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MINNESOTA <br />HOUSING <br />FINANCE <br />AGENCY <br />IMPORTANT PROGRAM ANNOUNCEMENT <br />DATE: May 2, 1985 <br />TO: City Officials <br />I� <br />FROM: Michael Halel�'i-; <br />Director of Holt Mortgage Programs <br />SUBJECT: Municipal Home Mortgage Program <br />gg <br />MAY 29 1985 <br />CITY OF <br />LITTLE CANADA <br />The Minnesota Housing Finance Agency (MHFA) is pleased to announce the <br />implementation of its third phase of the Municipal Home Mortgage Program <br />(MHMP). Through this Program, MHFA makes mortgage funds available each <br />year for use by eligible local communities throughout Minnesota. This <br />allows many communities to take direct advantage of below market interest <br />rate mortgage revenue bond financing arranged by MHFA. <br />Under the 1985 MHMP, MHFA is planning to make available up to $20 million <br />from an April bond;,sale. This bond sale will provide funds for fixed rate, <br />level payment, fully amortizing mortgage loans with an interest rate of <br />9.95% and a term of 30 years. <br />MHFA is hereby requesting proposals from communities that wish to develop <br />and administer their own program under MHMP. MHFA is soliciting proposals <br />from all communities throughout the state with populations of 5,000 or more. <br />Municipalities which currently have unexpended proceeds from their own <br />mortgage revenue bond sales are ineligible for participation in this program. <br />Municipalities which have unexpired commitments under either the 1983 MHMP <br />or the 1984 MHMP and wish to request an additional commitment under the <br />1985 MHMP are required to demonstrate that at least 75% of the aggregate <br />commitment amount has been closed in eligible mortgage loans. <br />Proposals for the Program must be received by MHFA no later than June 20, <br />1985. <br />Described below are specific details of the 1985 Municipal Home Mortgage <br />Program. <br />The Program: The MHFA is a State Agency which provides financing for <br />housing for low and moderate income families. Its primary source of funding <br />is capital raised through the sale of tax - exempt mortgage revenue bonds. <br />In recent years, changes in federal law have made it more difficult and costly <br />36 <br />400 Sibley Street. Suite 300, St. Paul, Minnesota 55101 (612) 296 -7608 <br />Equal Opportunity Housing and Equal Opportunity Employment , <br />