installation Inspections $100.00 per Inspection (4) Property Inspection $100.00 per Inspection (5) Annual Administration Fee $500 3. Servicing The E.D.A. in and for the City of New Hope will directly contract with a servicing company for the E.D.A. in and for the City of New Hope Loans. 4. Marketing Marketing efforts will be supported by CEE and marketing costs are not included in the administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to the labor of all program marketing. CEE will also be reimbursed by The E.D.A. in and for the City New Hope for any non- labor, out of pocket expenses relating to these services on a dollar -for-dollar-basis. DR A F T Ne w   H o p e   E D A   P r o g r a m   G u i d e l i n e s Ef f e c t i v e   J a n u a r y   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 1 Pr o g r a m   O v e r v i e w NE W   H O P E   E D A   C   #   2 6 6 8                   Ja n   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 2  E m e r g e n c y   D e f e r r e d   L o a n   I n t e r e s t   S u b s i d y   In t e r e s t   R a t e 0%   D e f e r r e d Th e   E D A   i n   a n d   f o r   t h e   C i t y   o f   N e w   H o p e   wi l l   s u b s i d i z e   o r   " b u y   d o w n "   t h e   c u r r e n t   MH F A   C o m m u n i t y   F i x   U p   F u n d   i n t e r e s t   ra t e   t o   4% . Am o r t i z a t i o n   T y p e De f e r r e d N/ A :   F u n d s   a r e   u s e d   t o   p e r m a n e n t l y   w r i t e   do w n   t h e   i n t e r e s t   r a t e   o n   a n   M H F A   C F U F   lo a n ,   th e r e f o r e   t h e s e   f u n d s   a r e   a   g r a n t   an d   a r e   n o t   r e   c o l l e c t e d   b y     t h e   C i t y . Lo a n   A m o u n t Mi n i m u m :  $ 1 , 0 0 0 Ma x i m u m :   $5 , 0 0 0     Minimum: $2,000  Ma x i m u m :   $10,000  $15,000 Th e   E C O N O M I C   D E V E L O P M E N T   A U T H O R I T Y   i n   a n d   f o r   t h e   C i t y   o f   N e w   H op e   i s   m a k i n g   f u n d s   a v a i l a b l e   f o r   N e w   H o p e   h o m e o w n e r s   t o   m a k e   im p r o v e m e n t s   t o   t h e i r   p r o p e r t i e s .     T h i s   p r o g r a m   c o n s i s t s   o f   3   l oa n   o f f e r i n g s ;   R e v o l v i n g   L o a n ,   I n t e r e s t   S u b s i d y   a n d   t h e   E m e r g e n cy Loan.  The New  Ho p e   P r o g r a m   i s   d e s i g n e d   t o   s u p p l e m e n t   e x i s t i n g   l o a n   p r o g r a m s   a va i l a b l e   f r o m   M H F A ,   C E E ,   p r i v a t e   l e n d e r s   a n d   o t h e r   h o u s i n g   r e s o urces.  This  pr o g r a m   i s   n o t   i n t e n d e d   t o   b e   t h e   s o l e   s o u r c e   o f   i m p r o v e m e n t   f u nd s   a v a i l a b l e   t o   t h e   C i t y .     C e n t e r   f o r   E n e r g y   a n d   E n v i r o n m e n t   s hall serve as the  ad m i n i s t r a t o r   f o r   t h e   N e w   H o p e   p r o g r a m s   a n d   w i l l   s e c u r e   t h e   m o s t  b e n e f i c i a l   f i n a n c i n g   b a s e d   o n   t h e   b o r r o w e r ’ s   n e e d s   i n d e p e n d e n t of the  fu n d i n g   s o u r c e .  R e v o l v i n g   L o a n   P r o g r a m Mi n i m u m :  $1 , 5 0 0  2, 0 0 0 Ma x i m u m :  $ 1 5 , 0 0 0 4% Am o r t i z i n g ,   C l o s e d ‐ e n d   ( m o n t h l y   p a y m e n t s   r e q u i r e d ) Pa g e   1   o f   8 DR A F T Ne w   H o p e   E D A   P r o g r a m   G u i d e l i n e s Ef f e c t i v e   J a n u a r y   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 1 NE W   H O P E   E D A   C   #   2 6 6 8                   Ja n   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 2  E m e r g e n c y   D e f e r r e d   L o a n   I n t e r e s t   S u b s i d y    R e v o l v i n g   L o a n   P r o g r a m To t a l   P r o j e c t   C o s t Th e   b o r r o w e r   m u s t   h a v e   s u f f i c i e n t   f u n d s   ne c e s s a r y   t o   c o v e r   t h e   c o s t   o f   t h e   e n t i r e   pr o j e c t   ( a s   o u t l i n e d   i n   t h e   B i d ( s ) .     