CR 96-20 Application - MHFA Community Fix-Up FundSupporting Information
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January 25, 1996 ° P H N Council Rpt #96 -20
APPLICATION - MHFA COMMUNITY FIX-UP FUND PROGRAM
Proposed Action
Staff recommends approval of the following motion : Approve application for the Minnesota
Housin Finance A en Communi F' -u. Fund Pro am.
With this motion, the City of Hopkins will submit an application for the Community Fix -up Fund
Program in partnership with First Bank Hopkins.
Overview
The Minnesota Housing Finance Agency (MHFA) is soliciting applications for the Community
Fix -up Fund Program. The Program provides housing improvement loan funds to households
with maximum incomes of $58,650.
The homeowners may apply for a maximum of $25,000, paid back over a 20 year period. The
funds can be used for general health/safety improvements as well as for improvements which
make the home more livable, such as room additions, kitchen remodeling, etc
4 The loan funds will be administered through First Bank Hopkins, with the City assisting in the
marketing of the funds. There are no risks involved with applying for the funds and the program
does offer Hopkins' homeowners another option for financing improvements to their homes.
There is a total of $5 million dollars in loan funds available for the metro area on a first come, first
served basis.
Primary Issues to Consider
The Community Fix-up Funds will benefit the community by providing one more source of
financing for home improvement activities. The guidelines provide great flexibility and offer
homeowners a real incentive to make significant improvements to their homes. The program will
not cost the City and will be administered by First Bank Hopkins.
o ppf . tion for the C , mmunity Fix -up Fund Program
e 4liLf(—. LL 24—
erste- Elverum
Hou• ng Coordinator
COMMUNITY FIX -UP FUND PROGRAM
APPLICATION /SELECTION REQUIREMENTS
DESCRIPTION OF THE DESIGNATED COMMUNITY
The City of Hopkins is a first -ring suburb with a population of 16,534. According to the 1990
census, the City has 2,620 single - family homes, with over half valued at less than $90,000. The
housing stock is aging with over 50% of housing stock 20 years old or older, and over 30% of
housing stock 30 years old or older.
Because of these factors, the City's housing stock is in need of updating and general rehabilitation
to correct health/safety violations and in order to remain competitive in the metro -area housing
market. Incentives are needed in order to encourage homeowners to remain in Hopkins and to
make reinvesting in our housing stock affordable.
HOW LOAN FUNDS WILL MEET IRE NEEDS /OBJECTIVES OF THE CITY OF
HOPKINS
Although the City administers a CDBG - funded housing rehabilitation loan/grant program, the
City is unable to assist many homeowners due to limited program funds and strict program
guidelines. As a result, the 1992 City of Hopkins Housing Analysis Report, which was adopted
by the City Council, recommended that the City promote the use of other available housing
rehabilitation programs, including those administered by the Minnesota Housing Finance Agency.
The Community Fix -up Fund will assist those moderate income homeowners who would like to
upgrade their homes and remain in Hopkins, thus meeting an important objective of the City of
Hopkins.
.ti
Request for Proposals
Single Family Combined Program(s)
Application
(Super RFP)
1 PROGRAM
AND AMOUNT
APPLYING FOR
t
_
Limited Fund Programs
z�. �.. .:..
Ongoing Programs
❑ Full Cycle Homeownership
Services $
0 Community Fix -up Fund
Program $Available Fund
❑ Community Rehabilitation
Fund (CRF) Program $
❑ Community Activity Set -
Aside (CASA) Program $
O Partnership for Affordable
Housing (PAH) $
❑ Entry Cost Assistance
(ECHO) Program $
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ANT31NFORMAT1
Full Name of Applicant/Organization
First Bank
County of Applicant
Hennepin
Address (Street, City, State, Zip Code)
16 Ninth Avenue North, Hopkins, MN 55343
Contact Person(s)
Suzanne Nolop
Title(s)
Personal /Business Banker
Telephone:
Work: (612)936 -2654
Work: ( - -)..
Fax: (612)936 -2693
Type of Applicant/Organization:
❑ Nonprofit Agency p Private Lender
O 501(C)(3) ❑ Housing Authority /Community Development Agency
❑ Unit of Govemment ❑ For Profit Organization/Corporation
❑ Type ❑ Other (Specify):
(Township, City, County)
111. ` PARTNERSHIP
x
<INFORMATION
ORGANIZATION
Full Name of Partnership Organization l
City of Hopkins
County
Hennepin
.ti
Request for Proposals
Single Family Combined Program(s)
Application
(Super RFP)