HRA RES 2002-05 - 00002128RESOLUTION HRA 5 - 2002
A RESOLUTION MODIFYING THE COMPREHENSIVE
HOUSING REHABILITATION PROGRAM
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 The Authority has previously established, by HRA Resolution Nos. 3-1993, 4-1993, 16-1995, 8-
1996, 19-1997 and 2-1999, 15-2000 housing rehabilitation programs (collectively referred to as the
"Comprehensive Housing Rehab Program") that, among other things, provide for the making of loans
funded by the Authority in the City of Fridley.
Section 2. Findings.
2.01. The Authority hereby finds that the Comprehensive Housing Rehab Program promotes the
purposes of the Authority as those purposes are defined in Minnesota Statutes, Section 469.001, et. seq.
(the "Act").
a. The Authority hereby finds that the Comprehensive Housing Rehab Program
assists in the preservation, maintenance, and provision of adequate housing stock, and further finds that
accomplishing this is a public purpose in that there are many residences in the City that require
rehabilitation.
b. The Authority hereby finds that the existing guidelines for the Comprehensive
Housing Rehab Program do not allow for exterior-type improvements to town homes and condominium
units. These types of improvements are usually owned in common by an association and the costs of
repairs are then passed onto the individual owners. Town home and condominium associations are
currently not eligible for loans under the Comprehensive Housing Rehab Program.
c. The Authority hereby finds that there is no further compelling reason to continue
disallowing financing of the improvements referenced in Section 2.03.
Section 3. Modification of Program.
3.01. The Authority hereby approves and amends the Comprehensive Housing
Rehab Program as follows:
Schedule A to HRA Resolution No. 8-1996, at Section I, Subsection B, Paragraph 7; is hereby modified to
read:
Im�rovements
Borrowers shall use funds under this program to make permanent repairs and improvements to their
properties. Improvements shall be limited to those defined in the most current version of the MHFA
Home Improvement Loan Program Procedural Guide and shall be subject to the following additional
provisions:
Resolution Na HRA 5-2002
Page 2
a. The eligibility of common-area improvements in town home or condominium associations shall
be based on the following criteria:
(i.) Loans may be taken out for the borrower's share of common area improvements, not
to exceed the maximum loan amount allowed under this program as amended from
time to time.
(ii.) Eligible improvements, for purposes of the program, shall be limited to structural
or life safety repairs and related repairs, including, but not limited to the following:
- Siding and soffits
- Structural framing
- Insulation
- Roofing
- Decks or porches
(iii.) The City's Building Inspection Division must determine in writing that the
improvements cited in (ii) are required in order to make the
dwelling unit/s safe and habitable.
(iv.) Borrowers must meet all other guidelines for the program, including income, credit,
and related undenvriting criteria. Loans will only be provided to individuals. Town
home or condominium associations shall not be eligible borrowers under the
program.
(v.) Loans shall be secured with a separate mortgage filed against the borrower's
individual unit.
(vi.) The loan proceeds shall be issued directly to either the association and/or a
contractor, as the borrower elects .
(vii.) The loan funds cannot be used to finance or refinance an improvement that has
already been financed through another source (e.g. credit card, line of credit, home
equity loan, etc.) "
Schedule A to HRA Resolution No. 8-1996, at Section I, Subsection C, Paragraph 7, is hereby modified to
read:
Im�rovements
Borrowers shall use funds under this program to make permanent repairs and improvements to their
properties. Improvements shall be limited to those defined in the most current version of the MHFA
Home Improvement Loan Program Procedural Guide and shall be subject to the following additional
provisions:
a. The eligibility of common-area improvements in town home or condominium associations shall
be based on the following criteria:
Resolution Na HRA 5-2002 Page 3
(i.) Loans may be taken out for the borrower's share of common area improvements, not
to exceed the maximum loan amount allowed under this program as amended from
time to time.
(ii.) Eligible improvements, for purposes of the program, shall be limited to structural
or life safety repairs and related repairs including, but not limited to, the following:
- Siding and soffits
- Structural framing
- Insulation
- Roofing
- Decks or porches
(i.) The City's Building Inspection Division must determine in writing that
the improvements cited in (ii) are required in order to make the
dwelling unit/s safe and habitable.
(iv.) Borrowers must meet all other guidelines for the program, including income, credit,
and related undenvriting criteria. Loans will only be provided to individuals. Town
home or condominium associations shall not be eligible borrowers under the
program.
(v.) Loans shall be secured with a separate mortgage filed against the borrower's
individual unit.
(ii.) The loan proceeds shall be issued directly to either the association
and/or a contractor, as the borrower elects .
(vii.) The loan funds cannot be used to finance or refinance an improvement that has
already been financed through another source (e.g. credit card, line of credit, home
equity loan, etc.) "
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY 1N AND
FOR THE CITY OF FRIDLEY THIS St'' DAY OF SEPTEMBER, 2002.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS - EXECUTIVE DIRECTOR