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NSP Requirements: <br />As the grantee agency, Minnesota Housing has established the following NSP goals: <br />1. To maximize the revitalization and stabilization impact on neighborhoods; <br />2. To complement and coordinate with other federal, state and local investment in <br />the targeted neighborhoods; <br />3. To preserve affordable housing opportunities in the targeted neighborhoods. <br />Additionally, Minnesota Housing has stated that priority consideration and emphasis will be <br />given to those areas: <br />- with the greatest percentage of home foreclosures; <br />- with the highest percentage of homes financed by a subprime mortgage related <br />loan; and <br />- identified by the State or unit of local government as likely to face a significant rise <br />in the rate of home foreclosures. <br />There are five established and defined uses for NSP funds: <br />1. Establish financing mechanisms for purchase and redevelopment of foreclosed <br />homes and residential properties. <br />2. Purchase and rehabilitate homes and residential properties that have been <br />abandoned or foreclosed, in order to sell, rent, or redevelop such homes and <br />properttes. <br />3. Establish land banks for homes that have been foreclosed. <br />4. Demolish blighted structures. <br />5. Redevelop demolished or vacant properties. <br />Ineligible activities include: <br />1. Foreclosure prevention. <br />2. Demolition of non-blighted structures. <br />3. Purchase of properties not abandoned or foreclosed upon. <br />4. Redevelopment for commercial purposes. <br />Next Stets <br />The deadline for submittal of a plan is January 17, 2009. Therefore, if the HRA is interested <br />in pursuing this program, we must develop a formal response. This response should include <br />the HRA's goals, plans and programs that will utilize the NSP allocation as per the <br />requirements of the program. Please note that the GMHF has recommended each <br />community to submit a letter to Minnesota Housing requesting certain revisions to the <br />application process; one of those being a request for an extension of the formal submittal <br />deadline from the communities. Please refer to the attached letter from Mayor Klinzing <br />which asks for this extension, along with other suggestions to help form a clearer submittal. <br />We recommend proceeding with a formal application to the NSP and request the HRA to <br />discuss, prioritize and help coordinate the City's response. <br />Attachments <br />^ Notice of NSP Program Meeting <br />^ Letter from Mayor Klinzing to Ruth Simmons, Minnesota Housing <br />^ NSP Needs Survey of eligible communities <br />^ Foreclosure Recovery Strategies <br />^ List of Foreclosures in Elk River <br />^ Foreclosure Recovery Financing Programs <br />