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HomeMy WebLinkAbout1994 04-11 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER APRIL 11, 1994 (following adjournment of City Council meeting) 1. Call to Order ,a 2. Roll Call ; s t 4 I Approval of Agenda and Consent Agenda -All items listed with an asterisk are considered to be routine by the Economic Development Authority and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered in its normal sequence on the agenda. 4. Approval of Minutes: a. March 28, 1994 - Regular Session 5. Resolutions: a. Resolution Providing for a Public Hearing Regarding the Sale of Land to Habitat for Humanity by the Economic Development Authority in and for the City of Brooklyn Center and Authorizing the Executive Director to Negotiate a Purchase Agreement for the Sale of Such Land Located at 5206 Drew Avenue North in Brooklyn Center b. Resolution Authorizing Submittal of an Application for Funding Under the 1994 Minnesota City Participation Program (MCPP) -This is the Minnesota Housing Finance Agency's first -time home buyer program. 6. Adjournment � ,, CITY OF BROOKLYN CENTER Council Meeting Date April 11, 1994 Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION 0 ITEM DESCRIPTION: EDA MINUTES - MARCH 28, 1994 - REGULAR SESSION DEPT. APPROVAL: a Brad Hoffman, I ector of Community Develop t MANAGER'S REVIEW/RECOMMENDATION: No comments to supplement this report Comments below /attached SUNEVIARY EXPLANATION: (supplemental sheets attached ) • RECOMMENDED CITY COUNCIL ACTION 0 t MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF S3 AND THE STATE OF MINNESOTA REGULAR SESSION MARCH 28, 1994 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order by President Todd Paulson at 11 :37 p.m. ROLL ALL President Todd Paulson and Commissioners Dave Rosene and Barb Kalligher. Also present were City Manager Gerald Splinter, Community Development Specialist Tom Bublitz, City Attorney Charlie LcFevere, and Council Secretfary Kathy Stratton. APPROVAL OF AGENDA AND CONSENT . 4GEN President Paulsen inquired if any (; Qmmissioner requested any items be remavcd from the consent agenda. No, requests were made, APPROVAL OF MINUTES MARCH 14, 1994 - REGULAR SESSION There was d motion by Commissioner Ruscne auld seconded by Commissioner Kalligher to approve the minutes of the March 14, 1994, EDA meeting as printed. The motion passed unanimously. RESOLUTIONS RESOLUTION NO. 94 -05 Co mmissionor Dave Rosene introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR ASBESTOS ABATEMENT AT WILLOW RIVER APARTMENTS, THE EDA OWNED PROPERTY LOCATED AT 6525, 6527 AND 6529 WILLOW LANE NORTH The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Barb Kalligher, and the motion passed unanimously. 3/28194 - 1 - RESOLUTY N NO. 94-06 CUm ti1ibSinsier Davc Rosene introduced the following resolution and moved its adoption: T RESOLUTION DESIGNATING THE CITY'S ).NORTHEAST NE IGHBORHOOD FOR PURPOSE OF FOCUSING RESOURCES UNDER THE MINNESOTA H FINANCF. AGENCY'S COMMUNITY REHA13ILITATION FUND PROGRAM The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Barb Kalligher, and the motion passed unanimously. RESOLUTI_ N NO, 94 -07 Cum inissioiwr Davc Rosene introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR TO ENTER INTO A GRANT AGREEMENT WITH TH MINNESOTA HOUSING FINANCE ACTFNC;Y FOR THE COMMUNITYREHABILITATION FUND PROGRAM The motion, for the adoption of the foregoing resolution was duly seconded by Commissioner Barb Kailigher, and the motion passed unanimously. RESOLUTION NO. 94 - COMM I'S' Dave. Roscnc introduced the following resolution and moved its adoption- RESOLUTION ACCEPTING PROPOSAL FROM MAXFIELD RESEARCH GROUP, INC, FOR A MARKET STUDY FOR MODERATE RENT SENIOR HOUSING IN THE WILL OW LANE AREA OF BROOKLYN CENTER AND AUTHORIZING THE PRESIDENT AND FX (-IITIVI✓ DIRECTOR: TO ENTER INTO A CONTRACT FOR PROFESSIONAL SERVICES The motion for the adoption of the foregoing resolution was duly seconded by Commissioner l3a.rb Kalligher and the motion passed unanimously. RESOLUTION NO, 94 -09 C;ommissivtlt;r Davc Rosene introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING PROPOSAL FROM MAXFIELD RESEARCH GROUP, INC. FOR A MARKET STUDY FOR A RETAIL CE IN THE 69TH AVFNUE BOULEVARD AREA OF BROOKLYN CENTER AND AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT- FOR PROFESSIONAL SER�IICES- The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Barb Kalligher, and the motion passed unanimously. 3/28/94 -2- RESOLUTION NO. 94-10 Commissioner Dave Roscne introduced the following resolution and moved its adoption: THE RESOLUTION AUTHORIZING AC,Q UISITION OF CERTAIN REAL PROPERTY WITHIN THE CITY OF BROOKLYN CENTER AND ESTABLISHING OFFER OF JUST COMPENSATION FOR SAID PROPERTY LOCATED AT 6933 BROOKLYN BOULEVARD IN BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Barb Kalligher, and the motion passed unanimously. RESOLUTIONS - CONTINUED The City Manager presented a Resolution of the; Economic Development Authority of the City of Brooklyn Center, Minnesota, Requestin €; the City Council of the City of Brooklyn Center to Call for a Piihlic Hearing on the Modffication of the Redevelopment Plan for the Earle Brown Farm Redevelopment Project Which expands the Geographic Area Which Will Include the Geographic Area of Existing Housing Development Project No. 01 and Adds Additional "Housing" Powers, RESOLUTION NO. 94 -11 Curninissioncr Barb Kalligher introduced the following resolution and moved its adoption: RESOLUTION OF TH ECONOMIC: DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER, MINNESOTA, R2QUESTINCY THE CITY COUNCIL OF THE CITY OF B ROO KLY N CENTER TO CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR THE EARLE BROWN FARM REDEVELOPMENT PROJECT WHICH EXPANDS THE GEOGRAPHIC AREA WHICH WILL INCLUDE THE GEOGRAPHIC AREA OF EXISTING HOUSING DEVELOPMENT PROJECT NO. 01 AND ADDS ADDITIONAL "HOUSING" POWERS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Dave Rosene, and the motion passed unanimously. ADJOURNMENT There wa5 a motion by President Paulson and seconded by Commissioner Kalligher to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 11:40 p.m. Todd Paulson, President Recorded and transcribed by: Kathy S Time:Sav Off Site Secretarial 3128194 -3 _. CITY OF BROOKLYN CENTER Council Meeting Date 4/11/94 Agenda Item Number _6_4t"' REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION PROVIDING FOR A PUBLIC HEARING REGARDING THE SALE OF LAND TO HABITAT FOR HUMANITY BY THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER AND AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE A PURCHASE AGREEMENT FOR THE SALE OF SUCH LAND LOCATED AT 5206 DREW AVENUE NORTH IN BROOKLYN CENTER DEPT. APPROVAL: �Z Tom Bublitz, Community Development Specialist MANAGER'S REVIEW/RECOMAIENDATI f v 71' ON. No comments to supplement this report . Comments below /attached SUlVIrVURY EXPLANATION: (supplemental sheets attached X ) In 1993, the Brooklyn Center EDA transferred ownership of the single - family lot at 6730 Perry Avenue North to Habitat for Humanity to construct a new, single- family home. Construction was completed in 1993, and the result was a home and landscaped yard that is a very attractive addition to the neighborhood. The Habitat home at 6730 Perry Avenue North has a 1994 assessed value of $73,600. Habitat for Humanity has expressed an interest in working with the City to develop another lot in 1994. T'he lot under consideration is the EDA owned property at 5206 Drew Avenue North (see map enclosed for location). The 5206 Drew property was purchased by the EDA in 1992 using Community Development Block Grant funds under the slum and blight clearance provisions of the Community Development Block Grant Act. The home on the lot was demolished and the lot is now ready for