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CASE <br /> <br />CONSIDER RESOLUTION REGARDING <br />HUD/FHA LOANS IN THE RURAL AREA <br />By: David R. Hartley, City Administrator <br /> <br />Background: <br /> <br />For the past few weeks the Federal Housing Administration (FHA) has been rejecting requests for <br />spot appraisals for properties lying in non-urban areas. This change in FHA policy has resulted in <br />the failure of individuals to receive federally insured financing in the non-urban area of Ramsey. <br />Staff views this new policy to be inconsistent with directives from the Washington Office of FHA <br />and therefore, illegal. There has been no rule making procedure to support this change in policy by <br />the Minneapolis FHA Office. <br /> <br />Many communities have already responded by adopting resolutions requesting relief from the <br />Federal Housing Administration, Washington D.C. from the local policies of the Minneapolis <br />Office of FHA. It would appear to be appropriate for the City of Ramsey to respond in like <br />manner. Therefore a resolution has been prepared for Council consideration with regard to this <br />matter. <br /> <br />Council Action: <br /> <br />Motion to adopt Resolution ~qg0-10- requesting relief from the Federal Housing Administration <br />(FHA) requirement to meet the Metropolitan Council General Rural Use Density Policy. <br /> <br />Review Checklist: <br /> <br />City Administrator <br /> <br />CC: 10/23/90 <br /> <br /> <br />