11-20-2017 Complete AgendaE C O N O MIC D E V E L O P ME N T AU T H O R IT Y ME E TIN G
R IC H F IE L D MU N IC IPAL C EN TER, C O U N C IL C H AMB E R S
N O V E MB E R 20, 2017
7:15 P M (I MMEDI AT ELY FO L L OWI NG THE H R A M EE T I N G)
C all to Order
Approval of the Minutes
A pproval of the mi nutes of the regular E conomic D evelopment A uthority meeting of A ugust 21, 2017.
AG E N D A AP P R O VAL
1.A pproval of the A genda
R E S O L U T IO N S
2.C onsideration of the approval of a resolution to accept transferred projects from the Richfield Housing and
Redevelopment A uthority.
S taff Report No. 4
O T H E R B U SIN E S S
3.C onsideration of the approval of revisions to the Transformation L oan P rogram Guidelines updating the
administrati on of the P rogram.
S taff Report No. 5
E D A D IS C U S S IO N ITE MS
4.E D A D i scussi on Items
E X E C U T IV E D IR EC TO R R E P O R T
5.E xecutive D i rector's Report
6.A djournment
Auxiliary aids for individuals with disabilities are available upon request. R equests must be made at least 96
hours in advance to the C ity Clerk at 612-861-9738.
ECONOMIC DEVELOPMENT AUTHORITY
MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 21, 2017
CALL TO ORDER
The meeting was called to order by President Supple at 8:15 p.m.
ATTENDANCE
EDA Members Present: Mary Supple, Chair; Pat Elliott; Michael Howard; Doris Rubenstein; and
Sue Sandahl
Staff Present: John Stark, Director of Community Development and Julie Urban,
Housing Manager
APPROVAL OF THE MINUTES OF THE REGULAR EDA MEETING OF MAY 15, 2017
M/Rubenstein, S/Elliott to approve the minutes of the regular EDA meeting of May 15,
2017.
Motion carried 5-0.
Item #1
CONSIDERATION OF THE APPROVAL OF RESOLUTIONS APPROVING
PROPOSED PROPERTY TAX LEVY FOR PAYABLE 2018 FOR CERTIFICATION
TO HENNEPIN COUNTY
Executive Director Devich presented Staff Report No. 3.
M/Sandahl, S/Elliott, to adopt a resolution approving the 2018 proposed Economic
Development Authority budget and tax levy.
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:21 p.m.
EDA Meeting -2- August 21, 2017
Date Approved: November 20, 2017
Mary B. Supple
EDA President
Julie Urban Steve Devich
Housing Manager Executive Director
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #2.
STAFF RE P ORT NO. 4
E CONOMIC DEVELOPME NT AUT HORIT Y
ME E T ING
11/20/2017
RE P O RT P RE PA RE D B Y: Myrt L i nk, C ommunity D evelopment A ccountant
D E PA RTM E NT D IRE C TOR RE V IE W: J ohn S tark, C ommunity D evelopment D i rector
11/15/2017
O TH E R D E PA RTM E NT RE V IE W: N/A
C ITY M A NA G E R RE V IE W: S teven L . D evich, E xecutive D irector
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consideration of the approval of a resolution to accept transferred projects from the R ichfield Housing
and Redevelopment Authority.
E X E C UT IV E S UM M ARY:
The City Counc il adopted a resolution on May 9, 2017, establishing the Richfield Ec onomic Development
Authority (E D A). Since that time, the E D A has approved a 2018 budget that includes funding and
administering c ertain ac tivities that had been funded in the past by either the City of Richfield or the Richfield
Housing and Redevelopment Authority (HRA). The specific programs meeting this desc ription are the Kids
@ Home and the Transformation Home Loans programs.
State statute governing the formation and administration of ED A's requires that the C ity Council formally
takes an action to transfer such programs to the E D A and the E D A formally acc ept the transfer. The City
Council adopted a resolution to transfer programs to the E D A on October 24 and now the ED A must accept
those programs by the end of the y ear.
