HRSR INFORMATION 01-28-2002 - Laserfiche WebLink

Home Browse Search

• V. NEW CONSTRUCTION • Participants must meet one of the following conditions for new construction in the seven-county Twin Cities metropolitan area under MCPP: 1. The City negotiated affordable housing and life cycle goals with the Metropolitan Council and the new construction is part of efforts to meet those goals. 2. The new housing is located in a redevelopment area where at least 25% of the buildings are substandard. 3. The new housing replaces a substandard structure. 4. The new housing is part of a housing affordability initiative, meeting one or more of the criteria listed in Attachment 1. (For self issuers, please note: If your city is located in the seven-county Twin Cities metropolitan area, the above new construction restrictions do not apply to loans closed ten months after your program start date). • Statewide - cities may not provide set-aside or commitments for the exclusive use of builders or developers except for housing affordability initiatives as specified in Attachment 1. VI. HAF • • MHFA offers participating MCPP cities access to MHFA's Homeownership Assistance Fund (HAF), an interest-free, deferred payment second mortgage loan. HAF provides lower income first-time homebuyers with downpayment/closing cost assistance of up to $3,500 and monthly payment assistance of up to$60. VII. PROGRAM ADMINISTRATION • Participating lenders originate home mortgage loans, which MHFA buys in accordance with the MHFA Mortgage Program Procedural Manual. • If a city commits additional resources or subsidies in conjunction with MCPP, a layer of guidelines may be added as required by the source of the subsidy. INDIVIDUAL CITIES ARE RESPONSIBLE FOR THE DEFINITION AND ENFORCEMENT OF THESE ADDED GUIDELINES. • The Minnesota Department of Finance charges a processing fee of$20 for each$100,000 allotment provided and a 1%refundable deposit. For cities participating in MCPP,this is due with the executed MCPP contract returned by each city before the bonds are sold. DO NOT SEND A CHECK BACK WITH YOUR COMPLETED RFP;WE WILL NOTIFY YOU WHEN TO FORWARD YOUR FEE. • Once cities select and identify participating lenders in the MCPP application, no additional lenders may be added for the balance of the program term. • MHFA provides marketing support in the form of brochures, press releases and a shared marketing cost program. • VIII. APPLICATION PROCESS 1. Following the application deadline, MHFA reviews all submitted applications. 11/01