3.0. EDSR 05-25-1993 - Laserfiche WebLink

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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY TO: ECONOMIC DEVELOPMENT AUTHORITY FROM: WILLIAM RUBIN, ED COORDINATO DATE: MAY 19, 1993 SUBJECT: COMMITMENT AGREEMENT AND ALLOTMENT AGREEMENT FOR FIRST TIME HOMEBUYER PROGRAM INTRODUCTION At its April meeting, EDA Commissioners authorized an application to the Minnesota Housing Finance Agency (MHFA) for inclusion in a first time homebuyer program known as the Minnesota City Participation Program. Following the bond allocation meeting on May 12, the Elk River EDA is now in a position to execute final documents with MHFA for participation in this program. BACKGROUND The bond allocation meeting was necessitated because MHFA 0 received 60 requests in various amounts totaling $73 . 6 million. MHFA intends to only bond for $47 .5 million. Therefore, the individual requests for mortgage funds were reduced. The Elk River EDA' s request was reduced to $974,242 . Cities, counties, and Economic Development Authorities that choose to participate in this program are required to approve two contracts known as the Allotment Agreement and the Program Application-Commitment Agreement.. Both have been enclosed for your review and comment and are similar in content to the agreements authorized in previous years. ACTION REQUESTED The Elk River EDA is asked to approve the Allotment Agreement and the Program Application-Commitment Agreement with the Minnesota Housing Finance Agency. In a separate motion, the EDA is asked to authorize a new one percent ( 1%) refundable deposit fee in the amount of $9,742.42, and further, to authorize a nonrefundable $200 processing fee. Given the uncertainty of MHFA' s ability to issue revenue bonds for home mortgage purposes, payment of the deposit fee and the processing fee will not be made at this time. • P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal.Opportunity Employment