Ad d i t i o n a l   f u n d s   m a y   c o m e   f r o m   t h e   bo r r o w e r ' s   p e r s o n a l   s a v i n g s ,   b o n a   f i d e   gi f t s ,   o r   o t h e r   N O N   N e w   H o p e   E D A   Lo a n s .     B e c a u s e   t h i s   i s   a   ' l a s t   r e s o r t '   pr o g r a m ,   o t h e r   N e w   H o p e   E . D . A .   l o a n   pr o g r a m s   a r e   n o t   a n   e l i g i b l e   s o u r c e .     I t   i s   th e   b o r r o w e r ’ s   r e s p o n s i b i l i t y   t o   o b t a i n   th e   a m o u n t   o f   f u n d s   n e c e s s a r y   t o   fi n a n c e   t h e   e n t i r e   c o s t   o f   t h e   w o r k .     I n   th e   e v e n t   t h e   f i n a l   c o s t   e x c e e d s   t h e   or i g i n a l   l o a n   a m o u n t ,   t h e   b o r r o w e r   m u s t   ob t a i n   t h e   a d d i t i o n a l   f u n d s   a n d   s h o w   ve r i f i c a t i o n   o f   t h e   a d d i t i o n a l   f u n d s   i n   or d e r   t o   b e   a p p r o v e d   f o r   t h e   l o a n . It   i s   t h e   b o r r o w e r ’ s   r e s p o n s i b i l i t y   t o   o b t a i n   th e   a m o u n t   o f   f u n d s   n e c e s s a r y   t o   f i n a n c e   th e   e n t i r e   c o s t   o f   t h e   w o r k .     I n   t h e   e v e n t   th e   f i n a l   c o s t   e x c e e d s   t h e   o r i g i n a l   l o a n   am o u n t ,   t h e   b o r r o w e r   m u s t   o b t a i n   t h e   ad d i t i o n a l   f u n d s   a n d   s h o w   v e r i f i c a t i o n   o f   th e   a d d i t i o n a l   f u n d s   i n   o r d e r   t o   b e   ap p r o v e d   f o r   t h e   l o a n . Te r m No   p a y m e n t   i s   d u e   a s   l o n g   a s   t h e   bo r r o w e r   r e t a i n s   o w n e r s h i p   a n d   oc c u p i e s   t h e   p r o p e r t y   f o r   a   p e r i o d   gr e a t e r   t h a n   1 0   y e a r s .     I f   t h e   p r o p e r t y   i s   so l d ,   t i e l   i s   t r a n s f e r r e d   o r   i s   n o   l o n g e r   ow n e r ‐ o c c u p i e d   w i t h i n   1 0   y e a r s   o f   t h e   cl o s i n g   d a t e ,   1 0 0 %   o f   t h e   a m o u n t   bo r r o w e d   i s   d u e .   Mi n i m u m   t e r m   i s   1   y e a r .   M a x i m u m   t e r m   i s   10   y e a r s .     G e n e r a l l y   1 ‐ y e a r   p e r   $ 1 , 0 0 0   bo r r o w e d .   T h i s   w i l l   b e   s o m e w h a t   f l e x i b l e   de p e n d i n g   o n   t h e   s i z e   o f   t h e   l o a n   a n d   t h e   bo r r o w e r s   a b i l i t y   t o   r e p a y   t h e   l o a n .   El i g i b l e   P r o p e r t i e s It   i s   t h e   b o r r o w e r ’ s   r e s p o n s i b i l i t y   t o   o b t a i n   t h e   a m o u n t   o f   fu n d s   n e c e s s a r y   t o   f i n a n c e   t h e   e n t i r e   c o s t   o f   t h e   w o r k .     I n   th e   e v e n t   t h e   f i n a l   c o s t   e x c e e d s   t h e   o r i g i n a l   l o a n   a m o u n t ,   th e   b o r r o w e r   m u s t   o b t a i n   t h e   a d d i t i o n a l   f u n d s   a n d   s h o w   ve r i f i c a t i o n   o f   t h e   a d d i t i o n a l   f u n d s   i n   o r d e r   t o   b e   a p p r o v e d   fo r   t h e   l o a n . Mi n i m u m   t e r m   i s   1   y e a r .   M a x i m u m   t e r m   i s   1 0   y e a r s .     Ge n e r a l l y   1 ‐ y e a r   p e r   $ 1 , 0 0 0   b o r r o w e d .   T h i s   w i l l   b e   so m e w h a t   f l e x i b l e   d e p e n d i n g   o n   t h e   s i z e   o f   t h e   l o a n   a n d   th e   b o r r o w e r s   a b i l i t y   t o   r e p a y   t h e   l o a n .   1‐ 4   U n i t   o w n e r ‐ o c c u p i e d   a n d   a b s e n t e e   o w n e d   p r o p e r t i e s   lo c a t e d   w i t h i n   t h e   g e o g r a p h i c a l   b o u n d a r i e s   o f   t h e   C i t y   o f   Ne w   H o p e .   