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NSP 2 Homebuyer Assistance Program guidelines

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					           HENNEPIN COUNTY

   Neighborhood Stabilization Program 2
NSP2 HOMEBUYER ASSISTANCE PROGRAM
     Program Description & Guidelines




                 October 26, 2011
                                  TABLE OF CONTENTS

Program Background ........................................................................... 1
Purpose of the Program Guidelines ........................................................ 1

I.       Marketing and Outreach............................................................. 2
II.      Borrower Eligibility .................................................................... 2
III.     Eligible Properties ..................................................................... 5
IV.      Ineligible Properties .................................................................. 8
V.       NSP2 Homebuyer Assistance Program Loan .................................. 8
VI.      Lenders ................................................................................. 10
VII.     Underwriting .......................................................................... 11
VIII.    Application Processing ............................................................. 11
IX.      NSP 2 Purchase Agreement Addendum ...................................... 12
X.       Summary of Typical Loan Process ............................................. 12
XI.      Reasons for Denial or Postponement of Loan Applications ............. 14
XII.     Appeals Procedure .................................................................. 14
XIII.    Subordination NSP2 Homebuyer Assistance Program Loan ............ 15
XIV.     Targeted Funding.................................................................... 15
XV.      Modification and Termination of the Program .............................. 15
XVI.     Reuse of Repaid Funds ............................................................ 15


EXHIBIT A                             NSP2 Target Area Maps
EXHIBIT B                             Lender Certification
EXHIBIT C                             Purchase Agreement Addendum
Background

The Neighborhood Stabilization Program 2 (NSP2) is funded by the U.S. Department of
Housing and Urban Development (HUD) under the American Reinvestment and Recovery
Act (ARRA) of 2009. The goal of NSP2 is to revitalize and stabilize communities.

Hennepin County and the City of Brooklyn Park received an allocation of NSP2, as part of a
Consortium Agreement with the City of Minneapolis. Hennepin County and Brooklyn Park
will use part of the NSP2 funding to directly assist homebuyers who purchase vacant,
foreclosed properties. Therefore, they created the Neighborhood Stabilization Program
Homebuyer Assistance Program (The Program).

The Program provides financial assistance for low, moderate and middle income
households to become homeowners in neighborhoods that have been impacted by the
high rate of foreclosure to assist with stabilization. The Program will provide financing to
assist buyers interested in purchasing foreclosed properties. The property must be located
within an identified target area. Administration of the Program in suburban Hennepin
County and Brooklyn Park will be done by Hennepin County Staff. The functions and
responsibilities of Hennepin County staff shall be in compliance with the U.S. Department
of Housing and Urban Development (HUD) NSP2 regulations as well as all Federal, State
and local nondiscrimination laws and with the rules and regulations governing Fair Housing
and Equal Opportunity in housing and employment.

Hennepin County shall not deny any family or individual the equal opportunity to apply for
or receive assistance under the NSP2 Homebuyer Assistance Program on the basis of race,
color, gender, religion, creed, national origin, age, familial or marital status, handicap or
disability, sexual or affectional orientation or reliance on public assistance.

Hennepin County’s office is accessible to persons with disabilities. The Minnesota Relay
Service and Hennepin County TTD/TTY line provides accessibility for the hearing impaired.

Loans provided under this program are considered special mortgages under the terms of
Minnesota Statute 58.13. A homeowner with a special mortgage must receive
counseling prior to the repayment of a special mortgage as part of a refinance.

Purpose of the Program Guidelines

The purpose of the guidelines is to establish requirements for carrying out the Program in
a manner consistent with the NSP2 requirements and the Community Development Block
Grant (CDBG) Program, as referenced in the Housing and Economic Recovery Act (HERA)
and the ARRA Act. Hennepin County is responsible for complying with all changes in HUD
regulations pertaining to NSP2. If such changes conflict with these guidelines, HUD
regulations will have precedence. Hennepin County reserves the right to amend and
adapt these Program guidelines, as needed, to comply with NSP2 requirements and
commitment timelines.
I.    Marketing and Outreach

      A.   The Program will be administered by:

                                     Hennepin County
                      Housing, Community Works and Transit Department
                                  701 Fourth Avenue South
                                         Suite 400
                                Minneapolis, MN 55415-1843

