Southwest Minnesota Housing Partnership

Transcription

1 Southwest Minnesota Housing Partnership New Prague Community Meeting Small Cities Development Program August 2017 September 2020 City of New Prague Thursday, November 2, 2017 New Prague City Council Chambers (118 Central Avenue N) 6:00 pm Single Family Rental Owners

2 SWMHP Staff Michele Clarke Program & Lending Manager Jesse Schott Project Manager Barb Kirchner Construction Services Manager

3 What to Expect Tonight Overview of the Small Cities Development Program Eligibility requirements SCDP process SCDP requirements SCDP contractor / construction process

4 New Prague Residential SCDP Award $91,000 to provide housing repairs loans 5 Single Family rental units to be rehabilitated The average SCDP grant is $18,200 per rental

5 To Qualify for Funds You must own a rental property within the target area in New Prague Real Estate taxes must be current You must have current Property Insurance You must list the City of New Prague as a Loss Payee before any work can be started You must rent to low to moderate income tenants The rent must stay within Fair Market Rents for Le Sueur / Scott County.

6 New Prague Rental Target Area Map

7 What to expect as we process your file Tonight you will receive an application, along with the list of items needed to process your application. All items on the list will need to be received before application can be processed. Applications are processed first come, first served. Give us alternative numbers so we can reach you if there are any questions.

8 Documentation needed to process your application Proof of Ownership-Recorded Warranty Deed, Quit Claim Deed etc. Current Real Estate Tax Statement Most recent Monthly Mortgage Statement or Mortgage Verification Property Liability Insurance - Declaration Page

9 Disclosures and Documents included in your packet: Small Cities Development Program Rental Application Southwest Minnesota Housing Partnership Privacy Policy Conflict of Interest Form Release of Information Form Mortgage Verification-if you do not receive a monthly statement

10 Disclosures and Documents included in your packet: continued Tenant Survey-Must be completed by Tenant Renovate Right Disclosure-Signed by Tenant Map-Highlight or mark location of property

11 Income Guidelines Le Sueur & Scott Counties HOUSEHOLD SIZE Gross Income limits LE SUEUR County HOUSEHOLD SIZE Gross Income limits SCOTT County 1 $41,100 1 $47,600 2 $46,950 2 $54,400 3 $52,800 3 $61,200 4 $58,650 4 $68,000 5 $63,350 5 $73,450 6 $68,050 6 $78,900 7 $72,750 7 $84,350 8 $77,450 8 $89,800

12 What does The 70/30 Split Mean? 70% covered by a 0% deferred loan A deferred loan is a loan with no monthly payments which will be forgiven if the is no default for 5 years. This loan is forgiven 20% per year 30% covered by Owner(s)

13 2017 Fair Market Rents Le Sueur & Scott Counties 2017 Fair Market Rents for LE SUEUR County 2017 Fair Market Rents for SCOTT County Bedroom Size Maximum Rent with Utility Allowance Bedroom Size Maximum Rent with Utility Allowance Efficiency $473 One Bedroom $561 Efficiency $699 One Bedroom $862 Two Bedroom $745 Two Bedroom $1,086 Three Bedroom $1,084 Four Bedroom $1,214 Three Bedroom $1,538 Four Bedroom $1,799

14 2017 Single Family Utility Allowances Le Sueur & Scott Counties Effective 1/1/2017 LE SUEUR COUNTY UTILITY OR SERVICE 1 BR 2 BR 3 BR 4 BR HEATING NATURAL GAS ELECTRIC BOTTLE GAS FUEL OIL COOKING NATURAL GAS ELECTRIC BOTTLE GAS OTHER ELECTRICAL AIR CONDITIONING WATER HEATING NATURAL GAS ELECTRIC BOTTLE GAS WATER SEWER TRASH COLLECTION RANGE REFRIGERATOR SCOTT COUNTY UTILITY OR SERVICE 1 BR 2 BR 3 BR 4 BR HEATING NATURAL GAS ELECTRIC BOTTLE GAS FUEL OIL COOKING NATURAL GAS ELECTRIC BOTTLE GAS OTHER ELECTRICAL AIR CONDITIONING WATER HEATING NATURAL GAS ELECTRIC BOTTLE GAS WATER HEATING OIL WATER SEWER TRASH COLLECTION RANGE REFRIGERATOR

15 Using the numbers New Prague Single Family Rental To receive the full benefit of the grant on 70/30 split Project Total $ 26, % Deferred Loan $ 18, % Owner s Funds $ 7,800.00

16 Once you have been determined eligible for the program You will receive a letter from the Southwest Minnesota Housing Partnership of your file status Approved or Denied If Approved: Your file will be handed off to Jesse Schott who will contact you, in order of file approval, to schedule a home inspection

17 What will the home inspection consist of: You or your tenant will need to be present at the time of inspection Average inspection time 1½ - 2 hours Lead Risk Assessment- You will be contacted directly by Scarcely, LTD to set up a time.

18 Eligible / Ineligible Improvements Eligible Improvements: (Repairs must be PERMANENT!) Roofing Siding Electrical Plumbing Energy Efficiencies Windows Doors Ineligible Improvements: Carpeting or expensive inlaid vinyl or tile Cabinets Central Air Conditioning Hot tubs Fences

19 Process after Inspection Lead Paint Requirements (1-3 weeks) Historical Review (20-30 days) Work Write-Up (Scope of Work) Bid Packets / Homeowner Responsibility Contractor Requirements (Lead) Contractor List can be provided

20 Process after Inspection Bid Awards To lowest bidder unless other preferred (Owner is responsible for the difference) Financing Letter Calculation of the financing breakdown Lists the amount of your Owner escrow needed

21 Closing Meeting scheduled: Loan documents will be reviewed and signed Escrow Account Deposit Owner s requirement must be put in escrow before work can begin (non-bearing interest account) $46.00 recording fee is assessed to the owner for each recorded financial document

22 Process after Closing Notice to Proceed Contractors have 90 days to complete, weather related Interim Inspections will be made throughout the project to ensure work is being completed Payments Owners must approve payment by signing off on paperwork Southwest Minnesota Housing Partnership will then pay the Contractor Final Inspection and any final payments to Contractors Close Out letter

23 To contact us: Michele Clarke Jesse Schott Barb Kirchner SWMHP website

24 Questions? Applications available Business Cards available I am available to assist you or answer any questions you may have