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Home My WebLink About4.j. Adopt Resolution of Support for Home Improvement Program . �nV 1 P.O. BOX 510 ✓iE� � 2&75-145TH ST. W. O�Q�Ou�2 ROSEMOUNT. MINNESOTA 55068 G L 612-423-4d11 TO: MAYOR NAPPER, CITY C�UNGIL, GITY ADMINISTRATOR FROM: TRACIE PECHONICR, ED SPECIALIST �TEM �� S DATE: JULY 12, 1990 ITEM ��. J SUBJ: MINNESOTA HOIISING FINANCE AGENCY NEIGHBORHOOD PRE3ERVATION HOME IMPROVEMENT LOAN PROGR�iM Attached is information on the MHFA Neighborhood Preservation HQme Improvement Loan Program. ,The Dakota County HRA contacted staff late in June regarding the City of Rosemount's possible desire to participate in such a program. The Neighborhood Preservation Loan Program is one which provides property improvement financing with attractive-terms and conditions as an incentive for neighborhood preservation activities. Eligible neighborhoods are designated by cities and must meet basic criteria established by the MHFA. Cities are expected to participate in the program by designating neighborhoods and contributing to the total neighborhood preservation effort (the cities must contribute 25% of each loan / $1. 00 for every $4.00 from the MHFA) . Overall, this looks like a,program that would be beneficial in the expanded housing district (see map within application) set up by the Dakota County HRA. It is likely that interest rates on these loans will vary from 3� to 10.5% depending on the type of property, applicant, ownership, occupancy, and loan size. The annual income limits for this program appear to be quite reasonable: ' 1 or 2 persons - $45,000; 3 or more persons - $51,750. In addition," the Dakota County HRA would act as the seller of the loans for the City of Rosemount. The Dakota County HRA recommended that the City of Rosemount designate funds from previously approved projects within the Dakota County HRA's Housing Tax Inerement Financing District for our 250 contribution (ie: funds designated for the demolition of the Doyie house; street/sidewalk improvements, miscellaneous public improvements, etc. ) . The attached application, listing previously designated funds, has been forwarded to MHFA to see if this kind of match will meet with their approval. This application can be stopped, however, if it is determined that the City of Rosemount should not participate in this program. Please review the attached as Kari Gil1 of the Dakota County 'HRA will be present at Tuesday's meeting to go through the application in some detail and to answer any questions you may have. Staff recommendation at this time: adoption of the ��Resolution Authorizinq Submission of an Application for Funds for a Neiqhborhood Preservation Home Improvement Loan Program through the Minnesota xausinq Finance Aqency��. .� .� / UAKOTA COUNTY Housing&Redevelopment Authority 2496-145th St.W. • Rosemount,MN 55068 •612-423-4800• Fax 612-423-242? July 3, 1990 Dean Johnson Rosemount City Hall 2875 - 145th Street West Rosemount, MN 55068 RE: NEIGHBORHOOD PRESERVATION APPLICATION TO MHFA : Dear Mr. Johnson: Enclosed is a copy of the Neighborhood Preserv�tion Application submitted to the Minnesota Housing Finance Agency (MHFA) on behalf of the City of Rosemount. We indicated in the application that t`�e Rosemount City Council had not yet taken action on approving this application but would consider this at that their July� 17, 1990 City Council meeting. If you can add this to the agenda for the July 3, 1990 meeting that would