Agenda - Council - 08/23/1983 - Laserfiche WebLink

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I I I I I '1 MINNESOTA HOUSING FINANCE AGENCY Local Participa:ion Home Improvement Loans Program Summary Funds Available: $500,000 EliKible Communities: Cities with populations over 10,000 ~pplication Deadline: August 24, 1983, 12 o'clock Noon Interest Rates: Funds will be provided to participating communities at an interest rate of 10.25% Commitment Term: September 6, 1983 to December 31, 1983 Commitment Fees: Communities must pay a commitment fee equal to 2% of the commitment amount. The commitment fee is refunded proportionally as loans are submitted to MHFA for purchase ?rosram Variations: Communities may propose any of the following variations to current MHFA Home Improvement guidelines: 1. Income limits may be set at a level higher than the current $24,000 limit. However, the local income limit may not exceed the lesser of 125% of median income, as established by HUD, for the county in which the community is located, or $31,600, unless 125% of median income is less than $24,000, in which case $24,000 is the limit. 2. Interest rates on the loans may be subsidized with local funds. 3. The community may require energy audits or code inspections as a condition of receiving a loan. 4. The use of funds may be targeted to certain geographical areas. Submission Materials: The following items must be submitted by communities requesting a commitment of funds: 1. A description of the proposed program. 2. A description of all program variations, as outlined above, which will be employed by the community. 3. An ~nalysis of the need for the proposed program in the community. I I I 5 A demonstration of the financial feasibility of the program. (e.g. if interest rates will be subsidized, what is the source of funds which will be used) Evidence that an adequate delivery mechanism is available for the proposed program (e.g. if the community is not, itself, an eligible