T o w n h o m e s   a n d   C o n d o m i n i u m s   AR E   el i g i b l e . 1‐ 4   U n i t   o w n e r ‐ o c c u p i e d   p r o p e r t i e s   l o c a t e d   w i t h i n   t h e   g e o g r a p h i cal boundaries of  th e   C i t y   o f   N e w   H o p e .   T o w n h o m e s   a n d   C o n d o m i n i u m s   ARE eligible. Pa g e   2   o f   8 DR A F T Ne w   H o p e   E D A   P r o g r a m   G u i d e l i n e s Ef f e c t i v e   J a n u a r y   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 1 NE W   H O P E   E D A   C   #   2 6 6 8                   Ja n   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 2  E m e r g e n c y   D e f e r r e d   L o a n   I n t e r e s t   S u b s i d y    R e v o l v i n g   L o a n   P r o g r a m In e l i g i b l e   P r o p e r t i e s El i g i b l e   B o r r o w e r s In e l i g i b l e   B o r r o w e r s Ow n e r s h i p / O c c u p a n c y Mu s t   b e   o w n e r ‐ o c c u p i e d M u s t   b e   o w n e r ‐ o c c u p i e d Lo a n ‐ t o ‐ V a l u e In c o m e   L i m i t An n u a l   h o u s e h o l d   i n c o m e   w i l l   b e   ca l c u l a t e d   b a s e d   o n   c u r r e n t   g r o s s   in c o m e   p r o j e c t e d   f o r w a r d   1 2   m o n t h s .     Th e   h o u s e h o l d   l i m i t   i s   75 %    80 %  o f   t h e   AM I .   T h e s e   n u m b e r s   w i l l   c h a n g e   y e a r l y   in   a c c o r d a n c e   w i t h   H U D   g u i d e l i n e s .   Pe r   M H F A   g u i d e l i n e s ,   a n   e l i g i b l e   b o r r o w e r   mu s t   h a v e   a n   a n n u a l   h o u s e h o l d   i n c o m e   o f   le s s   t h a n   t h e   c u r r e n t   M H F A   C o m m u n i t y   F i x ‐ up   F u n d   i n c o m e   l i m i t . De b t ‐ t o ‐ I n c o m e   R a t i o N/ A 4 8 % Al l     b o r r o w e r s     m u s t   b e   a   l e g a l   r e s i d e n t   o f   t h e   U n i t e d   S t a t e s ,   as   e v i d e n c e d   b y   a   s o c i a l   s e c u r i t y   n u m b e r ,   i n c l u d i n g :   *U . S .   C i t i z e n s   *P e r m a n e n t   R e s i d e n t   A l i e n s *N o n ‐ P e r m a n e n t   R e s i d e n t   A l i e n s Ta x   i d e n t i f i c a t i o n   n u m b e r s   ( I T I N )   a r e   n o t   a c c e p t a b l e In c l u d i n g   b u t   n o t   l i m i t e d   t o :   ‐   I n e l i g i b l e   B o r r o w e r s : *F o r e i g n   N a t i o n a l s *N o n ‐ O c c u p a n t   C o ‐ B o r r o w e r s *P r o p e r t i e s   h e l d   i n   t h e   n a m e   o f   a   T r u s t Dw e l l i n g s   w i t h   m o r e   t h a n   4   u n i t s ,   C o ‐ o p e r a t i v e s ,   m a n u f a c t u r e d   h om e s ,   t i m e   s h a r e s ,   p r o p e r t i e s   h e l d   i n   t h e   n a m e   o f   a   t r u s t ,   a n d   properties used  fo r   c o m m e r c i a l   p u r p o s e s .   Th e   r a t i o   o f   a l l   l o a n s   s e c u r e d   b y   t h e   p r o p e r t y ,   i n c l u d i n g   t h e   n ew   l o a n ,   m u s t   n o t   e x c e e d   11 0 %  o f   t h e   p r o p e r t y   v a l u e . Ow n e r   O c c u p i e d   an d  A b s e n t e e   O w n e d   p r o p e r t i e s   a r e   el i g i b l e 50 % No n e Pa g e   3   o f   8 DR A F T Ne w   H o p e   E D A   P r o g r a m   G u i d e l i n e s Ef f e c t i v e   J a n u a r y   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 1 NE W   H O P E   E D A   C   #   2 6 6 8                   Ja n   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 2  E m e r g e n c y   D e f e r r e d   L o a n   I n t e r e s t   S u b s i d y    R e v o l v i n g   L o a n   P r o g r a m Cr e d i t   R e q u i r e m e n t s Th i s   i s   a   l a s t   r e s o r t   p r o g r a m :   t h e   bo r r o w e r   m u s t   n o t   b e   e l i g i b l e   f o r   a n y   ot h e r   f i n a n c i n g     p r o g r a m   C E E   ad m i n i s t e r s   i n   o r d e r   t o   o b t a i n   a n   Em e r g e n c y   l o a n .     