1988-312'" 73
HRA RESOLUTION X10. 3I2
RESOLUTION AUTHORIZING AMENDMENT TO~~RICHFIELD
REHABILITATION DEFERRED LOAN~REPAYMENT AGREEMENT
WHEREAS, the Richfield Housing and Redevelopment Authority
has a Rehabilitation Deferred Loan program which utilizes CDBG
funds to assist lower income homeowners with rehabilitating their
homes; and
WHEREAS, loans are subject to a Repayment Agreement; and
WHEREAS, in some instances, program applicants are contract
for deed vendees; and
WHEREAS, in those instances, the fee owner {contract for
deed vendor) and the vendee must sign the Repayment Agreement to
facilitate a Deferred Loan; and
WHEREAS, a contract for deed vendor must repay the full
amount of the Deferred Loan in a lump sum payment if he retakes
possession of the property due to a vendees default on the
contract for deed; and
WHEREAS, contract for deed vendors may refuse to sign the
Repayment Agreement due to the risk of immediate large amounts of
debt should the vendee default on the contract for deed; and
WHEREAS, an amendment to the Repayment Agreement has been
prepared by legal counsel which:
-allows a contract for deed vendor to repay a Deferred Loan
in monthly payments, with interest, rather than in a lump
sum payment
-the rate of interest will be equal to the average rate of
interest on ten year United States Treasury Notes for the
week in which the amendment is executed
-the term shall be seven years
WHEREAS, the HRA has had an opportunity to review this
amendment.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota, that the Executive Director is authorized to execute
amendments to the Richfield Rehabilitation Deferred Loan
Repayment Agreement as described herein.
Passed by the Housing and elopment Aut ority of
Richfield, Minnesota this 19 d y o January, ~9 8.
1 c~~A
~ ~ ~ ~~
Thomas E. Harms, Chairperson
ATTEST:
,.~
.~
an He mberger, Secretary