CR 96-25 Resolution CASH's Application CRFPJanuary 30, 1996 Council Report #96 -25
RESOLUTION OF SUPPORT FOR CASH'S APPLICATION FOR THE COMMUNITY
REHABILITATION FUND PROGRAM
Proposed Action.
Staff recommends approval of the following motion: Adopt
resolution number 96 -11 supporting CASH's application for
Community Rehabilitation Funds.
With this motion, CASH will submit an application for funds on
behalf of the City of Hopkins.
Overview.
The Minnesota Housing Finance Agency (MHFA) currently is
accepting applications the Community Rehabilitation Fund Program.
The primary objective of this program is to encourage partnership
efforts between MHFA, cities, local lenders and community
organizations for the improvement and preservation of single
family housing.
Community Action for Southern Hennepin County (CASH) has proposed
to apply for funding on behalf of the city of Hopkins as well as
the cities of Golden Valley, Richfield, and St. Louis Park.
CASH has developed a program that will provide assistance to
homeowners who are in the process of having repairs made to their
homes. They will be able to assist in the process of defining a
scope of work, negotiating with tradespersons, and inspecting
work prior to final pay out. The Community Rehabilitation Fund
will be used to assist homeowners in completing small home
improvement projects that are often difficult to fund.
Primary Issues to Consider.
o Does CASH have the necessary experience to administer this
program on behalf of the City?
o Are there any costs to the City of Hopkins associated with
this program?
Supporting Documentation.
o Resolution 96 -11
o Community Rehabilitation Fund program guidelines
i .i
K- sten Elveruric Housing Coordinator
Council Report 96 -25
Page 2
Analysis.
Does CASH have the necessary experience to administer this
program on behalf of the City?
CASH has successfully operated an emergency loan program. In
addition they have adequate experienced staff available to
coordinate the Community Rehabilitation Fund program.
Are there any costs to the city of Hopkins associated with this
program?
The city of Hopkins will not have any costs related to this
program.
Alternatives.
The City Council has the following alternatives regarding this
issue.
o Approve Resolution 96 -11 This will allow CASH to
submit the application for funding.
o Deny the request for a resolution for CASH to apply
on behalf of the City.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 96 -11
RESOLUTION AUTHORIZING CASH TO APPLY FOR COMMUNITY REHABILITATION
FUNDS ON BEHALF OF THE CITY OF HOPKINS
WHEREAS, the Minnesota Housing Finance Agency is accepting
applications for the Community Rehabilitation Fund program; and
WHEREAS, Community Action for Southern Hennepin County has
developed a sound application package; and
WHEREAS, The City of Hopkins will not be in a position to submit
an application.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Hopkins:
That authorization be given to CASH to apply for Community
Rehabilitation Funds on behalf of the City of Hopkins.
Adopted by the City Council of the City of Hopkins this 6th day
of February, 1996.
ATTEST:
James Genellie, City Clerk
BY
Charles D. Redepenning, Mayor
Ire
PROGRAM GOAL
Comm Rehab Prog Concept
COMMUNITY REHABILITATION FUND
(CRF) PROGRAM
To encourage partnership efforts between MHFA, cities, local lenders, nonprofit
organizations, local govemments, community organizations, and other participants by
providing funds to assist communities in improving and preserving designated
neighborhoods and/or geographical areas.
FUNDS AVAILABLE
$2 million in grants currently available to cities for the improvement and preservation
of single family housing in designated neighborhoods or geographical area.
Funds will be awarded to cities in the form of a grant for designated areas. The
minimum grant is $30,000. The maximum grant is $300,000. $650,000 will be
allocated to the Small Grant Pool (requests from $30,000 to $100,000). $1,350,000
will be allocated to the Large Grant Pool (requests greater than $100,000, but no
greater than $300,000).
PROGRAM REQUIREMENTS
Any entity meeting the definition of a city as defined in Minnesota Statute 462C.02,
subd. 6, may apply. (This may include cities, city and county housing authorities, port
authorities, and economic development authorities). If authorized by a resolution of
the city, a nonprofit organization may apply on behalf of a city.
Loans /grants will be made available in participating communities for the purposes of
acquisition, construction, demolition, rehabilitation, permanent financing, refinancing,
or gap financing of single family housing. (Gap financing is financing to cover the gap
between rehab /new construction costs and the appraised property value.)
• Program recipients total income cannot exceed 115% of the greater of the state or
area HUD median income.
• Community Rehabilitation Program funds cannot be used to defray the cost of
administering the program.
• Leveraged funds will be considered when awarding grants.
• Partnerships between the city and other local participant(s) must be developed.
• Eligible projects must address housing needs created by existing economic
development.
COMMUNITY REHABILITATION FUND (CRF) PROGRAM
APPLICATION /SELECTION REQUIREMENTS
❑ Describe how the proposal will meet/impact housing needs created by
recent/ongoing local economic development.
❑ Specifically identify the designated area in which the Community Rehab funds
will be used. Geographic boundaries must be specific.
❑ Identify the source(s) and amount of funds leveraged, and how program
administrative costs will be paid. Attach letters from other sources indicating the
amount of funds (or services) being committed.
❑ Provide a description of the city's administrative capacity to deliver the program
and the in -house supportive programs, related services and activities that are
relevant to the administration of this program.
❑ Provide a description of the applicant's past experience in providing services
similar to those to be provided in the Community Rehabilitation Fund Program.
❑ if your organization is a nonprofit, attach a copy of a resolution by the city's
goveming body designating the organization to apply on the city's behalf.
❑ Attach a timeline for administering the program.
❑ Describe what steps will be taken to address affirmative action issues in
marketing the program.
❑ Attach any additional documents that add validity and strength of the project
described in the proposal.
Comm Rehab Prop Concept