7.2 HRSR 04-07-2014 Cit of
E1 Request for Action
River
To Item Number
Housing and Redevelopment Authority 7.2
Agenda Section Meeting Date Prepared by
General Business April 7,2014 Brian Beeman,Director of Economic
Development
Item Description Reviewed by
Rental Rehabilitation Deferred Loan Program Jeremy Barnhart,Deputy Director, CODD
Reviewed by
Action Requested
Hear information considering the Rental Rehabilitation Deferred Loan Program through the Central
Minnesota Housing Partnership (CMHP).
Background/Discussion
The Central Minnesota Housing Partnership (CMHP) has requested a Rental Rehabilitation Deferred
Loan Program (RRDL) funding allocation in the amount of$2.5 million for 2014-2015. Funding will be
available in Sherburne County as well as several surrounding counties. The RRDL funds are provided as
a 0% deferred loan to owners of eligible rental properties with six or more units. Staff has communicated
the program's availability to Sherburne County,local banks,realtors, and developers through phone calls,
email, and Facebook. Members of the HRA are also encouraged to talk to anyone that may qualify.
The RRDL funds can be used to cover the costs of eligible improvements including,but not limited to:
roofing, siding,windows, doors, floor coverings, boilers and mechanical systems and energy&water
saving improvements. RRDL funds may also be used for soft costs such as lead based paint assessments,
architect fees, title fees and administrative fees.
Application materials are available at www.cmhp.net under the Rehabilitation Programs page. The
deadline for application submission is 4:00 p.m. Thursday,April 10,2014.Applications received after this
deadline will not be eligible for 2014 funding. All applications received will be ranked according to
program selection criteria.Applicants will be notified of their status by May 1,2014.
Anyone with questions about the program or application requirements is encouraged to contact Jason
Krebsbach, Community Development Director of CMHP at Jason @cmhp.net or (320) 258-0672.
Financial Impact
N/A
Attachments
• Rental Rehabilitation Deferred Loan Program Information& Guidelines
[ ANEW IT
NATURE
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Central Minnesota.Housing Partnership, Inc. :,
• ■iv• 37 28th Avenue North Suite 102 • St. Cloud. Minnesota• 56303-4242
MEMO , •
MAR ' 52014
TO Rental Housing Owners,,Managers,Funders,Etc
FROM Jason Krebsbach, Community Development Director
Central Minnesota Housing Partnership,Inc:
DATE: .; March 3rd,2014
RE Rental,Rehabilitation Deferred Loan Program Application
The Central Minnesota Housing Partnership (CMHP) has.requested a Rental Rehabilitation ,
Deferred Loan'Program(RRDL)funding allocation in the amount of$2.5 million for 2014-2015
Funding will be available in the following counties Aitkin, Benton; Carlton, Cass,"Chisago,
-Crow Wing,Isanti,Kanabec,Mille Lacs,Morrison,Pine,--Sherburne,,Steams,Todd,-Wadena and
Wright (excluding the city of;St.`Cloud). RRDL funds are provided as a 0% deferred loan to ' •
owners of eligible rental properties;with 6 or more units:Please see the enclosed eligibility list
for more information on qualifying properties;
RRDL funds can be used to cover the costs of eligible improvements including, but not limited
to roofing, siding, windows, doors, floor coverings, boilers and-mechanical:systems and energy
& water saving improvements. RRDL funds may also be used to cover the cost of eligible
project:soft .cost items such as lead :based paint assessments,architect fees, title fees and
•
administrative.fees:
Application materials are now available on our website, .www:cmhp.net. Click on the
Rehabilitation Programs page to review and print off all application materials and instructions.
The deadline for application submission is 4 p.m. on ,Thursday, April 10th, 2014.
- Applications received after. this`date and time will not be eligible, for, 2014 funding. All- ;
applications received will be ranked according to program selection criteria. Applicants will be
notified of their application status by May 1't,2014.' •
Please utilize the application instructions and notes provided to complete your application. Only
completed applications, with all required attachments, will be accepted and ranked. If you have
any questions while putting together your ,application, please`feel free to contact me at .
Jason@cmhp.net or(320)258-0672.
•
PH 320.259.0393 A MINNESOTA NONPROFIT CORPORATION-. WEB PAGE cmhp.net
MN:TDD,711 FAX 320=259.9590
Equal Opportunity Employer. '
Reasonable accommodations are available
Rental Rehabilitation Deferred Loan (RRDL) Program
The Rental Rehabilitation Deferred Loan Program assists owners of smaller rental properties
located outside the seven-county metropolitan area,to finance moderate rehabilitation of
structurally sound residential rental units.
The borrower may be:
• An individual,private developer,non-profit,unit of government, or tribal housing
corporation
Borrower eligibility:
• Minimum Credit Score: 640 (individual owners)
• Minimum Equity Requirements: 5%of eligible soft costs
• Compatible with existing commercial debt(Limited Partnership and Corporations)
• Minimum credit worthiness and financial requirements(Limited Partnership and
Corporations)
• Property taxes current
• Property insurance current
Property eligibility:
• The property is residential rental property of six or more units within a building or
buildings in one area
• The property space is at least 51%utilized for rental housing
• The property is occupied by households with incomes less than 80%of the statewide
median income(current household income limit$58,000)
• The rent limit is the lesser 30%of local wages(2012 average)from the MN Department
of Employment and Economic Development(DEED)data and 80%of the greater of
statewide or area median income(AMI).
Eligible improvements:
• Eligible improvements must be permanent general improvements,that have not been
started prior to the loan closing
• Renovations or repairs such as: roof,window,and Furnace/boiler repair or replacement,
and energy and water saving improvements.
• Improvements must be made in compliance with all applicable health,fire prevention,
building,housing codes and standards, and Minnesota Housing's Abbreviated Design
Standards and Sustainability Requirements for limited scope rehabilitation projects.