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41") In 1995, MHFA introduced a population-based allocation formula for <br /> its MCPP. As a result, the Elk River HRA was allocated <br /> approximately $256,500 in mortgage funds. A similar allocation can <br /> be expected for 1996. <br /> The Elk River MCPP includes five lenders to help originate home <br /> requests from first time home buyers: First National Mortgage, Heigl <br /> Mortgage, Norwest Mortgage, Inc., TCF Mortgage, and FBS Mortgage <br /> Corporation. All lenders have a presence in Elk River as TCF opened <br /> an interim office at 200 5th Street NW while its permanent facility in <br /> Elk Park Center is under construction, and First Bank, N.A. has an <br /> office at 631 Main Street. <br /> The HRA's only out-of-pocket costs are that of a modest fee to help the <br /> Department of Finance cover the costs associated with processing the <br /> housing pool allotment requests. A fee in the amount of$20 per <br /> $100,000 in allotment is required. For a $250,000 allotment, the <br /> processing fee is$60. This fee is not due with the submission of the <br /> application,but must be remitted with the allocation agreement which <br /> finalizes each city's 1996 allocation. A separate 1 percent application <br /> - deposit must also be returned with the allocation agreement. <br /> However, the deposit is fully refunded, approximately one month after <br /> MHFA's bond sale. <br /> The Elk River MCPP application is included in the agenda packet. <br /> Such things as the eligible organization (which is the HRA), <br /> originating lenders, program specifics, and new construction <br /> requirements, etc., are outlined in the application. There is no effort to <br /> target specific population groups, housing stocks, or exclusive "set= <br /> aside" arrangements with specific builders, developers, or realtors. <br /> Action Requested <br /> a: The HRA is asked to authorize an application to the Minnesota <br /> Housing Finance Agency for a "maximum allowable" allocation <br /> of its Minnesota City Participation Program (MCPP) funds for <br /> first time home buyer mortgages: <br /> b. The HRA is asked to designate five lenders for its 1996 MCPP <br /> mortgage program: <br /> - First National Mortgage - Heigl Mortgage <br /> • - Norwest Mortgage, Inc. - TCF Mortgage <br /> - First Bank, N.A. <br />