01/09/1993 JOINT MTG . .., i.ess i ........;RWEJ,N;2ii i.3h ii z:;t;N; ki....n ...
ox.-Bsu&
JOINT CITY COUNCIL AND HRA MEETING
SATURDAY, JANUARY 9, 1993
10:00 a.m. 1. Housing Program Overview
2. Single Family Rehabilitation Programs
10:15 a.m. A. Review Program Details
• CDBG
• MHFA Fix-up Fund
• Low and Moderate Income Program
• • Fannie Mae
• • Moderate Income Rehab only
10:45 a.m. B. Identify Issues
11:30 a.m. C. Review Implementation Steps
11:45 a.m. - LUNCH
3 . Rental Rehabilitation Programs
12:30 p.m. A. Review Program Details
1:00 p.m. B. Identify Issues
1:45 p.m. C. Review Implementation Steps
2:00 p.m. 4. Review Single Family Rehab Issues and Achieve
Consensus
2:30 p.m. 5. Review Multiple Family Rehab Issues and Achieve
Consensus
3:00 p.m. 6. Review Proposal on Rental Licensing Inspection
Program and Achieve Consensus
3:30 p.m. 7. Adjourn
0
1.
HOUSING PROGRAM OVERVIEW
1. Single Family Rehab Programs
a. Community Development Block Grant $150,000 *
b. MHFA Fix-up Fund 60,000
c. Low and Moderate Income Loan Programs 150,000
2. Multiple Family Rehab Programs
a. Rental Rehabilitation Program 110,000
3 . Scattered Site Acquisition Program 100,000
4. Administration 85,000
Total $655,000
* CDBG money is provided by the federal government.
HRA Funds $505,000
O o
-r1 aP -r1 duo aP aP
+) in +J N Ln Ors 0
yin rorI 4-4 H o 0
•tti in
if)
( O iO O NO (I) 0
4 O •i O O -.-I O
ao ao o -� � e
H 4O LO H
44r) w cn1 bm 0
co to- Z U cl)i E-1
Cn -
)
0>
O
O
O
oo
t; .o
=
•
0
0 0 0.0 0
0 000 0
000 0
0 . .
IL) 0 O Ir) IL)
yr Inl0 'O• r
N
✓ a)
N �
O u)
H PO 44 z
o M
0
►.a ♦ ♦ ♦
N
n a�
U o
V
)
n O
c
rn E
V J O
L
o
ti—
O
OLL
�o 0
O
I-- O O O
th O O O
O O O
I
I
O to to
O In M CO
O
O 7r
N al
O N
U ai N
H ;
0 O
0 CD Ste.
f•-1 `CY
O O fd
O
♦ ♦
2.A.1
SINGLE FAMILY REHABILITATION PROGRAM DETAILS
Community Development Block Grant $150,000 (federal funds)
Type of Assistance: Grant
Borrower Income Limmit: 1 - $ 9,308
2 - $12, 176
3 - $15,040
4 - $18,092
Adjusted gross income; plus
$750 for first two adults;
$500 for each child
Minimum No. of Units: One unit
Owner Occupancy: Yes (nine months out of a year)
Security: Ten year lien; forgiven after
ten years
Interest Rate: N/A
Maximum Loan: $9,000, may go over if emergency
repairs arise.
Minimum Loan: $3,000
Maximum Term: N/A
Borrower a Natural Person: Yes
Eligible Improvements: Code, health, safety,
weatherization
Monthly Payments: -0-
Closing Costs: -0-
Administrative Fees: Possible 12%-14% administrative
fees to ACCAP
Availability: Annual allocation; first come,
first serve
HRA Assistance: -0-
Maximum Home Value: N/A
Minimum Home Age: N/A
2.A.2
SINGLE FAMILY REHABILITATION PROGRAM DETAILS
Minnesota Housing Finance Agency Fix-up Fund $60,000 HRA money
to be coupled with
MHFA funds or real
estate loan
Type of Assistance: Installment loan
Borrower Income Limit: $41,000 gross
Maximum No. of Units: Four units
Owner Occupancy: Yes
Security: Second mortgage on loans
> $2,500
Interest Rate: 3%, 5%, 7%, 9% based on income
Maximum Loan: $15,000
Maximum Term: 15 years
Borrower a Natural Person: Yes
Eligible Improvements: Code improvements and general
home updates
Monthly Payments: Fixed payment
Closing Costs: Typical costs based on loan amount
Administrative Fees: $200/loan
Availability: MHFA state funds
HRA Assistance: Up to $5, 000 per loan depending
on "gap", to be paid back to HRA
at time of sale of the property
Maximum Home Value: N/A
Maximum Home Age: N/A
SINGLE FAMILY REHABILITATION DETAILS 2.A.3
Low and Moderate Income Program $150,000 HRA funds
1. Fannie Mae Program $100,000
2. Moderate Income Rehab Only $ 50, 000
1. Fannie Mae Program
Type of Assistance: Real estate loan
Borrower Income Limit: Of the $100,000, $65,000 would be
reserved for incomes below $50,000.
$35,000 would be reserved for incomes
between $50, 000 and $76,500.
Maximum No. of Units: Two units
Owner Occupancy: Yes
Security: Refinanced first mortgage, second
mortgage or new mortgage required.
Interest Rate: To be determined by RFP
Maximum Loan: $120,000 (90% loan to value ratio)
Minimum Loan:
- Straight Rehab: $15,000
- Refinance Rehab: $20,000 * At least 10% of loan is
- Acquisition Rehab: $20,000 dedicated to rehabilitation.
- Acquisition: $20,000 ** Must be used only to
convert non-homesteaded
single family home to owner-
occupied single family home.
Maximum Term: 30 years
Borrower a Natural Person: Yes
Eligible Improvements: Code improvements, general living
area improvements
Monthly Payments: Fixed payment
Closing Costs: Depends on loan amount
Administrative fees: None
Availability/Maximum Annual allocation; first come,
Number of Units: first serve
HRA Assistance: 5% of loan up to $6, 000 maximum on
any rehab loans; 3% on acquisition
only. Assistance is for closing costs
or writing down interest rate.
Maximum Home Value: $126,000; 150% of median home value
Minimum Home Age: 15 years
2.A.4
2. Moderate Income Rehab Only
Type of Assistance: Real estate loan
Borrower Income
Minimum to Maximum: Minimum is $41,000 (or whatever
MHFA maximum limit is) and
maximum is $76,500.
Maximum No. of Units: One unit
Owner Occupancy: Yes
Security: Second mortgage
Interest Rate: To be determined by RFP process
Maximum Loan: $20,000
Minimum Loan: -0-
Maximum Term: To be determined by RFP process
Borrower a Natural Person: Yes
Eligible Improvements: Code improvements and general
living area improvements
Monthly Payments: Fixed payment
Closing Costs: Depends on loan amount
Administrative Fees: Fees may need to be paid to
bank(s) ; to be determined by RFP
process.
Availability/Maximum
Number of Units: Annual allocation; first come,
first serve
HRA Assistance: 10% of loan amount up to $2,000
for closing costs or writing down
interest rate
Maximum Home Value: $126,000
Minimum Home Age: 15 years
2.0
IMPLEMENTATION STEPS FOR SINGLE FAMILY REHABILITATION PROGRAM
1. Hire a Housing Coordinator.
2. Draft RFP to local banks and Fannie Mae lenders to solicit
participation in programs (require MHFA certification as
condition for participation) .
3. Select banks and negotiate contracts.
4. Prepare and execute contract with ACCAP for CDBG program.
5. HRA approval of Program Manual and Resolution initiating
housing programs
111111•1 .
3.A.1.
RENTAL REHABILITATION PROGRAM FOR MULTIPLE FAMILY UNITS
Rental Rehabilitation Program $110, 000
The intent of the program is similar to the MHFA Fix-up Fund. HRA
funds would be coupled with the MHFA Rental Rehabilitation Loan
Program.
Type of Assistance: Installment or real estate loan
Borrower Income Limit: Tenants must have incomes below
$36, 000.
Maximum No. of Units: None
Owner Occupancy: No
Security: Loans over $5,000 are secured
with a mortgage.
Interest Rate: 7.45%
Maximum Loan: $40,000 per structure
Minimum Loan: $8,000/unit
Maximum Term: 15 years
Borrower a Natural Person: Yes
Eligible Improvements: Code improvements
Monthly Payments: Fixed payment
Closing Costs: Depends on loan
Administrative Fees: MHFA gives administering bank $175
Availability: Annual state allocation of
$1,500,000
HRA Assistance: Maximum of $10,000 per structure,
or $2,000 per unit to fill the
"gap" of improvements needed.
Assistance would be recovered at
time of sale of property. A local
administrator is needed; ACCAP has
previously administered program.
