00-0072R
RESOLUTION AUTHORIZING 1999 AND 2000 HOME PROGRAM HOME OWNERSHIP INITIATIVE GRANT AGREEMENTS AND A RESERVATION OF 2000 HOME FUNDS IN AN AMOUNT NOT TO EXCEED $211,000.
BY PRESIDENT GILBERT:

WHEREAS, pursuant to 42 U.S.C. 3539(d) and 42 U.S.C. 12701-12839, the U.S. department of housing and urban development (HUD) has established the HOME program and the regulations governing said program as set forth in 24 CFR Part 92.

NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to enter into agreements with the entities listed below in the amounts listed below, substantially in the form of the copies on file in the office of the city clerk as Public Document No. _________________, payable from 1999 HOME Program Fund 260, Agency 020, Org. 2681, Object H012, and 2000 HOME Program Fund 260, Agency 020, Org. 2601, Object H012.
 

Entities Amount HOME fund
Housing and Redevelopment Authority (HRA) and Minnesota Housing Finance Authority $100,000 1999
Northern Communities Land Trust (NCLT) and HRA as disbursing agent $ 11,000 1999
Northern Communities Land Trust (NCLT) and HRA as disbursing agent $ 39,000 2000

BE IT FURTHER RESOLVED, that the city of Duluth does hereby reserve $61,000 of the city's fiscal year 2000 allocation of HOME program funds for use by the Spirit Valley Citizens Neighborhood Development Association (SVCNDA) in the Ramsey Village Infill Housing Program.



STATEMENT OF PURPOSE: The purpose of this resolution is to authorize HOME program initiative grant agreements with HRA and NCLT. The grant to the HRA will be used as a match for the HRA MURL program which fills a "niche" by providing home ownership opportunities to low- and very low-income, at-risk home buyers. The grant to the NCLT will provide two affordable, quality newly constructed homes that will remain permanently affordable for low- and moderate-income families. NCLT is working with the carpentry department of the Lake Superior College to build the homes; it is also working in cooperation with SVCNDA in locating the new homes in the Ramsey Village "At Home in Duluth" neighborhood.

This resolution also reserves $61,000 in home ownership initiative project funds for SVCNDA to provide gap financing for up to four home buyers in the Ramsey neighborhood. The homes may be part of an innovative effort using modular construction of infill housing. The plan and budget submitted are early estimates. This reservation will allow SVCNDA to complete project plans and provide a more detailed budget. A summary of the project proposal is attached. Copies of the completed HOME application are also available at the office of Community Development & Housing. The agreements and grant reservation were recommended by the Duluth Housing Commission at its January 13, 2000 meeting and by the CCAC at its January 25, 2000 meeting.