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REQ L T FOR CITY COUNCIL ACTION <br /> DATE: 2/23/98 <br /> ITEM NO: IF-4 <br /> Department Approval: Manager Approval: Agenda Section: <br /> Reports/Recommendations <br /> Item Description: Roseville Housing Improvement Program <br /> Application for Minnesota Cities Participation Program <br /> 1.0 Reauested Action <br /> City staff is requesting approval by resolution to make an application for the Minnesota <br /> Cities Participation Program to fund a loan program for first-time home buyers in the City <br /> of Roseville. <br /> o Back round <br /> 2.1 Each year, the City of Roseville must apply for an allotment of funds from the <br /> Minnesota Housing Finance Agency (MHFA) under the Minnesota Cities <br /> Participation Program (MCPP). Each applying City will be allocated funds using a <br /> pp <br /> u lation-based formula. The maximum allocation a city may receive is its <br /> percentage of the housing pool as compared to the total population of all <br /> applications received. MHFA estimates that the pool of funds for the M PP is in the <br /> range of 37- 45 million. <br /> MHFA sells mortgage revenue bonds on behalf of the cities to meet locally identified <br /> housing needs. The proceeds of these bonds provide below market interest rate <br /> hone mortgage loans for love and moderate income first-time home buyers. <br /> 2.3 Program Guidelines: <br /> 1. Each City must provide 1 nfbrmabon regarding housing plans, Comprehensive <br /> Plan goals and hover the M PP would meet the needs of the community and <br /> if there is sufficient demand In the community to use the funds. <br /> 2. Fifty percent of the 1998 allocation of funds must be used in the City within <br /> 8 months of notice. if the funds are not used, the City is not eligible to make <br /> application under the M PP for two years. <br /> FICA—MCP P 02/23/98- Page 1 of <br />