Agenda - Council - 06/26/1990 - Laserfiche WebLink

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REPORT ON FEDERAL HOUSING ADMINISTRATION (FHA) HOME LOAN FUNDING IN RAMSEY By: Merland Otto Background= In late March, it was drawn to our attention that developers in the City of Andover and Linwood Township had been unable to secure FHA approval for loans on residential housing because the communities and subdivisions were not in compliance with Metropolitan Council's "Rural Use" policies. This created a furor in the development sector and FHA decided to relax their restrictions temporarily. I contacted Mr. Dean Broin, U.S. Dept. of HUD, to determine how this would affect Ramsey since the City is now in compliance with MC rural use policies. Mr. Broin indicated to me that they will be sending out notification to concerned parties prior to initiating such restrictions but that he anticipated implementation sometime this fall. Our specific concern is that those subdivisions that were approved prior to the implementation of "4 in 40" zoning not be restricted from FHA funding. A partial list of subdivisions most likely to be affected is attached. We have submitted a package of information to Mr. Broin documenting the City's compliance and have discussed our concern with Steve Schwanke at Metropolitan Council. Attached is the transmittal letter to Mr Broin. I spoke with Mr. Broin on June 20, 1990. He indicated that once the new regulations are printed, they will notify and meet with all builders, developers, mortgage bankers, and cities to explain the policy. He has requested a letter from Metropolitan Council which would confirm the City's compliance with their rural use policies. Assuming the letter indicates that we are in compliance, Mr. Broin's office will approve FHA funding for the concerned subdivisions. Council Action Required: Information purposes: None at this time. Review Checklist: City Administrator City Att6rney City Engineer Community Development Dir. X Chief of Police Finance Officer Public Works Supt. X P&Z Comm. ..X