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Home My WebLink About03-10-1997 HRA Meeting PacketAGENDA ORONO HRA MEETING SET FOR MONDAY, MARCH 10,1997 AT THE COMPLETION OF THE REGULAR BUSINESS ITEMS OF THE MARCH 10 CITY COUNCIL MEETING ' 1 s 4 ROLL CALL 1.Resolution Requesting the Hennepin County HRA to Include the City of Orono in an Application for Below Market Interest Rate Mortgage Loans Through the Minnesota Housing Finance Agency 2.Resolution Requesting the Hennepin County HRA to Administer the Minnesota Housing Finance Agency's Home Improvement Loan Programs in Orono ADJOURNMENT Department Approval: Name Ron Moorsc Title City Administrator REQUEST FOR HRA ACTION DATE: March 7, 1997 ITEM NO.: Administrator Reviewed: ) Agenda Section: City Administrator's Report __________ Item Description: Resolution Requesting the Hennepin County HRA to Administer MHFA Home Improvement Loan Programs in the City____________________________________________________ The Hennepin County HRA administers a home improvement loan program that can be made available to Orono homeowners if the city HRA adopts a resolution requesting this. This home improvement loan program is available to those who do not meet the eligibility requirements of the CDBG housing rehabilitation loan program. COUNCIL ACTION REQUESTED: Motion to adopt a resolution requesting the Hennepin County HRA to administer the MHFA home improvement loan programs in the city of Orono. RESOLUTION REQUESTING THE HENNEPIN COUNTY HRA TO ADMINISTER THE MHFA HOME IMPROVEMENT LOAN PROGRAMS IN THE CITY OF ORONO WHEREAS, the Hennepin County Housing and Redevelopment Authority (HCHRA) is an approved lender for the Minnesota Housing Finance Agency (MHFA) Home Improvement Loan Programs, and WHEREAS, Eligible homeowners may apply and receive home improvement loans under the MHFA Home Improvement Loan Programs through the HCHRA. and WHEREAS, the HRA in and for the City of Orono would like to access these housing resources to meet the needs of its citizens. BE IT RESOLVED that in accordance with MSA 383B.77, Subdivision 2, the HRA in and for the City of Orono requests the Hennepin County Housing and Redevelopment Authority administer the MHFA Home Improvement Loan Programs in the City of Orono. Adopted at a meeting of llie City of Orono HRA this 10th day of March, 1997. ATTEST:Gabriel Jabbour, Chair Dorothy M. Hallin, City Clerk i i 1 REQUEST FOR HRA ACTION DATE: March 7, 1997 ITEM NO.: Department Approval: Name Ron Moorse Title City Administrator Administrator Reviewed:Agenda Section: City Administrator's Report Item Description: f Resolution to Access Pelow Market Interest Rate Mortgage Loans for First Time Home Buyers Attachments: 1. Letter from the Hennepin County HRA Regarding a Program that Provides Below Market Interert Rate Mortgage Loans for Low and Moderate Income First Time Home Buyers 2. Resolution Requesting the Hennepin County HRA to Include the City of Orono in an Application for the Below Market Interest Rate Mortgage Funds to the Minnesota Housing Finance Agency The Hennepin County HRA is submitting an application for below market interest rate mortgage loans for low and moderate income first time home buyers on behalf of all cities interested in the program. The amount of mortgage funds made available to the Hennepin County HRA is dependent upon the number of cities that participate. A city's participation in the first time home buyer mortgage application will be viewed as an effort to advance affordable housing, regardless if the mortgages are utilized within the specific city's borders. This will assist cities in the implementation of the Livable Communities Act. The city's participation requires the adoption of a resolution requesting the Hennepin County HRA to include the city in its application. COUNCIL ACTION REQUESTED: Motion to adopt a resolution requesting the Hennepin County HRA to include the city of Orono in its application for below market interest rate mortgage loan funds through the Minnesota Housing Finance Agency's Minnesota Cities Participation Program. 1 1 1 RESOLUTION REQUESTING PARTICIPATION IN AN APPLICATION TO THE MHFA FOR MINNESOTA CITY PARTICIPATION PROGRAM FUNDS WHEREAS, on January 3, 1997 the Minnesota Housing Finance Agency (MHFA) issued a request for proposals for the 1997 Minnesota City Participation Program (MCPP), and WHEREAS, through the MCPP, MHFA sells mortgage revenue bonds on behalf of cities to meet locally identified housing needs for low and moderate income first-time homebuyers, and WHEREAS, tht HRA in and for the City of Orono would like to access these housing resources to meet the needs of its citizens, and WHEREAS, county housing and redevelopment authorities are eligible applicants for MCPP funds. BE IT RESOLVED that in accordance with MSA 383B.77, Subdivision 2, the HRA in and for the City of Orono requests the Hennepin County Housing and Redevelopment Authority include the City of Orono in an application for MCPP funds to MHFA. Adopted at a meeting of the City of Orono HRA this 10th day of March, 1997. ATTEST:Gabriel Jabbour, Chair Dorothy M. llallin, City Clerk •'t»! received FEB 6 1997 CITY OF ORONO HENNEPIN CC JNTY HOUSING AND REDEVELOPMENT AUTHORITY A-2308 Go^mtnrni Center Minneapolis. Minnesota 55487-0238 6 12-348-649' February 3,1997 Gabriel Jabbour Mayor City of Orono P.O. Box 66 Crystal Bay, MN 55323 Dear Mayor Jabbour: Last January the Hennepin Count> Board of Commissioners met with suburban officials to discuss the Count’s role in housing. One request, made by suburban officials, was for Hennepin County to seek funding under the Minnesota Housing Finance Agency (MHFA) first-time homehuyers mortgage program in order to maximize funds available to suburban Hennepin County residents. On January 16. the Hennepin County Housing and Redevelopment Authority (HCHRA) authorized staff to submit an application for the Minnesota Housing Finance Agency (MHFA) Minnesota City Participation Program. The HCHR.A application will be on behalf of all communities interested in the program that do not wish to submit an individual application for the mortgage funds. Under the Minnesota Cit> Participation Program, the MHFA sells mortgage revenue bonds on behalf of city and county housing authorities. The proceeds of these bonds provide below-market interest rate, mortgage loans for low and moderate-income first-time homebuyers. The maximum purchase price for single-family homes under this program is $95,000. The loans are originated and processed by participating area lenders. The MHFA allocates mortgage funds under this program on a per capita b. sis. We estimate that a County application could result in an additional S3 million in mortgage funds av.ulable to residents in Hennepin Countv. Metropolitan Council staff has informed Hennepin County that a community’s participation in the County first-time homebuyer mortgage application will be viewed as an effort to advance affordable housing, regardless if the mortgages are utilized within the city borders. This will assist cities in the implementation of the Livable Communities Act. BOARD OF COMMISSIONERS MikeOpat Mark Stenglein Mark Andrew Peter McLaughlin Randy Johnson Mary Tambomino Penny Steele Mayor Jabbour Page 2 We recognize the importance of homeownership for maintaining viable communities and urge all suburban communities to fully participate in this program, either through an individual municipal application or the HCHRA application. By doing so, the resources available for first-time homebuyers will be significantly e.xpanded for suburban Hennepin County residents. Information on the County ’s Minnesota City Participation Program application has been sent to all suburban county municipal staff. Please contact staff in the County ’s Office of Planning and Development (54 1-7080) if you have any questions. Siacattly, Penny Steele, Chair Hennepin County HRA Seventh District Commissioner cc: City Manager i i vVJ