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2024-08-21 EDA Packet
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2024-08-21 EDA Packet
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8/16/2024 1:58:34 PM
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Distribution of program information to local businesses and non-residential real estate <br />owners. <br /> Referral of applicants to local banks. <br />Participation agreements with local banks. <br /> <br />Financial institutions are responsible for: <br />Receipt and processing of loan applications. <br />Provision of matching loan funds at least equal to funds to be provided from the CityÓs <br />RLGP. <br /> Underwriting to determine applicantÓs credit risk and required collateral. <br /> Determining loan amortization period. <br /> Approval or disapproval of loan subject to City certification as to program eligibility. <br /> Collection of lien waivers and other documents deemed necessary for loan disbursements. <br /> Distribution of loan funds subject to final approval by the CVEDA. <br /> Distribution of principal and interest payments to the CVEDA RLGP. On default, the claims <br />of the CVEDA are subordinate to the financial institution. <br /> <br />II. PROGRAM OBJECTIVE <br />The purpose of the RLGP is to provide local businesses and non-residential real estate owners <br />with an incentive to increase their investment in the community by making structural and <br />beautification improvements to existing buildings. <br />The RLGP will not provide working capital loans nor fund operating expenses. <br /> <br />III. PHYSICAL BOUNDARIES OF PROGRAM AREA <br />To be eligible for the RLGP, the property must be located within the City limits. <br />IV. PROGRAM ADMINISTRATION AND STRUCTURE <br />Administration will be shared by the EDA and participating financial institutions. <br />The EDA, as the programÓs administrator, will maintain and update program guidelines and <br />monitor their compliance. <br /> <br />Administration of the EDAÓs responsibility will be under the direction of the EDAÓs Executive <br />Director and Assistant Treasurer. <br /> <br />Servicing of RLGP loans shall be administered by local banks and savings and loans which make <br />application to the EDA. All such institutions must be within 15 miles of the corporate limits of <br />the City. The RLGP will operate as a public/private sector partnership. <br /> <br />The financial base of $50,000 for the public share of RLGP funds will come from Housing and <br />Redevelopment Authority funds, administered by Anoka County on behalf of the City. The fund <br />3 <br /> <br />
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