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received <br />FEB 6 1997 <br />CITY OF ORONO <br />HENNEPIN CC JNTY HOUSING AND REDEVELOPMENT AUTHORITY <br />A-2308 Go^mtnrni Center Minneapolis. Minnesota 55487-0238 6 12-348-649' <br />February 3,1997 <br />Gabriel Jabbour <br />Mayor <br />City of Orono <br />P.O. Box 66 <br />Crystal Bay, MN 55323 <br />Dear Mayor Jabbour: <br />Last January the Hennepin Count> Board of Commissioners met with suburban officials to discuss the <br />Count’s role in housing. One request, made by suburban officials, was for Hennepin County to seek <br />funding under the Minnesota Housing Finance Agency (MHFA) first-time homehuyers mortgage <br />program in order to maximize funds available to suburban Hennepin County residents. <br />On January 16. the Hennepin County Housing and Redevelopment Authority (HCHRA) authorized staff <br />to submit an application for the Minnesota Housing Finance Agency (MHFA) Minnesota City <br />Participation Program. The HCHR.A application will be on behalf of all communities interested in the <br />program that do not wish to submit an individual application for the mortgage funds. <br />Under the Minnesota Cit> Participation Program, the MHFA sells mortgage revenue bonds on behalf of <br />city and county housing authorities. The proceeds of these bonds provide below-market interest rate, <br />mortgage loans for low and moderate-income first-time homebuyers. The maximum purchase price for <br />single-family homes under this program is $95,000. The loans are originated and processed by <br />participating area lenders. <br />The MHFA allocates mortgage funds under this program on a per capita b. sis. We estimate that a County <br />application could result in an additional S3 million in mortgage funds av.ulable to residents in Hennepin <br />Countv. <br />Metropolitan Council staff has informed Hennepin County that a community’s participation in the <br />County first-time homebuyer mortgage application will be viewed as an effort to advance affordable <br />housing, regardless if the mortgages are utilized within the city borders. This will assist cities in the <br />implementation of the Livable Communities Act. <br />BOARD OF COMMISSIONERS <br />MikeOpat Mark Stenglein Mark Andrew Peter McLaughlin Randy Johnson Mary Tambomino Penny Steele