HRA RES 1993-04 - 00013915�
'
'
7
RESOLUTION N0. HRA 4- 1993
A RESOLUTION ESTASLISHING A HOME MORTGAGE ASSISTANCE PROGRAM,
ESTABLISHING THE AREA OF OPERATION; PROVIDING FOR THE DELEGATION
OF CERTAIN POWERS AND DUTIES; AUTHORIZING THE ERECIITION OF A
MORTGAGE ORIGINATION AGREEMENT BX AND BETWEEN THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY AND UNITED
MORTGAGE CORPORATION.
SE IT RESOLVED by the Soard of Commissioners (the "Commissioners") of the
Housing and Redevelopment Authority in and for the City of Fxidley, Minnesota
(the "Authority"), as follows
Section 1 Recitals
1.01. It has been proposed that the Authority establish a Home Mortgage
Assistance Program (the "Program") for the residents of the City of Fridley
(the "City")
1 02 It has been further proposed that the Authority enter into the
necessary agreements to implement the Program including a Mortgage Origination
Agreement (the "Origination Agreement") with United Mortgage Corporation (the
"Bank") as 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 D2. 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 pexsons and families o£ low
or moderate income as described therein
2 04 The Authority hereby finds that preservation of the quality of life
the City is dependent upon the maintenance, provision, and preservation of
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
expected to reside in the City, that many owners, would-be purchasers
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
in
an
or
Page 2- Resolution No. HRA 4- 1993
1
Section 3 Authorization of Program
3 O1. The Authority hereby approves and adopts the Program as described in
the Origination Agreement and 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
Origination Agreement and operate the Program
4.02. The Executive Director or Housing CoordinaCor 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 the Orizination A¢reement
5.01. The Authoxity hereby approves the Origination Agreement substantially
in the form presented to the Authority and authorizes its Chairman and
Executive Director to execute the Origination Agreement 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 FRIDI.EY THIS 8TH DAY OF JULY, 1993.
C� T.(/yv�v'�'�'�
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST
� p��,/1-hr,rx%'! -L ��t-/1—�
o WI LIAM W BURNS - EXECUTIVE DIRECTOR
1
u�
'
SCHEDULE A
DESCRIPTION AND GUIDELINE5
FOR THE HOME MORTGAGE ASSISTANCE PROGRAM
Loan Descrintion
�'7
No-interest, deferred payment loan (Deferred Loan) for help with down payment,
closing costs and home xehabilitation.
Fundine Source
The Authority.
Participatinq Lender
United Mortgage Corporation
Oualifications
Income Limits
' Undexwriting•
Equity.
Property Type
'
Program Svecifics
$55,000
Normal Bank Standards
Normal Bank Loan to Value Percentage
Owner Occupied 1 to 4 Unit Properties
As described above, this program provides down payment and closing cost
assistance to both homebuyers and homeowners Homeowners who wish to either
1) Refinance and rehab their home, receive a Deferred Loan of 5� of the
ficst mortgage, not to exceed $6,000.
Restrictions
a) 108 of the total mortgage amount must be used for rehabilitation
b)
c)
Mortgage cannot exceed $120,000
Home value cannot exceed $126,500
FHA, VA or conventional first mortgage financing is eligible
2) Rehabilitate their homes, receive a Deferred Loan of 108 of the mortgage
amount, not to exceed $3,795. Funds may be used for closing costs and
home rehabilitation
Restrictions
�
1
1
a)
10
Minimum amount of rehab $15,000; maximum not to exceed 30� of home
value or $37,950.
For homebuyers who wish to
1) Purchase a home, the Deferred Loan is 38 of the first mortgage amount,
not to exceed $3,600.
Restrictions.
a) Only allowed for the conversion of non-homestead property to
homestead property
b) Maximum mortgage cannot exceed $120,000. Home value cannot exceed
$126,500,
2) Purchase and rehab a home, the Deferred Loan is 58 of the mortgage
amount, not to exceed $6,000.
Restrictions:
a) Same as with homeownexs who wish to refinance and rehab their home
as descxied above
General Reauirements
Applications fox the Home Mortgage Assistance Loan Program will be accepted 6y
the Authority, beginning on June 14, 1993 through Suly 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 lender.
In the event demand exceeds the funding supply, a waiting list will be
maintained