06-06-2018 Council Packet - Laserfiche WebLink

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AN AFFIRMATIVE ACTION EQUAL OPPORTUNITY EMPLOYER DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Dr. Bruce Corrie, Director CITY OF SAINT PAUL 25 West Fourth Street, Ste. 1100 Telephone: 651-266-6655 Melvin Carter, Mayor Saint Paul, MN 55102 Facsimile: 651-266-6559 Project Narrative: The City of Little Canada is pursuing a homeowner rehab program for homeowners to improve their homes and a program to improve manufactured homes built to HUD Code or to provide down payment assistance to non HUD code manufactured homeowners to purchase new HUD code certified manufactured homes. The programs are new for the City of Little Canada and do not have finalized program guidelines. The funding source will be unrestricted funds. The housing team at the City of St Paul provides a rehabilitation deferred loan programs for residents living within the city limits of the City of St Paul and in 2018 we took over the Ramsey County deferred loan programs serving Greater Ramsey County homeowners. We are also a Minnesota Housing Community Fix Up loan lender. A.Beneficiary Information: Residential Rehab Loan Program - The City of Little Canada residential rehabilitation loan program will be funded with unrestricted funds. The program guidelines are conceptual at this time. We have been told the loans will be in the form of amortizing deferred loans. The HRA of St Paul talks with homeowners about qualifying, collects applications, processes the application to meet program requirements, provides rehab advising, assists homeowners with a scope of work, construction bids, we close the loans, record the mortgages and then complete payouts to the contractors. We are not set up to provide loan servicing on amortizing loans so the City of Little Canada would need to hire an outside loan servicer. Based on a brief conversation with the City Administrator and what we know from working with homeowners in greater Ramsey County; we anticipate the average loan amount would be $20,000. It is our understanding the program guidelines are conceptual at this time. The HRA of St Paul will charge a servicing fee of $1,500 per loan for the above outlined services. Manufactured Home Improvement/Down payment program - The City of Little Canada manufactured home rehabilitation loan program will be funded with unrestricted funds. The program guidelines are conceptual at this time. Depending on the loan amounts; the HRA of St Paul will charge a servicing fee between $1,000 and $1,500 per loan. The HRA of St Paul will charge a flat fee of $500 for the down payment assistance per loan. If the manufactured home improvement/down payment program loans are non amortizing; the HRA of the City of St Paul will service the loans. B. Implementation: The HRA of the City of St Paul has been providing homeowner rehabilitation loans using Federal funds to homeowners in the city limits of St Paul since 1983. We currently employ 1 full time loan officer, 1 part time loan officer, 2 part time 2