Agenda Packets - 1995/06/05 - Laserfiche WebLink

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participants affected by an optional increase or mandated decrease in their price limits, should they occur, would be notified at that time. New Construction: In 1991, state legislation pertaining to mortgage revenue bond proceeds was enacted to encourage the financing of existing homes before newly constructed homes, especially for homes to be financed in seven of the Twin Cities metropolitan area counties (Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington). in the balance of the state, more flexibility was provided regarding the financing of new construction. In this seven county Twin Cities Metropolitan area, no newly constructed homes may be financed for the first ten months of a program origination period except -to -meet specific housing affordability objectives specified in law and/or administrative rule. Specifically, one of the following conditions must be met if new construction is to be provided: The newly constructed housing must be located in a redevelopment area (a defined, developed area where at least 25% of the buildings are structurally substandard). The new housing must be replacing a structurally substandard structure or structures. © The new housing must be part of a housing affordability initiative, other than those financedwith the proceeds from the sale of mortgage revenue bonds, in which federal, state or local assistance is used to substantially improve the terms of financing or to substantially write down the purchase price of the new housing. The housing affordability initiative must meet one or more of the criteria listed in Attachment 1 hereto. erg the balance of the state, mortgage loans may be made for the purchase of newly constructed homes immediately. However, a city must include in its proposal a description of the steps it will initiate in such areas to encourage loans for existing housing as opposed to new housing, and the reason(s) why new housing stock is ne ded. In :III areas of the state, cities may not provide set -asides or commitments for the exclusive use of builders or developers except for housing affordability initiatives as specified in Attachment 1. Homeownership Assistance Fund (HAF): To assist cities with providing more affordable housing opportunities for its modest income residents, the Agency is pleased to provide cities participating in the MCPP pith access to the MHFA Homeownership Assistance Fund (HAF). HAF provides oligible borrowers with monthly payment assistance and/or entry cost (Le., duwnpayment and closing cost) assistance through an interest free, graduated payment second mortgage loan. HAF is only available to cities participating in the tY CPP. HAF is funded through appropriations from the state legislature.