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The Minnesota City Participation Program (MCPP) PROGRAM GUIDELINES A population based formula i's used to determine the maximum allocation for which each city qualifies. The maximum allocation a city may receive is its percentage of the housing pool as compared to the total population of all applications received. Cities may apply for a specific dollar amount (minimum of $100,000) or may request the 11maximum allowable" permitted by the population formula. If the individual allocation as determined by the per capita formula falls below a level that the city cites as "minimum," IVIHFA will contact the city to verify whether the city would like to cancel its application. w 0 A city must use at least 50% of its 1 998 allocation by the date of program e p i ration in order to be eligible to apply the following two years. • The usage test also applies to self-issuers. with submission of this application, these cities are required to submit loan origination data to MHFA to confirm compliance with this statutory requirement. m ............ The 1998 MCPP program terra will run for eight months. Cities will have the exclusive use of their individual allotments for a six months period. Following the expiration of the sic month period, all remaining individual allotments will be collapsed into a single, statewide pool available to all participating cities for the remaining program terra. PF mortgages must meet the requirements of standard mortgage insuring and guaranteeing entities: mortgage industry accepted underwriting standards, and state and federal law governing mortgages provided through the issuance of ,mortgage revenue bonds. 9 Adjusted borrower income limits may not exceed 80% of area median income as determined by the Department of Housing and Urban Development (HUD). Adjusted income is calculated by taping a household's gross annual income and subtracting $1,000 per household resident. Cities may place their local program limit at or below these figures.