COMMERCIAL FAÇADE REVITALIZATION DEFERRED LOAN PROGRAM. ELIGIBILITY REQUIREMENTS 1. The borrower (loan applicant) must be the building owner. - PDF

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COMMERCIAL FAÇADE REVITALIZATION DEFERRED LOAN PROGRAM ELIGIBILITY REQUIREMENTS 1. The borrower (loan applicant) must be the building owner. 2. The property must not have any outstanding back taxes owed

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COMMERCIAL FAÇADE REVITALIZATION DEFERRED LOAN PROGRAM ELIGIBILITY REQUIREMENTS 1. The borrower (loan applicant) must be the building owner. 2. The property must not have any outstanding back taxes owed on it nor any public or private mortgages in default. 3. The borrower must not owe any back taxes to the City of Peekskill on any property nor have any City loan payment arrearages. 4. The property must have a valid Certificate of Occupancy and must have no outstanding building or zoning code violations upon completion of the rehabilitation project. 5. The property must be an existing commercial building, mixed use building, or a building used and occupied by a social organization located within the City s Main Street corridor or in the City s Downtown Historic District. A social organization as defined by the State of New York Property Type Classification Codes, includes organizations such as Elks, Moose, Eagles, and Veteran s Posts, whose primary purpose is social activities for their membership. 6. If an applicant s financial situation demonstrates an ability to repay the loan, the applicant will be encouraged to obtain a self amortizing loan through the City s Commercial Rehabilitation Loan Program. LOAN AMOUNT, LOAN TERMS, FEES, ELIGIBLE COSTS, LOAN SECURITY 1. Loan Amount - Maximum and Minimum. a. The maximum loan amount is $50,000 for a single storefront, $85,000 for two storefronts and $120,000 for three storefronts (three storefront maximum). b. The minimum amount for a loan is $2, Loan Terms a. Interest at a rate of three percent (3%) will compound annually on the deferred loan amount for a term of fifteen years. The amount of the deferred loan with accrued interest is to be paid in full upon any change in ownership of the mortgaged property by transfer, succession, or operation of law, with the exception of the death of a spouse or within 15years of closing if not paid sooner. At the close of the fifteen year period, all outstanding loan principal and accrued interest may be converted to a self-amortizing loan through the City s Commercial Rehabilitation Loan Program in accordance with the Rehabilitation Loan Regulations as long as the borrower s financial situation demonstrates an ability to repay the loan. b. Loan may be paid in full at any time with out a prepayment penalty (loan principal and all accrued interest). Partial prepayments may be made in an amount equal to the total amount of the accrued interest outstanding plus a minimum of ten percent (10%) of the outstanding loan principal. Lesser amounts shall not be accepted. The borrower at any time may request that their loan be converted to a self amortizing loan through the City s Commercial Rehabilitation Loan Program in accordance with the Rehabilitation Loan Regulations as long as the borrower s financial situation demonstrates an ability to repay the loan. 3. Loan Processing Fees and Related Costs: a. Application Fee: All applicants shall pay a $100 application fee. This fee may not be covered by the loan proceeds. The fee is non-refundable except in the case where an applicant is determined to be ineligible. b. Historic and Landmarks Preservation Board fee (see current fee structure). c. NYS Mortgage Tax Expenses d. Mortgage Recording Fee e. Title Search Fee 4. Eligible Costs. a. Work eligible shall be limited to the exterior of that portion of the building; including, but not limited to, storefront construction, painting, window replacement, exterior lighting, and appropriate signs and awnings. Only those eligible costs incurred after closing date of the loan may be paid from loan proceeds. When necessary, an applicant may employ a private architect/engineer to prepare plans and drawings for the rehabilitation of their property façade. In these cases, the deferred loan may include an amount to cover the cost of such services for the foregoing deferred loan. The City s Historic and Landmarks Preservation Board must issue a Certificate of Appropriateness for all projects to be funded through this project. 5. Loan Security. a. All loans will be secured by a promissory note and a mortgage on the subject property. A subordinate lien is acceptable if it provides adequate security. b. Confirmation of ownership and verification of liens and judgments against the property owner (applicant) must be made through a title search for all loans. c. For loans to corporations and partnerships, a personal guarantee shall be obtained from the principals of said corporation or partnership. d. An in-house appraisal is required for every property to be rehabilitated with a loan through this program. The in-house appraisal will be provided by the City Assessor. There will be no fee for such appraisal. e. Subsequent to the appraisal, the City Loan Officer will obtain a title search on the subject property to determine outstanding encumbrances, mortgages, liens, etc. against the property. A deferred loan may be made only if there is unencumbered equity remaining for collateral after deducting total encumbrances (including this deferred loan) from ninety percent (90%) of the after rehab value of the subject property. DETERMINATION OF ELIGIBLITY AND LOAN APPROVAL The project scope of work shall be determined as follows: 1. Initial determination of eligibility for the deferred loan shall be made by the Loan Officer based on the applicant s ability to meet the program eligibility criteria. 