development. The 5206 Drew lot is 7,695 square feet and has 57 feet of frontage on Drew, and is 135 feet deep. • It is a substandard lot with regard to size, but is a lot of record and therefore can be developed. A standard lot is 75 feet in width and 9,500 square feet. Habitat for Humanity staff is currently exploring house designs that would fit on this lot and will report on their plans at the EDA meeting. The general policy of Habitat for Humanity is that garages are not included with single - family homes built by Habitat; however, in this case and as in the case of the 6730 Perry lot, Habitat staff have indicated a garage would be included with the single - family home developed on the lot. In • the case of 5206 Drew, the garage would have to be a detached garage to make it work on this particular lot. Minnesota Statutes requires a public hearing be held on the terms and conditions of the sale of publicly owned property. The resolution presented to the EDA Board this evening would provide for a public hearing on the sale of the lot to Habitat for Humanity and would also direct the EDA Executive Director to negotiate a purchase agreement for the sale of the property to Habitat for Humanity, the terms of which would be subject to review and approval by the EDA Board. If the EDA Board approves the resolution, the public hearing would be scheduled for May 9, 1994. The purchase price for the lot would be in accordance with Habitat for Humanity policy, which is to purchase lots at the price of $1.00. If the property is conveyed to Habitat for Humanity, redevelopment of the lot would begin and be completed this summer. A representative from Twin Cities Habitat for Humanity will be present at Monday's meeting to answer any questions the EDA Board may have. RECOMMENDATION: Staff recommends approval of Resolution Providing for a Public Hearing Regarding the Sale of Land to Habitat for Humanity by the Economic Development Authority in and for the City of Brooklyn Center and Authorizing the Executive Director to Negotiate a Purchase Agreement for • the Sale of Such Land Located at 5206 Drew Avenue North in Brooklyn Center. � /au�•.lLi .'n s•_—_` rr.i•.isri. � y�.tr• . • t'st�t�tD"� � ti���• trrs _ �r-+ss 3� -- IN's ■�� . `�.�E �'>�' li� t t t t t � t'a. _ _ ,., _ _ � � �.. c �'� fit. r MEN gtg ME rw PE MR _J FrMR �� -, '� � ; it �.c � __ � ._. ZIi��A:jir� • _ � ��,� J'�):.1��- . ; 3�L�►, F �, • • ®!•Mac Rl Is Flu ow Mw LUM age LIE cu ; Lra �.:... IbLLfiWi�L■ WI�I .�il C�I y Gr'C�I;�. W ■� � � . �:■ ' � � .L's'L�il �fi1�E�� ®■ � � '� ► ► � , � s �iiir � ■W�3� .',,� 7r. }j �.�1 .tom IY(illlll�lifi/ t .Y : i II♦{. ,Y.� �, J IIIIW.f1i ■Iii' ■rim law 1 „tMY/frYl■ t `:'�IrY���■i/` .� S;�{I�iWi. ��E��'.���� i• . 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ZEZ C. m� El H I 2 1 = 2 1 CEW BE E 2 V zu. aclal -ect 1i quaw 1 vi I ar n '.20;; , IR fill -- - MIN N I 9 q fAIF 'U'R 4 Ma Im eN, � Map, NOTICE OF PUBLIC HEARING REGARDING THE SALE OF LAND BY THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER Notice is hereby given that the Economic Development Authority in and for the City of Brooklyn Center will hold a public hearing on May 9, 1994, at 7 :00 p.m. at the Brooklyn Center City Hall located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota, pursuant to Minnesota Statutes Section 469.029, Subd. 2, regarding the proposed sale of the following described property to Twin Cities Habitat for Humanity: The South 32 feet of Lot 10, and the Northerly 1/2 of Lot 11; Block 1, Linden Shores on Twin Lake (PIN 10- 118 -12 -0010) (5206 Drew Avenue North). All persons desiring to be heard shall appear at the time and place referenced above. Dated: , 1994 Todd Paulson, President 50.1 Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION PROVIDING FOR A PUBLIC HEARING REGARDING THE SALE OF LAND TO HABITAT FOR HUMANITY BY THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER AND AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE A PURCHASE AGREEMENT FOR THE SALE OF SUCH LAND LOCATED AT 5206 DREW AVENUE NORTH IN BROOKLYN CENTER WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center (EDA) is authorized, pursuant to Minnesota Statutes Section 469.012, Subd. 7, within its area of operation, and without the adoption of an urban renewal plan, to acquire real property, demolish the buildings and improvements thereon, and sell such property in accordance with Minnesota Statutes Section 469.029, as long as the buildings on such real property are substandard; and WHEREAS, the EDA has determined that the building located on the property described below was dilapidated and obsolescent, and the clearance thereof was in the best interest of the public health and welfare of the City of Brooklyn Center; and WHEREAS, on October 15, 1992, the EDA purchased and acquired that tract and parcel of land legally described as: The South 32 feet of Lot 10, and the Northerly 1/2 of Lot 11; Block 1, Linden Shores on Twin Lake (PIN 10- 118 -12 -0010) (5206 Drew Avenue North) (the "property "). WHEREAS, the property was purchased and the building thereon was demolished by the EDA using Community Development Block Grant funds under the slum and blight clearance provisions, which are part of the objectives of the Urban Hennepin County Community Development Block Grant program; and WHEREAS, Twin Cities Habitat for Humanity is a local affiliate of Habitat for Humanity, which is an ecumenical housing ministry dedicated to providing affordable housing for persons of low and moderate income; and WHEREAS, Twin Cities Habitat for Humanity has expressed an interest in acquiring the property for single - family redevelopment; and WHEREAS, the EDA has determined it is in the best interest of the EDA and the public health, safety and welfare of the community to convey the property to Twin Cities Habitat for Humanity in accordance with Minnesota Statutes Section 469.012, Subd. 7, and Minnesota Statutes Section 469.029; and EDA Resolution No. WHEREAS, Minnesota Statutes Section 469.029, Subd. 2, requires a public hearing for the sale of land by the EDA. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that it is in the best interest of the EDA and the public health and welfare of the City of Brooklyn Center to authorize the EDA Executive Director to negotiate a purchase agreement for the sale of the property to Twin Cities Habitat for Humanity for one dollar ($1.00), with the additional terms of such purchase agreement to be subject to the further review and acceptance by the EDA. BE IT FURTHER RESOLVED that the EDA hereby authorizes a public hearing to be held on May 9, 1994, at 7:00 p.m. in the Brooklyn Center City Hall Council Chambers regarding the proposed sale of property described herein to Twin Cities Habitat for Humanity and the provisions of such sale. BE IT FURTHER RESOLVED that the Executive Director is hereby authorized and directed to publish the attached Notice of Public Hearing in the City's legal newspaper on April 20, 1994. Date Todd Paulson, President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. CITY OF BROOKLYN CENTER Camcil Meeting Date 4/111% Agenda Item Number s 6 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION AUTHORIZING SUBMITTAL OF AN APPLICATION FOR FUNDING UNDER THE 1994 MINNESOTA CITY PARTICIPATION PROGRAM (MCPP) DEPT. APPROVAL: Tom Bublitz, Community Deve o ment Specialist MANAGER'S REVIEW/RECONMENDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached X ) The Minnesota City Participation Program (MCPP) is a mortgage program offered through the Minnesota Housing Finance Agency (MHFA) for first -time home buyers. Through the MCPP, the MHFA sells bonds on behalf of cities participating in the program to obtain a pool of money for mortgage funds. The interest rates on these mortgages are