HomeMy WebLinkAboutLC20-16 Gershman MortgageAugust 26, 2020
Kathy Chandler‐Henry
ECHDA Chair
The Eagle County Housing and Development Authority
PO Box 850
500 Broadway
Eagle, CO 81631
RE: Lake Creek Village Apartments
Edwards, Colorado
Dear Kathy:
Thank you for your interest in obtaining financing for the above‐referenced project through Gershman
Mortgage. To confirm our discussions, the following is provided as an understanding of the rights and
obligations of Gershman Mortgage (“Gershman”) and The Eagle County Housing and Development
Authority (“Sponsor”) for the project.
1.Providing the appropriate underwriting guidelines are met, Gershman will review, prepare,
process, facilitate and submit a mortgage loan application for the Project to the Departments
of Housing and Urban Development (“HUD”) for mortgage loan insurance.
2.In the even HUD determines the Project is eligible for mortgage loan insurance, as evidenced
by the issuance of a Firm Commitment by HUD at terms acceptable to Sponsor, Gershman will
charge a loan origination fee equal to 0.30% of the loan amount, not to exceed $100,000 (One
Hundred Thousand Dollars). The loan origination will be deemed earned on the date the Firm
Commitment is issued by HUD and is accepted by the Sponsor or Borrower. The loan
origination fee may be paid upon the initial closing of the HUD insured loan. If HUD
determines the Project to be unacceptable for mortgage loan insurance, no loan origination
fee will be due to Gershman.
3.Sponsor acknowledges that Gershman will retain third parties, as required by HUD and as
determined appropriate by Gershman with the costs to be the responsibility of the Sponsor.
These parties include, but may not be limited to, entities that prepare Appraisals, Appraisal
Reviews, Environmental Reports, Surveys, Project Capital Need Assessments and Architectural
& Cost Reviews. Gershman will not incur any expenses associated with third parties without
Sponsor’s approval. The costs associated for the third‐party reports/documents are eligible to
be paid from available mortgage proceeds upon the closing of the HUD insured loan and are
considered non‐refundable if the closing of the loan does not occur.
DocuSign Envelope ID: 7F025FF8-6DB2-471D-BAB2-B7C1CA9729E4
LC20-16
Third party report costs are estimated to be:
1. PCNA $5,995
2. Energy Star Score $2,500
3. Energy Star Cert. $5,450
4. Title $40,000 (Estimate. To be determined at later date)
4. At the time of Gershman’s Firm Commitment application to HUD is submitted, Sponsor will
remit the HUD application fee of 0.15% of the loan amount. The cost associated with the
application fee is eligible to be paid from available mortgage proceeds upon the closing of the
HUD insured loan. In the event HUD determines the Project to be unacceptable from
mortgage loan insurance, or Borrower withdraws their request for mortgage loan insurance at
any time during the processing of the request, the HUD Application Fee will be non‐refundable
and Gershman will be held harmless from any claim arising from the forfeiture of the
Application Fee.
5. Sponsor and/or Borrower agrees to utilize legal counsel and a title company that are
acceptable to Gershman. Sponsor and/or Borrower agree to pay Gershman’s legal
representation fees for the closing to an amount not to exceed $20,000 exclusive of any legal
fees incurred by Borrower for closing. Legal fees will be deemed earned upon the legal fee
being incurred; however, the legal fees may be paid upon the initial closing of the HUD insured
loan. Legal fees will not be incurred without prior approval of the Sponsor or Borrower.
6. In the event Gershman provides HUD insured financing for the Project that is the subject
of this Agreement, the Sponsor and Borrower hereby provide consent to Gershman for the use
of the Project’s name, Sponsor’s name, Borrower’s name and terms of the financing for its use
in the promotion and advertising of its business.
7. Any additions, modifications, amendments or changes to this Agreement must be in
writing and signed by Sponsor and Gershman.
If the above terms are acceptable, please sign this letter where indicated below. Once again
thank you for allowing Gershman Mortgage to assist you toward the future success of your
project.
DocuSign Envelope ID: 7F025FF8-6DB2-471D-BAB2-B7C1CA9729E4
ACCEPTANCE OF THESE TERMS IS HEREBY ACKNOWLEDGED:
Gershman Investment Corp.
d/b/a Gershman Mortgage
By: _______________________________ Dated: _____________________
Chris Will
Vice President
The Eagle County Housing and Development Authority
By: _______________________________ Dated: ________________________
Kathy Chandler‐Henry
ECHDA Chair
www.gershman.com
7800 Forsyth Blvd, Suite #700 Clayton, MO 63105 ph: 314-854-9567 1 (800) 437.7462
8.26.2020
DocuSign Envelope ID: 7F025FF8-6DB2-471D-BAB2-B7C1CA9729E4
10/21/2020