07-1013r
HRA RESOLUTION NO.1 013
RESOLUTION AUTHORIZING APPROV AL OF MODIFICATIONS TO THE RICHFIELD
HOME REHABILITATION DEFERRED LOAN PROGRAM
WHEREAS, the Richfield Housing and Redevelopment Authority (the "HRA")
provides a Rehabilitation Deferred Loan Program which utilizes Community Development
Block Grant (CDBG) funds to assist lower and moderate income homeowners with
rehabilitating their homes; and
WHEREAS, the program's Procedural Guidelines were approved by the HRA in
1999 and are modified periodically as program requirement and needs dictate; and
WHEREAS, Richfield staff has identified modifications to update the program's
Procedural Guidelines, as described in Exhibit A; and
WHEREAS, the HRA has reviewed the modifications.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota that the Richfield Rehabilitation
Deferred Loan Program Procedural Guidelines will be modified according to the changes
made by Hennepin County.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 21st day of May, 2007.
ATTEST:
~~~
Donna Drummond, Secretary
Exhibit A
SUMMARY OF CHANGES TO DEFERRED LOAN GUIDELINES
Current:
. Borrowers must have a household gross annual income at or below 50% of the Area
Median Income (AMI) for the household size.
. Loan is deferred for 30 years and is interest free.
Proposed:
. Borrowers must have a household gross annual income at or below 80% of the AMI for
the household size.
. Borrowers with a household gross annual income at or below 50% AMI are eligible for
an interest free, 30 year deferred loan.
. Borrowers with a household gross annual income between 51 % and 80% AMI are
eligible for a 3% interest, 30 year deferred loan.
. Preference is given to households earning less than 50% AMI.