The Housing Coordinator would be
responsible for administering
program.
3.A.2
OTHER POTENTIAL PROGRAMS
1. Rental Rehabilitation Grant Program (HUD funds) , 1992 funds
• Assist applicants with application fees.
• Pre-commitment application needed by February 1, 1993.
2. The Neighborhood Preservation Program
3 . MHFA Multiple Family Blighted Property Removal Program
•
3.C.
IMPLEMENTATION STEPS FOR RENTAL REHABILITATION LOAN PROGRAM
1. Hire Housing Coordinator.
2 . Include Rental Rehab Loan Program as part of RFP to local
banks.
3. Investigate and participate in other MHFA programs as
appropriate.
6.
RENTAL INSPECTION PROGRAM
1. Authorize Housing Coordinator to develop strategy for rental
inspection program with the following parameters:
a. Inspections to be completed by contract inspector
b. Clerical work to be completed by part-time contract
employee
c. Cost not to exceed $55, 000
d. Inspect up to 1,000 units per year.
2. Housing Coordinator will prepare ordinance amendments to:
a. Raise Rental Licensing fees to cover contract employee
costs AND costs for repeat inspections.
b. Amend Chapter 220 to adopt HUD Housing Quality Standards
or other requirements.
• e
•
OTHER ISSUES TO BE RESEARCHED BY
HOUSING COORDINATOR FOR FUTURE ACTION
1. Single family "truth-in-sale" ordinance
2. Multiple family "truth-in-sale" ordinance
3. Pursue joint community cooperation to create a "Housing
Court" ; will need state law change.
4. Investigate annual inspection program.
5. Investigate nuisance abatement/hearing officer approach.
6. Develop Tenant Relocation Assistance Fund.
7. Organize Multiple Family Owner Coalition.
8. Develop "How to Rehabilitation" handbook.
12/14/92 11:42 FAX 002
Ly- - . nn LltuAS
•
Final Fridley
Home Improvement Loans made in the City of Fridley between 1-1-90 and 12-31-91
Household Household Loan Type of Im_provement
Number Income Amount Improvement / Cost
1 $8,416.44 $2,500-00 Heating System F $2,500.00
2 $15,808.00 $8,000.00 Siding $6,500.00
.Heating System $1,500.00
3 $26,117.16 $2,000.00 Garage $2,000.00
_ r
4 $27,123.46 $6,872.00 Roofing $3,472.00
• Heating System I' $2,400.00
• Central Air i $1,000.00
5 $25,228.80 $2,500.00 Heating System / $2,500.00
6 $19,528.00 $1,900.00 Bathroom Fixtures $1,900.00
and Connections/
7 $27,313.08 $4,131.00 _Landscaping, Side- $4,131.00
_ walks, Driveway
8 $13,920.00 $13,050.00 Garage I $1,000.00 •
_ Room Addition/ ' $1,200.00
• Alterations
Chimney/Foundation $3,000.00 I •
f Walicover/Painting $200.00
Floor Covering f, $1,800.00
Roofing F $300.00
Gutters $50.00 •
Doors and Windotvs $1,500.00
Landscaping, Side- $4,000.00
walks, Driveways
•
9 $33,644.00 $5,000.00 Siding t $2,925.00
r Insulation / $940.00
Doors and Windo4,s $1,135.00 • .
•
•
Page 1
Rental Rehabilitation Loan Program
Minnesota Housing
.1r Finance Agency
Contact:
Greg Baron 612-297-3123
Description:
Property improvement loans are available to residential rental property owners. Financing is
available only in certain areas of the state.
Program Start Date:
1986
Program Size:
$1,500,000 a year
Eligible Applicants:
Credit-worthy owners of rental property occupied primarily by low and moderate income tenants
Type of Assistance:
Installment loans
Finance Terms:
Simple interest rate of 7.45 percent.Maximum loan term of 15 years. Up to$15,000 in financing
may be available per single family structure. Up to $8,000 per unit may be available for multifam-
ily structures,up to a maximum of$40,000 per structure. Loans are not assumable and are due
upon the sale of the property. Loans over$5,000 are secured with a mortgage.
Type of Housing:
Residential rental structures which are: owned by natural persons, contain separate dwelling
units primarily occupied by low and moderate income households($36,000 annual income),
need energy efficiency improvements, and use more than 50 percent of the area of the structure
for residential purposes.
Other Requirements:
Most basic improvements are eligible to be financed; however, conversion from nonresidential
use to residential use is not permitted, nor is the construction of additional dwelling units.