A l l   m o r t g a g e   p a y m e n t s   an d   t a x e s   m u s t   b e   c u r r e n t . Fo l l o w   M H F A   g u i d e l i n e s Mu l t i p l e   L o a n s   p e r   Pr o p e r t y / B o r r o w e r 1)   A l l   M o r t g a g e   p a y m e n t s   m u s t   b e   c u r r e n t   a n d   m u s t   re f l e c t   0 x 3 0   p a y m e n t   h i s t o r y   i n   p a s t   1 2   m o n t h s 2)   A l l   r e a l   e s t a t e   t a x e s   m u s t   b e   c u r r e n t 3)   A   r e a s o n a b l e   e x p l a n a t i o n   f o r   a n y   J u d g m e n t s   a n d   Co l l e c t i o n s   i s   r e q u i r e d   a n d   m a y   n o t   h a v e   b e e n   p l a c e d   wi t h i n   1 2   m o n t h s   p r i o r   t o   a p p l i c a t i o n   d a t e .   4)   B a n k r u p t c y   m u s t   h a v e   b e e n   d i s c h a r g e d   f o r   a t   l e a s t   1 2   mo n t h s .   B o r r o w e r s   w i t h   l a t e   p a y m e n t s   a f t e r   t h e   B K   m a y   be   d e c l i n e d   b a s e d   o n   a n   e v a l u a t i o n   o f   t h e   b o r r o w e r s   si t u a t i o n   a n d   a b i l i t y   t o   r e p a y . 5)   T h e   r e d e m p t i o n   p e r i o d   o n   p r i o r   f o r e c l o s u r e s   m u s t   h a v e   oc c u r r e d   a t   l e a s t   1 2   m o n t h s   p r i o r   t o   t h e   l o a n   a p p l i c a t i o n   da t e . Ap p l i c a n t s   m u s t   h a v e   a c c e p t a b l e   c r e d i t   h i s t o r y .     G e n e r a l l y ,   ma y   n o t   h a v e   m o r e   t h a n   t h r e e   9 0   d a y   l a t e s   i n   t h e   p a s t   1 2   mo n t h s   ( w / o   r e a s o n a b l e   e x p l a n a t i o n ) ,   o r   h a v e   h a d   a   ba n k r u p t c y   w i t h   t h e   p a s t   1 8   m o n t h s .     B o r r w e r s   m u s   b e   cu r r e n t   o n   h o u s i n g   p a y m e n t s   a n d   t a x e s .   C E E   w i l l   a p p r o v e   or   d e n y   l o a n s   b a s e d   o n   c r e d i t   r e p o r t ,   i n c o m e   v e r i f i c a t i o n   an d   o t h e r   c r i t e r i a   a s   o u t l i n e d   i n   t h e   p r o g r a m   g u i d e l i n e s . Mo r e   t h a n   o n e   l o a n   p e r   p r o p e r t y   i s   p e r m i t t e d ,   h o w e v e r   pr i o r   l o a n s   m u s t   b e   p a i d   i n   f u l l   b e f o r e   a   n e w   l o a n   o n   t h e   pr o p e r t y   c a n   b e   m a d e .   Mu l t i p l e   l o a n s   p e r   b o r r o w e r   a r e   e l i g i b l e   a s   l o n g   a s   t h e   to t a l   o u t s t a n d i n g   b a l a n c e   o f   a n y   e x i s t i n g   a n d   t h e   n e w   l o a n   do e s n ' t   e x c e e d   t h e   m a x i m u m   e l i g i b l e   l o a n   a m o u n t   a n d   mu s t   b e   c u r r e n t   o n   a l l   p a y m e n t s . Pr o g r a m   i s   l i m i t e d   t o   o n e ‐ l o a n   p e r   b o r r o w e r ,   t h e r e f o r e   a   l o a n   f or multiple properties  wo u l d   n o t   b e   p e r m i t t e d .   Pa g e   4   o f   8 DR A F T Ne w   H o p e   E D A   P r o g r a m   G u i d e l i n e s Ef f e c t i v e   J a n u a r y   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 1 NE W   H O P E   E D A   C   #   2 6 6 8                   Ja n   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 2  E m e r g e n c y   D e f e r r e d   L o a n   I n t e r e s t   S u b s i d y    R e v o l v i n g   L o a n   P r o g r a m El i g i b l e   U s e   o f   F u n d s An   e m e r g e n c y   i s   d e f i n e d   a s   a n   i m m i n e n t   co n d i t i o n   t h a t   m a k e s   t h e   h o u s e   da n g e r o u s   o r   u n i n h a b i t a b l e .     