4.0. HRSR 01-30-1996 INFORMATION �6
A Program Update � "� s
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MCPP 96-1 January 16, 1996
1996 PROGRAM FUNDS 1995 USAGE REPORT
Mark your calendars! Applications for Attached is the Usage Report for the 1995
1996 program funds are due BETWEEN MCPP as of December 31, 1995. Cities
February 1 and February 15, 1996. that did not use at least 50% of their funds
are NOT eligible to apply for allocation
Here are the changes for the 1996 under the MCPP for the next two years.
program: The 1995 Program ENDS January 25,
• Exclusive city allotment term has been 1996.
4) increased from four to six months. Cities may call for fund updates on the
• Cities may either allow all lenders from 1995 allotment at:
the Minnesota Mortgage Program
lender list to originate loans, OR, 612-297-4620 (Metro)
choose only select lenders from the list. 1-800-657-3896 (Greater Minnesota)
• Use our marketing materials, OR,
develop your own.
• Another criterion was added to
legislation allowing new construction in
the 7-county Metro area. The city must
have negotiated affordable and life
cycle housing goals with the
Metropolitan Council.
If you would like a copy of the Application
packet, call:
Michelle Ramos
612-297-5146 (Metro)
1-800-657-3802 (Greater Minnesota)
400 Sibley Street,Suite 300,St. Paul,Minnesota 55101
(612)296-7613 Fax—(612)296-8292
Telecommunications Device for the Deaf(TDD)(612)297-2361
Equal Opportunity Housing and Equal Opportunity Employment
INFORMATION
• 1995 Minnesota Cities Participation Program
•
Funds Use Report
December 31 , 1995
City/County Allocated Committed* Number of
Loans*
- City of Albert Lea $379,635 $341,854 8 .
Anoka HRA $361,459 $434,300 6
Austin HRA $453,308 $522,395 14
Belle Plaine HRA $100,000 $0 0
Bemidji EDA $230,800 $231,890 4
Brainerd HRA $258,776 $288,869 5
Brooklyn Center EDA $589,984 $750,484 10
Brooklyn Park EDA $1,201,866 $1,449,346 19
0 Buffalo HRA $156,692 $224,282 3
Columbia Heights $392,847 $454,048 7
Crystal EDA $492,264 $494,358 6
City of Detroit Lakes $150,076 $81,329 2
City of Duluth $1,765,590 $1,737,274 32
Eden Prairie HRA $877,584 $487,168 7
Elbow Lake EDA $100,000 $55,650 2
VElk River HRA $256,501 $344,981 4
City of Fergus Falls $257,804 • $284,284 6
Fridley HRA $584,898 $570,194 7
City of Glencoe $100,000 $127,813 2
City of Hopkins $339,231 $401,355 .8
Hutchinson HRA $247,300 $44,950 1
Lake City EDA $100,000 $194,000 3
Little Falls HRA $154,687 1157,859 4
ill • Mankato HRA $649,969 $753,694 • .. 11
City of Maple Grove $750,000 •$778,144 10
1995 Minnesota Cities Participation Program
•
Funds Use Report
December 31 , 1995
-City/County Allocated Committed* Number
L ansf
City of Maple Lake $100,000 $64,782 - 1
City of Moorhead $681,047 $683,162 13
Morrison County HRA $250,000 $92,286 2
City of Mounds View $260,761 $240,387 3
• New Hope EDA $449,896 $305,437 4
Owatonna HRA $415,675 $727,701 11
City of Perham $100,000 $32,980 1
Plymouth HRA $500,000 $152,542 2
Rice County.HRA $1,057,063 $868,536 14
• Richfield HRA $734,829 $879,336 11
Robbinsdale EDA $297,959 $247,314 3
City of Sauk Rapids $182,684 $255,719 3
City of St.Louis Park $204,920 $1,110,608 15
Stevens County HRA $217,670 $206,273 6
Swift County HRA $220,213 $196,846 4
Washington County $3,390,733 $2,915,512 40
Winona HRA $500,1:130 $276,473 5
Wright County
$1,316,666 $1,717,005 21
City
of Zimmerman $100,000 $179,405 2
TOTAL $22,621,387 322,362,825 342
* Note: "Committed tl "Number Number of Loans"
represent both closed and in process loans.