                      Main # (612)543-0046       Fax # (612) 348-2920
                                 hbamail@co.hennepin.mn.us

      B.   Hennepin County plans to conduct the required targeted outreach efforts
           through at least the following actions:

           1)      Develop an informational sheet/brochure;
           2)      Provide information to the Realtors Association;
           3)      Work with realtors and lenders to announce the programs and provide
                   training on the requirements;
           4)      Provide eligible homeownership counseling agencies with information
                   to make announcements at workshops, put information in their
                   newsletters and have the counselors make referrals;
           5)      Provide information to directors of the public housing agencies and
                   housing authorities that serve the target areas;
           6)      Provide information to the target cities to put on their websites and in
                   their newsletters;
           7)      Provide as a press release to newspapers covering the target areas;
                   and
           8)      Post information on Hennepin County website.

      C.   Funds will be on a first come first serve basis.

      D.   There will be two budgets for the Program. One budget will be set up for
           Brooklyn Park target area and one for the other eligible suburban Hennepin
           County target areas.

      E.   Funds will be reserved only when an eligible buyer has provided a purchase
           agreement on an eligible property. Funds are not firmly committed with an
           approval letter until ALL requirements have been met.

II.   Borrower Eligibility

      A.   Must be a U.S. Citizen or be a legal U.S. Resident (have legal immigration
           status).
      B.   The Program will be an “incentive” to households whose gross (income
           before any deductions) household income does not exceed one hundred
                                        Page   -2-
                NSP2 Homebuyer Assistance Program Guidelines and Description
         twenty percent (120%) of the area median income (AMI) for the
         Minneapolis/Saint Paul metropolitan statistical area as determined from time
         to time by HUD. In addition, if needed, the Program can also provide
         “affordability assistance” for households at or below eighty percent (80%)
         of the AMI. The amount of assistance needed will be determined by
         Hennepin County. The current household income limits, as of June 2011,
         are:

                 1        2         3          4        5        6        7        8
               Person   Person    Person     Person   Person   Person   Person   Person

     80%
               44,950    51,400   57,800     64,200   69,350   74,500   79,650   84,750
     limit

     120%      69,450    79,400   89,300     99,250   107,200 115,100 123,050 131,000
      limit


C.       Prior to approval of the assistance, income eligibility will be determined by
         Hennepin County using definition of income found at 24 CFR Part 5.609.
         Household income refers to current income that is projected for the next year
         from the date of the Certification Application, from all sources and before
         taxes and withholding, of all adults that will live in the housing unit. Gross
         income includes, but is not limited to salary, commissions, bonuses, earnings
         from full or part-time employment, interest, dividends, tips, gains on sale of
         securities, annuities, pension, royalties, veterans administration
         compensation, net rental income from all sources, alimony, child support,
         public assistance, sick pay, social security benefits, income from assets,
         business activity or investments, unemployment, estate or trust income and
         miscellaneous income.

         The income from any of the following assets with a value over $5,000 will be
         computed as the greater of 1) actual interest income; and 2) imputed
         income based on the percentage rate established by HUD from time to time
         (currently two percent (2%)):

             Cash in Checking and Savings Accounts;
             Certificates of Deposit;
             Retirement accounts such as IRAs, 401Ks and Deferred Compensation the
              borrower has access to;
             Investment accounts, i.e., securities, stocks/bonds and U.S. Savings
              Bonds;
             Whole life Insurance death benefits;
             Redemption value of whole Life Insurance Policies; and/or
             The current market value of all interests in real estate minus the current
              loan amount and cost to sell the property.




                                      Page    -3-
              NSP2 Homebuyer Assistance Program Guidelines and Description
D.   The Borrower does not have to be a first time buyer. However, the Borrower
     can not have an ownership interest in another property in the Twin Cities
     Metro Area at the time of their purchase offer.

E.   The Program assisted property must be the primary residence of the
     Borrower.

F.   The Borrower must occupy the property within 60 days of closing.

G.   The Borrower must contribute the greater of an amount equal to at least one
     half of the first mortgage’s “required” downpayment or $1,000 toward
     the purchase of the property. This can be to be applied to entry costs (i.e.
     inspections, appraisal fees, application fees, earnest money, prepaid expenses,
     appliances, escrows or other items as approved by Hennepin County).

