Res 1986 -100 Approving the Application of MH for Fiscal Year 1987 Dakota County Community Development Block Grant FundingCity of Mendota Heights
Resolution No.$6_100
A RESOLUTION APPROVING THE APPLICATION OF THE CITY OF MENDOTA HEIGHTS
FOR FISCAL YEAR 1987 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING
BE IT RESOLVED by the City Council of the City of Mendota Heights as follows:
1. The City Administrator is authorized to submit the attached application to
Dakota County for a Community Development Block Grant in Fiscal Year 1987.
2. The application is approved by the City Council and the Mayor and City
Clerk are authorized to execute it on behalf of the City of Mendota Heights.
3. That the Dakota County HRA be designated as the administrative entity to
carry out the program on behalf of the City.
Adopted by the City Council of the City of Mendota Heights this 16th day of
December, 1986.
Robert Lockwood, Mayor
ATTEST:
thleen Swanson, City Clerk
Dakota County
Community Development Block Grant Proposal
Fiscal Year 1987
City of Mendota Heights 2
Legal Name of Applicant Community Development
750 South Plaza Drive
Legal Address of Applicant
Mendota Heights
City
Kevin Frazell
District
Minnesota 55120
State Zip
Contact Person
City Administrator (612) 452-1850
Title Phone Number
Mendota Heights Housing Rehabilitation Project
Project Name
The city-wide project consists of loan and deferred loan funds for
rehabilitation of single-family, owner -occupied dwellings.
Brief Description of Project
$82,500
Amount Requested
1. Has this project received funding CDBG before?
u Yes u No
2. Project duration:
One Year
Other (Specify): Revolving loan fund creates on-going program
Proposed beginning date: 5-1-87 Proposed completion date: 11-1-88
3. Grant funds will be used for:
Acquisition
Clearance Activities
Disposition
Economic Development
Planning
Public Facilities
Public Services
Rehabilitation
Other (Specify):
0320000=Irf0
4. Federal objective addressed (attach documentation):
I=t Benefit to low and moderate income persons
a Aid in the prevention or elimination of slums and blight
El Alleviation of urgent community development need
5. 'General description of the project (include project goals and importance to
community):
Provision of low interest and deferred loans for low and moderate income
homeowners. Any form of owner -occupied housing would be eligible.
For more information see Attachment A. The HRA may be able to leverage
additional funds through the Minnesota Housing Finance Agency.
2
6. Description of project area (attach map) :
The project area consists of the entire corporate limits of the City of
Mendota Heights. (See attached map.)
7. Persons benefiting:
Total number of persons benefiting: 11 houesholds
Percentage of low/moderate income: 100 %
8. Construction schedule:
Not Applicable
LI Applicable
If applicable:
Estimated date construction will begin: May 1, 1987
Estimated date construction will be completed: November 1, 1988
9. Project cost:
Total project cost:
Amount of C.D. Grant requested: $ 82,500
(Percentage of total project cost): 100 %
Source and amount of other revenue:
$0
$ 82,500
10. Budget summary by activity:
Activity CDBG Other/List Source Total
Housing rehabilitation $ 82,500 $ $ 82,500
and related project
administration.
Total $ 82,500 $ $ 82,500
3
11. Additional supporting items submitted with proposal (check if attached):
Benefit documentation (see question 4)
Resolution of governing body requesting grant
Additional project information
Map or sketch outlining project area
Professional's certification of feasibility and accuracy of scope and
budget (engineer's, architect's, etc.)
rj Letters in support of project/or letters of commitment
ri Other (Specify):
17MEt00
Certification
I certify that the statements and application requirements of this official pro-
posal are correct and that this proposal contains no misrepresentation or falsi-
fications, omissions or concealment of material facts and that the information
given is true and complete to the best of my knowledge and belief, and that no
bids have been awarded, contract executed, or construction begun on the proposed
project.
J�17?C
Date
Attachment A
Dakota County
Community Development Block Grant Proposal
Fiscal Year 1987
City of Mendota Heights
4. Documentation in Support of Federal Objectives
a. Benefit to Low and Moderate Income Persons
The housing rehabilitation program will only be available to those
households in Mendota Heights within 80% of the median income for the
Twin Cities Metropolitan Statistical Area. (See income limits listed
below.) The program funds are only available for persons in this low and
moderate income bracket who maintain owner -occupied, single family
dwellings. Program benefit to this income group is 100%.
INCOME LIMITS
Family Size Loansl Deferred Loans2
1 $12,300 - $19,250 $12,300
2 14,050 - 22,000 14,050
3 15,800 - 24,750 15,800
4 17,550 - 27,500 17,550
5 18,950 - 29,200 18,950
6 20,350 - 30,950 20,350
7 21,750 - 32,650 21,750
8+ 23,150 - 34,400 23,150
1 Households between these income ranges would be eligible for loans.
2 Households below these incomes would be eligible for deferred loans.
1
Attachment A (con't)
Dakota County
Community Development Block Grant Proposal
Fiscal Year 1987
City of Mendota Heights
5. General Description of the Project
a. Project Description
The dsign of the program will be a combination of loansl and deferred
loans6 to owner -occupied, single-family homes. With a Community
Development Block Grant of $82,500, eleven (11) loans of $7,500 would be
available.
Low-income households with incomes less than 50% of the Metropolitan
Statistical Area (MSA) median income (see Attachment A, page 1) will be
eligible for deferred loans. Moderate -income households with incomes
between 50% and 80% of the MSA median income who demonstrate adequate
capacity to repay the loan, and give evidence of acceptable credit risk
will be eligible for 3% low-interest rate loans. The maximum loan
amount for both deferred and low-interest loans for single-family homes
will be $10,000 with a maximum term of ten (10) years.
Rehabilitation loans and deferred loans may only be used to improve the
property by increasing the structure's energy efficiency, or to remove
health, safety, or other deficiencies and to bring the structure into
compliance with the property rehabilitation standards used by the
Housing and Redevelopment Authority. These loans may also be used to
modify or rehabilitate the housing unit to make it accessible for a han-
dicapped or disabled member of the household. The improvements financed
by these loans must be completed within nine (9) months from the date of
the issuance of the Proceed to Work Order. Rehabilitation loans and
deferred loans may not be used to finance freestanding or built-in
kitchen appliances, landscaping, or work begun or completed before the
date of the Proceed to Work Order.
1 The maximum loan available would be $10,000 for rehabilitation. To secure
the loan, a promissory note for the terms and conditions agreed to and a
mortgage deed shall be signed by all parties listed on the title of the pro-
perty to be improved. The mortgage shall be recorded with the County; copies
of all recorded documents will be forwarded to the homeowner.
2 The maximum deferred loan available would be $10,000 for rehabilitation. If
the property is sold, transferred, or no.longer the principal residence of
the applicant, all funds must be repaid. A repayment agreement stating these
terms and conditions shall be signed by all parties to the title of the pro-
perty to be improved. This agreement shall be recorded with the County;
copies of all recorded documents will be forwarded to the applicant.
-2
Attachment A (con't)
MHFA Home Improvement Loans will be awarded to households, with incomes
less than $27,000. The maximum loan amount will be $15,000 for fifteen
(15) years with a variable interest rate of 3% - 9% depending .on the
households income.
MHFA Rehabilitation Deferred Loans of up to $7,500 will be granted to
households with incomes less than $7,000.
B. Project Need
The need for housing rehabilitation in Mendota Heights has been moderate
in the past. In Dakota County since 1976, 21 of the 773 (3%) of the
total Minnesota Housing Finance Agency Loans and Community Development
Block Grant loans in Dakota County have been awarded in the Mendota
Heights area.
COMMUNITY DEVELOPMENT
Elderly Family Total
MHFA Home Improvement Loan 0 4 4
MHFA Home Rehab Loan 3 3 6
MHFA Home Energy Loan 1 6 7
Rental Rehab 1 0 1
CDBG Rehab Loan 2 2 4
Weatherization 10 11 ' 21
. TOTAL COMMUNITY DEVELOPMENT
C. Implementation
17 26 43
The Dakota County HRA will act on behalf of the City of Mendota Heights
in administering these funds. The HRA will provide the following staff
functions:
1. Program advertising and outreach.
2. Loan intake and processing.
3. Housing inspections, work write-ups, bidding, working with contrac-
tors, and final inspections.
4. Program fund requisitions, record keeping and auditing.
5. On-going loan servicing and program income accounting.
3
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