2.0. HRSR AGENDA 01-30-1996 - Laserfiche WebLink

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ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY • MEMORANDUM TO: HRA COMMISSIONERS FROM: WILLIAM RUBIN, HRA EXECUTIVE, j' DIRECTOR VI DATE: JANUARY 30, 1996 SUBJECT: AGENDA MEMO FOR JANUARY 30 HRA MEETING 4. Home Mortgage Program Since recent memory, the Minnesota Housing Finance Agency (MHFA) has made its Minnesota City Participation Program (MCPP) available di to local governments as a way to access mortgage revenue bond resources for first time home buyers. In the very near future, MHFA is expected to create a pool of mortgage revenue bonds in the range of$38 to $58 million for this program. Through MCPP, MHFA sells these bonds on behalf of cities. The proceeds of the bonds provide below market interest rate home mortgage loans for low- and moderate income home buyers that are entering the market for the first time. Applications for the 1996 program are due to MHFA beginning on February 1 and ending on February 15, 1996. As with previous programs, a qualifying income and a maximum purchase price guideline will apply. For 1996, the MCPP in Elk River will allow applicants with an adjusted gross income of$40,800 to qualify for this financing program. Please note that the adjusted gross income is calculated by taking the household's gross annual income and subtracting $1,000 per household resident. With that,a family of four cold have a gross income of$44,800 and qualify for the MCPP. The maximum purchase price of each housing unit acquired through the MCPP in Elk River is $95,000 (both new construction and existing housing stock). Single family detached homes, townhomes, condominiums, and duplexes (existing only) are eligible housing units under the MCPP. Mobile homes, recreational, or investment properties, etc., are not eligible for this program. P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment