HRA RES 1993-03 - 000139113
RESOLUTION NO HRA 3- 1993
' A RESOLUTION ESTABLISHING A HOME IMPROVEMENT LOAN
PROGRAM; ESTASLISHING THE AREA OF OPERATION; PROVIDING
FOR THE DELEGATION OF CERTAIN POWERS AND DUTIES,
AUTHORIZING THE EXECUTION OF A MEMORANDUM OF
UNDERSTANDING BY AND BETWEEN THE HOUSING AND
REDEVELOPMENT AUTHORITY iN AND FOR THE CITY OF FRIDLEY
AND THE FRIDLEY STATE BANK
BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the
Housing and Redevelopment Authority in and for the City of Fridley, Minnesota
(the "Authority"), as follows.
Section 1. Recitals
1 O1 It has been proposed that the Authority establish a Home Improvement
Loan Program (the "Program") for the residents of the City of Fridley (the
"City")
1,02. It has been further proposed that the Authority participate with the
Minnesota Housing Finance Agency (the "M H F A") to secure funding and that
the Authority provide its funds for additional assistance
1 03 It has been further proposed that the Authority enter into the
necessary agreements to implement the Program including a Memorandum of
1 Understanding (the "Memorandwn") with the Fridley State Bank (the "Bank") as a
participating lender
Section 2 Findines
2.01 The Authority hereby finds that its area of operation in which to
implement the Program is the area within the territorial boundaries of the
City as provided for in Minnesota Statutes, Section 469.002, Subd 8.
2.02 The Authority hereby finds that the adoption of the Program promotes
the purposes of the Authority as those purposes are defined in Minnesota
Statutes, Section 469.001, et sea. (the "Act").
2.03 The Authority hereby finds that the Program will assist in the
alleviation of shortages of decent, safe and sanitary residential housing
available within the City at prices affordable to persons and families of low
or moderate income as descrihed therein.
2.04 The Authority hereby finds that preservation of the quality of life in
the City is dependent upon the maintenance, provision, and presexvation of an
adequate housing stock; that accomplishing this is a puhlic purpose in that
there are many residences in the City which require rehabilitation, that a
need exists to provide in a timely fashion affordable housing to persons of
low and moderate income as described in the Act and herein residing and
expected to reside in the City, that many owners, would-be purchasers or
' providers of residences are unable to obtain mortgage credit for
rehabilitation of residences under current market conditions, and that in
establishing its Program the Authority is acting in all respects to benefit
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Page 2- Resolution No. HRA 3- 1993
, the citizens of the City and to serve a public purpose in improving and
otherwise promoting their health, welfare and prosperity.
Section 3. Authorization of Pro�Yam
3.01 The Authority hereby approves and adopts the Program as described on
Schedule A attached to this Resolution.
Section 4. Dele�ation of Power and Duties
4.01 In accordance with the Act, specifically Minnesota Statutes, Section
429 012, Subd 1(3), and in accordance with the Program Description and
Guidelines, the officers, agents and employees of the Authority are hereby
authorized to take such actions as may be necessary to implement the
Memorandum and operate the Program
4 02 The Executive Director or Housing Coordinator are hereby authorized to
execute all documents relating to the approval and closing of any loans
provided for in the Program.
Section 5. Authoxization for Execution of Memorandum
5.01 The Authority hereby approves the Memoxandum substantially in the foxm
� presented to the Authority and authorizes its Chairman and Executive Director
to execute the Memorandum on behalf of the Authority with such additions and
modifications as those officers may deem desirable or necessary as evidenced
by the execution thereof.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF FRIDLEY THIS 8TH DAY OF JULY, 1993
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`�yE�iGv��
LAWRENCE R COMMERS - CHAIRPERSON
ATTEST
.:�i%.F, ��,Ct/t�,-u1�
W�LLIAM W BURNS - EXECUTIVE DIRECTOR
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SCHEDULE A
DESCRIPTION AND GUIDELINES
FOR THE HOME IMPROVEMENT LOAN PROGRAM
Loan Description
M.H F A. Primary Loan Rates from 3-9 75� up to $15,000 for a maximum term of
15 years
Authority Deferred Loan A percentage of the Primary Loan up to $2,250 as
described below
Fundine Sources
Minnesota Housing Finance Agency for Primary Loan, Authority for Deferred
Loan
Particivatine Lender
Fridley State Bank.
Oualifications
Income Limits
Underwriting
Equity:
Property Type
Pro�ram Enhancements
$41,000
Normal Bank Standards
Normal Bank Loan to Value Percentage
Owner Occupied 1 to 4 Unit Properties
For a limited time period the Authority will defer part of the borrower's cost
by providing a Deferred Loan without interest
Deferred Loan works as follows
M H.F.A Primary
Loan Amount
Authority Deferred Loan
Percentaee Maximvm Limit
� < $5,000 10&
$5,001-$10,000 12,5$
> $10,001 15$
$ 500
$1,250
$2,250
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� Authority Deferred Loan will be secured, but subordinate to Primary Loan
financing Deferred Loan must he repaid upon sale of property
General Requirements
Appllcations for the Home Improvement Loan Program will be accepted by the
Authority, beginning on June 14, 1993 through July 16, 1993
Additional application periods may be established by the Authority
After the closing date, the applications will be reviewed for general
eligibility (i.e. compliance with income guidelines, property type, etc ),
then those which meet this test will be ranked based on
1) Age of property
2) Type of improvement
3) Location of property
4) Applicant's income
Points will be awarded for each category; those with high scores will receive
the first priority on program funds (including the program enhancements for
the loan programs), Applicants for the loan programs will be directed to the
participating lenders after a property inspection has been completed.
� In the event demand exceeds the funding supply, a waiting list will be
maintained
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