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2017.11.21 EDA Meeting Packet (Special)MUNSTOM =- 400MMUM M K11 =- 'M M K = 4. Authorize contract with Center for Energy and the Environment for administration of home improvement programs in 2018 5. Other business * *Items for which no materials are included in the packet Minutesofthe Crystal Economic ! Development 1 i;�; October President Kolb called the special meeting of the Crystal Economic Development Authority to order at 8:04 p.m. Upon call of the roll, the following members were present: Jim Adams, John Budziszewski, Elizabeth Dahl, Julie Deshler, Jeff Kolb, Nancy LaRoche and Olga Parsons. The following staff members were present: Anne Norris, Executive Director, John Sutter, Deputy Executive Director, Stephanie Revering, Police Chief, and Troy Gilchrist, City Attorney. Motion by Commissioner LaRoche (Adams) to approve the minutes of the September 19, 2017 special meeting. Motion carried. The EDA considered resolutions pertaining to EDA property at 5900 56th Avenue North: A. Authorizing demolition of the existing building; or B. Authorizing re -sale of the existing building. Mr. Sutter presented the staff report and took questions from the Board. President Kolb invited any interested persons in attendance to provide comment to the Board on this matter. The following persons addressed the Board: ® Tiffany Kovaleski, 5626 57th Avenue North ® Brian Darmer, 5624 Yates Avenue North ® Brad Gall, 5810 56th Avenue North ® Alberto Teran, 5642 Xenia Avenue North ® Mike Janson, 5629 Yates Avenue North ® Kevin Anderson, 5648 Zane Avenue North ® Russ Skovera, 5649 Yates Avenue North ® Abby Cisneros, 5708 57th Avenue North Following EDA discussion, motion by Commissioner Deshler (LaRoche) to adopt a resolution authorizing Option A, demolition of the existing building at 5900 56th Avenue North. Motion carried 5-2 with Commissioners Budziszewski, Deshler, Kolb, LaRoche and Parsons voting aye and Commissioners Adams and Dahl voting nay. Motion carried. Motion by Commissioner Deshler (Parsons) to adjourn. The meeting adjourned at 8:58 p.m. Page 1 of 2 Motion Carried. ATTEST: Olga Parsons, Secretary 0- � Jeff Kolb, President of EDA STAFF REPORT -Crry CRYSTAL Home Improvement Programs for 2018 1 C1__ FROM: John Suffer, Community Development Director I I'll i 'i 7 SUBJECT: 2018 Home Improvement Assistance programs — Consider proposed contract with Center for Energy and the Environment The Center for Energy and the Environment (CEE) can provide many of the same services as the Housing Resource Center, albeit without a local office presence. Other cities with similar programs, such as Richfield, are contracting with CEE to maintain their programs. The table on the following page compares the existing 2017 programs with the Mousing Resource Center and the proposed 2018 programs with CEE. The following are the more significant program changes: • Administrative costs would be one-third lower than in 2017, and would be proportionate to the rebates actually paid out instead of being charged at a monthly flat rate. • Rebates will be structured as a deferred loan so funds are repaid if the owner sells or rents the property within five years (we could set a shorter recapture period if desired). • Do-it-yourself projects would be eligible for a rebate for the materials costs (currently, only contracted work is eligible) • By setting the maximum household income at 110% AN instead of 120%, more rebates will be funded out of an existing housing TIF district instead of the EDA budget. H 04 "d H.- WDITAV., 09 ft A 93 Us= W#_ W 2017 2018 ITEM NOTES GMHC/HRC General u 1 $15,00011 Rebates 2 1 , $1637800 Rebate in * 3 $36,000 $247570 Rebate itlSearch s* 4 $6,000 Post- Installation Inspection* 5 $27000 CFUF Interest rit - n 6 , $25,000 CFUF In* 7 TOTAL: $239,800 , 620 *Administrative Costs: $51,$347820 Admin as % of T I: 21.3% 1 NOTES: I CEE does not require an annual payment for general technical assistance, just a one-time $1,500 set-up fee. 2 The amount available for rebates in 2018 would be the same as in 2017 3 Rebate Admin Fees would be 15% of actual rebates paid instead of a flat fee of $3,000/month 4 Because rebates would be secured by a deferred loan, a title search will be needed (est. $100 x 60 projects) 5 Some projects don't require permits so CEE will need to do site visits to verify work (est. $100 x 20 projects) 6 The amount available for Community Fix -Up Fund loans in 2018 would be the same as in 2017 7 CEE charges $125 for each CFUF loan closed (est. 6 per year) Positive and Negative Effects of the Proposed Contract: + Lower overall cost ($16,180) due to reduction in administrative costs + Rebates secured as a deferred no -interest loan so city will recapture funds if owner sells or rents the property + Materials costs for DIY projects would now be eligible (currently, only contracted work is eligible) - Loss of personal service at local Housing Resource Center office (CEE is in DT Mpls) - Loss of no -cost in-home construction consultations (CEE does them but charges the homeowner $225) +/- Household income capped at 110% AMI instead of 120% AMI (to maximize use of TIF instead of EDA funds) +/- Flat rebate of 20% instead of graduated 10-15-20% depending on income This LOAN ORIGINATION AGREEMENT ("Agreement") is made by and between the ECONOMIC DEVELOPMENT AUTHORITY in and for the City of Crystal, with offices at 4141 Douglas Dr N, Crystal, MN 55422 ("Authority"), and CENTER FOR ENERGY AND ENVIRONMENT, with offices at 212 31d Avenue North, Suite 