be even better. Please let me know what action is taken by the City Council so that we can forward this information to MHFA. If it is approved, I would need a copy of the certified resalution. Sincerely, � ; ��f " r .,�7 � '� ��..f�� Kari R. Gill Deputy Director Enclosure "AN EQUAL OPPORTUNITY EMPLOYEF" , , , A. NEIGHBORHOOD PRESERVATION LOAN PROGRAM For MHFA Use Oniy APP�ICANT DATA FORM [Complete this form and attach it to the front oi your Application For Funding.] � Please type or print cleariy. (Date Received) t. �'OR THE CJTY OF: Rosemount 2. BAIEF DESCRIPTfON OF NEtGHBORHOOD: Neighborhood improvement area surrounding the downtown commerical district 3. TOTALAMOUNT OF MHFA FUNDS REQUESTED: $ 90,000 4. PARTICIPATION TERM FOR MHFA COMMITMENT (Cannot exceed a twelve month period) FROM: 9-90 TO: 8-91 5. INFORMATION ABOUT THE ENTITY COMPLETWG THIS APPL1CA710N: NAME OF QRGANIZATION: Tlaknta Cotmtv HRA - ADDRESS OF ORGANlZATION: 2496 145th Street West CONTACT PERSON: uaY; �;�i , Ellie Stark TITLE: _ De�utv Director, Loan Officer . PHQNE NUMBER: .. :423-4800 THIS APPLICATION IS SUBMITt'ED BY THE UNDERSIGNED WITH THE FULL KNOWLEDGE AND CONSENT OF THE GOVERNING BODY OF THIS ORGANIZATION AND/OR UNIT OF LOCAL GOVER ENT AND IS,TO TH �DERSIGNED'S BEST KNOW�EDGE,ACCURATE IN ALL DETAI�S. � 'V V'i�� _ (signatu ) - �-2-90 {date) FOR MHFA PURPOSES ONLY Score A. the relative neighborhood preservation needs described in the proposal which needs may include, but not be limited to, housing needs, the needs of commercial and public properties, and infrastruciure; B. the extent to which other resources are or will be allocated to address the stated needs; C. the expected impact of the neighborhood preservafion aciivities; D: the extent to which other conditions or resources exist for long-term p�eservation of the designated neighborhood; E. the extent to which low and moderate income residents will benefit from the neighborhood preservation activities; F. the extent to which displacement of residents will be minimized; G. the geographic area to be serviced, the size of the request for funds or other factors that will achiave a reasonable distribution of resources across the state; H. the priority rati�g a city may assign to a proposal if the city submits more than one proposal; �. the extent to which the proposal is more innovative than other proposals, �. Other. MHFA REVIEWER: DATE REVIEWED: TOTAL PQINTS: B. The Rosemount City staff has requested that the Dakota County ARA submit this applicatian on behalf of the City of Rosemount and the item will go to the City Council for consideration at their July 17th meeting. A copy of the Resolution will be forwarded to MHFA once approved. C. Neiqhborhood Profile• Central Rosemount � As indicated in the attached map, the Neighborhood Preservation Home Improvement Loan Program funds are targeted for an area near the central area of Rosemount. This is comprised of predominantly older single family owner occupied homes with some multi-family and a downtown business district. Substandard housing units/Section 8 Housing Quality Standards definition used comprise an estimated 10-15% of the total housing units. The average home in this area is 40-60 years old with many being 70-90 years old. Home va7ues average $50, 000-$70,000 as compared to the balance of the city where this range would average $90, 000-$110, 000. Commercial properties in the Neighborhood Preservation area range from new to substandard condition as the city has done same extensive redevelopment work; however, � many blighted properties remain. The public infra-structure is in moderate to good candition. � This area is part of he reqional Rosemount Town�shi� rea a an is experiencing exte new development in the out bordering areas. Continuous hou�i�x�hab fund targe ' is necessary to avoid incre ing housing blighting conditions, f � bY 1\ �i - �� • ry \ ,�.,.