RE C O M M E ND E D AC T IO N:
By motion: Approve a resolution relating to the Richfield Economic Development Authority and
accepting the transfer of certain projects to such Authority.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
By resolution, the Ric hfield City Council c reated the Richfield E D A on May 9, 2017.
The E D A is intending to fund and administer the Kids @ Home and Transformation Home Loans
programs that had formerly been funded and administered by either the City of Richfield or the
Richfield HRA.
The E D A will begin this funding/administrative role on J anuary 1, 2018.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The E D A was established by the City C ounc il in ac cordance with Minnesota Statutes, Section
469.090 through 469.1082.
Per S ec tion 469.094, subdivision 2, the City C ounc il transfers control, authority and operation of
certain projec ts of the Ric hfield HRA to the ED A.
C.C R IT IC AL T IMIN G ISSU E S:
Projec ts must be transferred to the E D A prior to J anuary 1, 2018.
D.F IN AN C IAL IMPAC T:
All funds transferred from the HRA to the ED A shall be held in a separate acc ount and ac counted
for separately.
E.L E GAL C ON S ID E R AT ION :
Legal C ounsel drafted the resolution.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
Do not ac cept the transfer of projects to the E D A.
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
None
AT TAC H ME N TS :
D escripti on Type
Resolution Resolution L etter
499328v1 JAE RC260-1
RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. ____________
RESOLUTION ESTABLISHING THE RICHFIELD ECONOMIC
DEVELOPMENT AUTHORITY; ACCEPTING TRANSFER OF
CERTAIN PROJECTS AND PROGRAMS FROM THE HOUSING
AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY
OF RICHFIELD, MINNESOTA; AND APPROVING CERTAIN
MATTERS IN CONNECTION THEREWITH
BE IT RESOLVED BY the Board of Commissioners of the Richfield Economic Development
Authority (the “EDA”) as follows:
1. Pursuant to Resolution No. 11359, adopted by the City Council of the City of Richfield,
Minnesota (the “City”) on May 9, 2017 (the “Enabling Resolution”), the City Council of the City established
the EDA in accordance with Minnesota Statutes, Minnesota Statutes, Sections 469.090 through 469.1082, as
amended (the “Act”), to promote and to provide incentives for economic development in the City.
2. The Enabling Resolution provides that the EDA has and may exercise all of the powers
conferred by the Act upon a housing and redevelopment authority of the City.
3. Pursuant to Resolution No. 11427, adopted by the City Council of the City on October
24, 2017, and pursuant to Section 469.094, subdivision 2 of the Act, the City Council transferred the control,
authority, and operation of certain projects and programs established by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota (the “HRA”) from the HRA to the EDA. The EDA
accepts responsibility for the control, authority, and operation of certain projects and programs heretofore
established by the HRA and transferred to the EDA, including but not limited to those set forth in EXHIBIT
A attached hereto (collectively, the “Projects”).
4. All funds transferred from the HRA to the EDA shall be held in a separate account and
accounted for separately.
5. Section 469.094, subdivision 2 of the Act provides that when a project or program is
transferred from the HRA to the EDA, the EDA must covenant and pledge to perform the terms, conditions
and covenants of any agreement of the HRA executed for the security of any bonds issued in support of the
transferred project or program and to perform the terms, conditions and covenants of the HRA in connection
with the program or project so transferred. The EDA hereby covenants and pledges to assume all of the
duties and responsibilities of the HRA in connection with each and every Project so transferred by the City
from the HRA to the EDA.
6. The EDA approves and adopts the Bylaws of the EDA currently on file with the Executive
Director of the EDA.
7. The EDA approves and adopts the official seal of the EDA currently on file with the
Executive Director of the EDA.
8. The EDA hereby requests that the City levy a tax in 2017 for taxes payable in 2018 in the
amount of $560,467, which amount is not in excess of 0.01813% of the estimated market value of taxable
property in the City. Such request is made in accordance with Section 469.107, subdivision 1 of the Act.
