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PPL Foreclosure Prevention Repair Grants

Program Summary The PPL Foreclosure Prevention Repair Grants will assist low income home-owners who are struggling to afford important repairs for their homes. Eligible repairs include health and safety repairs that will empower homeowners to stay in their homes. Home owners will receive financial counseling at PPL to ensure that their finances are stable and that with the repair of their house they will not be at great risk of foreclosure. The goal is to help home owners who are faced with the tough decision of making their monthly mortgage payment or paying for the repairs necessary to keep their home livable. Homeowner Eligibility Criteria: 1. Home Owners must be below 80% of the Area Median income as defined by Minnesota Housings Income Standards for the Twin Cities Metro Area, listed below: Household Size 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 8 Persons 80% AMI 2012 $47,200 $53,867 $60,533 $67,200 $72,267 $77,600 $83,467 $88,800 Limit

2. Home must be in an NSP2 qualified Census Tract in Minneapolis or St Paul. (see attached figures 1 and 2). 3. Home Owners monthly Housing Costs must equal 40% or more of their monthly income. 4. Cost of repair must be greater than 100% of their monthly income. 5. Home Owners income must be sufficient to maintain housing costs once repair is completed. Repair Eligibility The funds will be used to perform one discrete improvement to a home. The program will pay up to $7,500 towards a repair, but will only pay for one discrete repair. For example, if replacing the roof costs $5,000, the program will fund $5,000 rather than $7,500. Any problem that affects the health and
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safety of the residents of the household may represent an eligible emergency expense. PPL Home Inspectors will ultimately determine if a repair constitutes an emergency. Typical eligible repairs include but are not limited to: Electrical Hazards Mold Remediation Leaking Plumbing Bed Bug Extermination Structural Hazard Siding, stucco or other exterior enclosure Flooring Hazard Foundation repair Roofing Program Process Step 1 -- Referral to program from partner organization Step 2 -- Submit Application with all necessary financial documentation to PPL. Step 3 -- PPL Staff conduct site visit of property to determine scope of problem. Step 4 -- Applicant meets with PPL Financial Coach. Application will need to bring many financial documents to this meeting to help work up a household budget. Step 5 -- Applicant enters into Grant Agreement with PPL Step 6 -- Solicit contractors Step 7 -- Enter into construction contract with selected contractor and work is performed. Step 8 -- PPL pays contractor directly after inspecting work and collecting certificate of completion and lien waivers. Application for Funds Applications will be available starting January 22, 2013 will be distributed to area home ownership and foreclosure counseling organizations. A completed application will be accompanied by acceptable proof of income, a current mortgage statement and three months history of all utility bills. PPL will use the same standard for income documentation that is used for the Minnesota Housing Rehab Loan Program. PPL staff will collect applications and make site visits to determine to scope of the problem. PPL rehab staff will then refer selected applicants to have a onetime session with a PPL Financial Coach. Financial Coaches will make a final recommendation for applicants to be awarded a grant. Complete applications for the initial application period must be submitted by March 1, 2013. After the initial round of grants, remaining applications will be processed and awards made on a first come, first served basis. Grant Agreement and Construction Upon approval from a PPL Financial Coach PPL will work with the home owner to define the scope of work for the project, at which point PPL and the homeowner will enter into a grant agreement. The home owner can elect to solicit bids from contractors for the repair or have PPL solicit bids from contractors who have worked for PPL in the past. We anticipate the bid solicitation will take approximately two weeks. PPL, the selected contractor and the homeowner will execute a construction contract and the contractor will be paid directly upon inspection of the work by a PPL staff member and receipt of a certificate of completion executed by the home owner and the contractor. Ideally the repair will be completed within 6 weeks of a complete application from the home owner. For homeowners who are also clients in PPLs Rehab Loan Program, the homeowner will complete the grant application, but the work flow will be determined by the Rehab Loan Program process. The funds may be used as leverage for the MHFA financing and may be paid as part of a larger construction contract; if used in this fashion, grant funds will still be tied to one discrete piece of the project.

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