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APPLICATION FOR FUNDING
MINNESOTA CITY PARTICIPATION PROGRAM(MCPP)
JANUARY, 1996
Requested by:
Elk River HRA
P.O. Box 490
Elk River, Minnesota 55330
(612) 441-7420
411
1996 Minnesota City Participation Program (MCPP)
I. ELIGIBLE ORGANIZATION
(a) Elk River Housing and Redevelopment Authority
P.O. Box 490
Elk River, MN 55330
(b) William Rubin
HRA Executive Director
(612) 441-4905 (metro)
(c) Housing and Redevelopment Authority (HRA)
II. ORIGINATING LENDER
OPTION B
{
The Elk River HRA designates five (5) lenders for its 1996 MCPP
activities:
First National Mortgage Contact Person: Patsy Kropuenske
716 Main Street Vice President-Manager
Elk River, MN 55330 (612) 441-7133 (metro)
Heigl Mortgage Contact Person: Becky Becker
710 Dodge Avenue NW Branch Manager
Suite A (612) 441-5884 (metro)
Elk River, MN 55330
Norwest Mortgage, Inc. Contact Person: Robert Maxwell
564 Dodge Avenue NW Sales Manager
Suite D (612) 441-1305 (metro)
Elk River, MN 55330
TCF Mortgage Corp. Contact Person Chris Goodman
405 East Main Street (612) 323-7668 (metro)
Anoka, MN 55303
• First Bank , N.A.
• 631 Main Street Contact Person John Heim
(612) 441-4500 (metro)
Elk River, MN 55330
Letters confirming the willingness of these lenders to participate in the
1996 Elk River MCPP are attached to this application.
III. HOUSING PLAN
(a) Principal Housing Needs of Elk River:
• Encourage and promote a balanced mix of housing
opportunities throughout the city's urban service area.
• Evaluate housing stock on a regular basis to assess the
housing conditions and needs of the community.
• Ensure that persons or groups of persons of similar income
levels have a wide range of housing choices available to
them, regardless of their race, color, creed, religion, sex,
national origin, marital status, status without regard to
public assistance, or familial status.
• Encourage the development of a quality residential
community which retains a semi-rural atmosphere while
accommodating growing housing needs.
• Ensure that residential developments provide adequate
facilities to maintain an efficient level of service.
• Develop, preserve, and protect environmental resources such
as wetlands, forests, water bodies, and their shorelines,
within the city with respect to open space, recreational uses,
water and air quality, and natural ecosystems.
• Preserve, maintain, and/or strengthen the physical and
visual qualities unique to the community.
• Provide an appropriate, reasonable, and enforceable system
of development controls and implementation programs for
the guidance of future land use in the city.
(b) Data Sources
• Comprehensive Land Use Plan (adopted December, 1995)
• 1994 Annual Report - Planning Department
• 1994 Annual Report - Building and Zoning Department
• 1995 New Residential Construction Summary (Preliminary) -
Building and Zoning Department
• • Regional Multiple Listing Service of Minnesota
(c) Specific Plan to Meet Identified Housing Needs
• Guide the type and location of development to achieve an
orderly development pattern consistent with the semi-rural
character of the community.
• Encourage a mix in housing opportunities in terms of costs
and size while encouraging a high degree of architectural and
site planning integrity.
• Adhere to an assessment policy for the extension of water
and sewer lines to accommodate new development. The
policy shall provide for equitable assessment of the
improvement costs while protecting the city's taxpayers and
financial commitment.
• Upgrade as necessary, local streets to a design standard that
is consistent with surrounding conditions or city standard.
• Require that all developers provide roads and utilities to city
specifications before the city assumes ownership and
maintenance responsibilities.
• Require developers of new residential areas to either
dedicate a park or playground site, or make a payment in
lieu of dedication to the city's park improvement fund.
• Restrict inappropriate alteration of significant natural
contours and soils.
• Preserve natural systems through acquisition, dedication, or
easements.
• Require that development plans demonstrate a compatibility
with natural features and systems.
• Preserve through purchase, easement, dedication, or other
instrument, public access to wetlands, lakeshore, or other
natural preservation areas.
• Update zoning ordinances and subdivision regulations to
ensure appropriate development of residential land
throughout the city.
• Maintain a rural density within the undeveloped areas of the
urban service district to allow for efficient extension of
municipal services.
(d) Target Areas
None
(e) Administrative Capacity to Implement Housing Plan
The City of Elk River/HRA has numerous administrative
resources available to ensure that the 1996 MCPP is successful.
City/HRA staff has extensive experience with a variety of
housing programs. While the HRA will oversee the 1996 MCPP,
building code interpretation and zoning enforcement rests with
the building officials and the building and zoning administrator.
Applications for mortgage funds will be reviewed by the five
participating lenders in the Elk River program.
IV. PROGRAM SPECIFICS
(a) The 1996 MCPP is consistent with the city's Comprehensive
Land Use Plan because it helps encourage a wide range of
housing options in Elk River. This includes the preservation of
existing single family homes plus the construction of new ones.
(b) Borrower limits for the Twin Cities Metropolitan Statistical
Area (MSA) is $40,800. This income limit is extended to the
eleven-county metro area - including Sherburne County, where
Elk River is located..
