7. HRSR 06-07-2010 - Laserfiche WebLink

Home Browse Search

Item # 7 I ~,1_ .K~.ver MEMORANDUM TO: Housing & Redevelopment Authority FROM: Annie Deckert, Economic Development Assistant DATE: June 7, 2010 SUBJECT: Update on Neighborhood Stabilization Program (NSP) As of May 27, 2010, all NSP funds have been obligated; there are four remaining down payment assistance applications that axe set to close the month of June. NSP de-obligation of funds On March 9, 2010, staff was notified that after much review and consideration Minnesota Housing Finance Agency (MHFA) recommend the City of Elk River for deobligation at its March Board meeting. MHFA is required by statute to obligate 100% of its Neighborhood Stabilization Program grant by September 20, 2010, 18 months from the program's inception. The deobligation of funds, although an unpleasant and unfortunate process, is necessary to ensure all program funds are committed prior to the September deadline, and therefore utilized in the state of Minnesota. The money will be reallocated to other entitlement communities who have a greater need fox the money. Total Elk River NSP Activities Funded • Eleven down payment assistance applications ($5,000-$15,000 per application) through down payment assistance initiative o Two of the applicants receiving $5,000 in NSP money also 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. o Five homes in Elk River Station, five in Trott Brook and one in Heritage Landing • One home acquired through acquisition/rehabilitation initiative o Sale of home closed on February 26, 2010; home buyer received $14,999 in NSP funding for down payment assistance • Zero purchase rehabilitation applications N:\Departments\Community Development\Economic Development\Housing\Foreclosure\NSP\Memos\6.7. l O.doc