��; f9 2G � .w�+ �� --�`--�—=I��._.� �.��t�sa_w - - --- �� , t __. , � , � � , . � �-� .11 �o�,o , � ��srn�t+ I $ �� -_ �J� ' � �� ,- U4MYi�� ' . . �,i��//� �4 � �CONNCYAR�� TRAIL 't+ \ � � �I I i� ._... . . .. .._ . � � f��/�-- .. '° ^4, . �.i.lA�Ltl� . 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' / I�1 � �� % � II . . f � () "I � � �' -- . �I . /�� / �) � I i I D. NEIGHBORHOOD PRESERVATION NEEDS (ATTACH ADDITIONAL SNEETS, IF NECESSARY) EXHIBIT t ' NEED PRIORITV NARRATIVE DESCRIPTION OF NEED EXTENT OF NEED (MEASURABLE CHARACTERISTICS) ------------------------------------- The City of Rosemount identified the need to preserve the-`-""`--'-"'-'"-"'-'-"'-------- g existing housing in this neighborhood in 1983 when this Some substandard dwellin units still exist which � would benefit from housing rehabilation loans. Neighbhood Improvement Area was established. __ CDBG funds have been used to fund Housing Rehabilitation ------------ in this area an� ad�d�itiona�T-fun�s are'neede�'res's�rv�------------------------------------------------- unmet needs. -------------------------------------------- 2 The Tax Increment funds will be used to acquire blighted residential units in the neighborhood; These units will be demolished and the sites prepared for new development. 3 The City TIF. and EDA funds will be used to rehab or acquire blighted or non-conforming businesses; One business will be relocated and one property will be rehabbed to standard condition. IEXAMPLES) 9� REHABILITATION OF NQN-CODE COMPLYING RENTAL PROPERTIES 6 PROPERTIES CONTAINING 19 UNITS; APPROX. 80% ARE OCCUPIED BY �OW INCOME TENANTS -� 99 REMOVAL OF ISOIATED HOUSING IN COMMERCIAL AREA 3 S.F. UNITS SHOUlO BE PURCHASEO, RESIOENTS REIOCATED, STRUCTURES RAZED E• SOURCES Ar�O USES OF FUNDING (ATTACH ADOITIONA� SHEETS, IF NEGESSARV) • EXHIBIT 2 NEEO TOTAL FUNOS AMOUNT BY SOURCE -0F IS THIS PART PRIORJTV NEEDEO SOURCE • TYPE OF MONTH/YR VERIFICATION OF VOUR �OCAL ______________ PUNDS ASSISTANCE OF USE ENClOSE'0? CONTRIBU7ION? ------------------------- . ----'---------- --- -- ------ ------------- i $90,000 $90,000 MHFA Loan 9/90-8j91- nTa nra--'-'_ 2 $55,000 $55,000 *CDBG •Housing Rehabilitatio 9/90-8/91 no no It is ex ected that this amount will be used to loans ----------------P____________ make Housing Rehab Loans in this project area using County-wide ------------------------ * CDBG Funds or Program Income from earlier Rosemount�oan F'ro-raFns, an --------- g addi�ioriar'6-'he��5tng:--------------------- 3 $45,000 $45,000 TI Acquisition & 9/90-8/91 yes yes Demolition of ---------------------- --.Suhstans�ard_ ' ------------------------------ ----------------- vn�.�.�---------- ------------------------ 4 $120,000 $40,000 City EDA Acquisition --""' 80,000 CDBG bemolition of Substandard units 9/90-8/91 no no -------------------- ---------------- 5 City EDA & Acquisition removal 9/90-8/91 no no $385,000 City TIF and relocation of blighted commercial pr. s � s 9 � (EXAMPLE$) 9� $ 150,000 S 100,000 MNFA NGHBRHO LN PRGRM S 25.000 HUD RNT1. RHB PRGRM �OAN 1/91-f>/g2 N/A W�q S 25,000 GITY GNRL F��f�, GRANT 10/90-t0/91 VES VES ----------------------------------------- SERVIGE 5/91 ----------------- 99 - ,...