CR 96-141 Application - MHFA Comminity Fix-Up Fund0
August 29, 1996 ti 5 Council Rpt #96 -141
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APPLICATION - MHFA COMMUNITY FIX -UP FUND PROGRAM
Proposed Action
Staff recommends approval of the following motion • Approve application for the Minnesota Housing
Finance Agency Community Fix -up Fund Program.
With this motion, the City of Hopkins will submit an application for the Community Fix -up Fund
Program in partnership with Norwest 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 $62,790.
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.
The loan funds will be administered through Norwest 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 an
incentive to make significant improvements to their homes. The program will not cost the City and
will be administered by Norwest Bank, Hopkins. Applying for Community Fix -up Funds was an
activity identified in the Metropolitan Livable Communities Act Action Plan adopted by the City
Council.
The funds must be targeted for a specific neighborhood. The Avenues neighborhood in north Hopkins
is being recommended due to the size of the neighborhood, the concentration of "post -war" housing
and moderate incomes of the residents.
Supporting Information
o Application for the Communi Fix -up Fund Program
etsten verum, Hous • g Coordinator
PROGRAMS AVAILABLE
See attached individual Program Concepts for program specifics / requirements. Complete the information requested below for
each program you are requesting funding. Please submit one original plus one copy for each program you are applying for ( i.e.
applying for two programs, submit 2 copies plus the original).
If you are requesting funds item more than one program In thls RFP, please attach a brief
description of how the funds/program will be linked together, 11 applicable.
If you are not fully funded could you modify your proposal to complete a portion of your project?
Please attach explanation.
LIMITED FUND PROGRAMS
Community Rehabilitation Fund (CRP)
$ " Funds Requested
Minnesota Urban and Rural Homesteading (MURL)
$ Funds Requested
$ Minimum Requested
$ Minimum Requested
Applicant's contact person /phone / fax
Applicant's contact person /phone / fax
Phone/fax
Phone/fax
Full Cycle Homeownership Services
$ Funds Requested
Partnership for Affordable Housing (PAH)
$ Funds Requested
$ Minimum Requested
$ Minimum Requested
Applicant's contact person /phone / fax
Applicant's contact person /phone / fax
Phone/ax
Phone/tax
Local Housing Incentive Account
$ Funds Requested
$ Minimum Requested
Applicant's contact person /phone / fax
Phone /fax
ONGOING PROGRAMS
Community Activity Set -Aside (CASA)
$ Funds Requested
Community Fix -up Fund (CFUF)
Applicant's contact person /phone / lax
$ Minimum Requested
Applicant's contact person /phone / fax
Phone/fax
Entry Cost Assistance (ECHO)
Applicants contact person /phone / fax
Phone /fax
Phone/fax
,,s
Please complete this page and submit original as a cover sheet along withyour Single Family Combined Program Request for Proposal(s).
•
Please print or type all information
Norwest Banks /City of Hopkins
Name of Applicant / Organization
1011 First St. S., Hopkins, MN 55343/1010 First St. S., Hopkins, MN 55343
Address (Street, City, Zip, County)
Todd Schwartz, Vice President
Executive Director
Lender /City
Date
Title
Single Family Combined Program
Request for Proposal
(Super RFP)
Application Form
All applications must be submitted to MHFA no
later than September 13, 1996 at 4:30 p,m.
932 -6940
Phone Number
Type of Organization (Le.: HRA, CAP, Lender, Nonprofit etc.)
e enclosed proposal(s) are true and correct to the best of my knowledge.
Authorized Signature
Typed Name
Mail to: Minnesota Housing Finance Agency
Attn: Jean Warne
400 Sibley Street, Suite 300
Si. Paul, MN 55101 -1988
Information can be made available in alternative format (Le, large type, Braille, cassette tape) upon request.
932 - 6989
Fax Number
COMMUNITY FIX -UP FUND PROGRAM
A PPLICATION /SELECTION REQUIREMENTS
DESCRIPTION OF THE DESIGNATED COMMUNITY
The City of Hopkins is a first -ring suburb of Minneapolis with a population of
16,534. According to the 1990 census, the City of Hopkins 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 the housing
stock 30 years old or older.
"The Avenues" neighborhood is located in the heart of Hopkins and contains a
concentration of "post -war" housing. The neighborhood is home to a mix of
residents, with the majority being young families of moderate income. The
neighborhood'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 their homes and to make reinvesting in the neighborhood's housing stock
• affordable.
HOW LOAN FUNDS WILL MEET THE 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 and the Metropolitan Livable Communities Act Action
Plan, which were adopted by the Hopkins City Council, recommend that the City
promote the use of other available housing rehabilitation programs, including the
Community Fix -up Fund program available through 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.
IMPACT OF LOAN FUNDS
The Community Fix-up Funds will be used along with the Fix-up Fund, City of
Hopkins' Housing Rehabilitation Loan/Grant Program, and private lending to
finance improvements to this neighborhood. Together, the funds will make a
significant impact on the area's housing stock.
MARKETING PLAN
The Community Fix -up Program funds will be marketed using a variety of methods.
News releases will be prepared and sent to the local newspapers. The City of
Hopkins will also utilize Hopkins Highlights, a bi- monthly publication mailed to all
Hopkins residents, to advertise the availability of the funds. The City will work
with neighborhood representatives to help promote the Community Fix -up Fund.
Norwest Bank will assist in marketing the funds through direct mailings and
displays.
• EVIDENCE OF PARTNERSHIP
Norwest Bank is partnering with the City of Hopkins, 1010 First Street South,
Hopkins, Minnesota, 55343. Norwest has been actively involved with the City of
Hopkins in evaluating the credit needs of the community. In the past, the City and
Norwest have joined together to address several important housing issues.
Examples of such collaborative efforts include the offering of the Minnesota City
Participation Program, Community Activity Set -Aside Program, home -buyer
counseling, and mortgage foreclosure prevention counseling.
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THE CITY OF
HOPKINS , MINNESOTA
HENNEPIN COUNTY
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