560, Minneapolis, Minnesota 55401 ("CEE"). RECITALS A. The Authority has a need for certain professional services and desires to retain CEE to provide said services, all subject to the terms and conditions contained in this Agreement. CEE is qualified to provide the desired professional services and desires to provide said services for the Authority, all subject to the terms and conditions contained in this Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained in this Agreement, the parties agree as follows: 1.1 CEE shall in conjunction with the Authority develop and deliver the City of Crystal Home Improvement Loan Program (hereinafter the "Program") and more fully described in Exhibit A attached hereto. All activities delivered under the Program shall be coordinated with the Authority's designated Community Development Director, John Sutter. 1.2 CEE shall assist the Authority staff in marketing the Program. This will include being on the CEE website and creating an information sheet about the loan program. 1.3 The funding source is exclusively from the Authority and the program will be referred to as the Authority Funded Program. 2.1 The Authority shall compensate CEE for services provided under this agreement according to the following schedule and more fully described in Exhibit B attached hereto: Loan Set -Up Fee $1,500.00 The Authority shall pay CEE a one time loan set-up fee. This shall compensate CEE for time and labor to create the loan program. CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #2546 Page 1 Loan Origination Fee for Deferred Loan/Rebate 15% The Authority shall pay CEE a 15% Origination Fee for each deferred loan/rebate closed based on the principal loan amount using the Authority Funded Program. The Origination Fee shall compensate CEE for assisting borrowers with loan applications, preparation of loan documents, loan closing and other direct costs of processing loans. Mortgage filing fees and credit report shall be paid by the borrower. CEE shall provide a copy of closing documents including fhe loan note and mortgage as documentation of the loan closing. Title Fees The Authority shall pay CEE the cost of all title work for each deferred loan/rebafe closed. The cost will be the actual cost incurred by CEE. Loan Origination Fee for MHFA Interest Subsidy $125 The Authority shall pay CEE an Origination Fee for each loan closed using the Authority Funded Program to subsidize the Minnesota Housing Finance Agency (MHFA) interest rate. The Origination Fee shall compensate CEE for assisting borrowers with loan applications, preparation of loan documents, loan closing and other direct costs of processing loans. Mortgage filing fees, credit report, flood, title work and a I% Origination Fee shall be paid by the borrower. CEE shall provide a copy of the MHFA purchase approval as documentation of the loan closing. Loan Interest Subsidy varies The Authority shall pay CEE the MFHA Interest Subsidy amount for each loan closed using the Authority Funded Program to subsidize the Minnesota Housing Finance Agency (MHFA) interest rate. The subsidy is calculated by MHFA and is based on interest rate, loan term and loan amount. CEE shall provide a copy of the MHFA purchase approval as documentation of the loan closing. Post Installation Inspection Fee LPII� The Authority shall pay CEE a fee for each post installation inspection completed. The inspection shall be performed by CEE whenever the project does not require a building permit to verify the work was completed. The Authority shall compensate CEE only for services completed. Upon request, CEE will provide additional marketing services for the following fees: CEE Labor $65/hr Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to marketing. CEE will be reimbursed by the Authority for any non -labor, CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #2546 Page 2 out-of-pocket expenses, relating to these services on a dollar -for -dollar basis with no mark-up. 2.2 CEE shall invoice the Authority not more than two times each month for the principal of loans and administrative fees. The Authority shall pay CEE within 20 days of receipt of the invoice. a CLINT's Obligations 3.1 If requested by CEE, the Authority shall make reasonable efforts to respond promptly to requests from CEE for information and approvals regarding the services to be provided under this Agreement. 3.2 If requested by CEE, the Authority shall make reasonable efforts to obtain information and or permission for access from clients which may be necessary for CEE to provide the services under this Agreement. 3.3 The Authority shall provide sufficient funding to fund eligible Authority funded loans. The Authority shall determine the amount of funds allocated to the Program. 3.4 The Authority shall establish eligibility for the Authority Funded Program and shall provide these criteria in writing to CEE prior to commencement of any marketing efforts. 3.5 The Authority shall make reasonable efforts to respond promptly to requests from CEE for information and approvals regarding the services to be provided under this Agreement. 4. C 's Obligations 4.1 CEE shall use its best efforts to provide services under this Agreement in a professional manner consistent with the care and skill used by reputable members of CEE's profession. 4.2 CEE, and all of its employees or agents, shall comply with all statutes, ordinances, rules, regulations and other laws applicable to the provision of services under this Agreement. 4.3 CEE shall secure all permits and licenses required for performance of the services under fhis Agreement. 