-�---------------------------------------- S 200.000 S 125.Oq0 CITY EDA F1 ....CING VARIpUS 1I91-12/91 ---Np------------YES----- S 75,000 CDBG b SEC� 8 SERvIGE g/gp-�y�gp �ES N� NO . . �. .�- � p• 9/8/89 TIF DISTRICT ,�r2 COMPREHENSIVE BUDGET A. Total : Interest Rate Reduction Single Family - Interest Rate Reduction S 795 , 084 * B. Lakeville - Senior Housincx Costs : Demolition . $ 250,000 Site Acquisition 856, 135 Arch/Engin/Prot Serv 246, 700 Util/Site Improvements 244, 014 Development Costs � 1, 990, 652 Reserve Fund 322� a�p Interest on Principal 2, 600, 000 Contingency 105, 425 Bond Costs 124 , 425 SUBTOTAL $ 6,739,351* C. Multifamily Housinq - Rosemount Condominiums Costs: Acquisition Costs $ 236, 100* D. Rosemount West Area Site Improvements/Preparation $ 175,000 Service Road Construction 100, 000 Trunk Storm Sewer Construction 105,000 Acquisition/Clearance 200, 000 Interest Rate Reduction� 1 , 000 . 000 $ 1,580,000* ��"/� E. Rosemount - Cameo Avenue �� ..�', Interest Reduction Assistance $ 50Q, 000 =' Land Acquisition 300, ODO Relocation 30, 000 Demolition/Site Preparation 30, 000 Utilities 10, Od0 Public Improvements ' 10 , 000 sUaTOTr�, $ sso,aaa* F. EXPECTED USES OF MHFA FUND$ • (PROVIOE AN ITEMI2ATION OF THE EXPECTEO USES OF MHFA FUNOS, USING THE CATEGORIES lI5TE0.) EXHIBIT 3 SECTION I . ITEMIZATION OF FUNDS BY PROPERTV ` 1 . FOR PROPERTIES WHICH ARE CONSIDERED REAL PROPERTY (NOT PERSONAL PROPERTV),, AND OWNED BY; a) GENERAL APPLICANTS WHO ARE - ' � - NATURAL PERSONS LIVING IN THE PROPERTv; $ ]2,000 * - NATURAL PERSONS NOT �IVING IN THE PROPERTV; g iH�OOO * - NOT NATURA� PERSONS: $ Q b) OTHER APPLICANTS: $ 0 2. FOR PROPERTIES WHICH ARE CONSIDERED PERSONAL PRQPERTY (e.g. MANUFACTURED HOUSING TAXED A$ PERSONAL PROPERTV), AND OWNED BV: a) GENERAL APPLICANTS WHO ARE - - NATURA� PERSONS LIVING IN THE PRQPERTV: g �_ - NATURAi� PERSONS NOT LIVING IN THE PROPERTv; g � - NOT NATURAL PERSONS: � � b) OTNER APPLICANTS: $ � TOTA� MHFA FUNpS REQUESTED FOR NEIGHBORWOOD $ 90.000 ------------------------------------- + SECTION II. ITEMIZATION OF FUNOS BV APPLICANTS FUNpS FOR GENERAL APP�ICANTS (the sum of i,a. and 2.a. , above) : g 90,Q�� FUNDS FOR OTHER APPLICANTS (the sum of i.b. and 2.b. , above) : $ (� (MAV NOT EXCEED 25% OF TOTAL MHFA FUNOS COMMITTED) TOTAL MHFA FUNDS R'EQUESTED FOR NEIGHBORHOOD: $ _9Q,OOO , DEFINITIONS OF APPLICANTS: ,. GEN�RAL APPLICANT MEANS: 1. A LOW OR MODERATE INCOME PERSON OR FAMILV OCCUPYING A PROPERTY AS A ONE-UNIT PROPERTY; OR 2. A LOW OR MODERATE INCOME PERSON OR FAMILV TMAT OWNS THE PROPERTY', AND AGREES THpT THE PROPERTY WIL� BE OCCUPTED PRIMARILY BY LOW' OR MODERATE INGOME RERSONS OR FAMILIES; OR 3. A NONPROFIT ENTITV, LIMITfD PROFIT ENTITV, OR COOPERATIVE NOUSING CORPORATION THAT PROVIDES RESIDENTIA� CARE FACPLITIES OR DWEILING ACCOMODATIONS, AS APPROVED BY MHFA. OTHER APPLICANT MEANS: ANV ENTITV WH1CH DOES NOT MEET THE REQUIREMENTS OF A GENERA� APPLIGANT, BUT EXCLUDES BUILDERS AND FOWNHOUSE OR GONDOMINIUM ASSOCIATIONS, OR $IMII.AR ORGANIZATIONS. . * Any general applicant will be able ta use these funds for the improvements to real properCy in the amount listed in the category above. G. NEIGHBORHOOD PRESERVATION EXPECTED IMPACT (ATTA(:t� A�DITIONAL SHEETS, IF NECESSARY) ' EXHIBIT 4 NEEO PRIORITV _NARRATIVE_DESCRIPTION_OF_EXPECTED IMPACT (USE MEASURABLE