2
499328v1 JAE RC260-1
9. The Executive Director of the EDA is authorized and directed to take whatever steps are
necessary to give effect to this resolution. The President and Executive Director are authorized and directed
to execute, deliver and accept on behalf of the EDA any and all documents and instruments necessary to give
effect to this resolution.
Approved by the Board of Commissioners of the Richfield Economic Development Authority this
______ day of November, 2017.
President
ATTEST:
Executive Director
A-1
499328v1 JAE RC260-1
EXHIBIT A
TRANSFERRED PROJECTS AND PROGRAMS
Kids @ Home
Transformation Home Loans Program
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #3.
STAFF RE P ORT NO. 5
E CONOMIC DEVELOPME NT AUT HORIT Y
ME E T ING
11/20/2017
RE P O RT P RE PA RE D B Y: K ate A itchison, Housing S pecialist
D E PA RTM E NT D IRE C TOR RE V IE W: J ohn S tark, C ommunity D evelopment D i rector
11/15/2017
O TH E R D E PA RTM E NT RE V IE W: N/A
C ITY M A NA G E R RE V IE W: S teven L . D evich, C ity Manager
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consideration of the approval of revisions to the Transformation Loan Pr ogram Guidelines updating
the administr ation of the Program.
E X E C UT IV E S UM M ARY:
Last year, the Transformation Home Loan Program (Program) issued 5 new loans and dispersed pay ment on
2 additional loans from 2016 for a total expenditure of $115,000. These funds were all committed to approved
applicants by the end of J anuary 2017. I n the months following, staff c ollected approximately 40 names of
people interested in the Program.
For 2018, $131,000 has been alloc ated to the P rogram (enough to cover 6-8 loans). I n order to better
facilitate the distribution of funds when the program is in high demand, staff is proposing to make the following
changes to the applic ation process:
Applications would be ac cepted during a set period of time.
Staff would review applications and award funds once per year, depending on the number or projects
selected for funding.
Applications would be approved on the following criteria:
1. c ompleteness of application;
2. adherenc e to Program guidelines;
3. design and func tion of the project, including the presence of any spec ial orunique element that
meets c ity goals (e.g., energy effic iency, acc essibility, etc.);
4. demonstrated financial readiness;
5. builder references (if applicable);
6. in c ases where the homeowner is doing part or all of the work, demonstrated evidenc e of
experienc e and ability to c omplete the work within the required one year time period, and
7. amount requested.
Once applications have been approved, a random lottery would determine which applic ations would be
funded.
For 2018, the following timeline is being proposed:
Applications Acc epted: J anuary 3-26
Staff Reviews Applications & Conduc t Lottery : J anuary 26 - February 13
Transformation Home Loans Awarded: February 14-16
C losing on Loans: Mid-February - Mid-Marc h
Projects may begin c onstruction
I f the demand for funds does not exceed the available funding, the loans will be processed on a first-
come, first-served basis.
RE C O M M E ND E D AC T IO N:
By motion: Approve the recommended revisions to the Transformation Loan Program Guidelines.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
The Program provides a financial incentive to homeowners for initiating major remodeling of their
homes to meet their housing needs. Major remodeling projects are defined as exc eeding $50,000
in cost. These are eligible for an incentive loan equal to 15 percent of the projec t c ost, not to
exceed $25,000. The loan is a no-interest, no-pay ments loan that is due and payable when the
homeowner sells their home or is forgiven after 30 y ears.
Sinc e the Program began in 1993, the HRA has made 184 loans and loaned over $2.2 million.
Transformation H ome Loans 2012-2018:
Year N o. of Loans Total Funds Committed
2012 3 $60,955
2013 4 $61,864
2014 1 $8,265
2015 4 $68,167
2016 3 $68,122
2017 5 $92,225
2018 6-8 $131,000
*Note: Some loans are paid out during the following y ear if projec ts are not completed by the end of the
calendar y ear.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The goals of the Program are to:
P rovide an inc entive to homeowners for initiating major remodeling on their homes to meet
their housing needs.
