2020.11.17 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
REGULAR MEETING
TUESDAY, NOVEMBER 17, 2020
IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Consider approval of minutes from the October 6, 2020 meeting
4. Consider approval of an amendment to the current contract with Center for Energy
and the Environment to increase the budget for Home Improvement Grants through
June 30, 2021
5. Consider approval of a contract with Center for Energy and the Environment for
administration of home improvement programs from July 1, 2021 - June 30, 2022
6. Other business *
7. Adjournment *
*Items for which no materials are included in the packet
Page 1 of 2
Minutes of the
Economic Development Authority of the City of Crystal
Regular Meeting
Council Chambers
October 6, 2020
1. Call to Order
President LaRoche called the meeting of the Economic Development Authority of the
City of Crystal (EDA) to order at 7:45 p.m.
2. Roll Call
Upon call of the roll, the following members were present: Jim Adams, Brendan Banks,
John Budziszewski, Julie Deshler, Therese Kiser, Nancy LaRoche and Olga Parsons.
The following staff were present: Executive Director Anne Norris, Deputy Executive
Director John Sutter and City Attorney Troy Gilchrist.
3. Approval of Minutes
Moved by Commissioner Deshler (Budziszewski) to approve the minutes of the
September 1, 2020 regular meeting and work session. Motion carried.
4. Public hearing regarding the sale of 4741 Welcome Avenue North (continued from
August 18, 2020)
Mr. Sutter presented an update on the Request for Proposals (RFP) for development of
this lot. No proposals were received by the extended September 30 deadline. Staff
recommends reissuing the RFP with no deadline (first-come, first-served).
President LaRoche asked for public comment. There being none, President LaRoche
closed the public hearing.
Moved by Commissioner Banks (Parsons) to authorize reissuance of the Request for
Proposals with no deadline as recommended by staff.
Motion carried.
5. Other business.
There was no other business.
6. Adjournment
Moved by Commissioner Adams (Kiser) to adjourn the meeting.
Motion carried.
The meeting adjourned at 7:50 p.m.
Page 2 of 2
These minutes of the October 6, 2020 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ____, 20___.
______________________________
Nancy LaRoche, President
ATTEST:
______________________________
Julie Deshler, Secretary
Page 1 of 2
__________________________________________________________________________
FROM: John Sutter, Community Development Director
DATE: November 12, 2020
TO: Anne Norris, Executive Director (for November 17 EDA meeting)
SUBJECT: Consider amending the 2020 contract with Center for Energy and the
Environment to increase the budget for Home Improvement Grants
The EDA contracts with Center for Energy and Environment (CEE) to administer our home
improvement grant program. The current contract is for an 18-month period from 1/1/2020
through 6/30/2021. The budget for home improvement grants is $283,550 for that period.
As of 9/30/2020 which is 50% of the contract period, $185,550 has been expended which is
65% of the contract budget. At this pace, expenditures would exceed the budget by $87,550 at
the end of the contract period. The EDA has two options to address the situation:
1.Suspend the program when the actual expenditures and future obligations reach the
$283,550 budget. Because there are approximately $65,000 of projects already in various
stages of application, we would likely have to suspend the program by the end of 2020. The
program would re-open on 6/1/2021 (one month before the next contract starts). Staff does
not recommend this option because it would make the program unavailable for
approximately five months, thus potentially impacting homeowners’ planned projects.
2.Amend the contract to increase the budget by $100,000, from $283,550 to $383,550, for the
current contract period ending 6/30/2021. The $100,000 includes the $87,550 estimate of
additional funds needed plus a 15% cushion. Staff recommends this option for the following
reasons:
•Reinforces one of the City Council’s goals (Strong Neighborhoods) by encouraging
preservation of, and enhancements to, the city’s housing stock
•Provides seamless continuation of the program so homeowners’ projects aren’t delayed
•Has no fiscal impact on city operations (TIF funds can’t be used for general city
purposes)
•The housing TIF district is expected to collect enough increment to fully fund the program
at this higher level until the district stops collecting increment at the end of 2025
•After 2025, the district will have a sufficient fund balance to continue the program through
2028 as the fund balance is expended
EDA STAFF REPORT
Amend 2020 Home Improvement Grant Contract
Page 2 of 2
Please see the attached charts and detailed tables which provide an outlook for the TIF district
until its final expenditures in early 2029. At some point during the years 2026-2028, the EDA
will need to decide whether to continue the home improvement programs after 2028, and if so,
determine a funding source.
