HRSR INFORMATION 01-28-2002 - Laserfiche WebLink

Home Browse Search

110 The Minnesota City Participation Program(MCPP) PROGRAM GUIDELINES Through the MCPP, MHFA sells mortgage revenue bonds on behalf of cities to meet locally identified housing needs. The proceeds of these bonds provide below-market interest rate home mortgage loans for low-and moderate-income first-time homebuyers. The MCPP provides cities throughout the state with a unique opportunity to easily access housing resources to meet the needs of their citizens. (Note: City means any statutory or home rule charter city, county housing and redevelopment authority, or any public body which: a) is the housing and redevelopment authority, port authority, or an economic development authority of a city;and b) is authorized by a statutory or home rule charter city.) I. FUNDS • Statute limits the single-family portion of the housing pool to an initial 31%. • Per statute, MHFA uses a population-based formula to determine each city's maximum allocation. The maximum allocation a city receives is its percentage of the housing pool as compared to the total population of all applications received. • Cities apply for a specific dollar amount (minimum of $100,000) or request the "maximum allowable" under the population formula. If the individual allocation as determined by the per capita formula falls below a level that the city cites as"minimum,"MHFA contacts the city to verify whether the city would like to cancel its application. • If funds remain in the housing pool on July 15th, MHFA may request those funds on behalf of cities that received an initial allocation in the 2002 program year. Statute directs MHFA to provide those funds to cities in a pool on a first come,first served basis. • If funds remain in the unified pool on Oct 1st, MHFA may request those funds on behalf of cities that received an initial allocation in the 2002 program year. Statute directs MHFA to provide those funds to cities in a pool on a first come, first served basis. In addition, statute allows MHFA to carry this authority forward for use in the proceeding calendar year. H. USAGE TEST • A city must use at least 50% of its 2002 allocation by the program expiration date. If the city uses less than 50%, its program year 2003 allocation is limited to the amount successfully used in 2002. However, cities receiving the minimum allocation of $100,000 must use 50% of their initial 2002 allocation to participate in 2003. If a city receiving the minimum allocation fails to use 50%of their initial 2002 allocation and does not participate in 2003, the city may receive a 2004 allocation based on the population formula. • The usage test also applies to self-issuers. Submission of this application requires these cities to submit loan origination data to MHFA to confirm compliance with this statutory requirement. Ill. PROGRAM TERM • The 2002 MCPP program term will run for eight months. Cities retain the exclusive use of their individual allotments for a six-month period. Following the expiration of the six- month period, • MHFA collapses all remaining individual allotments into a single, statewide pool available to all participating cities for the remaining program term. 11/01