H.   The Borrower must complete a qualified homebuyer training course from a
     HUD approved counseling agency. For the purpose of the NSP2
     Homebuyer Assistance Program, a qualified homebuyer training will be one
     using the curriculum called Home Stretch. The Home Stretch classes and
     curriculum are maintained by the Minnesota Home Ownership Center (HOC)
     and are recognized as a standard for homeownership education in Minnesota.
     The curriculum includes classes and one-to-one meetings with a
     homeownership counselor to review personal credit and income. A list of NSP
     HUD approved counseling agencies can be found by calling HOC at
     1-866-462-6466 or by visiting their website at www.hocmn.org.




     A copy of the participation certificate should be submitted with the application
     for assistance, but must be provided prior to final approval of assistance. In the
     case of a Joint Tenancy purchase, both Borrowers should attend and
     satisfactorily complete a Home Stretch course. The main Borrower must
     complete a Home Stretch course within one year prior of purchase.

I.   The Borrower must meet the requirements of a participating lending
     institution and qualify for an eligible first mortgage.

                                 Page   -4-
        NSP2 Homebuyer Assistance Program Guidelines and Description
       J.   The Borrower must fulfill the Program obligations in a timely manner and
            must remain eligible to participate based on the Program requirements and
            those of the lender through the time of the loan closing.

       K.   The Borrower must not have had a previous loan through Hennepin County or
            any other loan that ended in foreclosure within the previous five years.

       L.   Borrower must get an Owner’s Title Insurance Policy. This can be purchased
            by the seller or purchased by the Borrower.

       M.   The Borrower must meet the Program requirements as specified elsewhere in
            these guidelines.

III.   Eligible Properties

       A.   The property must be vacant AND foreclosed. Foreclosed is defined as the
            point that, under state or local law, the mortgage or tax foreclosure is
            complete after the title for the property has been transferred from the former
            homeowner under the foreclosure proceeding or transfer in lieu of
            foreclosure, in accordance with state or local law (i.e. past its redemption
            period and owned by a financial institution).

            The property must be located in one of the census tracts that make up the
            target areas in suburban Hennepin County. To determine if a property is in
            a target area use the Census website http:// factfinder2.census.gov (click
            the link on the right under “Address Search”), enter the street address to
            determine the census tract and block group. Compare that to the target area
            list in the Census Tract List and Maps, attached as Exhibit A.




       B.   Properties purchased must be at the maximum discount possible from the
            current market appraised value, taking into account its’ current condition, to

                                       Page   -5-
               NSP2 Homebuyer Assistance Program Guidelines and Description
     ensure that Borrowers are paying below market value. Market value must be
     determined by an appraisal meeting the Uniform Relocation Act (URA)
     standard and no more than 60 days prior to the date of the final offer. The
     discount required by the Program is a minimum of one percent (1%)
     below the current market value. For the sole purpose of determining
     compliance with the discount requirement Hennepin County will order and
     responsible for securing and paying for the required NSP2 appraisal.

C.   The property must meet the applicable Environmental Review (ER)
     requirements, as applicable to providing homebuyer assistance. The ER will
     be completed by Hennepin County, prior to the commitment of funds.

D.   The purchase price limit for households at or below eighty percent (80%)
     of AMI cannot exceed $200,000. For households at or below one hundred
     twenty percent (120%) of AMI will be the area median purchase price, as
     issued by HUD for a single family unit, which is currently $276,683. For
     Community Land Trust properties (CLT) with the required 99-year ground
     lease, the property value of the improvements on the leased land cannot
     exceed the limit.

E.   Properties must be single family housing, which includes a detached single
     family unit, a townhome unit, a condominium unit, a manufactured unit with
     the lot, or a cooperative or mutual housing unit.

F.   Ownership of the property must be held in fee simple title, a 99-year
     leasehold interest under the Community Land Trust (CLT) model of
     ownership, or ownership in a state recognized cooperative or mutual housing
     unit.

G.   The property that is purchase with the Program funds must be occupied by
     the Borrower as their principle place of residence for the whole period of the
     Program Loan.