I nc rease the function and livability of small or outdated Richfield homes.
To inc rease the range of housing options available to individuals and families who want to
live or remain in Ric hfield.
C.C R IT IC AL T IMIN G ISSU E S:
Funding for 2018 loans will become available J anuary 1st. I n order to apply for these funds,
applicants will need to begin working on their applications as soon as possible.
An email was rec ently sent out to people who have indicated their interest in the Program,
explaining the proposed guideline changes that are being considered tonight.
Following approval of the guideline changes, a confirmation email will be sent to interested parties,
and the c ity webpage will be updated.
D.F IN AN C IAL IMPAC T:
For 2018, $131,000 has been budgeted for the Program. This will fund 6-8 loans, depending on
the amounts requested.
For acc ounting purposes, awarding loans during the early part of the y ear will ensure that all
committed funds are expended from the 2018 budget, rather than being added to the 2019
expenditures.
E.L E GAL C ON S ID E R AT ION :
The guidelines are a tool for guiding program administration. W hile they do not constitute a
contractual agreement or liability by the City or E D A, they provide a c onsistent guide for
administering the Program and should reflec t c urrent practices.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
Do not approve the rec ommended revisions to the Transformation Loan Program Guidelines.
Approve the Transformation Loan Program Guidelines with changes, as direc ted.
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
None
AT TAC H ME N TS :
D escripti on Type
Transformation Home L oan Guideline Nov 2017 Redlined
Version B ackup Materi al
TRANSFORMATION HOMES
PROGRAM GUIDELINES FOR
STAFF ADMINISTRATION
REVISED: NOVEMBER 2017
1
Table of Contents
Page Number
Table of Contents................................................................. ........................ 1
Statement of Purpose................................................................................... 2
Program Objectives...................................................................................... 2
Definitions..................................................................................................... 2
Data Privacy................................................................................................ 3
Criteria for Program Eligibility...................................................................... 3
Conditions of the Loan$$$$$$.$$$$$$..................................... 4
Eligible Improvements.................................................................................. 5
Application Procedure.................................................................................. 5
Hold Harmless.............................................................................................. 5
Remodeler Criteria....................................................................................... 6
Responsibility of Remodeler........................................................................ 6
Housing and Site Development Criteria.$$$$........................................ 6
Design Plan Review.................................................................................... 7
Forms/Exhibits............................................................................................. 8
2
TRANSFORMATION HOMES PROGRAM GUIDELINES
The Transformation Homes Program Guidelines have been developed as a tool for
guiding program administration. This document should not be interpreted as
constituting any contractual agreement or liability by the City or HRA.
Statement of Purpose
To help improve and maintain an aging housing stock by providing financial and
technical assistance to homeowners so they may make home improvements and
undertake expansions to accommodate their housing needs.
Program Objectives
To provide an incentive to homeowners or home buyers for initiating major remodeling
on their homes to meet their housing needs.
To increase the function and livability of small or outdated Richfield homes.
To increase the range of housing options available to individuals and families who
want to live or remain in Richfield.
Definitions
Application Period:
The set time period during which applications are accepted and reviewed.
Architectural Consultant:
Individual architect or architecture firm that participates in the HRA ’s
Architectural Home Consultation program. Architects conduct an in-home meeting
with the homeowners to discuss design of home remodeling projects.
City:
The City of Richfield
HRA:
Housing and Redevelopment Authority in and for the City of Richfield.
Homebuyer:
Loan applicant who is in the process of purchasing, remodeling and occupying a
Richfield home.
Homeowner:
Loan applicant who owns and occupies or purchases and occupies the home
to be remodeled.
Lender:
The primary lender working cooperatively with the HRA on home remodeling programs.
Loan:
3
Interest free loan offered by the HRA for remodeling payable upon sale of the
house or forgiven after 30 years.
