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I r <br />•i - f <br />■'ii <br />METROPOLITAN COUNCIL HOUSING AND REDEVELOPMENT AUTHORITY <br />300 Metro Square Buildlngi Saint Paul, MN 55101 <br />ACCESSORY APARTMENT LOAN PROGRAM <br />SUMMARY <br />Ati accessory apartment is an independent living unit, with self-contained <br />kitchen, bathroom and living facilities, that is developed within a house <br />Initially constructed as a single-family dwelling. <br />The Minnesota Housing Finance Agency (MHFA) has developed a new below-market <br />interest rate loan program designed to help single-family homeowners add an <br />accessory apartment to their home or bring existing accessory units into <br />compliance with local housing and/or building codes. The Metro HRA is <br />administering this Accessory Apartment Loan Program on behalf of participating <br />Metropolitan Area cities that would like the housing opportunities offered <br />through the program available in their community. <br />The objectives of the program are to: <br />1. <br />2. <br />3. <br />Increase the supply of moderate-cost rental units affordable to low- <br />and moderate-income households; <br />Help low- and moderate-income homeowners meet their escalating housing <br />costs or special family housing needs; <br />Maintain quality cuid legality in the conversion process. <br />The provisions of the Accessory Apartment Loan Program are designed to flexibly <br />benefit various income levels and population types (e.g., elderly citizens; <br />"empty nesters"; lower-income households; 20s and 30s singles and couples, <br />etc.) in either role of homeowner or renter. The Metro HRA, in concurrence <br />with participating communities, intends to serve this wide range of populations <br />with the program. <br />A primary goal of the Metro HRA is to provide affordable and locational housing <br />opportunities to low- and moderate-income persons. In keeping with this <br />policy, as well as meeting one of MHFA^s main program goals, Metro HRA does <br />intend to target program service to both homecvners and renters in this income <br />range. <br />Program Guidelines <br />The MHFA has designed the Accessory Apartment Loan Program so that it can be <br />tailored to meet specific community housing needs and goals, as in these <br />examples: <br />1) <br />2) <br />3) <br />Tied-ln with the Section 8 rent assistance program, thereby providing <br />additional affordable units for eligible renters. <br />Tled-in v’lth Community Development Block Grant funds or other fund <br />sources to provide additional conversion loan assistance. <br />Used to regulate illegal accessory units by providing state and local <br />code compliance improvements. <br />^ .