C E E   w i l l   de t e r m i n e   w h e t h e r   t h e   p r o p o s e d   im p r o v e m e n t   i s   a n   e m e r g e n c y   b a s e d   o n   a  s i t e   v i s i t   t o   t h e   p r o p e r t y .     C E E ' s   de c i s i o n   o n   p r o j e c t   e l i g i b i l i t y   s h a l l   b e   fi n a l .   Pe r   c u r r e n t   M H F A   g u i d e l i n e s   a t   t h e   t i m e   o f   cl o s i n g ,   l o a n s   m a y   b e   u s e d   t o   f i n a n c e   m o s t   in t e r i o r   o r   e x t e r i o r   i m p r o v e m e n t s ,   in c l u d i n g   t h e   g a r a g e . In e l i g i b l e   I m p r o v e m e n t s Pr o j e c t s   t h a t   d o n ' t   m e e t   t h e   d e f i n i t i o n   of   a n   " e m e r g e n c y "   a s   p r e v i o u s l y   ou t l i n e d . Pa y m e n t   f o r   w o r k   i n i t i a t e d   p r i o r   t o   t h e   lo a n   b e i n g   a p p r o v e d   a n d   c l o s e d .   Pa y m e n t   f o r   w o r k   i n i t i a t e d   p r i o r   t o   t h e   l o a n   be i n g   a p p r o v e d   a n d   c l o s e d .   Re c r e a t i o n   o r   L u x u r y   p r o j e c t s   ( p o o l s ,   l a w n   sp r i n k l e r   s y s t e m s ,   p l a y g r o u n d   e q u i p m e n t ,     Sa u n a s ,   W h i r l p o o l s ,   E t c . ) Fu r n i t u r e ,   n o n ‐ p e r m a n e n t   a p p l i a n c e s ,   a n d   fu n d s   f o r   w o r k i n g   c a p i t a l ,   d e b t   s e r v i c e   o r   re f i n a n c i n g   e x i s t i n g   d e b t s   a r e   N O T   a l l o w e d . Bi d s 2  b i d s   a r e   r e q u i r e d   w h e n   t h e   w o r k   f r o m   an y   o n e   c o n t r a c t o r   e x c e e d s   $ 5 , 0 0 0 .       A l l   co n t r a c t o r s   m u s t   b e   p r o p e r l y   l i c e n s e d .     Pe r m i t s   m u s t   b e   o b t a i n e d   w h e r e   re q u i r e d ;   w h e n   n o t   r e q u i r e d ,   a   p o s t   in s t a l l a t i o n   i n s p e c t i o n   w i l l   b e   p e r f o r m e d   by   C E E   t o   e n s u r e   t h e   w o r k   h a s   b e e n   co m p l e t e d .     1  b i d   i s   r e q u i r e d .   A l l   c o n t r a c t o r s   m u s t   b e   pr o p e r l y   l i c e n s e d .     P e r m i t s   m u s t   b e   ob t a i n e d   w h e r e   r e q u i r e d   b y   c i t y   o r d i n a n c e . Lo a n s   m a y   b e   u s e d   t o   f i n a n c e   m o s t   i n t e r i o r   o r   e x t e r i o r   im p r o v e m e n t s   t h a t   i m p r o v e   t h e   b a s i c   l i v a b i l i t y   o f   t h e   pr o p e r t y   i n c l u d i n g   t h e   g a r a g e .   Pa y m e n t   f o r   w o r k   i n i t i a t e d   p r i o r   t o   t h e   l o a n   b e i n g   ap p r o v e d   a n d   c l o s e d .   Re c r e a t i o n   o r   L u x u r y   p r o j e c t s   ( p o o l s ,   l a w n   s p r i n k l e r   sy s t e m s ,   p l a y g r o u n d   e q u i p m e n t ,     S a u n a s ,   W h i r l p o o l s ,   E t c . ) Fu r n i t u r e ,   n o n ‐ p e r m a n e n t   a p p l i a n c e s   ( u n l e s s   p a r t   o f   a   ki t c h e n   r e m o d e l ) ,   a n d   f u n d s   f o r   w o r k i n g   c a p i t a l ,   d e b t   se r v i c e   o r   r e f i n a n c i n g   e x i s t i n g   d e b t s   a r e   N O T   a l l o w e d . 2  b i d s   a r e   r e q u i r e d   w h e n   t h e   w o r k   f r o m   a n y   o n e   co n t r a c t o r   e x c e e d s   $ 5 , 0 0 0 .     Al l   c o n t r a c t o r s   m u s t   b e   p r o p e r l y   l i c e n s e d .   