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663 IV111111COU 11-k <br />HOUSING <br />FINANCE <br />AGENCY <br />Date: May 8, 1995 <br />To: Minnesota Cities; City and County Housing and Redevelopment <br />Authorities, Port Authorities and Economic Development Authorities <br />From: Michael Hale <br />Director of Home ortgage Programs <br />Subject: Announcement and Applications for Funding, The Minnesota City <br />Participation Program <br />INTRODUCTION: <br />The Minnesota Housing Finance Agency (Agency) is pleased to both announce and <br />request applications for the 1995 Minnesota City Participation Program (MCPP). <br />Through the MCPP, the Agency may sell mortgage revenue bonds on behalf of cities <br />to meet locally identified housing needs. The proceeds of these bonds provide below <br />market interest rate home mortgage loans for low and moderate income first time <br />home buyers. This resource provides cities throughout the state with a unique <br />opportunity to easily access housing resources to meet the needs of their citizens. <br />BACKGROUND: <br />The MCPP was created by state legislation in 1990 to provide local governments with <br />a new and easier option to access mortgage revenue bond resources for local <br />housing programs. Before the passage of this legislation, cities needed to take on the <br />financial risks and commit substantial resources to sell a bond issue on their own (or <br />jointly with other local governments) and create local housing programs. Under the <br />MCPP, the Agency assumes all financial costs, liabilities and risks involved with <br />structuring the bond sale, and provides all administration services necessary to deliver <br />the loans to local home buyers (lender origination and loan servicing). This leaves <br />cities free to concentrate on properly targeting funds to specific, identified housing <br />needs and on creating an effective program at the local level. <br />The MCPP offers participating cities throughout the state several advantages: <br />• Cities may obtain program funds in amounts that fit their needs, with funds <br />allocated on a per capita, population basis. <br />• Cities may identify their own housing goals to meet locally identified needs. These <br />goals may be as wide or as narrow as the city determines as long as borrowers <br />400 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (612) 296-7608 <br />Telecommunications Device for the Deaf (TDD) (612) 297-2361 <br />Equal Opportunity Housing and Equal Opportunity Employment <br />