4.4 CEE shall not engage in discriminatory employment practices against any employee or applicant for employment and shall in all respects comply with all federal, state and local laws, regulations and orders, including without limitation, Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure to comply wifh the provisions hereof shall be deemed a material default under this Agreement. CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #2546 Page 3 5.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on 1/1 /2018, and continue through 12/31/2018 5.2 This Agreement may be terminated by eif her party, for any reason or no reason, immediately upon written notice to the other party. In the event this Agreement is terminated by CEE prior to the expiration of the term set forth in paragraph 5. 1, the Authority shall compensate CEE for all services delivered up the date of termination and CEE shall provide the Authority with such information as the Authority may request regarding the status of the Aufhority Funded Program. 5.3 Any termination of this Agreement shall not release either party from their respective obligations under sections 7 and 8 of this Agreement. 6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the amounts listed below: General Liability $2,000,000 Aggregate Limit Automobile Liability $1,000,000 Combined Single Limit Excess Liability $1,000,000 Aggregate Limit Workers Compensation Statutory Limit 7. Liability and Indemnification 7.1 CEE represents that the services to be provided under this Agreement are reasonable in scope and that CEE has the experience and ability to provide the services. 7.2 CEE warrants that any services provided hereunder shall be done in a professional and workmanlike manner. 7.3 CEE shall indemnify, defend and hold harmless Authority and its officers, directors, employees and agents from and against any and all claims, damages, losses, injuries and expenses (including attorneys' fees and damages for death, personal injury and property damage) which Authority may incur as a result of any act or omission by CEE in providing services under this Agreement. 7.4 Authority shall indemnify, defend and hold harmless CEE and its officers, directors, employees and agents from and against any and all claims, damages, losses, injuries and expenses (including attorneys' fees and damages for death, personal injury and property damage) which CEE may incur as a result of any act or omission by Authority in discharging its duties under this Agreement. CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #2546 Page 4 Unless otherwise agreed by Authority in writing, CEE shall maintain in confidence and not disclose to any third party any information obtained regarding the Authority and/or any of Authority's clients for which CEE is providing services; provided, however, that this obligation to maintain confidentiality shall not apply to: a) Information in the public domain at the time of disclosure; b) Information which becomes part of the public domain after disclosure through no fault of CEE; or c) Information which CEE can demonstrate was known by it prior to the date of this Agreement. Notwithstanding the foregoing, CEE shall be entitled to disclose the documents or client information covered by this paragraph to governmental authorities to the extent CEE reasonably believes it has a legal obligation to make such disclosures and to the extent CEE reasonably deems to be necessary; provided, however, that if CEE believes that any such disclosure is required by law, it shall provide advance notice to the Authority to provide the Authority with a reasonable opportunity to attempt to obtain an injunction or other protective order preventing such disclosure. CEE will provide services as an independent contractor under this Agreement. Neither CEE, nor any of its employees or agents, shall be considered employees of the Authority for any purpose, and neither shall CEE be eligible for any compensation or benefits which the Authority may provide to its employees from time to time. CEE shall be solely responsible for all employment and other taxes applicable to providing services hereunder, and the Authority will not withhold any taxes or contributions from the compensation payable to CEE under this Agreement. All notices, requests, demands and other communications required to be given in writing under this Agreement shall be given to the other party in person or by mail as provided in this section. If delivered personally, notice shall be deemed to have been duly given on the date of delivery. If delivered by mail, such notice shall be sent via first class U.S. mail, postage prepaid, to the address set forth at the beginning of this Agreement or such other address as a party may otherwise request by written notice, and notice shall be deemed duly given three (3) business days after mailing. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns; provided, however, that neither party shall assign or transfer in any manner, this Agreement or any portion hereof without the CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #2546 Page 5 prior written consent of the other party, and any attempt to assign or transfer without prior written consent shall be void and of no effect. 12. Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 13. Miscellaneous 13.1 Headings and captions used in this Agreement are for convenience only and shall not affect the meaning of this Agreement. 