Remodeler:
A licensed builder or Remodeler who meets the criteria established by the HRA,
including all state and local license requirements.
Remodeling Advisor:
Individual contracted with the HRA who meets with the homeowner to discuss
ideas, estimate costs and answer questions.
Data Privacy
The HRA is subject to Minnesota Statutes Chapter 13 (the “Minnesota Government
Data Practices Act”). Under the Minnesota Government Data Practices Act, the names
and addresses of applicants for or recipients of assistance under this program and the
amount of assistance received under this program are public data. All other financial
information submitted to the HRA for purposes of the loan application is considered
private data.
Criteria for Program Eligibility
In order for a project to be eligible for a Transformation Homes Loan, certain conditions
must be met.
1. Project costs for remodeling improvements must be $50,000 or more. The
Transformation Loan will be calculated at 15% of the project cost as determined by
the HRA, not to exceed $25,000.
2. The Homeowner shall provide a copy of the estimate and project specifications
from the selected Remodeler for the work to be done. The Homeowner shall also
submit house plans, a site plan, and any other reasonable information requested.
3. The Remodeler selected by the Homeowner shall be evaluated by the HRA to
meet all remodeling criteria.
4. On a case by case basis, HRA staff may visit the applicant’s property and prepare an
action plan to ensure viability of the project.
5. No work may have commenced on the proposed project if application is being made
under the Transformation Homes Program. Nor may any completed work be
considered.
Conditions of the Loan
1. An applicant’s project cost must be a minimum of $50,000. All aspects of the
project must be completed within a reasonable period of time such that all the
work may be considered part of one project.
4
2. Sweat equity may be allowed. The estimated loan amount would be the
combination of contractor and materials cost, but cannot include the value of
homeowner labor. Sweat equity projects must be completed within one year.
3. For applicants obtaining mortgage financing, the full HRA Loan amount may be
placed in an escrow account, if required by the Lender. The escrow account will be
drawn upon in prorated increments, simultaneously as funds are drawn upon from
the primary Loan to make payments to the Remodeler. Payment will be disbursed at
the discretion of the Lender, upon satisfactory HRA verification of work in progress.
Before the Loan payment can be provided to the Lender, , the Homeowner must sign
the Promissory Note, an example of which is attached as Exhibit B.
4. In cases where an escrow account is not used, the primary Lender may require a
simultaneous closing with the HRA Loan at the time permanent financing is secured.
In these cases, the HRA may commit funds and authorize a project to begin prior to
closing on the Loan. No funds will be disbursed until closing has taken place.
5. In those situations where the Homeowner is not utilizing the services of a Lender,
partial and/or final loan payments may be issued to the homeowner at or near the
end of the project. Payments will be made upon HRA approval of homeowner
submitted documentation which will include a detailed list of expenditures, supplier
and contractor invoices or receipts, and lien waivers.
6. Before final payment is issued (by Lender or HRA), inspections will be required by
both HRA staff and the City Building Inspector. Upon satisfactory verification of
work in progress, or upon completion, payments will be disbursed at the discretion
of the lender or the HRA.
7. Copies of lien waivers or supplier/contractor invoices for the full amount of the
payment must be provided at the time of final disbursement.
8. Loan funds are available on a limited basis. The HRA is not responsible for
the unavailability of Loan funds to Homeowner.
9. No interest will accrue on the Loan; no monthly payments are required.
10. Payment of the Loan must be made in full within 30 days upon the sale,
conveyance, assignment, lease or transfer of the property. A Satisfaction of
Mortgage in recordable form will be provided upon receipt of payment. The Loan
may also be paid in full at any time.
5
11. If the Homeowner still owns and occupies the property, the lien created by the
Loan will be forgiven 30 years from the loan date ino the Promissory Note and
Deedrecorded Mortgage.