H.   Properties must meet the property standards adopted for the Program as
     outlined in the Hennepin Housing Consortium’s New Construction and
     Rehabilitation Standards (the Standards), which are hereby made part
     of these guidelines by reference. The Standards include the provisions at 24
     CFR 35, requiring property built prior to 1978 be free of all lead paint
     hazards. Any identified hazards must be removed using safe work practices.
     Safe work practices are described in the HUD Office of Lead Hazard Control
     brochure entitled “Lead Paint Safety, A Field Guide for Painting, Home
     Maintenance, and Renovation Work”. The brochure is available upon request
     or at the following HUD website on lead paint
     www.hud.gov/offices/lead/healthyhomes.




                                Page   -6-
        NSP2 Homebuyer Assistance Program Guidelines and Description
Hennepin County will complete a required inspection, which will include a
lead paint visual inspection, prior to commitment of funds to determine what
items, if any, do not meet the Standard. Hennepin County will also complete
any necessary re-inspections. There is no cost to the buyer for these
inspections. A written inspection report will be generated to delineate failed
items. If a property fails to meet any of the minimum requirements of the
inspection, the health and safety items should be corrected per the
requirements of each city or prior to occupancy. Other failed items can be
corrected after closing, but must be complete within six months of the date of
closing. Additional time may be granted on a case by case basis at the sole
discretion of Hennepin County.

The Borrower will be required to escrow one hundred ten percent (110%)
of averaged cost of the bids with title at closing if the Hennepin County
inspectors estimate that there is more than $1,000 worth of required repairs
needed to meet the Standard. Hennepin County will provide a simple,
written set of specifications that the Borrower will need to use to solicit bids
from at least two contractors. This escrow cannot be established using the
Program funds, so the Borrower must provide acceptable verification that
they have the funds, which are not being used for the purchase, to establish
the escrow. The escrow requirement will increase closing costs and the title
company will charge other fees for this service.

An escrow will not be required if the Borrower is:

          using the FHA 203(k) first mortgage product where the rehab
           scope includes all of the Program required items; or
          buying in a city that has an established escrow requirement for a
           point of sale or other program, like Brooklyn Park.




                            Page   -7-
   NSP2 Homebuyer Assistance Program Guidelines and Description
      INSPECTIONS CONDUCTED BY HENNEPIN COUNTY ARE FOR THE LIMITED PURPOSE
      OF COMPLYING WITH THE REQUIREMENTS OF THE PROGRAM AND SHOULD NOT BY
      RELIED ON BY THE BORROWER FOR ANY OTHER PURPOSE. THE BORROWER IS
      ADVISED TO OBTAIN AN INDEPENDENT INSPECTION PRIOR TO PURCHASING ANY
      PROPERTY.


IV.   Ineligible Properties

      Properties specifically ineligible include:

                property that is not foreclosed (short sale properties, etc.);
                property that is not in a target area;
                property that is located in a 100-year flood plain;
                manufactured housing not on a fixed foundation and/or without the
                 property underneath;
                a currently occupied property; or
                a recreational or seasonal property

V.    NSP2 Homebuyer Assistance Program Loan

      The intent of the NSP2 assistance is as a tool to help create successful
      homeownership. The affordability assistance is NOT intended to supplement
      income, so the household can buy a higher cost property. Hennepin County will
      make all determinations of assistance using the entire household income, not just
      the borrower on the first mortgage.

      A.    The minimum principal amount of a NSP2 Homebuyer Assistance Program
            Loan (Program Loan) is $1,000. The maximum amount of assistance has
            two levels.

                The first level is an “incentive”, where the maximum principal amount of
                 a loan is $10,000. Any eligible household buying an eligible property can
                 receive the incentive.

                The other level is the “affordability” assistance, which has a maximum
                 of an additional $20,000, for households at or below eighty percent
                 (80%) of AMI. This affordability assistance will be used to create an
                 affordable housing ratio for the household of thirty percent (30%). If
                 the household housing ratio is determined by Hennepin County to be at
                 or below thirty percent (30%), they will not be eligible for the
                 affordability assistance. If the thirty percent (30%) housing ratio
                 cannot be achieved even with the full amount of affordability assistance
                 the household may not be eligible for ANY assistance.