P e r m i t s   m u s t   b e   ob t a i n e d   w h e r e   r e q u i r e d   b y   c i t y   o r d i n a n c e . On l y   1   b i d   i s   r e q u i r e d . Pa g e   5   o f   8 DR A F T Ne w   H o p e   E D A   P r o g r a m   G u i d e l i n e s Ef f e c t i v e   J a n u a r y   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 1 NE W   H O P E   E D A   C   #   2 6 6 8                   Ja n   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 2  E m e r g e n c y   D e f e r r e d   L o a n   I n t e r e s t   S u b s i d y    R e v o l v i n g   L o a n   P r o g r a m Sw e a t   E q u i t y / H o m e o w n e r   L a b o r Wo r k   m a y   N O T   b e   p e r f o r m e d   b y   pr o p e r t y   o w n e r s   o n   a   " S w e a t   E q u i t y "   ba s i s . Wo r k   m a y   b e   p e r f o r m e d   b y   p r o p e r t y   ow n e r s   o n   a   " s w e a t   e q u i t y "   b a s i s .     L o a n   fu n d s   m a y   b e   u s e d   o n l y   f o r   t h e   p u r c h a s e   o f   ma t e r i a l s .     L o a n   f u n d s   c a n n o t   b e   u s e d   t o   re n t   t o o l s   o r   e q u i p m e n t   o r   c o m p e n s a t e   f o r   la b o r .     P r o p e r t y   o w n e r   w i l l   p r o v i d e   ev i d e n c e   t o   C E E   t h a t   t h e y   h a v e   t h e   a b i l i t y   to   c o m p l e t e   t h e   w o r k .   Pr o p e r t y   I n s p e c t i o n Re q u i r e d   p r i o r   t o   l o a n   a p p r o v a l   t o   ev i d e n c e   t h e   s i t u a t i o n   i s   a n   e m e r g e n c y . Not required Po s t ‐ I n s t a l l   I n s p e c t i o n Pe r m i t s   m u s t   b e   o b t a i n e d   a n d   s i g n e d   o f f   by   a   C i t y   i n s p e c t o r   w h e r e   r e q u i r e d ;   wh e n   n o t   r e q u i r e d ,   a   p o s t   i n s t a l l a t i o n   in s p e c t i o n   w i l l   b e   p e r f o r m e d   b y   C E E   t o   en s u r e   t h e   w o r k   h a s   b e e n   c o m p l e t e d   be f o r e   a n y   f u n d s   w i l l   b e   r e l e a s e d . Not required Lo a n   S e r v i c i n g MHFA Lo a n   S e c u r i t y MHFA No t   r e q u i r e d by   C i t y   o f   N e w   H o p e   E . D . A . Wo r k   m a y   b e   p e r f o r m e d   b y   p r o p e r t y   o w n e r s   o n   a   " s w e a t   eq u i t y "   b a s i s .     L o a n   f u n d s   m a y   b e   u s e d   o n l y   f o r   t h e   pu r c h a s e   o f   m a t e r i a l s .     L o a n   f u n d s   c a n n o t   b e   u s e d   t o   r e n t   to o l s   o r   e q u i p m e n t   o r   c o m p e n s a t e   f o r   l a b o r .     P r o p e r t y   ow n e r   w i l l   p r o v i d e   e v i d e n c e   t o   C E E   t h a t   t h e y   h a v e   t h e   ab i l i t y   t o   c o m p l e t e   t h e   w o r k .   Al l   L o a n s   w i l l   b e   s e c u r e d   w i t h   a   m o r t g a g e   i n   f a v o r   o f   t h e   E c o n o mi c   D e v e l o p m e n t   A u t h o r i t y   i n   a n d   f o r   th e   C i t y   o f   N e w   H o p e .     Pr o p e r t i e s   a r e   s u b j e c t   t o   a n   i n s p e c t i o n   b y   a   C E E   re p r e s e n t a t i v e   w h e n   a   p e r m i t   i s   n o t   r e q u i r e d .     W h e n   a   pe r m i t   i s   r e q u i r e d ,   t h e   c i t y   i n s p e c t o r   w i l l   b e   r e q u i r e d   t o   in s p e c t   t h e   p r o j e c t . Pa g e   6   o f   8 DR A F T Ne w   H o p e   E D A   P r o g r a m   G u i d e l i n e s Ef f e c t i v e   J a n u a r y   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 1 NE W   H O P E   E D A   C   #   2 6 6 8                   Ja n   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 2  E m e r g e n c y   D e f e r r e d   L o a n   I n t e r e s t   S u b s i d y    R e v o l v i n g   L o a n   P r o g r a m Pr o g r a m     C o s t s Ad m i n i s t r a t i v e   f e e s   w i l l   b e   f r o m   t h e   E . D . A ' s   Ad m i n i s t r a t i v e   B u d g e t .     S e r v i c i n g   c o s t s   w i l l   be   p a i d   b y   M H F A .     B o r r o w e r s   w i l l   p a y   a l l   ap p l i c a b l e   c l o s i n g   f e e s .   Wo r k   C o m p l e t i o n Wo r k   m u s t   b e   c o m p l e t e d   w i t h i n   30  d a y s   of   t h e   l o a n   c l o s i n g .   