5/92
400 Sibley Street,Suite 300,St.Paul,MN 55101 Equal Opportunity Housing and Equal Opportunity Employment
t.
'':: N m 0 0 CO 1O 0 0 m O r a N C7 0 C) N 10 CO 1. a s
•C ). ':: 0 0 N M m 0 0. m 0 O 1• O m Y th O m 1. n N
>.:W a tl Y a O m 10 f` O •f O O C) Y •f 10 N .� N tl O O tl
S (j .0 a tl .- O N . O a N O C) 0 a 0 a m O a N .- O
A N O O K N 10 N I a N tl m a m .1 h
< q m N O O m e0 N f: •f 0 C) �- m tl O m C) m 0 .f• O tl a •
O f` m U a 0 C) Y O Co O N C) O m 0 a a 0 . C)
�:Xi: N N N N 01 N N N N 01 O
i3::: tl CO 0 01 n 0 N m CO CO 01 I. Y m .. Cl a * Y Y /.
J.Ui O .0m tl 10 0 0 N a .01. .0 f` M . go m i. ti O m 0 10 0
U t ►: a O m O N M C .- .r N r 0 O r m O a W o O O
:i.Gi:2 .0 O m O N h m C) n C) C) C) a m O of f. N M
=::: N m n O .I tl 0 C9 O N g C) C) N O m - C9 a 1. U) () A
i:Z :g C7 C7 ^ . . . •f O O N n ^ ^ m a N .1 .f e- -
- ::::.. m 1. 0 0 0 C) m m 0 0 0 0 0 0 0 tl 1. n a 0 C) C) C) /. '
grow: .. CO •. 0 C9 .t ►. a r 10 0 0 t9 O tl 0 (O
%:? ':=N .- CO CO 1: o a i W - 'f f 0 O n O a f. O 1: a a O a ('1
::t�> CO CO P O Cf t� m C 0 0 0 O O O a N . . . . . .
- >}i. o o O o 0 o m a O O w o n a m n ,- .- .-
W Y Y O m m m CO C) .- O N .- r N 0 0 0 C9
;.17,.::a N a N N N N N N N r N N N N N N .- .- r n .
::;:W. .t
:> >`''' a a n CO CO C) m m 0 0 0 0 O 0 0 O 0 O O r
:::i::::;::;:y;.'W w n ) O O a O C) ) C) - m m C) m 0 0 0 m
10 0 O m r O N m .- .- 0 0 .. C) m O m a
:: :r,:_:F'::'_; 0 0 tl N N m 111... 1. 01 0 0 0 m O 0 1. O f` m •ii:F m > C) O CO N CO N N N N V 10 0 CO C0 0 CO O Y h W
0
M
:::f: jy►-:;;N. a 0 m m m CO. m m m m m m C) CO O Cl C
(�.: O a N N N tl tl 0 0 O O tl tl tl 'V' V O 1. r ••
::`:Oi `.i 2 V CO O O O• C) C) C7 C) C7 m M C) C) C) . N N 0. r E .
,.i.,,-:::%� 0 O 0 0 0 C) 0 0 C) 0 M A CO Co 0 a C0 t0 A O
"y.:_,W' C) C) C) C) t7 l0 C7 m W C) m t7'C) C) l0 .- .- .- 44. « r
%`�U�:: .W Ilf t) • 7 Cl Ci
« `
:: W O0 0 •
NK N N N N N N N N N N N N N N N 0 - - - - ,C) CO 9 C • 2 .
;2 _ a n 16 tl O O O O o Si10 t0 O O Ni 10.O 10 O a 0 a a ' • E t CA
•
- :::w O O N r `^ a 0 0 0 0 o o o o N r r r 0 a O
iw �< co 5
- • E
� • « ' Q
▪ ;:;i Aii * tl O m o o P 0 N * O r O O O O r O N 1. C. P O P.0 • j, p
r CO V O a 1. 0 C9 O O 0 l0 0 m 0 CC 0 N a O O 9 • E
JW CD •f r aCt O W O m .f O r 0 0 1 O OL f: O •f-N a a • C
p� 0 C) tl 0 N C) O V P N • CV Co 0 Co N m .- n N 0 C) .c « _ • S
2 m O v O 1. a N O .! C) C) O N m h 0 n tl O 2
▪ :: -0:.: 1: CO 0 ." 1. 1_ 1- m m 0 0 a 0 0 .- C) f " 10 h 0 O P N O 0 «. E
• ::i;O::> C9 C7 C7 CO CO C) C) CD C9 C9 C) C9 a Y .1 Cl N N - O. 4 • 10 • •
• ::>:::; W .f « .0
:? :;i«`i:;W co C7 1. •P 1. 1. a C) tl a 0 co N N m a a ... .1 CO Cl. C 40
O 2
.t O N V 0 V 1• C) CO N Cp t0 N n N O N 0 O 0 O C N �. ••
i>I'+`. y<V 1_ a C) N CO O 1. o O r .t O C7 a 0 0 a N a q C9 O O O .- 7 .
