091823 Resolution 1462HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 1462
RESOLUTION PROVIDING STAFF WITH ABILITY TO
MODIFY NEW HOME LOANS AS NEEDED
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the "Authority") created the New Home Loan Program in the 1980s for first time homebuyers
with an income of 80% of area median income or less (the "Loan Program") in order for Richfield citizens
to cover the financing gap between the purchase price of a home and the mortgage amount available; and
WHEREAS, the interest -free New Home Loan Program was in effect from 1983 to 2003 and the
loans provided by the Loan Program were generally evidenced by a mortgage and a promissory note; and
WHEREAS, each of the loans becomes due upon various occurrences, including the payment in
full of a first mortgage, the date the property is sold, transferred or otherwise conveyed, the property is
rented, leased, unoccupied or assigned, a default under the first mortgage, the mortgage is satisfied or
assigned or the homeowner does not occupy the home for more than one year; and
WHEREAS, the homeowners that pay off their first mortgage are unlikely to have sufficient
funds to pay their New Home Loans immediately after paying off their first mortgage; and
WHEREAS, as the New Home Loans become due, several homeowners have asked for
modifications of their note and/or security agreement and several of those requests have been granted;
and
WHEREAS, Authority staff request the flexibility to respond to homeowners requests related to
their New Home Loans when requesting extensions in order to pay the loan back and the ability to
simplify the criteria for when each mortgage is due; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1. The Executive Director is hereby authorized to review and execute modifications to the New
Home Loan notes and security agreements, which may include but is not limited to forgiveness after 30 years,
extensions of time to pay the loan, reduction in the repayment amount in cases of financial hardship, and
simplifying the criteria for when each mortgage is due.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 18' day of September, 2023.
Erin Vrieze Dani , Chair
ATTEST:
$ r ,gw-, Secretary
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RC125-1 (JAE)
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