H o w e v e r ,   w h e n   wa r r a n t e d ,   C E E   m a y   a u t h o r i z e   ex c e p t i o n s   o n   a   c a s e   b y   c a s e   b a s i s . Wo r k   m u s t   b e   c o m p l e t e d   w i t h i n   2 7 0   d a y s   of   t h e   l o a n   c l o s i n g .   H o w e v e r ,   w h e n   wa r r a n t e d ,   C E E   m a y   a u t h o r i z e   e x c e p t i o n s   on   a   c a s e   b y   c a s e   b a s i s . Lo a n   o r i g i n a t i o n ,   p o s t   i n s t a l l a t i o n   i n s p e c t i o n   a n d   p r o p e r t y   i n s pe c t i o n   f e e s   w i l l   b e   p a i d   o u t   o f   t h e   E. D . A .   i n   a n d   f o r   t h e   C i t y   o f   N e w   H o p e   P r o g r a m   A d m i n i s t r a t i v e   F un d .   L o a n   p r o g r a m   m a r k e t i n g   ef f o r t s   w i l l   b e   b i l l e d   d i r e c t l y   t o   E . D . A .   i n   a n d   f o r   t h e   N e w   H o pe   a n d   i s   a   s e p a r a t e   e x p e n s e   s h o u l d   t h e   E. D . A .   i n   a n d   f o r   t h e   C i t y   o f   N e w   H o p e   c h o o s e   t o   c o m m i s s i o n   C E E  f o r   m a r k e t i n g   s u p p o r t .     B o r r o w e r s   wi l l   p a y   a l l   m o r t g a g e   f i l i n g   f e e s   a n d   r e l a t e d   c l o s i n g   c o s t s ,   in c l u d i n g   a   1 %   O r i g i n a t i o n   F e e   f o r   t h e   Re v o l v i n g   L o a n   P r o g r a m .     A l l   c l o s i n g   f e e s   m a y   b e   f i n a n c e d   i n   t h e  l o a n   a m o u n t .   T h e r e   w i l l   b e   a   $ 5 0 0   An n u a l   A d m i n i s t r a t i o n   F e e   f o r   s t a f f i n g   t h e   a n n u a l   " C i t y   D a y " ,   c on t r a c t   a m e n d m e n t s ,   a t t e n d i n g   me e t i n g s ,   m a r k e t i n g   a n d   o t h e r   C E E   o v e r h e a d   c o s t s   a s s o c i a t e d   w i t h  t h e   N e w   H o p e   L o a n   P r o g r a m s . Wo r k   m u s t   b e   c o m p l e t e d   w i t h i n   1 2 0   d a y s   o f   t h e   l o a n   cl o s i n g .   H o w e v e r ,   w h e n   w a r r a n t e d ,   C E E   m a y   a u t h o r i z e   ex c e p t i o n s   o n   a   c a s e   b y   c a s e   b a s i s . Pa g e   7   o f   8 DR A F T Ne w   H o p e   E D A   P r o g r a m   G u i d e l i n e s Ef f e c t i v e   J a n u a r y   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 1 NE W   H O P E   E D A   C   #   2 6 6 8                   Ja n   1 ,   2 0 1 9   ‐   D e c   3 1 ,   2 0 2 2  E m e r g e n c y   D e f e r r e d   L o a n   I n t e r e s t   S u b s i d y    R e v o l v i n g   L o a n   P r o g r a m Cu s t o d y   o f   f u n d s   /   Di s b u r s e m e n t   P r o c e s s Th e   E m e r g e n c y   D e f e r r e d   L o a n   p a y m e n t   to   t h e   c o n t r a c t o r   w i l l   b e   m a d e   u p o n   co m p l e t i o n   o f   w o r k .     A n   i n s p e c t i o n   w i l l   be   p e r f o r m e d   b y   a   C i t y   I n s p e c t o r   a n d / o r   CE E   t o   v e r i f y   t h e   c o m p l e t i o n   o f   t h e   Em e r g e n c y   P r o g r a m   w o r k .     T h e   fo l l o w i n g   i t e m s   m u s t   b e   r e c e i v e d   p r i o r   to   f i n a l   d i s b u r s e m e n t   o f   f u n d s : •  F i n a l   i n v o i c e   o r   p r o p o s a l   f r o m   co n t r a c t o r   ( o r   m a t e r i a l s   l i s t   f r o m   su p p l i e r ) ; •  F i n a l   i n s p e c t i o n   v e r i f i c a t i o n   b y   a   C i t y   In s p e c t o r   ( o r   C E E ) ; •  C o m p l e t i o n   c e r t i f i c a t e ( s )   s i g n e d   b y   bo r r o w e r   a n d   c o n t r a c t o r ; •  L i e n   w a i v e r   f o r   e n t i r e   c o s t   o f   w o r k ; •  E v i d e n c e   o f   r e q u i r e d   c i t y   p e r m i t . Th e   l o a n   f u n d s   w i l l   b e   d i s b u r s e d   t o   t h e   bo r r o w e r ( s )   a f t e r   t h e   l o a n   c l o s i n g   a n d   re s c i s s i o n   p e r i o d . Re s i d e n t i a l   A d v i s o r   V i s i t   No t   a p p l i c a b l e   i n   t h i s   a g r e e m e n t Th e     R e v o l v i n g   L o a n   f u n d s   w i l l   b e   d i s b u r s e d   t o   t h e   bo r r o w e r   a f t e r   t h e   l o a n   c l o s i n g   a n d   r e s c i s s i o n   p e r i o d .       