00-0317R

RESOLUTION AUTHORIZING APPLICATION TO THE MINNESOTA HOUSING FINANCE AGENCY FOR $1,000,000 IN COMMUNITY ACTIVITY SET ASIDE PROGRAM FUNDING AND AUTHORIZING THE CITY TO ENTER INTO THE 2000 COMMUNITY ACTIVITY SET ASIDE PROGRAM APPLICATION-COMMITMENT AGREEMENT.

BY PRESIDENT GILBERT:

RESOLVED, that the proper city officials are hereby authorized to apply to the Minnesota housing finance agency for an allocation pursuant to the community activity set aside program for $1,000,000, said funds to be loaned to low- and moderate-income first-time home buyers at below market interest rates.

FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into the community activity set aside program application-commitment agreement with the Minnesota housing finance agency related to the allocation and sale of qualified mortgage bonds for the benefit of low- and moderate-income home buyers in the city, which agreement is substantially in the form of that on file in the office of the city clerk as Public Document No. ______________.


STATEMENT OF PURPOSE: The purpose of this resolution is to authorize an application to the Minnesota housing finance agency (MHFA) for $1,000,000 of community activity set aside program (CASA) funding. This allocation will be available to all income-eligible first-time home buyers in Duluth through local MHFA participating lenders. Two major benefits to the city of Duluth will be:
1) access to additional low interest mortgage funding (the Duluth Minnesota city participation program year 2000 allocation was approximately half of the 1999 allocation) and
2) the CASA program will enhance the "At Home in Duluth" program efforts to re-energize targeted neighborhoods and diversify incomes throughout these neighborhoods.
The resolution further authorizes the city to enter into a CASA application-commitment agreement with MHFA. Under the program, MHFA provides lenders, local governments, and/or nonprofit housing providers with set-asides of MHFA mortgage revenue bond funds enabling them to meet the home ownership objectives/needs of their communities by providing end loans to consumers.