Agenda Packets - 1995/06/05 - Laserfiche WebLink

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Attachment 1 HOUSING AFFORDABILITY INITIATIVES Under Administrative Rules (pending) governing issuance of mortgage revenue bonds, a "housing affordability initiative" must meet one or more of the following criteria: 1. The new construction program is accepted and/or designated under The United States Department of Housing and Urban Development (HUD) Affordable Housing Program or any successor program sponsored by HUD to encourage affordable, newly constructed housing. 2 The -program -provides --that financial -resources other than those necessary to complete the mortgage revenue bond sale are applied to reduce the cost of the housing or improve the terms of the mortgage loans provided through the sale. A contribution greater than or equal to five percent of the purchase price of each newly constructed home to be financed with mortgage revenue bond proceeds must be provided to meet this criterion. Such contributions may be provided either in whole or in part from federal, state, or local government resources or programs, private foundations, or the Federal Housing Finance Board. 3. The program provides that the applicable local government authority in the jurisdiction in which the houses are to be constructed takes affirmative steps to relax regulation to result in greater housing affordability. Such steps must demonstrably reduce the cost of the housing by at least five percent. 4. The program supports the efforts of housing groups that support self-help and/or owner built housing initiatives in which at least 15 percent of the labor and/or materials needed to complete the construction of each house is acquired or donated through the efforts of such groups. 5. The program provides that the housing is constructed by a nonprofit entity as defined in Minnesota Rules Part 4900.0100, subpart 21, that has as a primary purpose the provision or development of affordable housing to low and moderate income homebuyers.