13.2 This Agreement contains the entire agreement of the parties and supersedes all prior agreements, discussions and representations, written or oral, concerning the subject matter hereof. 13.3 No waiver by the Authority of any term or condition of this Agreement or any document referred to herein shall, whether by conduct or otherwise, be construed as a waiver or release of any of her term or condition of this Agreement. 13.4 This Agreement may only be amended in a written agreement signed by both parties. 13.5 Except as expressly set forth in section 7, the rights and benefits under this Agreement shall inure solely to the benefit of the Authority and CEE, and this Agreement shall not be construed to give any rights, benefits or causes of action to any third party. 13.6 The invalidity or partial invalidity of any provision of this Agreement shall not invalidate the remaining provisions, and the remainder shall be construed as of the invalidated portion shall have never been a part of fhis Agreement. 13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13 (Government Data Practices) that are applicable to the Authority and shall not disseminate any information concerning loan requests of the borrowers without the prior written approval of the Authority. 13.8 This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. ECONOMIC DEVELOPMENT AUTHORITY in and for the City of Crystal By: Its: CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #2546 Page 6 Print Name By: Its: Corporate Secretary Jennifer Amendt Tax ID # 41-1647799 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #2546 Page 7 This document includes guidelines i. _ _• .:_•.,_ Program d. the MHFA Interest Subsidy Program Exhibit A Page 1 Agreement between Crystal EDA and Center for Energy and Environment The Crystal Economic Development Authority (Authority) is making funds available for homeowners to assist with home maintenance and energy improvements. The Crystal Deferred/Rebate and Interest Subsidy 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 Crystal Loan Programs and will secure the most beneficial financing based on the borrower's needs independent of the funding source. Interest Rate: 0% or Grant Amortization Type: Deferred or Grant Loanlrant Amount: Minimum of $1,000 and Maximum of $10,000. Loan/Grant amount is 20% of the project cost and the total cost of the project(s) must be at least $5,000. Total Proiect 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 personal savings, gifts, or other loan funds. Loan term: 5 Years, then forgiven. If the homeowner ceases to own and occupy the property during the loan term, then repayment in full is required. Eligible Properties: 1-4 unit owner -occupied properties located within the geographical boundaries of the City of Crystal. Townhomes and Condominiums are eligible, subject to Association Bylaws. Properties may be held in a Contract for Deed. If more than 1 unit the property must have a current rental license from the City of Crystal. Ineligible Properties: Dwellings with more than 4 units, cooperatives, manufactured homes, time shares, properties held in the name of a trust, properties used for commercial purposes and non -owner occupied properties. 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, and Non -Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Ineli i le Borrowers. Including but not limited to: - Businesses, Foreign Nationals, Non -Occupant Co - Borrowers, and Properties held in the name of a trust. Exhibit A Page 2 Agreement between Crystal EDA and Center for Energy and Environment Ownership/Occupancy: Owner- occupied only. Income Limit: 110% of the HUD Regional Median Income based on family size. Income will be determined by the adjusted gross income on the most recent Federal Tax Return. If a tax return is not required income will be determined by the projected gross income for the upcoming 12 months. Credit Requirements: 1) All mortgage payments must be current 2) All real estate taxes must be current 3) No defaulted government loans or child support Multiple Loans per Property: More than one loan/grant per property is allowed, however, the outstanding balance(s) cannot exceed $10,000. Eligible Use of Funds: Most exterior, energy and mechanical improvements are eligible; roofing, siding, retaining walls, sidewalks, driveways, fences, patios, decks, the removal of diseased or hazardous trees, windows/doors, HVAC, insulation, electrical, plumbing. Questionable improvements will be brought to the City for approval. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non -permanent appliances, and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Two estimates are 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 and not for renting tools/equipment or as compensation for homeowner labor. The cost of renting tools/equipment and homeowner labor do not count towards the minimum $5,000 project cost. The property owner will provide evidence to CEE that they have the ability to complete the work and complete a Homeowner Labor Agreement. Remodeling Advisor Visit (RAVE: The RAV is an optional rehabilitation and/or remodeling advisor service upon request of the resident and with the fee being paid by the resident. The intent is to help residents improve their homes by providing technical assistance before and during the bidding and construction process. All homeowners are eligible for this service whether or not they are applying for the Rebate program, but a RAV is not a requirement of the Rebate program. Loan Security: Lien (second mortgage) recorded against the property. Borrower Fees: Borrower will be responsible for mortgage filing and service fees and credit report. Mork Completion: All work must be completed within 9 months of the loan closing. Exhibit A Page 3 Agreement between Crystal EDA and Center for Energy and Environment Interest Rate: 3% fixed o... . • .111. . • �i// Total Proiect 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 personal savings, gifts, or other loan funds. Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower's ability to repay the loan. The minimum term is 1 year; the maximum term will be 20 years. Eligible Properties: 1-4 unit owner -occupied properties located within the geographical boundaries of the City of Richfield. Townhomes and Condominiums are eligible, subject to Association Bylaws. Properties may be held in a Contract for Deed. Ineligible Properties: Dwellings with more than 4 units, cooperatives, 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, and Non -Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: - Businesses, Foreign Nationals, Non -Occupant Co - Borrowers, and Properties held in the name of a trust. • , A. • - _ . . . Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 110% of the property value. Half of the improvement value may be added to the initial property value. Income Limit: 110% of the HUD Regional Median Income based on family size. Income will be determined by the adjusted gross income on the most recent Federal Tax Return. Projected income cannot exceed $104,000, as determined by MHFA. This limit adjusts annually. Exhibit A Page 4 Agreement between Crystal EDA and Center for Energy and Environment 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 48% will be ineligible to receive financing. Credit Requirements: All borrowers must have a minimum credit score of 620 and: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation) 2) All real estate taxes must be current. 3) No outstanding judgements or collections (excluding medical). 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing. 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60 -day late payments on credit report. Any 60 day late requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7) No defaulted government loans. Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding balance(s) cannot exceed $50,000. E li le Use of Funds: Same as the current MHFA guidelines Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non -permanent appliances, and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. ids: Only one bid/estimate is are required. All contractors must be properly Licensed Sweat Egulty 1 Homeowner Labor: Work may be performed by property owners on a "sweat equity" basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent tools/ equipment or compensate for labor. The property owner will provide evidence to CEE that they have the ability to complete the work and complete a Homeowner Labor Agreement. Remodeling Advisor Visit 1AV: The Remodeling Advisor Visit provides rehabilitation and/or remodeling advice upon request of the resident. The intent is to help residents improve their homes by providing technical assistance before and during the bidding and construction process. All home -owners are eligible for this service regardless if applying for the Richfield Interest Subsidy Program or not. This visit is not required. Loan Security: Determined by MHFA requirements. Borrower Fees: Borrower will be responsible for a 1% origination Fee (which may be financed), mortgage filing and service fees, flood certificate and credit report. Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE's underwriting guidelines. CEE's decision shall be final. ork Completion: All work must be completed within 9 months of the loan closing. Exhibit A Page 5 Agreement between Crystal EDA and Center for Energy and Environment 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 Proof of Identity (driver's license, passport, etc.) Bids or estimates for proposed projects Other miscellaneous documents that may be required. Pr®gram Costs: Loan origination and interest subsidy will be paid out of the Program Budget. Remodeling advisor visits will be charged separately to the homeowner. 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. Rebate/Grant: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the completion of the work. The following items must be received prior to final disbursement of funds: ® Final invoice or proposal from contractor (or materials 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 city permit (if required) Exhibit A Page 6 Agreement between Crystal EDA and Center for Energy and Environment A. Crystal r >.. r . Fee, Program inspectionsOrigination Fees and title work, but not post -installation a city inspection): r Budget Notes: 1. CEE shall submit monthly invoices for origination fees, interest subsidy and remodeling advisor visits for that period. 2. Services performed by CEE will initially be funded from the Total Program Budget as stated above and paid in accordance with the following schedule. (1) Loan Set -Up Fee $1,500 (one time) (2) Origination Fee: Deferred / Rebate 151 per loan closed (3) Origination Fee: MHFA Interest Subsidy $125 (3) MHFA Interest Subsidy $varies 3. Marketing Marketing efforts outside of CEE's website and loan information 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 additional program marketing requested by the City of Crystal. CEE will also be reimbursed by City of Crystal for any non -labor, out-of-pocket expenses relating to these services on a dollar -for -dollar basis.