typically 1 /z to 2 percentage points below market mortgage interest rates. In 1992 and in 1993, the City of Brooklyn Center participated in the MCPP and was able to offer first -time home buyers a 7.10% interest rate in 1992, and a 6.125% and subsequently 6.85% interest rate in 1993. The way the program works is that a specific allotment of mortgage funds are set aside for each of the cities participating in the MCPP. The mortgage funds are set aside for a period of six months and if they are unused at the end of six months, the unused portions are folded into a statewide pool from which all cities can draw upon. In both 1992 and 1993, the City of Brooklyn Center exceeded its original allocation and used funds from the pool. In 1992, the City's allocation was $2,187,157, and the actual mortgage funds used were $2,211,025. As of April 5, 1994, the City of Brooklyn Center has used $1,785,544 in mortgage funds, which is in excess of our $1,473,232 original allocation. By exceeding the allocation in both 1992 and 1993, it demonstrates a strong interest in both the first -time home buyer program and single - family homes in the City. In order to apply for the program for 1994, the City, through the EDA, must submit an application identifying local housing needs relative to the program. A copy of the application request is included with this memorandum. The amount of funds requested for 1994 is $3,700,000, which will provide approximately 50 mortgages at an average mortgage of $74,000. The maximum amount of mortgage funds cities can apply for is $4,000,000. In both 1992 and 1993, the City's original allocation request was reduced because of the number of cities participating in the program. In 1992, 37 Minnesota cities participated in the program and in 1993, 60 cities participated in the program. The popularity of the program is likely to increase, and this year we may even see more ® cities applying for funding. This means that more cities will be competing for the approximately $40,000,000 in funding tatewide which will result in a decrease in our requested allocation g q amount. Our allocation request will likely be cut at least in half, but if the program operates as it has in the last two years, the City will be able to draw upon dollars remaining the statewide pool and thereby increase its use of funds beyond the allocated amount. After the individual cities' allocations are determined by the Minnesota Housing Finance Agency, cities will be required to submit an application deposit equal to one percent (1 %) of its allocation. This application deposit will be returned in full to the cities upon sale of the bonds by the MHFA. Cities will also be required to submit a processing fee to the Department of Revenue, used to process the allocations and this fee is non - refundable. The amount of the processing fee is $20 per $100,000 of bond allocation. If the EDA were to receive its total requested allocation of $3,700,000, the processing fee would be $740. It is, however, unlikely any of the cities will receive their requested allocation and the actual processing fee will likely be half of this amount. The mortgage loans under the program are originated by local lenders, and they are required to execute contracts with MHFA and also to pay a fee to participate in the program. Last year's participating lenders included Marquette Bank Brookdale, Bell Mortgage Company, Norwest Mortgage, Inc., Investors Bank and Firstar Home Mortgage Corporation. For 1994, in addition to the lenders listed in the previous sentence, FBS Mortgage, Inland Mortgage Corporation and C. U. Mortgage Services, Inc. have requested to be a designated lender in the program. • As evidenced by the usage of the program in 1992 and 1993, the program has been very successful for Brooklyn Center. More and more realtors area becoming aware of the program, and staff receives calls virtually every day from realtors and potential buyers interested in the program. The only direct cost to the City for participating in this program is the processing fee, staff time involved in working with the program and any additional marketing, such as newspaper ads, etc., that the City would choose to do. Included with this request form are several attachments relative to the program, including: 1. Resolution Authorizing Submittal of an Application for Funding Under the Minnesota City Participation Program (MCPP); 2. The proposed MCPP application and letters of intent to participate in the program from lenders. It should be noted that even though not all letters from the lenders have been submitted, staff anticipates all the lenders from last year's program to participate in the 1994 program; and 3. Brochures from last year's MCPP. RECOMMENDATION: Staff recommends approval of Resolution Authorizing Submittal of an Application for Funding Under the Minnesota City Participation Program (MCPP). xe � RM Your H ome ms ,a Recd. .............. Cdl r U Thda Let us help make your dream of home ownership come true in one of our neighborhoods. For more information, contact your 1` local participating lender or city office listed on the insert. Or call the MHFA toll free at 296 -7613 in the Twin Cities or R s x �N 1- 800 - 657 -3802 outside of the Twin Cities' kph area* We'll be glad to help. is� Y41 -f *Telecommunications Device for the Deaf (TDD): (612) 297 -261 , ,'c�,r ���✓ This material will be made available in alternative F format upon request. Offered in cooperation with " m MINNESOTA HOUSING FINANCE AGENCY f �t ©1993 Minnesota Housing Finance Agency fi* Is Printed on recycled paper. EQUAL rausi "G � a i Please recycle J LEND cy 9/93 t z i ins' f W 6R Hdp You Own A It's time for your dreams to become reality. Wide variety of homes qualify. We can help you buy your first home right Many types of homes are acceptable for a here in town. mortgage under our program. Check the insert Our low- interest loans mean purchasing for home purchase price limits and other a home won't break your budget. This is a property guidelines. All homes must be totally mortgage program to help local people just like completed, in good repair, and meet usual you purchase their first home. mortgage underwriting requirements. Below market interest rates and 30 -year mortgages are now available to qualified Straightforward mortgages. first -time home buyers. Mortgages under the program are Loan requirements are simple. straightforward. They are locally administered To apply, you just need to answer "Yes" exclusively for this community's citizens: to the following: • Your mortgage will be a fixed- monthly YES payment, 30 -year, FHA, VA, FmHA, ire you afirst -time home buyers? El conventional, or uninsured conventional loan. • You apply for the loan at a local participating nave you maintained good credit? ❑ lender. • Do you meet income requirements • You a normal closing osts mortgage El in the insert? insurance premiums, and fees . • Do you have a signed purchase Minimum down a ent ranges from zero agreement? El • percent to five percent of the purchase price, • Will the home be your principal depending on the type of mortgage loan. residence within 60 days of • Loans have limited assumabili mortgage closing? El - Entry cost assistance can provide up to $2,500 • Can you provide federal income tax toward required down a ent and closing returns for the past three years? ❑ costs, and monthly payment assistance of u to $120 per month is available from the Minnesota Housing Finance Agency (MHFA) Homeownership Assistance Fund for eligible borrowers (see insert). 