      B.    The Program Loan will be a forgivable, zero percent interest, deferred (no
            monthly payments) mortgage. The term of the Program mortgage will be

                                         Page   -8-
                 NSP2 Homebuyer Assistance Program Guidelines and Description
     based on the amount of assistance provided to the household, as listed
     below:

           $1,000 to $14,999 will be a Five (5) year term
           $15,000 to $30,000 will be a Ten (10) year term

C.   The Program Loan will run concurrent to the first mortgage until it is repaid
     or forgiven.

D.   The Program Loan must be repaid if during the term of the loan the property:
           is sold;
           ownership is transferred;
           is refinanced; or
           is not maintained as the Borrower’s principal place of residence.

     If repayment is due to the sale of the property and proceeds from sale are
     not sufficient to repay in full Program Loan after paying obligations due to the
     first mortgage, the repayment amount will not exceed said proceeds.

E.   The Program Loan is to take second position behind the first mortgage,
     unless approved by Hennepin County.

F.   The Program Loan may be used to pay:

           up to fifty percent (50%) of the “required” down payment required
            by the first mortgage product; and/or
           the reasonable and necessary costs incurred by the Borrower
            associated with the purchase. These costs may include private lender
            origination fees, credit reports, fees for title evidence, fees for the
            recording and filing of legal documents, attorney fees and private
            appraisal fees; and/or
           additional the upfront costs of acquiring a principal residence, but not
            the entire cost of the acquisition; and/or
           additional down payment after the “required” down payment has been
            satisfied.

G.   The proceeds of the Program Loan shall be disbursed at the loan closing. The
     loan closing is the legal process that transfers the property title to the
     Borrower, transfers loan funds and makes the property the legally
     enforceable collateral for the lender. All of the proceeds of the Program Loan
     must be disbursed to persons or entities other than the Borrower.
     Hennepin County’s preference is that any excess FPP Loan funds be
     applied to decrease the amount (principle reduction) of the first
     mortgage. If that is not possible then they shall be returned to Hennepin
     County. If returned to Hennepin County, funds shall be applied as a partial
     prepayment of the Program Loan.


                                 Page   -9-
         NSP2 Homebuyer Assistance Program Guidelines and Description
      H.    If repayment is due to the sale of the property and proceeds from sale are
            not sufficient to repay in full the Program Loan after paying obligations due to
            the first mortgage, the repayment amount will not exceed said proceeds.

      I.    Program Loans funded with Brooklyn Park funds will be held by the city of
            Brooklyn Park. Program Loans in the other areas will be held by Hennepin
            County.

      J.    Program Loans are considered a “special mortgage” under the terms of
            Minnesota Statutes 58.13. The Borrower must receive counseling in regards
            to any mortgage refinancing when they will need to repay the Program Loan.

      K.    The Program Loan must be closed within 60 days from the date Hennepin
            County provides the Borrower and Lender approval letters. A written request
            for an extension, including the reason must be received ten days prior to
            letter’s expiration.

VI.   Lenders: Loan Officers and Expectation

      All Loan Officers (LO) that would like to access the Program for their Borrower must
      meet Hennepin County’s expectations. Each individual Loan Officer understands
      that each time they have a Borrower that would like to access the Program they will
      be required to sign certification containing the following:

           They have read the NSP2 Homebuyer Assistance Program Description
            and Guidelines and agree to work within them; and
           They have read the NSP2 Frequently Asked Questions (FAQ’S); and
           They have approval from their lending institution to participate; and
           They have ensured the Program has been reviewed and approved, as eligible
            subordinate financing mechanisms, by their lending institution; and
           They understand they are not authorized to pre-approve a Borrower for an
            amount that includes any Program assistance; and
           They understand they do not make the determination of eligibility for, nor
            determine the level of Program assistance for the Borrower.
           They do not expect Hennepin County staff to provide Program information
            (guidelines, information, sample document, etc.) that is available to
            download from the NSP website to provide to Borrowers, underwriters, real
            estate agents, etc.; and
           They will follow the Program guidelines and cooperate with Hennepin County
            staff; and
           They are willing and able to provide loan and other information to Hennepin
            County that is required to assist in the implementation of the Program in
            accordance to the guidelines and descriptions; and
           They know and agree to plan for the required 45 day processing window
            Hennepin County needs to get to closing. The 45 days starts from the date
            an eligible borrower submits a Purchase Agreement on an eligible property.