2. The final approval can not be made until the project (i) has been approved by the Historic Landmarks and Preservation Board; (ii) a contractor has been selected and (iii) the total project amount is known. Final approval shall be based on the applicant s ability to meet program eligibility criteria and, where the cost of the rehabilitation work exceeds the deferred loan amount, satisfactory evidence from the applicant proving the supplemental funding required to complete the project has been committed. CONTRACTING 1. All projects under this program may utilize negotiation to select a contractor. The prospective borrower must obtain a minimum of two written itemized proposals from contractors for the project scope of work as approved by the City s Historic and Landmarks Preservation Board. 2. For payment of architectural services, the borrower must obtain a minimum of two written proposals for architectural services related to the proposed project. The lowest qualified proposal will be eligible for funding through the deferred loan proceeds. For additional information about this loan program please call Kathy Lockwood, Loan Officer, (914) or LOAN PROGRAM APPLICATION CHECKLIST Please make sure that all of the following items are returned with your application, and that you have signed where necessary: $ Loan Application Fee, Check Made Payable to: City of Peekskill Application Copy of most recent statements for all outstanding mortgages on the subject property Statement of Non-Default Copy of Deed to Property Evidence of Real Estate and Hazard Insurance on the subject property As the application procedure continues, you may be asked for additional information. CITY OF PEEKSKILL COMMERCIAL FAÇADE REVITALIZATION DEFERRED LOAN PROGRAM APPLICATION GENERAL INFORMATION (provide information for each person appearing on the deed to the property to be improved with the proceeds of this loan. Use continuation sheet if necessary) Owner-Applicant Name Telephone Number Owner-Applicant Name Telephone Number If property ownership is a corporation or partnership, list entity name above and list below all partners and/or stockholders with at least 20% ownership in the business: Name and Title Percent of Ownership Telephone Number Name and Title Percent of Ownership Telephone Number Name and Title Percent of Ownership Telephone Number Address of Property to be Improved: Deferred Loan Amount Requested: Estimated Cost Of Proposed Improvements: Describe Proposed Façade Improvements: SUBJECT PROPERTY DEBT INFORMATION (Please include the current balances of all outstanding mortgages and liens on the subject property) SOURCE OF DEBT BALANCE NAME OF CREDITOR\PAYEE TYPE DUE $ $ $ PLEASE SIGN AND RETURN THIS APPLICATION AND THE REQUESTED FORMS AND APPLICATION FEE TO: CITY OF PEEKSKILL DEPARTMENT OF PLANNING AND DEVELOPMENT CITY HALL 840 MAIN STREET PEEKSKILL, NEW YORK For assistance in completing this form, please call (914) AGREEMENT The undersigned hereby declare and represent that he/she/they have read the foregoing application, that all statements made therein are complete and true to their knowledge, that all financial and credit information of value to the consideration of this application has been given, and that the statements are made and information given as an inducement to the City of Peekskill to provide the assistance for which this application is made. The applicant (s) authorize the City or its Agent to verify the information contained herein and to make such additional normal inquiries as reasonably may be related to or associated with this application from credit bureaus, creditors, and references listed on this application. The applicant(s) understand that the City may, at its option, cancel any commitment granted if this Application contains any false or misleading information. ACCEPTED: OWNER SIGNATURE* DATE DATE OWNER SIGNATURE* DATE OWNER SIGNATURE* * If ownership is a corporation or partnership, all partners, and/or stockholders with at least 20% ownership must sign the application. WARNING Any person who knowingly makes a false statement or a misrepresentation in this application or causes such a false statement or misrepresentation to be made will be subject to a fine of not more that $5,000, or imprisonment for not more than two years, or both, under provisions of the United States Criminal Code. STATEMENT OF NON-DEFAULT, (hereinafter, the Applicant(s)), hereby (Name of Recipient(s)) certify that we are not in default of any obligation, covenant, or condition contained in any bond, debenture, note or other evidence of indebtedness, or any mortgage or collateral instrument securing the same. Date Applicant - Owner Date Applicant - Owner Date Applicant - Owner
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