1Being a "first -time home buyer" means that you have not owned a home in which you resided during the past three years. I d L, t M. �1 From Dreams To Reality. . The Biooklyn Center Mortgage Program is making your first home affordable with our new low- interest mortgage loans. Brooklyn Center mortgage guidelines. Here's what you need to know: • It is designed to help first -time home buyers. • The interest rate is an attractive 6.85% with 1 discount points to be paid by the seller (an annual percentage rate of 7.73 %). • You may select an existing home up to a maximum purchase price of $85,000. • Your maximum adjur-ted income may be no more than $39,680 annually. Additional help from the Homeownership Assistance Fund. To assist you further, extra help is avail- able for entry cost (downpayment and closing costs) assistance and monthly payment assistance through our Homeownership Assistance Fund (HAF). Here's how it works: • HAF may be available to you if your maximum adjusted household income does not exceed $28,000 (entry cost assistance only) and $26,000 (monthly and /or entry cost assistance). The amount of HAF assistance for which you may be eligible depends upon your adjusted income and the nature of your home purchase. • HAF is an interest -free, second mortgage which you will repay on a graduated basis. • You must be approved for a mortgage under the Brooklyn Center Mortgage Program to be eligible for HAF. Loans available in town. To obtain more information about this pprogram, contact Karen DuCharme at Marquet {e Sank Brookdale, 5620 Brooklyn Blvd., Brooklyn Center, MN 55429, (612) 561 -2530 or Bob Keyes or Bob Strandell at Bell Mortgage, 3 g ge, 62 5 Earle Browne Dr., Brooklyn Center, MN 55430, (612) 560 -1880, or Gary Boylan at Norwest Mortgage, Inc., 7378 No. Kirkwood Court, Maple Grove, MN 55369, (612) 424 -1400, or Erin Ryan at Investors Bank, 1730 Plymouth Road So., Ste 301, Minnetonka, MN 55343, (612) 542 -3000, or Mike Welch at Firstar Home Mortgage Corp., 6200 Shingle Creek Pkwy., Brooklyn Center, MN 55430, (612) 566 -7767, or Ion Peterson at FBS Mortgage Corp., 200 Coon Rapids Blvd., Suite 200, Coon Rapids, MN, 55433, (612) 786- 0466. 1 Annual percentage rate combines the interest rate, loans fees and her costs of obtaining the loan into a single feature. This shows .ne true annual costs of borrowing so that it may be compared with other loan programs. 2 Determine approximate "adjusted" income by subtracting $2,000 for each household member who will v ' ll live m the home from your current gross annual household income. This brochure is not an offer to enter into an interest rate or discount point agreement, and such an offer may only be made in compliance with the provisions contained in Minnesota Statute 47206, subd. 3 and 4 (1987 supp). Offered in cooperation with MINNESOTA HOUSING FINANCE AGENCY ©1993 Minnesota Housing Finance Agency 12/93 A Printed on recycled paper. ECMAL HOUSING �� Please recycle. LENDER APPLICATION FOR FUNDING MINNESOTA HOUSING FINANCE AGENCY 1994 MINNESOTA CITY PARTICIPATION PROGRAM (MCPP) I. ELIGIBLE ORGANIZATION A. NAME AND ADDRESS OF ORGANIZATION Economic Development Authority City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 B. NAME AND PHONE NUMBER OF CONTACT PERSON Contact Name: Tom Bublitz Phone Number: 569 -3433 C. REPRESENTATIVE TO BOND ALLOCATION MEETING Tom Bublitz D. TYPE OF ORGANIZATION Economic Development Authority (EDA) E. AMOUNT OF FUNDS REQUESTED AND THE ESTIMATED NUMBER OF LOANS TO BE PROVIDED Amount of Funds Requested: 3.7 million Estimated Number of Loans: 50 F. INFORMATION ON ANY UNUSED MORTGAGE REVENUE BOND (MRB) OR MORTGAGE CREDIT CERTIFICATE (MCC) RESOURCES STILL AVAILABLE IN THE CITY OF BROOKLYN CENTER (NON - NMFA), There are currently no Mortgage Revenue Bond (MRB) or Mortgage Credit Certificate (MCC) programs (non -MHFA) offered or available in the City of Brooklyn Center. -1- I U. ORIGINATING LENDER Several lenders have agreed to participate in Brooklyn Center's program. A confirmation g P P Y P g letter from each lender requesting to participate is included with this application. The lenders requesting to participate in the 1993 MCPP for the City of Brooklyn Center are: Marquette Bank, Brookdale; Norwest Mortgage, Inc.; Bell Mortgage Company, Inland Mortgage Corporation, Investors Savings Bank, Wayzata, Firstar Home Mortgage, FBS Mortgage Corporation and C. U. Mortgage Services, Inc. III. HOUSING PLAN In 1982, the City of Brooklyn Center adopted the City's comprehensive plan, which included a housing plan entitled, "PROVISIONS OF THE BROOKLYN CENTER COMPREHENSIVE PLAN ADOPTED AS THE CITY'S HOUSING PLAN IN ACCORDANCE WITH MINNESOTA STATUTES 462C ". Since the 1982 Housing Plan was adopted, the City has adopted two new housing plans, one entitled, "The Brooklyn Center Housing Market: A Study of Trends and Their Impact on the Community" prepared by the Maxfield Research Group, Inc., and one entitled, "Brooklyn Center Housing Implementation Plan" prepared by Publicorp, Inc. The Maxfield Study was adopted by the Brooklyn Center City Council in 1989, and the Brooklyn Center Housing Implementation Plan was adopted in 1990. The information presented in this application for funding will include elements of all three plans with relevant updates of housing data. The description of the housing needs identified in the plans will focus on single family housing. Additionally, complete copies of all three plans are included with this application. A. DESCRIPTION OF THE CITY OF BROOKLYN CENTER'S PRINCIPAL HOUSING NEEDS A general statement of the City of Brooklyn Center's housing needs is provided by the housing study prepared by the Maxfield Research Group, Inc. In this study, the goals are "to study the current image and condition of neighborhoods in the community, and to assess the impact of demographic and housing market trends on the vitality of each neighborhood. The objective of the study was to identify areas where trends are negatively influencing the long term potential of a particular neighborhood or sub - neighborhood, as well as to provide strategies for strengthening the livability of neighborhoods and identify goals and objectives the City can use to meet the changing housing needs of existing and future residents. " -2- I A summary of the "changing housing needs of existing and future residents" include the following components which are contained in the City's housing plans. 1. NEED FOR THE CITY OF BROOKLYN CENTER TO STAY COMPETITIVE FOR FIRST TIME HOME BUYER MARKET The Maxfield Study describes the shrinking first time home buyer market by pointing out "from 1980 to 1990, the number of persons aged 18 to 24 will shrink by fifteen percent (15 %), and the number of persons aged 14 to 17 will shrink by twelve percent (12 %). These two groups will be the major market for both entry level rental housing and smaller, more modest, single family homes over the next twenty years. " The Maxfield Study states further that: "In order to remain vital, Brooklyn Center will need to be able to compete for entry level homeowners, who may find it more desirable to purchase a modest, but new home in areas such as Anoka, Champlin, Brooklyn Park, Coon Rapids or Maple Grove, where affordable, newer starter homes are still available." Table 1 on the in the list of attachments shows a demographic profile of the shrinking first time home buyer market. The Minnesota Cities Participation Program (MCPP) would provide a needed tool to assist the City of Brooklyn Center to remain competitive in the first time home buyer market. 2. NEED TO MAINTAIN REHABILITATE AND REMODEL AGING HOUSING STOCK Census data shows that, of the approximately 11,000 housing units in Brooklyn Center, 49% had been built between 1940 and 1959. Another 31 % were built during the 1960s, and 17.6 % during the 1970s. Table 2 in the list of attachments shows the age of the housing stock in Brooklyn Center and several surrounding communities. The need for a variety of efforts to provide financing programs, including loans and grants, to provide a source of funds to accomplish single family rehabilitation and remodeling is addressed in all of the City's housing plans. 3. NEED FOR SINGLE FAMILY REDEVELOPMENT THROUGH NEW HOME CONSTRUCTION The Maxfield Study points out the need to "remove any deteriorating -3- housing, or housing in areas where the land could be better utilized by buying back homes as they come up for sale." The Maxfield Study also emphasizes the need to construct single family homes in the areas cleared of deteriorated housing, and that "new, single family homes should be designed to complement existing housing, but with designs geared to today's lifestyles." 4. NEED TO PROMOTE HOME OWNERSHIP IN THE COMMUNM The increasing difficulty of potential first time home buyers to afford to buy a home is explained in the Maxfield Study by the following: "According to a survey by Chicago Title and Trust Company, national trends show that persons who bought homes in 1988 are making larger mortgage payments, an average of 32.8 % of family income, compared to 29.3 % in 1987. Also, first time buyers are paying a larger chunk of their income (34.8%) than repeat buyers (31.4%). These trends confirm that the cost of buying a home is becoming prohibitive for younger buyers." Additionally, both the Brooklyn Center Housing Implementation Plan and the City's 1982 Housing Plan point out the need to provide home ownership opportunities, especially for persons of low and moderate income. 5. NEED TO PROMOTE HOUSING MAINTENANCE THROUGH CONTINUED CODE ENFORCEMENT All three of the City housing plans emphasize the need to continue strong housing maintenance code enforcement to assist in maintaining the City's housing stock. 6. NEED TO ASSURE NEIGHBORHOOD PRESERVATION AND RENOVATION All three City housing plans stress the need for neighborhood preservation. This area addresses a wide variety of needs that encompasses most of the other identified needs and adds other needs such as providing for and financing public improvements (streets, curb and gutter, etc.), resident involvement in neighborhood issues and programs and neighborhood promotion. -4- B. DATA SOURCES AND METHODS USED TO DETERMINE THE DESCRIBED NEEDS Development of City housing plans relied on a wide variety of data and information, including census data, Metropolitan Council reports and specific studies prepared by professional consultants which address housing trends throughout the Twin Cities metropolitan area. Primary research was also used in developing the plans, including personal inspections of all neighborhoods, interviews with local realtors, rental property managers, local lenders and other individuals who have a stake in trends impacting housing conditions. Data was also collected through City records and City staff interviews and research including assessment department records, building inspection records and research done by staff including an inventory conducted through a windshield survey of single family housing conditions. C. THE SPECIFIC PLAN DEVELOPED TO MEET IDENTIFIED HOUSING NEEDS INCLUDING THE RESOURCES TO BE ACCESSED AND THE METHODS USED TO CARRY OUT THE PLAN The Maxfield Research Study focused on identifying the primary housing needs of the City and the relative housing market position of the City. The 1982 Housing Plan and the Housing Implementation Plan adopted in 1990 focused on specific plans and recommendations for meeting the identified housing needs. Plan elements and recommendations include the following: 1. CONTINUE SPOT RENEWAL PROGRAM This is the program that provides for acquisition and clearance of deteriorated single family properties and redevelopment of the properties with single family homes. The City has acquired and cleared nine properties under this program to date, and plans two to three additional acquisitions for 1994. 2. WORK WITH AVAILABLE PROGRAMS (MHFA AND HUD) WHICH PROVIDE FUNDS FOR REHABILITATION LOANS AND GRANTS AND HOME MORTGAGES a. The City currently operates a deferred loan (grant) program with CDBG funds. The program provides up to $15,000.00 per home for home rehabilitation, including replacement and rehabilitation 0 -5- of mechanical systems, electrical, plumbing, windows, doors, exteriors, etc. b. The City was one of the four test market cities for the Minnesota Housing Finance Agency's Purchase Plus Program. C. The City makes use of the MHFA Home Energy Loan program and Home Improvement Loan program (fix -up fund). Those persons who do not qualify for the City's CDBG deferred loan program are referred to these programs. d. The Brooklyn Center EDA was recently awarded a $275,000 grant for neighborhood redevelopment under the MHFA's Community Rehabilitation Fund Program. e. The Minnesota Cities Participation Program would provide another needed element to programs currently underway in the City. 3. CONTINUATION OF HOUSING MAINTENANCE ENFORCEMENT Both the 1982 and current Housing Implementation Plan emphasize the need to maintain a high level of enforcement under the City's existing housing maintenance ordinance. A staff housing maintenance enforcement team consisting of representatives from the Community Development Department, Building Inspection staff, Police Department and City Prosecutor's Office work together to address non - routine and serious enforcement problems. Building Inspection staff respond to routine housing maintenance complaints and provide a day -to -day enforcement of the Housing Maintenance Ordinance. Additionally, as recommended by the Housing Implementation Plan, the City's Housing Commission is reviewing the Housing Maintenance Ordinance and considering alternatives for additional enforcement tools which could be added to the City's enforcement efforts. 4. NEIGHBORHOOD RENEWAL AND PRESERVATION PROGRAM This element of the plan addresses many program elements that combine to afford neighborhoods opportunities to develop a comprehensive approach to maintaining and improving their neighborhoods. -6- The Housing Implementation Plan recommends the City work with community residents to assist in planning and implementing a neighborhood revitalization strategy. Additional elements include: Identification of target areas for concentrated activity, offering design services to neighborhood residents interested in property improvements and assisting in the organization of a homeowner's association to maintain housing. The City is pursuing these recommendations through the formation of a neighborhood housing advisory committee. This group has been formed with residents of the City's southeast neighborhood. This Southeast (Earle Brown) Neighborhood Advisory Committee is working towards a neighborhood renewal and preservation program by developing an action agenda with specific recommendations and projects including a neighborhood housing newsletter, sponsoring neighborhood projects such as participation in the Metro Paint- A -Thon and other activities related to housing maintenance and neighborhood improvement. 5. EXTERIOR MAINTENANCE ASSISTANCE PROGRAM The 1982 Housing Plan calls for an exterior maintenance assistance program. The City's 1994 CDBG Program allocates $9,000.00 to continue a program started in 1992. Projects under this new program will be limited to exterior maintenance, such as painting, siding, roof repair, sidewalk and step repair for persons 60 years of age and older or for disabled persons. D. DESCRIPTION OF ANY TARGET AREAS TO BE ADDRESSED IN THE PLAN The southeast (Earle Brown) neighborhood is the City's oldest. The neighborhood is bounded by Minneapolis on the south, the Mississippi River on the east, I -94/I -694 on the north and Shingle Creek on the west. The area's predominant land use is single family residential. The Maxfield Study indicates that approximately twenty -five percent (25 %) of the area's single family homes were constructed prior to 1950, and the remainder were built in the 1950s or early 1960s. The area's housing style varies greatly. Located within the area are farmhouses, post -war bungalows, and two story houses built in the 1980s. The City's southeast neighborhood has been targeted as the neighborhood to focus on for neighborhood preservation and renewal. More MCPP loans were -7- generated in the southeast neighborhood in 1992 than in any of the other 5 city neighborhoods. The 1993 MCPP activity was also very high in the southeast neighborhood. E. PLAN IWLEMENTATION AND ADMINISTRATIVE CAPACITY OF CITY The implementation of the City's housing plan will be undertaken by the Economic Development Authority for the City of Brooklyn Center. In addition to EDA authority, the Brooklyn Center EDA has all powers granted to HRAs by State statute. Additionally, the City's Housing Commission and Earle Brown Neighborhood Advisory Committee will assist the EDA in implementation of the housing plan. City staff available to implement the housing plan include the Community Development Director and Community Development Specialist. Additionally, as the needs of specific projects may demand, other City staff members are called upon to provide assistance, including the Building Inspection staff, Assessing and Engineering departments. Private consultants are also utilized in specialized areas of plan implementation, such as relocation advisory services. The City of Brooklyn Center has been actively involved in administering housing programs for well over a decade, and has implemented numerous housing programs and projects, both single family and multi- family housing. With regard to specific programs providing for single family mortgages, the City of Brooklyn Center, along with the cities of Columbia Heights, Robbinsdale and Moorhead jointly developed and offered a single family mortgage program for first time home buyers in 1982. In this program, the City of Brooklyn Center issued $2,750,000.00 in single family mortgage loans. IV. PROGRAM SPECIFICS A. HOW PROGRAM FITS INTO COMPREHENSIVE HOUSING PLAN The ability to offer low interest mortgage loans for single family homes is an important element in the overall City housing plan. It provides a necessary tool to assist the City in keeping its housing stock competitive with housing in neighboring communities and outer ring suburban housing. The first time home buyer loan program will also help to achieve a second feature of the housing plan, which is to encourage home ownership by developing financing programs to facilitate home ownership, especially for persons of moderate and low income. is -8- Finally, the City plans to use a very limited number of loans for new construction where new construction replaces a structurally substandard structure. Presently, the City owns five lots where substandard lots were removed under the City's spot renewal program, and anticipates clearing two to three more in 1994. It is anticipated two loans could be made for new construction. B. BORROWER INCOME LE�RTS To provide the greatest possible opportunity for the sale of homes under the first time home buyer program, the City of Brooklyn Center will use the maximum household income of $39,680.00 to qualify potential borrowers. C. HOUSE PURCHASE PRICE LIMITS The house price limits for existing single family homes will be $85,000.00 and $95,000.00 for two family homes, the MHFA limits for the Twin Cities metropolitan area. For new construction, the house price limit will be $95,000.00, as per MHFA requirements. D. TARGETING OF SPECIFIC POPULATION GROUPS No specific target population groups will be targeted under the program. E. TARGETING OF AREA OR HOUSING STOCK The program will be open to all neighborhoods in the City. However, special marketing efforts will be made in the southeast neighborhood, including the neighborhood designated as the target area for the rental to owner program. Additionally, the City intends to use a small portion of the funds (up to 2 loans) for new construction on properties where new construction replaces a structurally substandard building. F. OPTIONAL PROGRAM ENHANCEMENTS No additional program enhancements will be offered in the 1994 Minnesota City Participation Program for Brooklyn Center. G. SCHEDULE FOR RELEASE OF FUNDS The schedule for the release of funds will be immediate for the six month set aside period. is -9- H. WHY THIS PROGRAM IS A GOOD CANDIDATE FOR FUNDING The City f Brooklyn Center believes the proposal for participation in the tY Y P P P P Minnesota City Participation Program will be a valuable and successful financing tool for neighborhood revitalization for numerous reasons, including the following: i 1. The City of Brooklyn Center had one of the highest rates of loan originations for metropolitan cities participating in the MCPP in 1992 and 1993. In 1992, the City exceeded its original allocation of $2,187,157 in MCPP funds. 1993 records indicate Brooklyn Center used $1,785,544 in MCPP funds as of April 6, 1994, which is in excess of the City's original allocation of $1,473,232. 2. The housing in the City of Brooklyn Center is very affordable, and over nine percent 90 % of the single family homes are within the MHFA h' Pe ( ) g Y target values for the program. A breakdown of the number of homes in the MHFA target range is included in the list of attachments at the end of this application (Table 3). 3. The Minnesota Cities Participation Program meets an identified need in the City's housing plan which will provide additional opportunities for home ownership. 4. The age of the City's population shows a potential for considerable turnover in single family housing. A breakdown of the age of City residents is included in the list of attachments (Table 4). 5. Employment base remains strong in the City so that housing location near employment will be a factor in home sales. V. ECONOMIC VIABILITY DESCRIBE WHY YOU FEEL THERE IS SUFFICIENT DEMAND IN YOUR MARKET TO USE THE XMNNESOTA CITIES PARTICIPATION PROGRAM FUNDS REQUESTED. INDICATE THE DATA SOURCES USED TO PROJECT DEMAND A. The City of Brooklyn Center exceeded its allocation amount for mortgage loans under the 1992 and 1993 MCPP. With the addition of more participating lenders in the program, the City anticipates an increased usage of the MCPP for the 1994 period. B. One of the indicators of demand for the Minnesota Cities Participation Program in the City of Brooklyn Center is the value of single family homes in the City. Table 3 in the list of attachments shows a summary of the number of single family homes valued at $85,000.00 or less and the number of duplexes valued at $95,000.00 or less. Approximately ninety-one percent (91 %) of the single family homes in the City of Brooklyn Center are valued within the price range eligible for the Minnesota Cities Participation Program. C. Real estate sales in the City of Brooklyn Center currently average approximately 325 homes per year. Assuming an average $74,000.00 purchase price, $3,700,000.00 in mortgage funds would provide fifty (50) loans or approximately fifteen percent (15 %) of the average total for the year. The source of this real estate sales data is from the City's assessing department and is based on actual single family home sales as recorded by Hennepin County. D. Table 4 in the list of attachments shows a breakdown of the age of the Brooklyn Center population according to 1990 census data. The data shows that over twenty-four percent (24 %) of Brooklyn Center's population is fifty -five (55) and over, which is an indication that many of these people will be "turning over" their houses as many change to other living arrangements. E. Over the past few months, the City staff has