Site Preparation Loan Program

 

Proposals for funding consideration must meet the Federal Community Development Block Grant objective of "prevention and elimination of slums and blight."Evidence of blighted conditions may be provided through the following: Abandonment of buildings, as evidenced by lack of occupants; Removal of utilities; Boarded and/or physical condition of entries and windows ; Violations, as cited by appropriate municipality. An environmental audit of the property may be required as part of application procedures.

Amount of Financing:

Up to 90% of eligible projects, generally not to exceed $100,000. Minimum loan is $10,000.

Interest Rate: 4%

Borrower:

Any legal borrowing entity. No borrower that has defaulted on a previous Local Development Corporation loan will be eligible to apply.

Eligible Areas:

Town of Union, including the Villages of Endicott and Johnson City.

Eligible Use of Proceeds:

Razing structures; Removal of underground and above ground tanks; Payment of professional fees for services, such as engineering and architectural services.

Term of Loan:

Not to exceed 5 years. Any remaining balance will become due in full if the property is transferred or sold by the borrower.

Collateral:

First mortgage or subordinate mortgage to a bank; Tangible personal property; Marketable securities. Appraisals will be required on properties taken as collateral. Appraisal values must be greater than the loan amount and meet the program loan-to-value ratio.

Guarantees:

Joint and personal guarantees from company owners. Corporate guarantees, as appropriate.

Prevailing Wage:

Contractors involved with demolition/construction projects are subject to complying with the Federal Labor Standards Provisions and the Davis-Bacon Act.