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City of <br />Elk <br />River <br />Request for Action <br />To <br />Item Number <br />Housing and Redevelopment Authority <br />4.5 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />Consent A enda <br />May 4, 2015 <br />Amanda Othoudt, EDD <br />Item Description <br />Reviewed by <br />Neighborhood Stabilization Program Satisfaction of <br />Cal Portner, City Administrator <br />Repayment Agreement. <br />Reviewed by <br />Action Requested <br />Approve, by motion, the satisfaction of repayment agreement for real property located at 10827 1815` <br />Lane Northwest. <br />Background /Discussion <br />In February 2009, the HRA was awarded $593,820 in foreclosure recovery funds through the Minnesota <br />Housing Finance Agency (MHFA) for the Neighborhood Stabilization Program (NSP). <br />The NSP funding award was approved for the following neighborhoods; Windsor Oaks, Trout Brook, <br />Park Pointe, and Elk River Station. The grant money was utilized for down payment assistance, purchase, <br />and rehabilitation of abandoned/ foreclosed homes. <br />The assistance provided to the homeowner through the NSP was considered a "special mortgage" <br />although there are no monthly payments due or accrued interest. If the real property is owned for five <br />years, the city agrees to forgive the full amount of the loan and issue the owner a written notice of <br />satisfaction terminating the lien created by the agreement. <br />The property owners received $14,999 in funding through MHFA for NSP down payment assistance on <br />February 26, 2010, with a forgiveness date of February 26, 2015. They have since entered into purchase <br />agreement with a buyer and are anticipating closing on the property May 21, 2015. <br />Financial Impact <br />N/A <br />Attachments <br />• Repayment Agreement <br />• Satisfaction of Mortgage <br />P a w E n E o A Y <br />INIA UREJ <br />