INFORMATION HRSR 03-24-2003 - Laserfiche WebLink

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City of Elk River Housins Plan Updated January 2003 • Funding Resources for Housing Activities Note: The following information lists the primary resources available for housing development and rehabilitation activities and is not an all-inclusive list of resources that are available. Minnesota Housing Finance Agency To provide for a simplified and collaborative effort twice a year the MHFA issues a request for proposals through their two housing divisions: the HOMES Division which includes programs for home ownership, home improvement, and rehabilitation loans and the Multifamily Division. The RFP is a method where project no longer apply for specific programs but request funding for a specific housing development that meets a local housing need. These consolidated programs include some of the following resources in addition to some resources listed under the Greater Minnesota Housing Fund. Housing Trust Fund Three types of activities can be funded through the Housing Trust Fund including capital, operating subsidy(both operating support and project based rental assistance), and tenant based rental assistance. Funds are generally awarded in the form of a zero interest deferred loan for construction, acquisition, preservation, and rehabilitation of low-income rental housing. Eligible applicants include a non-profit, for-profit organization, limited dividend entity, cooperative housing corporation, a local unit of government, an Indian Tribe, a Joint Powers Board established by two or more cities, individual, or a private developer. Note: Rules for this program are currently under review and are subject to change. • Economic Development and Challenge Program This program includes the consolidation of the following programs: ARIF, MUR.L, Employer Matching Grants, and Community Rehabilitation Fund. The program provides grants or loans for the purpose of construction, acquisition, rehabilitation, construction financing, permanent financing, interest rate reduction,refinancing, and gap financing of housing that supports economic development activities or job creation in an area. Minnesota Families Affordable Rental Investment Program (MARIE) Provides a first mortgage or subordinated loan for the new construction or acquisition and/or rehabilitation, of permanent rental and permanent supportive housing with a minimum of four units. Units assisted with MARIF funds must be occupied by family households who at the time of initial occupancy are current or recent MFIP participants. Innovative Housing Loan Program Provides interim loan financing to housing developers to encourage the use of innovative construction methods, materials, equipment, design, marketing or financing in the rehabilitation or development of single or multi-family housing. Low Income Housing Tax Credits Low income housing tax credits provide reduced federal income tax liability for qualifying property owners who agree to rent to low and moderate income tenants. The funds can be used for all costs associated with a residential development. 38