Staff requests EDA approval of the attached amendment to the home improvement program
contract with CEE for the period ending June 30, 2021.
0
100,000
200,000
300,000
400,000
500,000
600,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
TIF District #2155 -Uses of Funds
Cavanagh TIF Note Payments Home Improvement Programs
TIF Administration & Misc.Savings to Fund Balance
0
100,000
200,000
300,000
400,000
500,000
600,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
TIF District #2155 -Sources of Funds
Tax Increment Received Interest Income Expenditures from Fund Balance
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
TIF District #2155 -Fund Balance at Year-End
CEE #3399
Amendment to
Home Improvement Program Origination Agreement
between
Economic Development Authority of the City of Crystal
and
Center for Energy and the Environment
This Amendment 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 3rd Avenue North, Suite 560, Minneapolis,
Minnesota, 55401 (“CEE”).
RECITALS
A.The Authority and CEE entered into a Home Improvement Program Origination
Agreement, dated January 1, 2020, for the period January 1, 2020 through June 30,
2021.
B.To ensure the seamless availability of funds for projects in the City of Crystal, the
Authority and CEE desire to amend Exhibit B1 of said Agreement to increase the
amount available for Home Improvement Grants under said Agreement.
NOW, THEREFORE, the parties agree as follows:
1.The total program budget is increased from $308,550 to $408,550.
2.The grant budget is increased from $283,550 to $383,550.
3.The amended Exhibit B1 is attached and made part of this Amendment.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written
above.
ECONOMIC DEVELOPMENT AUTHORITY in and for
the City of Crystal
By:Its:
Print Name
Date:
CENTER FOR ENERGY & ENVIRONMENT
By: Its:
Date: Tax ID # 41-1647799
Exhibit B1 ‐#3399
EXHIBIT B1
TOTAL PROGRAM BUDGET $408,550
CRYSTAL PROGRAM BUDGET
A.Crystal Grant Budget Allocation (includes Grants plus Annual Administration Fee, Post‐
Installation Inspection Fees and Grant Origination Fees): $383,550
MHFA Interest Subsidy Program Budget Allocation (includes Interest Subsidy plus Origination
Fees): $25,000
Budget Notes:
1.CEE shall submit monthly invoices for grants, origination fees, interest subsidy and post‐
installation inspections 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)Annual Administration Fee $2,500 pro‐rated monthly and payable as follows:
$2,500 on Jan. 1, 2020
$1,250 on Jan. 1, 2021
(2)Origination Fee: Grant 15% per grant closed
(3)MHFA Interest Subsidy $varies
(4)Post‐Installation Inspection Fee $100
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. 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.
Page 1 of 1
__________________________________________________________________________
FROM: John Sutter, Community Development Director
DATE: November 12, 2020
TO: Anne Norris, Executive Director (for November 17 EDA meeting)
SUBJECT: Consider approval of a contract with Center for Energy and the
Environment for administration of home improvement programs from July
1, 2021 - June 30, 2022
The EDA contracts with Center for Energy and Environment (CEE) to administer our home
improvement programs. The current contract period ends on June 30, 2021.
The next contract period would be July 1, 2021 - June 30, 2022. The budget would be
$308,079 comprised of $275,198 for home improvement grants and $32,881 for an interest
rate reduction for community fix-up fund loans. Administrative costs would be $33,938 or
12.6% of the budget.
There are sufficient TIF district revenues and fund balance to continue these programs through
2028. Please refer to the charts and detailed tables in the staff report for the previous item
(amending the current contract budget).
Staff requests EDA approval of the attached contract for administration of home improvement
programs for the period July 1, 2021 through June 30, 2022.