12. The Loan is a lien against the property. If at any time during the term of the loan,
the HRA is asked to subordinate its position, the HRA subordination policy in
effect at the time of the subordination request will apply. Please consult the
Richfield HRA Subordination and Satisfaction Policy, available at
www.cityofrichfield.orgrichfieldmn.gov/subordinations or by calling 612/861-9778.
13. Only one Loan is available to a Homeowner at any given property location. A
Homeowner may apply for one additional Loan at a different property location no
sooner than seven years following the original Loan.
Eligible Improvements
Eligible improvements include:
a.) Value-added improvements, such asas: additions, finished basements, kitchen
and bathroom remodels finishing off an additional bathroom or adding a
garage;
b.) Maintenance and repair, such as roof replacement, electrical or plumbing
improvements, or cosmetic updating such as painting or wall-to-wall
carpeting, when done in conjunction with value-added improvements; and
c.) Any other improvements as determined by the HRA.
Non-eligible improvements include:
a.) Swimming pools, hot tubs and greenhouses;
b.) Decorative landscaping.
Application Procedure
The Homeowner must:
1. Meet with a remodeling advisor or an architectural consultant, if requested by the HRA;
2. Submit a complete application, which includes a n application form, a copy of all
bids demonstrating project costs, scopes of improvement, and plans;
3. An Application Fee is charged to cover the cost of administering the loan. The
application fee is due at the time the application is submitted.
4. Applications will be reviewed and awarded on a first-come, first-served basis. In
addition, the HRA by its sole determination, will prioritize applicants and reserve
funding for those applicants who demonstrate progress using criteria such as the
following:
• Loan commitment from a lender in written form;
• Complete, final and secured bid from contractor(s); and/or
• Architectural drawings prepared demonstrating substantial remodeling is proposed.
• Special or unique elements to the project that meet city goals, such as: Energy Efficiency
improvements, Accessibility features, etc.
5. A commitment letter will be issued verifying the reservation of funds to be
provided at closing.
6. If not pursuing a simultaneous closing, the homeowner will sign a mortgage and a
promissory note agreeing to the terms of the loan. The mortgage filing fee and
registration tax will be charge to the applicant. Following closing, work can begin on
the project.
6
7. If a simultaneous closing with end-financing has been requested by the Lender,
the homeowner may begin work once a commitment letter has been received, and
building permits issued.
1. Meet with a remodeling advisor or an architectural consultant, if requested by the
HRA;
2. The Homeowner submits a complete application, which includes an application form,
a copy of all bids demonstrating project costs, scopes of improvement, and plans,
within the time frame established by the HRA. The dates of the Application Period will
be determined and publicized by November 1 of each year.
2. An Application Fee is charged to cover the cost of administering the loan. The
Application Fee is due at the time the application is submitted. The Fee will only be
deposited if the Application is accepted for funding.
3. All applications submitted during the Application Period will be reviewed. In order to
be entered into the lottery for loan funds, the application must meet the following
criteria:
a. completeness of application;
b. adherence to program guidelines;
c. design and function of the project; including the presence of special
or unique elements that meet city goals (e.g., energy efficiency,
accessibility, etc);
d. demonstrated financial readiness ;
e. builder references (if applicable);
f. in cases where the homeowner is doing part or all of the work,
demonstrated evidence of experience and ability to complete the
work within the required one- year time period, and
g. amount requested.
4. Once applications are verified to have met the above criteria, a random lottery will be held to select
applications for funding
5. Selected applicants will be notified of funding no later than three weeks following
the submittal deadline.
6. A commitment letter will be issued verifying the reservation of funds to be
provided at closing.
7. If not pursuing a simultaneous closing, the hom eowner will sign a mortgage
and a promissory note agreeing to the terms of the loan. The mortgage filing
fee and registration tax will be charge to the applicant. Following closing, work
can begin on the project.
8. If a simultaneous closing with end-financing has been requested by the Lender,
the homeowner may begin work once a commitment letter has been received, and
building permits issued.
9. HRA staff may reject or accept an application at its sole discretion.
If requests received during the Application Period do not exceed the available funding, applications will be
accepted on a first-come, first-served basis.
