05-0005R


RESOLUTION SUPPORTING ST. LOUIS COUNTY HOUSING AND REDEVELOPMENT AUTHORITY’S APPLICATION TO THE MINNESOTA HOUSING FINANCE AGENCY FOR MINNESOTA CITY PARTICIPATION PROGRAM FUNDING.

BY COUNCILOR GILBERT:

     RESOLVED, that the city council of the city of Duluth supports the application of St. Louis County’s housing and redevelopment authority (HRA) to the Minnesota housing finance agency (MHFA) for an allocation pursuant to the Minnesota city participation program, said funds to be loaned to low- and moderate-income first-time home buyers at below market interest rates.


STATEMENT OF PURPOSE:  The purpose of this resolution is to show city support of St. Louis County HRA’s application to MHFA for Minnesota city participation program (MCPP) funding. The city of Duluth has been a participant in the program since its inception in 1990. Historically, the Duluth-based lenders have expended the city’s allocation and accessed additional unspent funds. The 2004 allocation was $1,245,441 and the Duluth lenders accessed $1,977,470.


This success led the city of Duluth community development and housing division and St. Louis County HRA to discuss a broader St. Louis County application to MCPP. A single application from St. Louis County will increase the reserved allocation available for the city as well as provide MCPP availability to the communities immediately surrounding Duluth and to the remainder of St. Louis County. As the applicant, St. Louis County will provide a one percent refundable deposit and will pay the Minnesota department of finance processing fee of $20 for each $100,000 allocation.

 

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