5.3. SR 04-05-2010 - Laserfiche WebLink

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o Grandview o Heritage Landing o Sandpiper Estates o Twin Lake Townhomes o Trott Brook Farms (all subdivisions) NSP Activities Funded to Date In October, staff was allowed to submit amendments to the NSP contract to increase the success of the NSP program. Two targeted neighborhoods were omitted, several were added, and the amount of down payment assistance increased. Below is a summary of the NSP funds spent to date: Down Payment Assistance Eligible applicants can apply for funding to assist with a down payment and/or closing costs. Tri-CAP has closed a total of six down payment assistance applications, in amounts ranging from $5,000-$15,000. Two of these applications (for $5,000 in dpa) received an additional $10,000 each in down payment assistance from the Greater MN Housing Foundation (GMHF) and one received $15,000 based on income eligibility. In November of 2009, the NSP down payment assistance available from the City increased from $5,000 to $10,000-$15,000 depending on income eligibility. Purchase Rehabilitation Assistance Eligible applicants can apply for funding to make necessary improvements to their property. There have been no applications received for this initiative at this time. Staff and Tri-CAP have estimated the cost to be approximately $35,000 per property, with no maximum set. Acquisition Rehabilitation Staff and Tri-CAP will purchase homes in need of rehabilitation in the targeted neighborhoods, make necessary improvements and sell them to an income eligible buyer. The first home was purchased under this initiative on October 30, 2009 with Tri-CAP as developer/buyer and the HRA as funding agent via NSP. Rehab has been completed and listed. Staff and Tri-CAP received a purchase agreement in the amount of $99,000 and closed on February 26, 2010. The eligible applicant received down payment assistance in the amount of $14,999. Below is the approximate breakdown of the costs: • Acquisition (plus filing fees) $ 102,863 • Rehabilitation/utilities/advertising $ 8,409 • Realtor Sales Commission (5.4%) $ 5,395 • Development (paid to Tri-CAP) $ 11,667 • Total Costs $ 128,334 At the time of closing, roughly $81,000 was received as mortgage proceeds. This money is considered NSP program income. NSP program income is does not need to be spent by the September 20, 2010 deadline and can be retained by the HRA and used for NSP initiatives to spend on NSP initiatives. Marketing and Education Staff and Tri-CAP have taken on several initiatives to educate and market the program to local realtors, home buyers and the community. This includes: