WS 11-01-2010 - Laserfiche WebLink

Home Browse Search

MHFA Rental Rehabilitation Program The Rental Rehab Loan offers owners of residential rental properties low interest financing (6%) to complete improvements that increase the livability of the property. Maximum loan amount is $100,000 with a maximum term of 15 years. Potential Home Improvement/Home Buyer Assistance Programs Revolving Loan Program In conjunction with the above financing CEE proposes to deliver a comprehensive rehabilitation housing program with a revolving loan pool utilizing funds the City has allocated to rehabilitation financing. A revolving loan is an excellent vehicle for rehabilitation financing because it is an investment in the community that can continue to provide residents with access to loan capital on an indefinite basis if structured correctly. Loans can be made at any interest rate, but recapture of funds to make new loans is based on principal repayment, interest earnings on the loans, and how quickly the loans are repaid Funds in a revolving program are used to make direct loans to borrowers, pay the costs of originating, servicing and collecting loans, and pay for any defaulted loans that cannot be repaid. By charging a modest interest rate to the borrower, it is possible to recover all or part of the cost of delivering a revolving loan program while at the same time maintaining the original amount of the loan pool after all loans are repaid. CEE will work with the City staff to design a program that addresses the unique needs of the residents of New Brighton. Deferred Loan Program — Last Resort Program The Low Income Deferred Loan program will help address the needs of residents with limited household annual incomes in need of making repairs to their property. Offering a deferred loan is an excellent approach to addressing the needs of households with limited incomes which may not be in a position to make monthly installments yet still are in need of home improvement. CEE will work with the City staff to design a program that addresses the unique needs of the residents of New Brighton. Homebuyer Assistance Program Offering a Homebuyer Assistance Program is an excellent way to incent potential homebuyers to achieve home ownership. The program can be structured to target certain properties within the community that may not be as attractive to potential buyers (such as vacant or foreclosed properties). CEE will work with the City staff to design a program that addresses the unique needs of the residents of New Brighton. PageA-4 Proposal for City of New Brighton Center for Energy and Environment