Hold Harmless
To the fullest extent permitted by law, the Homeowner must agree to defend, indemnify
and hold harmless the HRA and the City of Richfield, their officers, agents and
employees from and against all claims, loss, damage, costs and expense arising from
bodily or personal injury or sickness, illness, or death of persons or damage to property
resulting from or alleged to have resulted from the Remodeler’s work and operations.
7
Remodeler Criteria
The Remodeler should meet a minimum set of standards and perform certain
requirements in order to participate in the program :
1. Meet any Lender requirements when the Homeowner is seeking Lender financing.
2. Provide adequate evidence of builder’s risk, comprehensive general liability and worker’s
compensation insurance
coverage.
3. Provide a written warranty policy to the Homeowner and Lender.
4. Provide State Building/Remodeling Contractor license number.
5. Provide the following references:
Five satisfied customers;
Three major suppliers or subcontractors;
Names of building officials from two cities where the Remodeler has worked in
the last three years.
Each Remodeler must fill out a Remodeler Form (Exhibit D).
Responsibility of Remodeler
The Remodeler must perform work in accordance with the specifications and contract
provided to the Homeowner. Any guarantee and/or warranties on the materials,
supplies or quality of work must be obtained by the Homeowner. Lien waivers must be
provided at time of payment. All property permits must be obtained per city code.
NOTE: The City of Richfield has a Point of Sale ordinance that requires all residential
properties pass a housing code inspection before sale. The HRA is not responsible for
insuring compliance with this ordinance. Proper inspections should be arranged by the
seller and any repairs made as part of the purchase/remodel process.
Housing and Site Development Criteria
The following requirements apply to all Transformation projects:
1. Each home shall be a detached single-family dwelling. Exceptions to this
may be approved by the HRA.
2. At a minimum, off-street paved parking must be provided on the site in accordance
with the zoning code.
3. Three and four bedroom homes as a result of remodeling are preferred.
However, a minimum of two finished bedrooms and space for a third bedroom
that could be easily finished will be acceptable.
8
4. Two full bathrooms as a result of remodeling are preferred. However, a minimum of
one full bath and a 1/2 bath roughed in will be acceptable.
5. House design and appearance is a critical concern to the HRA. The house building
lines, window placement, and orientation to street must present a balanced and
pleasing view from all sides. Garage door dominance in design must be minimized.
Blank walls without windows or doors are not allowed. Roof line variation will be
reviewed.
6. If exterior work is included, exterior materials should be low maintenance.
Masonite siding materials are not acceptable.
7. All landscaping and sod disturbed by the construction project must be repaired
in a professional manner.
8. Adjoining properties must not be disturbed by the construction process.
9. Construction and the finished structure must improve or not have a detrimental
impact on storm water drainage patterns in the neighborhood and on adjoining
properties. Where roofs direct storm water toward minimum (five feet) side yards,
gutters may be required
as a condition of Loan payment.
Design Plan Review
1. The HRA must be provided with a set of the building plans, including building
elevations, and a copy of the land survey or site plan.
2. HRA staff will review the plans to ensure conformance with the Housing and Site
Development Criteria. Plan review by the Building Official is a separate process.
3. All building plans must be prepared in consultation with an architect or a
qualified draftsperson.
4. If any element of the plan is in conflict with the above criteria, the Remodeler
will be notified.
5. Revised plans must be resubmitted for final approval.
6. All plan reviews will be completed by the HRA in a timely manner. Each plan
submitted will be processed individually.
7. The HRA may refer a set of plans to the County Assessor to make a preliminary
determination of value if there is concern about the extent of value added as a
result of remodeling.
9
Forms/Exhibits
A. Transformation Homes Application Form
B. Promissory Note
C. Mortgage Note
D. Remodeler Form
E. Summary of Costs and Loan Computation
F. Letter of Commitment
G. Sworn Construction Statement
H. Satisfaction of Mortgage