EDA STAFF REPORT
Approve Home Improvement Program Contract
for July 1, 2021 - June 30, 2022
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND
ENVIRONMENT CEE #______ Page 1
HOME IMPROVEMENT PROGRAM ORIGINATION AGREEMENT
This HOME IMPROVEMENT PROGRAM ORIGINATION AGREEMENT (“Agreement”), dated this _____
day of _____________________, 20____, 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 3rd 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.
B. 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. Services/Scope of Work
1.1 CEE shall in conjunction with the Authority develop and deliver the City of Crystal
Home Improvement 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.
2. Compensation
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:
Annual Administration Fee $2,500
Grant Origination Fee 15%
MHFA Interest Subsidy $varies on loan amount and term
Post Installation Inspection Fee $100
The Annual Administration Fee shall be payable on July 1st of each year the contract is
active.
The Authority shall compensate CEE only for services completed.
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND
ENVIRONMENT CEE #______ Page 2
2.2 Upon request, CEE will provide additional marketing services. 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, out-of-pocket
expenses, relating to these services on a dollar-for-dollar basis with no mark-up.
2.3 CEE shall invoice the Authority not more than two times each month. The Authority
shall pay CEE within 20 days of receipt of the invoice.
3. CLIENT’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 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. CEE’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 this 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 with 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 #______ Page 3
5. Term and Termination
5.1 Unless earlier terminated as provided in the following paragraphs, this
Agreement shall become effective on 7/1/2021 and continue through
6/30/2022.
5.2 This Agreement may be terminated by either 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 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. Insurance
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 #______ Page 4
8. Confidentiality
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.
9. Relationship of Parties
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.
10. Notices
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.
11. Assignment
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 #______ 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 other 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 this 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.
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND
ENVIRONMENT CEE #______ Page 6
ECONOMIC DEVELOPMENT AUTHORITY
In and for the City of Crystal
By: ________________________________________ Its: Executive Director
Anne Norris
Date: ________________________________________
CENTER FOR ENERGY & ENVIRONMENT
By: Its: Chief Financial Officer
Meranda Wacek
Date: Tax ID # 41-1647799
Exhibit A - #_____ Page 1
EXHIBIT A
Crystal Program Guidelines
This document includes guidelines for the City of Crystal
Grant Program and the MHFA Interest Subsidy Program
Exhibit A - #_____ Page 2
CRYSTAL PROGRAM GUIDELINES
The Crystal Economic Development Authority (Authority) is making funds available for homeowners to
assist with home maintenance and energy improvements. The Crystal Grant and Interest Subsidy
Programs are designed to supplement existing loan programs available from MHFA, CEE, private lenders
and other housing resources. These programs are not intended to be the sole source of improvement
funds available to the homeowners in the City. Center for Energy and Environment shall serve as the
administrator for the Crystal Grant and Interest Subsidy Programs and will secure the most beneficial
financing based on the borrower’s needs independent of the funding source.
Crystal Grant Program
Eligible Project Expenses:
Interior remodeling
Building additions
Finishing basements, attics or similar spaces to convert them into habitable space
Energy efficiency improvements
Exterior building improvements such as roofing, siding, soffits/fascia, windows and doors
Site improvements such as retaining walls, sidewalks, driveways, fences, patios, decks, garages and
the removal of diseased or hazardous trees
Systems such as HVAC, electrical and plumbing
Permanent Landscaping
Ineligible Project Expenses:
Payment for work initiated prior to the grant being approved and closed, unless due to emergency.
Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas,
whirlpools, etc.)
Furniture, non‐permanent appliances (unless part of a kitchen remodel), funds for working capital,
debt service or refinancing existing debts.
Homeowner labor or other in‐kind contributions to the project.
Minimum Project Size: Eligible Project Expenses must total at least $2,000 to qualify for a grant.
Grant Amount:
20% of Eligible Project Expenses, except as noted below:
Exception: For projects replacing or lining a sanitary sewer service and/or disconnecting stormwater
drainage (sump connections, foundation drains, etc.) from the sanitary sewer, the grant amount is
40% of those particular, itemized project costs. This is intended to augment the city's efforts to
reduce inflow & infiltration into the sanitary sewer system. In many cases this work will be triggered
by, and completed in conjunction with, the city's utility reconstruction projects (typically 1‐4 blocks
per year). However, any income‐qualified, owner‐occupied residential property in the city is eligible.
