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Home My WebLink About[07b] Owner Occupied Housing Rehab • CITY OF ST. JOSEPH wu'w.cityof stjoscph.com Date: April 17, 2013 Administrator Memo To: Members of the EDA Judy Weyrens City Administrator Weyrens Mayor Memo From: Cynthia Smith-Strack - MDG, Inc. Rick Schultz RE: Housing Rehabilitation Loan Program Councilors Steve Frank Bob Loso Background Renee Symanietz Cory Ehlert, St. Joseph Resident has requested the EDA consider participating in an attempt to Dale Wick access loan funds for an owner occupied residential rehabilitation program. Ehlert and Mr. Jason Krebsbach from the Central Minnesota Housing Partnership will be at the EDA meeting. EDA Doug Danielson Please find attached an email from Krebsbach at CMHP. He notes Ehlert and CMHP have Steve Frank discussed the potential to apply for funds through the Minnesota Housing Consolidated Single Larry Hosch Family RFP to the Community Homeownership Impact Fund. Through an RFP application Gary Osberg process the CMHP would apply for funds that could be used to provide interim financing, Dale Wick deferred loans, or grants (not often)to qualifying projects that result in home ownership by a family with a median income of 80% of the area. Krebsbach reports that to be competitive grant applications must include local leverage/investment in the project. This can be in the form of waiving of fees, cit cash contributions, reduction in Realtor Commissions, local employer contributions, and/or philanthropic contributions. Ehlert is requesting the EDA consider a contribution to a rehab program which would make an application for project funding more competitive. Action Consideration of the request for funding is kindly requested. 1 G- Page 1 of 2 From "Jason Krebsbach"<jason @cmhp.net> Subject: RE: St.Joseph Acquisition Rehab program Date: May 15, 2013 10:31:06 To: "'Cynthia Smith-Strack MDG, Inc."'<cstrack@ municipaldevelopmentgroup.com>, "Deanna Hemmesch"<Deanna @cmhp.net> Attachments: Income Iimits.pdf[376 KB] Hello Cynthia: Deanna and I meet with Judy and Cory on Monday to discuss a potential program to purchase vacant single- family rental properties, rehab them back to owner-occupied condition and then sell them. Properties may or may not be foreclosed, but the main purpose of the proposed program would be to address the vacant rental property issue in St. Joseph by converting homes back to owner-occupied. The funding source we would apply to is Minnesota Housing's Consolidated Single-Family RFP. More specifically, the funding source is the Community Homeownership Impact Fund. Through this RFP application, you are able to request funds for a variety of single-family housing activities, including acquisition/rehab. Funding may be provided in the form of interim financing, deferred loans or grants (grants are uncommon). The funds are required to be used to assist households at or below 115% of Area Median Income (AMI). As a housing non-profit we strive to assist households at or below 80% of Area Median Income. We would probably target households at the lower incomes, but be able to sell the homes to buyers up to the 115% income limits. I've attached the income limits we use. A big part of submitting a competitive application is securing local leverage/investment in the proposed program. This can be in the form of waived fees, city cash contributions, reduction in Real Estate commissions, local employer contributions, philanthropic contributions, etc. Cory requested that I attend the meeting as well so I will be there to answer any additional questions. Of course if you'd like more information before that please let me know. Jason Krebsbach Community Development Director Central Minnesota Housing Partnership, Inc. 37 28th Ave. North Suite#102 St. Cloud, MN 56303 Phone: (320)258-0672 (new direct number) Fax: (320)259-9590 jason@cmhp.net http://www.cmhp.net Original Message From: Cynthia Smith-Strack MDG, Inc. [mailto:cstrack(a�municipaldevelopmentc roue.com] Sent: Wednesday, May 15, 2013 9:47 AM To: Deanna Hemmesch; jason(&.cmhp.net Subject: St. Joseph Acquisition Rehab program Deanna, Jason - Good morning!! The St. Joseph EDA is meeting next Wednesday and I understand from Judy Weyrens that Cory Ehlert is planning on attending the meeting to discuss application to a program designed to acquire/rehab and sell vacant or foreclosed homes. I would like to provide the Board with background information so as to be prepared for Cory's visit. 1 http://webmail.bevcomm.net/mail/message.php?index=64003&mailbox=mbox 5/15/2013 GREATER /)ii HOUSING FUND. I 2013 Income Limits (80% of Statewide Median) Adjusted for Family Size Greater Minnesota Olmsted and Chisago, !sand,Sherburne, Family Size Counties' J Dodge Counties' Wright Counties' I $41,450 $45,100 $45,100 2 $47,350 $51,550 $51,550 3 _ $53,300 _ $58,000 $58,000 _ 4 $59,200 $64,400 $64,400 5 $63,950 $69,600 $69,600 6 $68,650 $74,750 $74,750 7 $73,400 $79,900 $79,900 8 $78,150 $84,050 $85,050 These income limits are guidelines you must follow when the Greater Minnesota Housing Fund provides financing to your housing project. If you do not follow these guidelines you put funding for your development at risk,as well as potential for future funding. Projects with other additional funding sources must also comply with the income limits set by those.programs. *Note:For buyers using FHA first mortgage financing to purchase their homes,lower limits apply for the following counties:Aitkin,Clearwater and Mahnomen.These limits are used only if the buyer is obtaining FHA financing;in all other cases the standard GMHF limits apply.Please refer to page 2 of this packet for the FHA limits for these counties. GMHF 2013 Single-Family Acquisition Cost Limits' To control building costs and to encourage local participation in projects,the Greater Minnesota Housing Fund (GMHF)has developed an acquisition cost limit(ACL)for single-family homes receiving GMHF interim and/or homebuyer gap financing.To allow larger families with children adequate living space,GMHF allows a higher ACL to finish more space for those families.In addition to the standard ACL,a"high cost"limit has been created to provide greater flexibility in areas with rapidly rising development costs. Number of Acquisition Acquisition Cost Minimum Space to Finishs Children in Cost Limit Limit in High Cost Household Areas* 0-I Child' 1167,000 $175,000 2 bedrooms, I bath OR 3 bedrooms, I bath 2 Children' $173,000 $181,000 3 bedrooms, I bath OR 2 bedrooms,2 bath 3 Children $1 79,000 $187,000 4bedrooms, I bath OR 3 Bedrooms.2 bath 4+Children' 1185,000 $193,000 At least 4.bedrooms,_and at least 2 bath *High cost areas are Chisago,Isanti,Sherburne,and Wright counties.° 'Greater Minnesota limits are based on statewide median income of$72,900. 'Olmsted and Dodge County income limits are based on Rochester MSA median income of$80,200. 'Chisago,Isand,Sherburne and Wright County income limits are based on Minneapolis-St.Paul MSA median Income of$82,700. 4 ACIs have been held constant since 2008 given market conditions. 'In order to assist households with two or more children to qualify for the higher ACLs,the minimum finished space requirements must be followed.However,larger families are not required to purchase a home that meets the higher ACL guidelines(additional space finished). 'All households receiving GMHF Homebuyer Gap financing must have a dependent child as defined by the IRS.Any exceptions must be pre- approved by GMHF. 'For households with more than 4 children,a$6,000 acquisition cost adjustment is allowed per additional child. 'Geographical definition of GMHF High Cost Areas Is set by areas with higher FHA mortgages limits. l Minnesota H o u s i n g Han "o g r a m s bt , - Minnesota Community Re✓rt ' � z Ion Fund Housing r Y" Community Income Limits The following income limits are effective for Community Revitalization Fund Program closed/completed units on or after April 21, 2013: y S L #� t FY S ` ipm�� 'k 3:...-3<�, zt^�..�:.u..d_.^,��t-b'.k�.te? Cco.,:., ....., �'s�.P 50% $41,200 $40,300 $37,200 $37,000 60% $49,500 $48,300 $44,600 $44,400 80% $66,000 $64,400 $59,500 $59,200 100% $82,400 $80,500 $74,300 $74,000 115% $94,700 $92,500 $85,400 $85,100 — Income limits for eligible activities through the CRV target households at or below 115% of state or area median income. Funding partners' program income limits vary. Visit specific funding partner web sites for additional information. *For the purpose of this section, the 11 county Twin Cities Area is defined as: Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington and Wright Counties. **Includes Dodge and Olmsted counties Minnesota Housing 1 400 Sibley Street,Suite300 I Saint Paul, MN 55101-1(0981800.710.8871 1 651.296.8215 I mnhousing.gov Page 1 I 2013.04.25