Pa g e   8   o f   8 Inv #14698 Program Budget Activity to Date Funds Remaining 11/01/2016- 08/31/2017 Revolving Loan $37,690.00 $35,869.00 $1,821.00 $10,000.00 Interest Subsidy Grant $4,434.00 $0.00 $4,434.00 $0.00 Emergency Deferred Loan $15,000.00 $0.00 $15,000.00 $0.00 PROGRAM SUBTOTAL $57,124.00 $35,869.00 $21,255.00 $10,000.00 Admin $/Unit Budget Activity to Date Funds Remaining Origination: Revolving & Emergency Loans 550$ $2,200.00 $550.00 Origination: Interest Subsidy Grants 150$ $0.00 $0.00 Post Installation Inspection 80$ $80.00 $0.00 Property Inspection 100$ $0.00 $0.00 ADMIN SUBTOTAL $7,200.00 $2,280.00 $4,920.00 $550.00 TOTAL $64,324.00 $38,149.00 $26,175.00 $10,550.00 Origination: Revolving & Emergency Loans 4 1 Origination: Interest Subsidy Grants 0 Post Installation Inspection 1 Property Inspection 0 Marketing ($65/hr; no set budget)$0.00 Please contract the Lending Center at the Center for Energy and Environment 612-335-5881 if you have any questions about this report. New Hope Loan Program Activity Report (1/1/16 to 12/31/18) Printed Friday, September 7, 2018 CE E L o a n s C l o s e d For the Period 1/1/2016 - 9/7/2018 Cit y o f N e w H o p ePr o g r a m Closed End 4%Amt Fin. Orig Fee Entered Closed Improvements Po o l Int Sub CRF 550.00 6 ,030.00 Lo a n #Name WINDOWS, DOORS, STORM WINDOW S 8/16/2016 8/31/2016 550.00 10 ,000.00 ADDITIONS /FINISHING OFF UNUSED S P 2/10/2017 8/29/2017 550.00 9 ,839.00 DRIVEWAYS 6/14/2018 7/30/2018 550.00 10 ,000.00 Driveways 8/13/2018 8/27/2018 43 5 ,869.00 To t a l L o a n s : T o t a l A m t F i n a n c e d : 2 ,200.00 43 5 ,869.00 Total Closed Loans: Total Amt Financed: 1 2 3 4 Addres s FIXED INTEREST RATE (4.021% Annual Percentage Rate)* To qualify for the emergency deferred loan you must first be ineligible for the fixed interest loan. 4% 0% $10,000 $5,000 FIXED INTEREST EMERGENCY DEFERRED LOAN MAXIMUM LOAN AMOUNT MAXIMUM LOAN AMOUNT DEFERRED INTEREST RATE LOAN TERMS UP TO 10 YEARS NO MAXIMUM INCOME LIMIT INCOME LIMITS AND ADDITIONAL RESTRICTIONS APPLY ELIGIBLE IMPROVEMENTS BASED ON A SITE VISIT LOAN IS 100% FORGIVEN IF BORROWER REMAINS IN THEIR HOME FOR 10 YEARS 1–4 UNIT OWNER OCCUPIED AND NON-OWNER OCCUPIED MOST IMPROVEMENTS ELIGIBLE PROPERTY TAXES AND MORTGAGE PAYMENTS MUST BE CURRENT The city of New Hope has partnered with the Center for Energy and Environment, a local nonprofit, to offer low interest home improvement financing to homeowners. Additionally, the city buys down Home Energy Squad CITY OF NEW HOPE HOME IMPROVEMENT PROGRAMS HOME ENERGY SQUAD ENHANCED ($50) • Installation of energy saving products: Door weather stripping, water heater blanket, programmable thermostat, LED light bulbs, high-efficiency showerheads, faucet aerators, pipe wrap • Perform a blower door test to measure your home for air leaks. • Complete an insulation inspection of your attic and walls using an infrared camera. • Safety check your home’s heating system and water heater. • Help with next steps. CONTACT THE CENTER FOR ENERGY AND ENVIRONMENT FOR MORE INFORMATION ON THESE OR OTHER PROGRAMS phone 612-335-5884, email loaninfo@mncee.org website mncee.org/newhope CALL 651-328-6220 TO SCHEDULE YOUR VISIT! The current loan terms and conditions stated, including interest rates, do not constitue a commitment to lend or offer to enter into an agreement, and such an offer may only be made pursuant to Minnesota Statues, Section 47.206(3) and (4). *APR is based on $10,000 for 120 months. 212 3RD AVENUE NORTH, SUITE 560 MINNEAPOLIS, MN 55401 612-335-5858 MNCEE.ORG