6. HRSR 07-06-2009ITEM # 6.
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Annie Deckert, Economic Development Assistant
DATE: July 6, 2009
SUBJECT: Update on Neighborhood Stabilization Program Application
Attachment
• Informational Memo regarding Notice of Foreclosure Counseling
Background
At its January 26, 2009 special meeting the HRA authorized submittal of an application to
MN Housing Finance Agency for Neighborhood Stabilization Program (Foreclosure
Recovery) Funds in the amount of $593,820. On February 26`", the NSP application was
approved in the amount of $593,820.
Update
The NSP funding award was approved for the following neighborhoods; Windsor Oaks,
Trott Brook, Park Pointe and Elk River Station. Staff finalized the grant agreement with
MHFA on June 8,2009. Applications for the funding mechanisms are available on Tri-
CAP's website (w~vw.tricap or_~/nsTn) Staff and Tri-CAP continue to receive calls throughout
the week inquiring about the NSP program and routinely update their websites providing
current information. Current activities include:
Down Payment Assistance
Tri-CAP has two applications pending for down payment assistance and is working with
Greater MN Housing on partnering the NSP funds with additional down payment assistance
funds through the agency. The Elk River NSP provides up to $5,000 in down payment
assistance per qualified household.
Purchase Rehabilitation Assistance
There have been no applications received for this initiative at this time.
Acquisition Rehabilitation
Staff has identified 5 homes within the targeted neighborhoods which are potential
candidates for acquisition rehab. Staff and Tri-CAP plan on conducting inspections and
taking photographs of these homes within the next couple weeks. Staff and Tri-CAP
anticipate selecting two homes, and moving ahead with purchase agreements in July,
Next Steps
Staff continues to work with Tri-CAP on the NSP funding implementation and proceed
with the acquisition process. Staff continues to receive foreclosure data and is monitoring
neighborhoods for potential additions/revisions to the existing NSP targeted
neighborhoods. Staff will meet with MHFA in September (6 month period) to determine if
the targeted neighborhoods should be adjusted to fit the current market. Staff continues to
attend meetings and trainings put on by GMHF for the NSP funding administration.
fiver
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: July 6, 2009
SUBJECT: INFORMATION: Notice of Foreclosure Prevention Counseling
Attachment
• 2008 Minnesota Statutes 580.21 Foreclosure Prevention Counseling
At its June 2009 meeting several HRA Commissioners inquired about additional
communication methods beyond the city cable ad, brochures in public spaces, and city
website to let the public know about foreclosure prevention/counseling services.
Staff mentioned at the meeting about recent legislation that now requires as a prerequisite to
foreclosure, notification to homeowners of the availability of foreclosure counseling.
Attached is a copy of the 2008 Minnesota Statutes 580.021. In summary the statute requires
the foreclosing party to inform the homeowner that it will transmit the homeowner's contact
information to a foreclosure counseling agency so that the agency may contact the
homeowner. Related statutes also address requirements for notice to renters of a pending
foreclosure and resources available, as well as provide mandatory language for both notices
(Minn. Stat. 580.22, 580.041, 580.042).
580.021, 2008 Minnesota Statutes
Page 1 of 1
2008 Minnesota Statutes
580.021 FORECLOSURE PREVENTION COUNSELING.
Subdivision 1. Applicability. This section applies to foreclosure of mortgages under this
chapter on property consisting of one to four family dwelling units, one of which the owner
occupies as the owner's principal place of residency on the date of service of the notice of sale of
the owner.
Subd. 2. Requirement to provide notice of opportunity for counseling. When the written
notice required under section 47.20, subdivision 8, is provided and before the notice of pendency
under section 580.032, subdivision 3, is filed, a party foreclosing on a mortgage must provide to
the mortgagor information contained in a form prescribed in section 580.022, subdivision 1, that:
(1) foreclosure prevention counseling services provided by an authorized foreclosure
prevention counseling agency are available; and
(2) notice that the party will transmit the homeowner's name, address, and telephone number
to an approved foreclosure prevention agency.
Nothing in this subdivision prohibits the notices required by this subdivision from being
provided concurrently with the written notice required under section 47.20, subdivision 8.
For the purposes of this section, an "authorized foreclosure prevention counseling agency" is
a nonprofit agency approved by the Minnesota Housing Finance Agency or the United States
Department of Housing and Urban Development to provide foreclosure prevention counseling
services.
Subd. 3. Notification to authorized counseling agency. The party entitled to foreclose
shall, within one week of sending the notice prescribed in section 580.022, provide to the
appropriate authorized foreclosure prevention agency the mortgagor's name, address, and most
recent known telephone number.
Subd. 4. Notice of provision of counseling; request for contact information. (a) An
authorized foreclosure prevention agency that contacts or is contacted by a mortgagor or the
mortgagor's authorized representative and agrees to provide foreclosure prevention assistance
services to the mortgagor or representative must provide the form prescribed in section 580.022 to
the mortgagee. The form serves as notice to the mortgagee that the mortgagor is receiving
foreclosure prevention counseling assistance.
(b) The mortgagee must return the form to the authorized foreclosure prevention agency
within 15 days of receipt of the form with the name and telephone number of the mortgagee's
agent. The agent must be a person authorized by the mortgagee to:
(1) discuss with the authorized foreclosure prevention agency or the mortgagor the terms of
the mortgage; and
(2) negotiate any resolution to the mortgagor's default.
(c) Nothing in this subdivision requires a mortgagee to reach a resolution relating to the
mortgagor's default.
History: 2008 c 341 art 5 s 7
httns://www_revi sor.l e~. state.mn.us/statutes/?id=5 80.021 6/12/2009