received numerous calls from individuals who are apparently "shopping" cities to find out which city can offer the best deal for a single family mortgage. As indicated previously in this proposal, the City of Brooklyn Center is in competition with other first ring suburbs and outlying suburbs for starter homes. The Minnesota City Participation Program would provide a needed tool to address the requests of these individuals looking for the best mortgage available. F. In an interview with a mortgage loan officer from Marquette Bank Brookdale the need for additional first time home buyer funds from a local source became apparent. Presently, Marquette Bank is authorized to fund first time home buyer loans under the Minnesota Mortgage Program. The mortgage loans under this program cannot be restricted to the City of Brooklyn Center. According to Marquette Bank Brookdale, requests for mortgage funds under the Minnesota Mortgage Program exceed funds available in the program. The Minnesota City Participation Program would help to address this unmet need for additional mortgage funding. -11- VI. NEW CONSTRUCTION REQUIREMENTS The Brooklyn Center EDA is proposing to use the Minnesota City Participation Pro Y P pos g ty ram P g for new construction under Category B, "New Construction to Replace a Structurally Substandard Structure or Structures." The Brooklyn Center EDA's program involves limited and selected use of the new construction provisions of the MCPP. The Brooklyn Center EDA currently owns five single family lots in the City. The lots are available for redevelopment and were previously occupied by substandard single family dwellings acquired and cleared by the Brooklyn Center EDA through its Scattered Site Redevelopment Program under the Slum and Blight Clearance provisions of the Urban Hennepin County Community Development Block Grant Program. Additionally, the Brooklyn Center EDA anticipates acquiring and clearing additional substandard properties in the City during 1994, and would like to access MCPP funds for these additional properties if the redevelopment project timeline matches the availability of MCPP funds. VII. SIGNATURES This application for funding for the Minnesota City Participation Program (MCPP) is submitted by the undersigned with the full knowledge and consent of the governing body of this organization or City and is, to the undersigned's best knowledge, accurate in all details. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER Date: By: Todd Paulson EDA President By: Gerald G. Splinter EDA Executive Director -12- LIST OF ATTACHMENTS 1. TABLE 1 - Population distribution by age 2. TABLE 2 - Age of housing stock - Brooklyn Center and area communities 3. TABLE 3 - Number and assessed value ranges of single family and two family homes 4. TABLE 4 - Age breakdown of Brooklyn Centerpopulation (1990 census) 5. TABLE 5 - Total dwelling units in the City 6. Confirmation letters from participating lenders -13- 1 1 DISTn nrION BY AGE Seven- County Twin Cities Area 1980 -2010 Change Change Change Group Age 1980 1990 2000 2010 1980 -1990 1990 -2000 2000 -2010 Youth 0 -19 632,224 614,916 616,770 552,240 (17,308) 1,854 (64,530) Young Adult 20 -24 204,564 171,912 147 167 (32,652) (24,072) 19,720 Adult 25 -34 374,368 425,372 332,640 330,400 51,004 (92,732) (2,24 Middle -Age 35 -49 330,223 491,492 600 516 161 109 (83,760) Empty Nester 50 -64 256,289 268,888 355 502 12 86,852 146,940 Young Senior 65 -74 105,479 130 133,980 158,120 24 3,944 24,140 Old Senior 75+ 82,726 101,384 122,430 132,160 18,658 21,046 9 Total 1,985,873 2,204,000 2 2,360,000 218 106,000 50,000 Sources: .1980 U.S. Census 1986 Metropolitan Council Estimates TABLE, 2 AGE OF ►HOUSING STOCK BROOKLYN CENTER AND AREA COMMUNITIES 1980 ----------------- - - - - -- Year Structure Built ------------------ Year-Round 1970 -1980 1960 -1969 1940 -1959 1939 - Earlier Units No. Pct. No. Pct. No. Pct. No. Pct. Developed Area BROOKLYN CENTER 10,978 1 17.6 3,407 31.0 5,420 49.4 219 2.0 Crystal 9,093 798 8.8 2,498 27.5 5,360 58.9 437 4.8 New Hope 7,837 1,754 22.4 4,948 63.1 1,080 13.8 55 0.7 Osseo 1,040 206 19.8 266 25.6 379 36.4 189 18.2 Robbinsdale 5,798 582 10.0 861 14.8 2,915 50.3 1,440 24.8 Camden (Mpls.) I (N/A (N /A (N /A (N /A (N /A (N /A (N/A (N /A (N /A Subtotal 34 5,272 15.1 11,980 34.5 15,154 43.6 2,340 6.7 Developing Area Maple Grove 6,764 5,383 79.6 942 13.9 281 4.1 158 2.3 Brooklyn Park 15,803 7,625 48.2 5,643 35.7 2,307 14.6 228 1.4 Dayton (part) 606 360 59.4 98 16.2 65 10.7 83 13.7 Champlin 2,805 075 52.6 827 29.5 350 12.5 153 5.4 Subtotal 25 14,843 57.1 7,510 28.9 3,003 11.6 622 2.4 Hennepin County 379 77 20.4 77,896 20.5 112 29.6 111 29.4 Twin Cities Seven- County Metropolitan Area 681,627 190,422 27.9 161,749 23.7 200,031 29.3 196,215 28.8 �..._.. ,. C hi. .., .. to n n. " „F n-.1 nt i. and "nw i nn i ORO TABLE 3 NUMBER AND ASSESSED VALUE RANGES OF SINGLE FAMILY HOMES IN BROOKLYN CENTER Number of Assessed Value Single —Family Homes $80,001. to $85,000. 611 $70,001. to $80,000. 3,113 $60,001. to $70,000. 2,398 $50,001. to $60,000. 394 $40,001. to $50,000. Under $40,000.* 76 TOTAL: 6,671 *Note: Many of these properties are lots. I NUMBER AND ASSESSED VALUE RANGES OF TWO FAMILY HOMES (DUPLEXES) IN BROOKLYN CENTER Number of Assessed Value Two Family Homes $95,000 + 46 $85,001. to $95,000. 6 $75,001. to $85,000. 1 Under $75,000. 0 TOTAL: 53 I TABLE 4 AGE OF BROOKLYN CENTER RESIDENTS (1990 CENSUS) Pil/P12. Ract by Sex by Age (Universe: Persons) ----- - - - - -- Total ----- - - - - -- I Whitc DIack American lndlan/lsklnxVAlcut As1. (AhcrRacc Ace In )cars PuN its ZL31e L>;n>slc Mak Lmdc mala Lsmale W: Lsmalc Mak ftmi LL11c LSImIr Under 1 371 215 156 167 131 32 16 4 2 9 4 3 3 1 and 2 933 464 409 373 382 56 59 5 8 18 14 12 6 Sand 4 858 449 409 371 325 48 55 6 3 18 21 6 5 5 435 217 218 173 •176 30 34 1 1 10 5 3 2 6 369 178 191 145 158 14 23 6 1 11 8 2 1 7109 1157 581 576 497 485 54 54 8 6 14 22 8 9 10 and 11 728 385 3.13 317 285 40 25 6 5 16 25 6 3 12 and 13 694 346 348 293 294 30 27 7 5 11 19 5 3 14 316 168 148 135 123 20 18 3 2 6 3 4 2 15 326 174 152 148 129 13 13 2 5 10 5 1 0 16 339 166 173 140 144 19 13 0 3 6 13 1 0 17 377 185 192 162 168 11 12 2 3 9 9 1 0 18 340 181 159 159 145 13 4 1 2 8 4 0 4 19 380 198 182 179 154 10 15 1 5 5 6 3 2 20 410 184 226 159 199 13 16 4 3 7 8 1 0 21 392 198 191 175 166 11 17 3 1 8 7 1 3 221024 1327 6011 723 541 623 35 62 6 8 21 24 1 6 25 to 29 2761 1386 1375 1278 1242 60 85 14 18 28 25 6 5 30 to 34 2611 1316 1295 1219 1155 60 89 10 19 19 23 8 9 35 to 39 2030 997 1033 899 950 49 47 12 12 29 21 8 3 10 to 44 1767 829 938 760 860 32 34 5 10 24 27 8 7 45 to 49 1515 725 790 686 748 20 17 7 10 9 15 3 0 50 to 54 1417 606 811 583 783 10 14 2 6 11 6 0 2 55 10 59 1781 807 974 790 948 10 13 3 6 3 5 1 2 60 and 61 707 343 361 333 358 4 2 2 1 4 3 0 0 62 to 64 1000 496 541 484 493 7 5 1 0 4 6 0 0 65 to 69 1339 6.13 696 633 680 5 7 1 1 2 7 2 1 70 to 74 960 432 528 421 521 8 1 1 0 2 5 0 1 7510 79 583 224 359 221 353 1 4 0 0 1 1 1 1 80 to 84 379 134 145 130 240 2 3 1 0 1 2 0 0 R5 and over 285 67 21 67 215 0 1 0 1 0 1 0 0 TABLE 5 TOTAL NUMBER OF DWELLING UNITS - CITY OF BROOKLYN CENTER TOTAL UNITS /PARCELS units parcels # HMSTD % HMSTD # NONHMS Single Family 7371 7371 6977 94.65% 394 Duplex 106 53 31 58.49% 22 Triplex 9 3 0 0.00% 3 Apartments 3225 231 5 2.16% 226 Condominiums 126 126 85 67.46% 41 Townhomes 622 622 5 14 82.64% 108 I Totals 11459 8406 7612 90.55% 794 Marq uetteBank U Broo kdale 5620 Brooklyn Boulevard Brooklyn Center, MN 55429 -3084 (612) 561 -2530 March 30, 1994 Tom Bublitz City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 RE: 1994 Minnesota City Participation Program (MHFA) Dear Mr. Bublitz, this letter shall serve as Marquette Bank Brookdale's intent to participate in i.e;:� Vw - V rt.;i�i i i't'vGit ti 11JIL C c i"v 7c7if, CJ i,ii CGIi "Ii i'ii.iflit y. .i 5 p g...