CHARACTERISTICS) � -------------------------- ------------------ It is expected that at least an additional 6 housing units will be rehabbed with these �-�----"---'-" , funds. This program will allow Rosemount to continue its ongoing efforts to improve the existing housing stock by providing funds for housing rehabilitation. ----------------------------------------------- ----------------------- The tax increment dollars will be used to acquire some of the substandard homes and wi11 2 provide funds far the relocation of the tenants if applicable. In addition, the TIF dollars will be used to demolish the properties, install public improvements, and make the properties --------------------------------------------- ----------------------------------- available for new development. The combination of 1 and 2 will help to remove substandard ----- � conditions from the neighborhood. 4 5 , 6 7 8 ------------------- 9 (EXAMPLE5) • 98 ALL RENtAL UNITS WII.L 8E IN COMPLIANCE WITH RENTAI CODES; AFTER REHAB, 8 RENTAI. UNITS ( 2 PROPERTIES) WILL BE SUBSIDIZED HOUSING; 6 UNITS ( 2 RROPERTIES) WILL 8E RENTED TO L-M INCOME TENANTS; CONVERSION OF 2�UNIT PROPERTV INTO 1 RENTAL UNIS (t PROPERTY) WILL BE LARGE FAMILY RENTAL UNIT; THE TWO t-UNIT AND ONE 2-UNIT OWNER-OCCUPIED _PROPERTV WI�L, AFTER-REHAO, BE AN EXCELLENT TRANSI7ION TO THE ADJACENT SFD SUBDIVISION. - -------------------------------------------------------- 99 ALL 3 PROPERTIE$ ARE NOT COMPATIBLE WITH SURRQUNDING LANp-USE; PROPERTIES CAN 8E INCLUOEO IN TIF AISTRICT; THE TENANTS OF THE TWO RENTA(. HOUSING UNITS WIIL BE RE_OCATEO TO SUBSI�I2ED MOU5ING; THE OWNER-OCCUPANTS OF TNE TMIRp PROPERTY WILI RECEIVE DOWN PAVMENT ASSISTANCE AND MOVING EXPENSES FpR A FECENTI.Y REHABBED HOME IN AREA, CITY OF ROSEMOIINT DAKOTA COUNTY, MINNESOTA RESOLUTION 1990- A RESOLUTION AUTHORIZING SUBMISSION OF AN APPLICATION FOR FUNDS FOR A NEIGHBORHf?OD PRESERYATION HOME IMPROVEMENT LOAN PROGRAM THROUGH THE MINNE3OTA HOU3ING FINANCE AGENCY WHEREAS, the Minnesota Housing Finance Agency (MHFA) is soliciting applications for a Neighborhood Preservation Home Improvement Loan Program; and WHEREAS, it is required that applicants contribute funds, property, or services equal in value to at least 25% of the amount of MHFA's commitment to purchase loans; and WHEREAS, applicants must designate an eligible neighborhood and a seller (lender) for this program; and WHEREAS, the Dakota County HRA has experience in administering MHFA Home Improvement Loan programs and could be the seller for the City of Rosemount. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Rosemount, Minnesota: 1. The required matching funds are coming fram previously approved projects from the Dakota County HRA's Housing Tax Increment Financing District as described in Exhibit E of the MHFA application. 2 . The eligible neighborhood is defined as the Expanded Neighborhood improvement Area in the City of Rosemount: 3 . The Dakota County Housing and Redevelopment Authority (HRA) shall be designated as the seller (lender) . 4 . The HRA is authorized to submit an application to MHFA for Home Impravement Loans on behalf of the City of Rosemount. THese funds must be utilized within one year. If the entire amount of funds is used within the one year period, the Dakota County HRA is directed to inquire about obtaining additional funds from MHFA. ADOPTED this 17th day of July, 1990. Vernon J. Napper, Mayor ATTEST: Susan M. Johnson, City Clerk Motion by: Seconded by: Voted in favor• Voted against•