(c) The proposed maximum purchase price limits for the 1996
MCPP is $95,000 (new construction and existing home. .
purchases).
(d) No targeting of specific population groups is planned in Elk
River for the 1996 MCPP.
(e) No targeting of housing stock is planned in Elk River for the
1996 MCPP.
(f) No optional program enhancements are planned.
(g) MCPP funds will be made available to eligible applicants based
on a timetable that is consistent with the release of funds
through the Minnesota Housing Finance Agency.
(h) The Elk River HRA seeks the "maximum allowable" allocation
for the 1996 MCPP.
(i) Does not apply.
(j) Does not apply.
41P (k) The Elk River HRA will access MHFA market support for the
1996 MCPP.
(1) Does not apply.
V. ECONOMIC VIABILITY
Elk River, Minnesota is an excellent candidate to received the MCPP
funds in 1996. Based on 1995 records, 267 new housing units were
constructed, of which, 173 units were single family homes and another
26 units were attributable to twin homes. The new homes represented
a good mix of starter, move-up, and executive homes. In addition,
multiple listing service records indicate a strong demand for existing
home sales in Elk River.
VI. NEW CONSTRUCTION REQUIREMENTS
(a) Residents are encouraged to pursue home energy loans and
loans from MHFA's Great Minnesota Fix-up Fund for various
1111 repair, maintenance,or expansion projects.
(b) No exclusive "set-aside" arrangements for specific builders,
developers, or realtors are included in the Elk River 1996
MCPP.
(c) A high priority in the City of Elk River is to encourage a wide
range of housing options (rental, new construction, existing
home purchases, elderly, etc.). This includes the construction of
single family homes for first time buyers.
William Rubin HRA Executive Director
Name of Person Who Prepared This Proposal Title
(612) 441-7420 (metro)
Signature Telephone Number
JAN 16 SS
FIRST NATIONAL MORTGAGE
Ill
716 Main Street•Elk River,MN 55330•(612)441-7133•Fax(612)441-3921
January 12, 1996
Mr Bill Rubin
Economic Development Coordinator
City of Elk River
P.O. Box 490
13065 Orono Parkway
Elk River Mn. 55330
0 Dear Mr. Rubin
This letter is to confirm that the First National Bank of Elk River would like to participate"
as a lender for the 1996 Minnesota City Participation Program.
We are pleased to be able to work with the City on this program as we feel this is an important
program to aid in housing in our area.
Thank you in advance for your consideration.
Age 10
-atsyJ pu• - et
VP/M. .:er Mortgage Division
•
A Division of 1 FIRST NATIONAL BANK OF ELK RIVER
ill
JAN 16 1996
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1111 Norwest Mortgage, Inc.
11111 564 Dodge Avenue NW
NO 5T MORTGAGE
MIN River, MN 55330
11\11 612/441-1305
Fax:612/441-3925
January 15, 1996
William Rubin
City of Elk River
PO Box 490
13065 Orono Parkway
Elk River, MN 55330
Dear Bill,
This is in response to your letter addressing Minnesota
Cities Participation Funds. We would be interested m
participating in the program as we have in the past.
I trust we are signed up through Norwest as before but
we would be interested to participate with the cities
program as well.
Thank you or your letter.
Sincerely
9C/ru9AJ 6z/
Bob M ell
Sales Manager
•
HEIGL MORTGAGE
WNW
AIM
AMIN
January 12, 1996
Elk River Economic Development Authority
P.O. Box 490
13065 Orono Parkway
Elk River,MN 55330-1743
RE: 1996 Minnesota City Participation Program
(First Time Homebuyer Program)
Dear William Rubin/Executive Director Elk River EDA:
We would like to express our wish to participate in the above referenced program. W e have participated
in this program in past years and have experienced a very positive and active response from our
customers.
We look forward to participating in this year's program. If you need any additional information from us,
please feel free to contact our office at 441-5884.
Once again thank you for this opportunity.
Smcgrely,
/2-c./
Recca(Becky)Becker
Branch Manager
710 Dodge Avenue • Elk River, MN 55330 Phone: (612) 441-5884 Fax: (612) 441-0032
HRA CHECK REGISTER
ERC FIN0NCTAL SYSTEM
CITY OF ELK FIVER
01/19/96 11:19 Check Re2istnr SL540R-VO4.30 PAGE 6
INK VENDOR C8ECKM DATE AMOUNT
HRA BANK OF ELK RIVER 8020343
Orvvv'. POSTMASTER 1001 01/22/96 39.36
016338 UOISINGTON KOEGLER GROUP 002 01/22/96 1,312.52
BANK OF ELK RIVER #020343 1,851.88 ***