:.::::IA:::O::2 af) r 0 10 N O n - N 0 tl-N a 0 N 1. O A N C7 CD .8 E O - 7 C
:>:;W4 N O N a a tl Co N m o a m n v tl a a n n CO c
�:::i¢'> :::'-+ C) CO f Y 4' 1p a O P m a O r - N C7 of .t 'f .1 O O - 0 • 8 •
:::::2:::ia '.IctZ N
• E • v
......, O 0 m h CO O 0 CO C !. O0
:::N::iD::::W h O m O CO 0 10 pV
VJ::O:: . a O O C9 •t N 1. C C Cl
W<2_A::. o Co O C) O 1- C) •
� • QQ
_; `t_ ¢ p o w w 8 «
•ii::iS " -'. Cl N N N N N N N N N N N- a CI C ` A O 9
E;::::%:::1.:`::I.;i:16 N N N N N N N N N N N N C '' « ' • r Cl .•..
':%:< y: Co m m m m m W m «) W m W O = ; •
. a 2 ,. •
m Co Co ao co Co co Co m Co CO CO • • • C ) E
:;U;%W>% m m m m m m m m m m m m h a • O .1.
::: W: N::;W 0 a. • O a A N j(
ii:0 `y::2 O O = N •
E c uf wtlOna Cavvvvvv a •
▪ :CS :M MmmYV - NY •Oh000 0 C .R - M ~ b O4 N `
13
-'% O .t .fCOCOb1f) O0O� a a a a a N. - • N *2•• IJ f t O CA A 0 CC6
C9C ) N _ . aM F F
rs.
•i -.:i - N C • CI • a Ei¢: 7 A .
os Sis • •
QQ r a c
2S x< • ',0 • Q .- N G •
S ;iyu
v o 0 0 0O O o O O oo 0 0 0 O O O O O 0 0 0 .1 v .2 a N o a E a U =
m O t0 a CO O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O C O O
m :::::1F->W 1n 0 o 0 0 ID- o o m tl m P. o o m o o tl tl O tl . . . . . l W ; 0 oO C 0 r S 3
%`Z=: o a C) C) O N 2 '_ i 7 • 1`
• « •O •
g >'",::- -i 0 0 0 0 0 0 0 0 0 0 c 0 .1 •a • ` % .0
10 10 . 0 h 0 0 0 7 .Q •O
7 •
_ •
::f:..4 (13 > 1. n C: CO N 1: 0 0 O 0 O O C • N
m ::::Qi10::N C) V .1• Y 10 h co co N C y �. O .Z O •c c C T
Q -¢ 4 CA = O U E N j .Q ; :. .r
w t0 o v m CV tV N N tV N N N N 10 0 O C9 C) C9 C) C) O C .8 9 C tl O N O • c p
v o a o 0 m tl 0 ,Q .2 • M N Cl
2 Z .- m C) N ..0 10 tl N N N N N N N N N tl .0 0 .- C9 C) C) C) .r P Y « C • C 9 C c C
Z tl so O a O N N Cl N N N Cl N Cl CO o m 0 0 0 0 « _ r
tl • o Q a e e c a e
2 W 2 •- o w a co co m m Co m m m m m m w o a •- `u '4 v 0 c c • • • .tc .4 O
LL w O Cf t9 N N N N N N N N N N N N N r r. = m J .} 0 C O O O •• 0
O I- ¢ O :p to a ^ • Q w i n o o = o¢ co
Za F c bt .0 F- C .0 N on. 4. N ¢ N U.
W :QN i •' Y) •:, P. ea a8 N C 4 O n m G 0 N0)
0a0OaaOO 0000ON00 O
¢ •. WO a a a 0 0 a a N 0 0 O O O O NOO p O NO NO ON F"Q0 rClN IJ W O C AO
I ,
x