-.... 1 i y Please note that any future correspondence relative to this program should be directed to the attention of Karen L. DuCharme. If you have any questions, please feel free to contact me at 569 -1458. Thank you. Sincerely, Karen L. DuCharme Mortgage Loan Officer ■ /k /® Norwest Mortgage, Inc. 0 NNNNN 530 France Place Office Building NORWEST MORTGAGE NN /01 3601 Minnesota Drive 1/N /I Bloomington, MN 55435 6121844 -2261 March 29, 1993 Mr. Tom Bublitz City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 RE: Minnesota City Participation Program Dear Mr. Bublitz: Norwest Mortgage would like to once again participate as a lender in the proposed 1994 City Participation Program for the City of Brooklyn Center. Norwest Mortgage has done extensive training on the MHFA programs and is very experienced with the "first -time home buyer" loans. If we are successful in being designated as an originating lender, we would want our Maple Grove office to be the contact for taking applications. Their address is: Norwest Mortgage, Inc. 7378 Kirkwood Court Maple Grove, MN 55369 Phone 9: 424 -1400 If you need further information, please contact Linda Arneson at 844 -2281. Sincerely, , Michael C. Chamberlain Sr. Vice President cc: John Roti, NMI Maple Grove Branch Area Manager Linda Arneson, R.O.S. BELL MORTGAGE COMPANY MORTGAGE BANKERS SINCE 1880 March 30, 1994 Mr. Tom Bublitz Assistant EDA Coordinator City of Brooklyn Center 6301 Shingel Creek Parkway Brooklyn Center, Mn. 55430 Dear Tom, Let this letter serve as a letter of intent for Bell Mortgage Company to originate mortgage loans for the City of Brooklyn Center under the Minnesota Housing Finance Agency's 1994 Minnesota City Participation Program. Our company is familiar with MHFA's first time homebuyer programs and is experienced in processing these types of loans. We understand we will be required to enter into a contract with MHFA as to program and loan origination requirements. We would request that application for loans under the MCPP be taken at our Brooklyn Center Office. The loan officer will be Bob Keyes, located at: Bell Mortgage Company 6235 Earle Brown Drive Brooklyn Center, Mn. 55430 Phone #560 -1880 Fax #560 -3003 If you have any questions, correspondence, etc. please direct everything to Barbara Cardinal (located at 3601 Minnesota Drive, Suite 550, Bloomington, Mn. 55435 - Phone# 893 -0865 - Fax# 897 -1892) as she will be coordinating the whole process. We appreciate the opportunity you have given us. Thank you. n erely i ichael A. annon President Bell Mortgage Company 1000 SHELARD PARKWAY, SUITE 500 • MINNEAPOLIS, MN 55426 • (612) 591 -1880 3601 MINNESOTA DRIVE, SUITE 550 • BLOOMINGTON, MN 55435 • (612) 893 -0865 6235 EARLE BROWN DRIVE BROOKLYN CENTER, MN 55430 (612) 560 -1880 9445 EAST RIVER ROAD COON RAPIDS, MN 55433 • (612) 767 -1880 FBS f Mortgage 0 Residential Mortgage Banking Residential Mortgage Banking 2550 University Avenue West P.O. Box 3550 Suite 300 16 Ninth Avenue North St. Paul, Minnesota 55114 Hopkins, Minnesota 55343 612 641 -3800 612 936 -2700 April 5, 1994 Tom Bublitz City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Dear Tom, Please accept this as our letter of intent for our participation in the 1994 Minnesota City Participation Program with the Minnesota Housing Finance Agency. We are pleased to participate in this program and look forward to working with the City of Brooklyn Center. The contact at FBS Mortgage Corporation will be: Jon Peterson FBS Mortgage Corporation 200 Coon Rapids Blvd., Ste. 200 Coon Rapids, MN 55433 (612) 786 -0466 We look forward to a mutually beneficial program. Sinc rely, Tricia Landers Program Coordinator cc: Jon Peterson Gene Aho, MHFA C. U. Mortgage Services, Inc. A Credit Union Service Organization February 3, 1994 Community Development Department City of Brooklyn Center - Administrative Offices 6301 Shingle Creek Parkway Brooklyn Center, MN 55430- Re: Minnesota Cities Participation Program To Whom it May Concern in Community Development: In a recent conversation with Edward Winesky of the Minnesota Housing Finance Agency, I was advised that the above captioned program parameters are to be mailed out to Minnesota communities this month for their consideration. Should your community elect to adopt this program, C.U.Mortgage Services, Inc., a Credit Union Service Organization, is interested in becoming a participating lender with your community. If applicable, please send application information to: Thomas Hayne C.U. Mortgage Services, Inc. 1935 West County Road B -2 Suite 165 Roseville, MN 55113 Should you have any questions, please feel free to call me at (612)631 -3111. Sincerely, /LctiL Thomas J. ayne Director of Sales and Marketing TJH /cls Making the dream of home ownership a reality" 1935 West County Road B-2 • Suite 165 • Roseville, Minnesota 55113 Phone (612) 6313111 • Fax (612) 6319609 • Rateline (612) 6319610 . Outside Turin Cities Area (800) 7665626 Inland Mortgage Corporation 5100 Gamble Drive Suite 470 St. Louis Park, Minnesota 55416 -1522 An lnvin Financial Company April 1,1994 Tom Bublitz Brookl n Center 6301 S�ingleCreek Parkway Brooklyn Center, MN 55430 Dear Mr. Tom Bublitz: Inland Mortgage Corporation would like to become one of your participating lenders under the Minnesota City Participation Program. Inland Mortgage Corporation with its home office in Indianapolis, Indiana has 42 offices in 15 states. There are four offices in the Twin City are; Bloomington, Burnsville, Roseville and St. Louis Park. Total production for 1993 was $4.2 billion, our servicing portfolio is at $8 billion. If acceptable, please request in writing to Michael Haley, Minnesota Housing Financing Agency, 400 Sibley Street, Suite 300, St. Paul, Mn 55101 to add us to their list. Inland Mortage has been a participating lender under the MHFA program for many years. For further information please contact myself at 612 -546 -1520. Yo s , om land Branch Manager /St. Louis Park 612 -546 -1520 612 546 1520 Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING SUBMITTAL OF AN APPLICATION FOR FUNDING UNDER THE 1994 MINNESOTA CITY PARTICIPATION PROGRAM (MCPP) WHEREAS, the Minnesota City Participation Program (MCPP) provides Minnesota cities with mortgage financing for first -time home buyers; and WHEREAS, the housing plans of the City of Brooklyn Center recognize the need for affordable housing opportunities for first -time home buyers of moderate and low income; and WHEREAS, the Minnesota City Participation Program will provide needed financing for first -time home buyers in the City of Brooklyn Center. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center as follows: 1. Staff is hereby authorized to submit the 0 application for funding under the Minnesota City Participation Program. 2. The Brooklyn Center EDA authorizes the submission of a proposal deposit of one percent (1 %) of the final allocation of mortgage funds for the City of Brooklyn Center under the Minnesota City Participation Program with the understanding the proposal deposit will be refunded upon the sale of the mortgage revenue bonds. The source of funds for the proposal deposit shall be from the EDA special operating fund. 3. The Brooklyn Center EDA authorizes the submission of a processing fee to the Minnesota Department of Finance to cover costs involved with processing the City's mortgage fund allocation under the Minnesota City Participation Program with the understanding that the fee to be charged will be $20 for each $100,000 in allotment provided and that the fee will be non - refundable and shall be appropriated from the EDA special operating fund. Date Todd Paulson, President EDA Resolution No. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted.