6.2. HRSR 01-05-2004 - Laserfiche WebLink

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ITEM # 6.2. S i City of Elk -.„-1 River MEMORANDUM TO: Housing & Redevelopment Authority l' FROM: Heidi Steinmetz, Assistant Director of Economic Development DATE: January 5, 2004 SUBJECT: Update on Housing Programs Attachments • Program Flyer • Income&Home Cost Limits • 2003 List of Participants &Allocations S • Matrix (details on program enhancements in each participant community) • Central MN Housing Partnership Newsletter,Winter 2004 • Home Rental Rehabilitation Program Letter , Selection Criteria& Flyer MN City Participation Program Background From 1991 to 1996, the Elk River HRA participated in the Minnesota Housing Finance Agency's (MHFA) Minnesota City Participation Program (MCPP),which provides loan dollars to qualified first time home buyers (see attached flyer). Through the MCPP,MHFA sells mortgage revenue bonds on behalf of communities to meet locally identified housing needs. The proceeds are then used to provide below-market interest rate home mortgages for low- and moderate-income families (see attached Income and Home Cost Limits). The loans are originated and administered through local lenders approved by the MHFA. Other than completing an application and paying a processing fee of$20 for each $100,000 allotment provided (see attached 2003 List of Participants and Allocations) and a 1% refundable deposit, no time or resources are required of the HRA or staff to participate in the program however many participant communities have their own program enhancements (see attached matrix). Issue Staff recently received information on participating in the 2004 MCPP. The HRA has not participated in the program since 1996 however, Sherburne County has applied and been • awarded an allocation for the last several years. The county will apply for a 2004 allocation therefore staff does not recommend a separate city application.