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-2- <br />The following are general MHFA program regulations; <br />1.All loans must be FHA Title I Home Improvement Loans. MHFA will <br />purchase the loans from the Title I lender secured by the <br />administering agency. <br />2. The maximum loan amount is $15>000 with a 15-year repayment period; <br />the loan is due upon sale of property. <br />Homeowners can qualify for the loan in one of two ways; <br />a)If annual adjusted income is $24,000 or less, the interest rate <br />is based on amount of income. There is no restriction on the <br />amount of rent charged for the accessory unit. <br />If annual adjusted income is over $24,000, the interest rate is <br />11$. The homeowner must sign a statement agreeing to rent the <br />accessory unit within the HUD Section 8 Fair Market Rent limits <br />for existing housing. <br />4, The annual income/interest rate schedule is as follows; <br />$ 0 - 7,000 <br />$ 7,001 - 12,000 <br />$12,001 - 17,000 <br />3% <br />7% <br />9% <br />$17,001 - 24,000 <br />$24,00U <br />10 1/2$ <br />11$ <br />The Section 8 Fair Market Rent limits for the Metropolitan Area are as <br />follows; <br />efficiency <br />1- bedroom <br />2- bedroom <br />$328 <br />$388 <br />$451 <br />3- bedroom <br />4- bedroom <br />$554 <br />$611 <br />5.The converted single-family home must be owner-occupied; this is <br />required under the federal tax law regulating the use of revenue bond <br />proceeds. <br />6.The single-family home must be converted to contain only one accessory <br />unit. The home can contain up to two existing units if the loan is <br />to be used for code compliance improvements. <br />7.All modifications must be in compliance with all applicable local <br />zoning, housing and building codes and with the State Energy <br />Conservation Standards for Rental Housing. <br />Metro HRA Program Administration <br />Metro HRA staff plans to administer the MHFA Accessory Apartment Loan Program <br />in relatively the same manner as it administers the MHFA Rental Rehabilitation <br />and homeownership Rehabilitation Loan Programs. Those functions are as follows; <br />1. Market the program, with assistance from participating communities, to <br />prospective homeowners. <br />2. Provide program applications and ir roroatlon to interested homeowners. <br />3. Screen applicants to determine preliminary loan eligibility, amount of <br />loan, applicable interest rate and property eligibility.