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HRA RES 1993-05 - 0001389411 RESOLUTION N0. HRA 5- 1993 ' A RESOLUTION ESTABLISHING A RENTAL REHASILITATION LOAN PROGRAM; ESTABLISHING THE AREA OF OPERATION; PROVIDING FOR THE DELEGATION OF CERTAIN POWERS AND DUTIES; AUTHORI2ING 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; AUTHORIZING EXECUTION OF AN ADMINISTRATION CONTRACT WZTH THE MINNESOTA HOUSING FINANCE AGENCY. 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 1.01 It has been proposed that the Authority estahlish a Rental Rehabilitation 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 and that the � Authority enter lnto an Administration Contract with the M H F.A. 1 03. It has been further proposed that the Authority enter into the necessary agreements to implement the Program including a Memorandum of Understanding (the "Memorandum") with the Fridley State Bank (the "Sank") as a participating lender. Section 2. Findines. 2 O1 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 described therein 2 04 The Authority hereby finds that preservation of the quality of life in the City is dependent upon the maintenance, provision, and preservation of an adequate housing stock; that accomplishing this is a public 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 �� � 1 12 Page 2- Resolution No HRA 5- 1993 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 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 Proqram 3 O1. The Authority hereby approves and adopts the Program as described on Schedule A attached to this Resolution Section 4, Delegation 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 Memorandwn 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 Authorization for Execution of Memorandum 5.01 The Authority hereby approves the Memorandum substantially in the form presented to the Authoxity 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. Section 6 Authorization for Execution of Administration Contract. 6.01. The Authority hereby approves the Administration Contract substantially in the form presented to the Authority and authorizes its Chairman and Executive Director to execute the Administration Contract 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 REDEVEIAPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 8TH DAY OF JULY, 1993 % � � LAWRENCE R COMMERS - CHAIRPERSON ATTEST: �-��� v� ��- � .�., n A�c2� WILLIAM W BURNS - EXECUTIVE DIRECTOR � � �J SCHEDULE A DESCRIPTION AND GUIDELINES FOR THE RENTAL REHABILITATION LOAN PROGRAM Loan Description iK3 M.H.F A Primary Loan At 7.458 for rental property improvements Maximum term of 15 years; amount based on number of units in the building, $15,000 maximum for single-unit, lesser of $8,000 per unit or $40,000 per building Authority Deferred Loan Fundin� Sources 108 of the M H F.A. Primary Loan Minnesota Housing Finance Agency (M.H F.A.) for Primary Loan; Authority for Deferred Loan. Particioating Lender Fridley State Sank. Oualifications Income Limits Underwriting� Equity: Property Type Pro�ram Enhancements N/A Normal Bank Standards Normal Bank Loan to Value Percentage Any Residential Rental Property, Property is Sub�ect to other M H F.A, Program Requirements Deferred Loan will be secured, but subordinate to the Primary Loan The Deferred Loan principal payment is deferred until property is sold No interest is charged on the Deferred Loan.