Download Terms of the SCNA Matching Revolving Loan Program

PROGRAM GUIDELINES
(HARRISON HOMES Program)
The Harrison Neighborhood Association (HNA) is allocating $48,000 of its housing dollars to establish
four housing grant programs to be administered by HNA. Grants will be available to Harrison
homeowners, renters, and property owners. The purpose of the programs is to provide assistance in
the form of grants to residents and landlords who face financial barriers in procuring loans and other
funding necessary to keep their dwellings complaint with housing codes and who require additional
support to become homeowners. This program is not intended to be the sole source of funding for
property improvements or code compliance work but rather to close the gap in available funds for
property owners. The following sections list the guidelines and regulations for three of the programs.
INTERNAL IMPROVEMENT GRANT PROGRAM
1.
Pool Amount: $15,000.00
2.
Grant Amount: Up to $5,000 per property.
3.
Income Limit: Annual gross family income must be eighty percent (80%) or less of Median
Income.
Family Size
80% of Median Income
1
$48,560
2
$55,440
3
$62,400
4
$69,280
5
$74,880
6
$80,400
7
$85,920
8+
$91,520
4.
Eligible Grantees: Homeowners and/or renters living in the Harrison neighborhood or landlords
who live in the State of Minnesota may apply. If the applicant is a tenant, they must have the
approval of their property owner or manager.
5.
Ineligible Grantees: Not open to property owners that are 501c(3) certified.
6.
Eligible Improvements: Internal improvements include energy efficiency, health and safety, and
any other improvement required to meet and/or exceed code compliance on a dwelling. Projects
may include but are not limited to mold remediation, plumbing/electrical work, and conditions
that pose a clear safety hazard if not fixed. Internal improvements DO NOT include general home
improvements.
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EXTERNAL IMPROVEMENT GRANT PROGRAM
1.
Pool Amount: $21,000.00
2.
Grant Amount: Up to $7,000 per property.
3.
Income Limit: Annual gross family income must be eighty percent (80%) or less of Median
Income.
Family Size
80% of Median Income
1
$48,560
2
$55,440
3
$62,400
4
$69,280
5
$74,880
6
$80,400
7
$85,920
8+
$91,520
4.
Eligible Grantees: Homeowners living in the Harrison neighborhood.
5.
Eligible Improvements: External improvements that ensure a property meets and/or exceeds
code compliance. Projects may include but are not limited to energy efficiency, safety, roof work
that poses a safety hazard if not fixed. External improvements DO NOT include landscaping or
general home improvements.
ENTRY COST ASSISTANCE GRANT PROGRAM
1.
Pool Amount: $3,000.00
2.
Grant Amount: Up to $1,000 per property.
3.
Income Limit: Annual gross family income must be eighty percent (80%) or less of Median
Income.
Family Size
80% of Median Income
1
$48,560
2
$55,440
3
$62,400
4
$69,280
5
$74,880
6
$80,400
7
$85,920
8+
$91,520
2
4.
Eligible Grantees: Individuals and families seeking homeownership within the Harrison
neighborhood. Applicants need to have applied to other available and applicable entry cost
assistance funds in good faith.
5.
Eligible Uses: Entry cost assistance.
GENERAL CONDITIONS AND PROCEDURES
Application Processing: Applications will be funded after they are reviewed and receive approval from
the HNA Board of Directors or Housing Fund Working Group. Applications will be reviewed on a first
come, first served basis. HNA will provide an application package with an application form and detailed
instructions on what additional documents must be submitted to apply for the grant.
Bidding: If the total project cost is more than $1,000 two written bids are required based on the same
scope of work. If the total project cost is $1,000 or less only one bid is necessary.
Contractors/Permits: Contractors contracting for work must be properly licensed by the City of
Minneapolis or State of Minnesota (when required). Permits must be obtained when required by City
ordinance.
Total Project Cost: It is the applicant’s responsibility, when pertinent, to obtain the total balance of
funds necessary to finance the entire cost of the work. Proof of the ability to complete work will be
required prior to approval.
Mortgage Payments and Taxes: Grantees must be current on mortgage payments and have no unpaid
taxes.
Sweat Equity: If qualified to do so, the grantee may perform the work but grant funds cannot be used
to compensate for the purchase or rental of tools and equipment or for grantee’s labor or the labor of
family, friends, employees, or others with a financial interest in the property. Grant funds can be used
to pay for materials.
Work Completion: Weather permitting, all work items must be completed within 8 months of the
grant approval date.
Disbursement process: (Internal and External Grant Programs) Fifty percent (50%) of the grant award
will be disbursed to the grantee following execution of the Participation Agreement. The balance of the
grant will be paid to the contractor upon completion of work and the submission of the following items
by the grantee to HNA. If more than one contractor is used, there must be completed sets of the items
listed below for each contract/contractor:
a.
b.
before and after photographs highlighting the improvement project from the same vantage
point.
completion certificate (copies will be provided to owner) filled in and signed by the grantee and
contractor.
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c.
d.
e.
f.
final invoice from the contractor showing the total cost for the project AND/OR for projects
being done by the grantee, detailed receipts from building materials supplier(s).
for work requiring a city permit, proof of final inspection by the City of Minneapolis Inspection
Department. (This is done by either sending a copy of the permit signed off by the responsible
City Inspector or by having the responsible City Inspector call the HNA and leave a message
indicating approval of the work.)
for work NOT requiring a city permit, the grantee must notify HNA of the completion of the
work. A representative from HNA may contact the grantee to arrange an inspection of the
property to verify the completion of the work.
an ORIGINAL lien waiver provided by the contractor(s) indicating full payment for all work
completed.
Items (a) through (e) must be provided to HNA to begin the preparation of the check(s). Item (f) “lien
waiver” must be provided before the funds will be released to the contractor(s).
Disbursement Process (Entry Cost Assistance): The purchaser(s) must notify HNA of his/her/their intent
to participate in the program prior to purchasing the property. HNA will provide the grant check to the
purchaser following receipt of the following;
a.
b.
c.
d.
a copy of the executed purchase agreement,
a copy of the mortgage loan commitment letter,
written documentation relative to the loan closing date, and
the signed “Participation Agreement”.
Participation Agreement: The grantee must sign a "Participation Agreement” summarizing the
conditions of the grant program, the amount and sources of funding for the project, and the grant
disbursement procedures and conditions.
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