Agenda - Council - 09/08/2026 - Laserfiche WebLink

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FORGIVABLE LOAN AGREEMENT THIS FORGIVABLE LOAN AGREEMENT ("Agreement") is made and entered into this day of , 2026, by and between the City of Ramsey, a Minnesota municipal corporation (the "Lender" or "City") and Elevate Hope House, a Minnesota nonprofit corporation (the "Borrower"). RECITALS WHEREAS, Borrower and Lender have signed a purchase agreement dated July 15, 2026 (the "Purchase Agreement") for the purchase of approximately .52 acres of vacant land, as legally described in Exhibit A (the "Property"); and WHEREAS, the City has authority under Minn. Stat. § 477A.35, subd. 2(e)(iv) to use Local Affordable Housing Aid ("LAHA") funds to acquire and construct affordable housing units; and WHEREAS, the Borrower is proposing a qualifying project under Minn. Stat. § 477A.35, subd. 4(a)(3); and WHEREAS, the Purchase Agreement is contingent upon the execution of an agreement between Borrower and Lender for use of LAHA funds for the construction of affordable housing units; and WHEREAS, the Lender has agreed to provide the funds requested via a forgivable loan from the City's Local Affordable Housing Aid Fund pursuant to the terms and conditions contained in this Agreement. NOW THEREFORE, it is agreed by and between the parties hereto as follows: ARTICLE 1 Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Borrower" means Elevate Hope House, a Minnesota nonprofit corporation. "City" means the City of Ramsey, a Minnesota municipal corporation. "Consideration of Payment" means loan amount of up to $250,000. "Forgivable Loan" means the funds loaned by the Lender to the Borrower pursuant to this Agreement. "Lender" means the City of Ramsey, a Minnesota municipal corporation. "Loan Proceeds" means the funds disbursed to the Borrower pursuant to this Agreement. 1