Agenda Packets - 1995/06/05 - Laserfiche WebLink

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-2- and properties are eligible for mortgage revenue bond financing and the program is financially viable. Cities may establish house price and income limits higher than the regular Agency mortgage program. • Agency staff may provide cities with administrative support both pertaining to the bond sale and to the operation of the program. The Agency will incur bond issuance expenses that would have normally been incurred by cities selling their own bonds. Cities must only cover a modest allocation processing fee. • Many mortgage lenders throughout Minnesota are familiar with Agency program administration. The Agency will provide access to its Home ownership Assistance Fund (HAF) for participating cities. HAF provides monthly payment and entry cost (i.e., down payment and closing cost) assistance to more modest income home buyers. 'The Agency will provide communities with individualized program marketing support to enhance each program's probability of success. FUNDS AVAILABLE: Under current state law, the local housing pool for mortgage revenue bonds in 1995 is anticipated to be approximately $43.75 million dollars. Allocation of these bond funds will be done under the following criteria: Cities may apply for an allotment from a minimum of $100,000 to the "maximum allowable" under the program. Legislative changes for 1995 now dictate that a population based allocation formula will be used to determine the maximum allocation that each city may receive from the housing pool. As a result, the Agency will determine a per capita allocation amount based on the total population of ail city applicants, and apply that to each city to set an individual maximum allocation. City applicants would then receive the lesser of the amount requested or the maximum based on population, with a $100,000 minimum guaranteed allocation for smaller cities. • Given that the size of this per capita allocation and the resulting maximum allocation can vary greatly depending upon the number of cities that apply and their total population base, cities are encouraged to place a request in an amount they feel is realistic, given local demand, and given the "usage test" enforced by statute for subsequent years (see below). In the application, cities may either specify a specific dollar allocation request (of at least $100,000) or may simply indicate that they are requesting the "maximum allowable," to guarantee that they will receive the largest allocation permitted by the population formula.