5.0. SR 03-08-1993
ITEM 5
TO: MAYOR AND CITY COUNCIL
FROM: WILLIAM RUBIN, ED COORDINATO~V2-
DATE: MARCH 4, 1993
SUBJECT: METROPOLITAN MORTGAGE INSURANCE
LIMITS
INTRODUCTION
At its March 8, 1993, meeting, the Elk River City Council will
be asked to authorize a letter to the Department of Housing and
Urban Development which requests an expeditious adjustment to
Sherburne County's single-family mortgage insurance limits to
reflect those limits of the Twin Cities metro area.
BACKGROUND
.
Realtors, home builders, and mortgage lenders have expressed
some concern about how expedient the Federal Housing
Administration (FHA) may be in adjusting the single-family
mortgage insurance limits in Sherburne County to reflect those
limits currently found in the balance of the Twin Cities metro
area.
As Council will recall, the federal Office of Management and
Budget recently designated Sherburne County as part of the
13-county Twin City Metropolitan Statistical Area (MSA). With
this designation, positive factors such as higher mortgage
insurance limits will eventually fall into place. Realtors,
lenders, etc. are concerned about FHA's desire to do this in
light of some perceived negative discussions that have occurred
regarding Sherburne County's new designation in the Twin City's
MSA.
As a result, it may be appropriate to go on record that the
City of Elk River has requested an adjustment in the mortgage
insurance limits if in fact, FHA is reluctant to adjust the
limits promptly. A draft of the letter to HUD is enclosed in
the agenda packet.
ACTION REQUESTED
The City Council is asked to authorized this letter to the
Department of Housing and Urban Development.
.
720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420
DRAFT
March 4, 1993
Mr. Thomas T. Feeney
U.S. Department of Housing
and Urban Development
220 2nd Street South
Minneapolis, MN 55401-2195
Dear Mr. Feeney:
On the basis of 1990 census information, the federal Office of
Management and Budget has determined that Sherburne County is
now part of the Twin City Metropolitan Statistical Area (MSA).
The City of Elk River sees some advantages and disadvantages to
this designation. It is clear, however, that the Twin Cities
has an influence on the rapid growth experienced in Elk River
over the past decade.
~ One advantage to the MSA designation relates to FHA mortgage
insurance limits. The City of Elk River is hopeful that FHA
will act expeditiously to adjust its single-family mortgage
insurance program upward to reflect the higher limits enjoyed
by other home buyers in the Twin Cities. As we move from
winter to spring, home builders and realtors are enthusiastic
about the upcoming construction and home buying season. An
adjustment of FHA's metro limits into Elk River and Sherburne
County will contribute significantly to this enthusiasm.
Thank you for your prompt attention to this matter.
event of questions or comments, please feel free
staff Patrick Klaers or William Rubin at 441-7420.
contacted during normal business hours at 540-3520.
In the
to call my
I can be
Sincerely yours,
Henry A. Duitsman
Mayor
City of Elk River, Minnesota
~
720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420