No property may receive grants totaling more than $10,000 in any calendar year.
Exhibit A - #_____ Page 3
Eligible Properties: 1‐4 unit owner‐occupied properties located within the geographical boundaries of
the City of Crystal. Properties held in a Trust, Townhomes and Condominiums are eligible, subject to
Association Bylaws. Properties may be held in a Contract for Deed. If the property has more than 1
unit, the non‐owner‐occupied units must be in compliance with the City of Crystal’s rental licensing
requirements.
Ineligible Properties: Dwellings with more than 4 units, cooperatives, manufactured homes, time
shares, properties used for commercial purposes and non‐owner occupied properties.
Eligible Recipients: All recipients 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 Recipients: Including but not limited to: ‐ Businesses, Foreign Nationals, Non‐Occupant Co‐
Borrowers, and Properties held in the name of a trust.
Income Limit: The property owner’s household income shall not exceed 110% of the HUD Regional
Median Income based on household 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, and 3) No defaulted government loans, tax liens or child support.
Bids: Two estimates are required. Only 1 materials list is required for sweat equity projects. All
contractors must be properly licensed
Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity”
basis, but only the purchase of materials and rental of tools or equipment will be considered an Eligible
Project Expense.
Recipient Paid Fees: None
Deadline for Work Completion: All work must be completed within 120 days of the grant closing.
Extensions may be granted by CEE due to weather or similar factors.
Exhibit A - #_____ Page 4
Crystal Interest Subsidy Program
Interest Rate: 3% fixed
Amortization Type: Amortizing. Closed‐end (Monthly Payments Required)
Loan Amount: Minimum of $2,000 and Maximum of $50,000.
Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire
project (as outlined in the bid(s). Additional funds may come from 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 15 years.
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.
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.
Ownership/Occupancy: Owner‐ occupied only.
Loan ‐ to ‐ Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 110% of the property value. Half of the improvement value may be added to the initial
property value.
Income Limit: The property owner’s household income shall not exceed 110% of the HUD Regional
Median Income based on household size or the MHFA income limit, whichever is less. Income for
eligibility will be determined by the projected income for the next 12 months per MHFA guidelines.
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.
Exhibit A - #_____ Page 5
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.
Eligible 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.
Bids: Only one bid/estimate 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/ equipment or compensate for labor.
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, credit report and any other applicable closing fees.
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE’s
underwriting guidelines. CEE’s decision shall be final.
Work Completion: All work must be completed within 9 months of the loan closing.
Exhibit A - #_____ Page 6
General Program Conditions
Application Processing: Grants/Loans will be distributed on a first come first serve basis as
recipients/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 (drivers license, passport, etc.)
Bids or estimates for proposed projects
Other miscellaneous documents that may be required.
Program Costs: Grant/loan origination fees, grants, interest subsidies and post‐installation inspection
fees will be paid out of the Program Budget. Program marketing efforts will be billed directly to the City
of Crystal and is a separate expense should the city choose to commission CEE for marketing support.
Total Project Cost: It is the recipient/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 amount, the
borrower must obtain the additional funds and provide verification of the additional funds in order to
proceed.
Disbursement Process:
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)
Interest Subsidy Program: Payment is disbursed to borrower(s) after loan closing
Exhibit B ‐ #_____
EXHIBIT B
Crystal Program Budget
July 1, 2021 ‐ June 30, 2022
A. Crystal Grant Budget Allocation (includes Grants plus Annual Administration Fee, Post‐
Installation Inspection Fees and Grant Origination Fees): $275,198
B. MHFA Interest Subsidy Program Budget Allocation: $32,881
TOTAL PROGRAM BUDGET: $308,079
Budget Notes:
1. CEE shall submit monthly invoices for grants, origination fees, interest subsidy and post‐
installation inspections 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) Annual Administration Fee $2,500 (due July 1st of each year the contract is
active)
(2) Origination Fee: Grant 15% per grant closed
(3) MHFA Interest Subsidy varies
(4) Post‐Installation Inspection Fee $100
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.
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.