Laserfiche WebLink
MEMO <br /> <br />10: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />RE: <br /> <br />Clayton Berg, Building Official <br /> <br />Peter Raatikka, City Engineer <br /> <br />February 3, lg84 <br /> <br />FHA & GI Financing <br /> <br />'As requested, we have reviewed the pros and cons for requiripg FHA approval on <br />subdivisions in Ramsey. <br /> <br /> Some of the positive reasons are that it sets building standards and it )m~roves <br /> the marketability of the property during period of time when private mortgage <br /> financing is limited. Since Ramsey is Just beginning to develop lots wi~;h <br /> sewer and water, marketability of a project is very important. -FHA financing <br /> would also help limit the City's exposure on a project.I <br /> <br /> The main opposition to FHA approval is the added cost to the developer. <br /> <br />In reviewing this subject with neighboring cities, none required FHA approval <br />but Champlin said they would recommend it to help limit the city exposure. <br /> <br />Therefore, instead of requiring FHA approval in the ordinance, the City may <br />wish to review each developer's financial resources on an individual basis. <br />The marketability and turnaround rate of sale of lots should also be carefully <br />studied for each development. Xf it appears that the developer's financing or <br />backing is questionable or turnaround rate is slow, the City could make FHA <br />approval a part of the development agreement. <br /> <br /> <br />