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MHFA's Affordable Home Mortgage Program - Participating lending institutions coordinate efforts between the homeowners, the builder, and the bank. This program provides loans for the building or purchase of a single- family home to eligible families at below market terms. Families with adjusted gross incomes below $16,000 and in need of adequate housing are eligible to participate. These loans are made through participating commercial lenders for up to 30 years at interest rates considerably below commercial market rates. MHFA's Apartment Development Program - Minnesota Housing Finance Agency acts as a mortgage banker for the developers. Cities such as Ramsey can create the opportunity for development through multi - family or PUD zoning standards. These are funds for the financing of construction and the management of apartment developments, most often used in conjunction with HUD Section 8 Housing Assist- ance programs. HUD allocates a percent of the Section 8 units to the MHFA on the basis of a state allocation plan. Construction for the units is financed by : MHFA and reimbursed by HUD. HOUSING These are programs which the City of Ramsey can initiate INVENTORY - as efforts to help reduce housing costs: f. Available Local 1) Single- family homes with densities of 6,000 -8,000 Programs square feet or 6 -7 units per acre. 2)' Multi- family housing with densitites up to 20 units per acre. Truth -in- Housing Law: Requires that, prior to signing a purchase agree- ment, the prospective buyer is apprised of the de- fects in the home. The law would require that prior to signing a purchase agreement, the buyer is provided with information so he or she could ascertain the probable cost of bringing the house up to code. The cost of the appraisal is included in the sale, and the law will cover con- tracts for deed. Upon fulfilling these require- ments, the buyer and seller then operate in a completely free market. 26