                                       Page   - 10 -
               NSP2 Homebuyer Assistance Program Guidelines and Description
     The Borrowers have their choice of any LO that will meet these expectations and
     sign a certification for each Borrower. The certification is attached as Exhibit B.
     Hennepin County has the sole discretion to bar LO’s from working with the Program
     who do not meet these expectations.

VII. Underwriting

     HUD requires Hennepin County to use the funds to create successful
     homeownership opportunities for the households it assists. Ideally, Program
     assistance will be used to make a homebuyer’s front end ratio/monthly housing
     payments of principal, interest, taxes and insurance (PITI) not exceed thirty
     percent (30%) of the household’s gross income.

     The Program is depending upon the first mortgage lenders to apply prudent
     Borrower and property underwriting standards to support the objective of successful
     homeownership. Mortgage lenders are NOT to include any amount of the Program
     assistance in when determining the amount of a mortgage for the household.

     A.    For households eligible for just the “incentive” assistance, the housing ratio
           can be lower than thirty percent (30%) with no need for approval by
           Hennepin County.

     B.    PITI amounts over the thirty percent (30%) ratio will need to be reviewed
           for all facts and compensating factors and approved by Hennepin County.

     C.    The first mortgage product must be considered an “A” or “prime” lending
           product. It must be a fixed rate FHA, VA, or Conventional loan.

     D.    Hennepin County will not approve the use of Program assistance with interest
           only loans, adjustable rate loans, balloon loans, or any loan that is considered
           sub-prime or predatory.

     E.    Hennepin County will not approve the use of Program assistance with loans
           that are co-signed with another party that will not live in the property.

VIII. Application Processing

     A.    Application packets will be available on the website and, if requested,
           Hennepin County can also provide applicants an application packet by e-mail
           or by mail. Applications are to be completed by the applicant in their
           own handwriting and must be signed by all members of the
           household 18 years of age or older that will occupy the property after
           purchase. It is the sole responsibility of each applicant to assure that
           Hennepin County receives his/her/their application. Only applications and
           release forms with original signatures will be accepted by Hennepin
           County.


                                      Page   - 11 -
              NSP2 Homebuyer Assistance Program Guidelines and Description
         B.      Applicants must fully complete a Certification Application form, sign a
                 Data Privacy Statement and Release of Information form and provide
                 Hennepin County household income information, including but not limited to
                 the following:

                       Alternative income documentation as necessary to verify the total
                        household Gross Annual income from all sources (i.e. employment,
                        social security income, child support, asset income, etc.); and/or
                       For self employment income, signed copies of the most recent three
                        years of filed federal tax returns. In addition, they must provide a
                        current profit and loss statement; and
                       Copies of social security cards for each household member and signed
                        copies of the most recent filed federal tax returns

IX.      NSP2 Purchase Agreement Addendum

         To assist Borrowers with meeting the acquisition requirements for the Program,
         Hennepin County has created a Neighborhood Stabilization Program
         Addendum (the Addendum), attached as Exhibit C, which eligible households
         must use for the NSP2 funded purchase. It contains the following required
         elements:

                    Purchase Discount; and
                    Environmental Review; and
                    Minimum Property Standards; and
                    Disclosure to Seller with Voluntary, Arm’s Length Purchase Offer

         The Addendum must be attached to the purchase agreement. If the borrower did
         not know about the Program before the offer was made, they should submit it as
         soon as possible to the seller. The information and requirements in the Addendum
         are crucial to the Program and can have implications on both sides of the purchase.
         For example, if the seller is not willing to provide access and the time to complete
         the appraisal, then Hennepin County cannot provide Program assistance to the
         Borrower.

         If the Borrower has difficulty obtaining the sellers initials on the Addendum they
         should contact Hennepin County to discuss the possible alternatives.

X.       Summary of a Typical Loan Process

 Item                          Description of Activity (who, what, where)
   #
              The applicant registers for and attends the homebuyer workshop series through
     1
              HUD approved qualified homebuyer training agency.
     2        The applicant requests an application packet from Hennepin County.


                                               Page    - 12 -
                     NSP2 Homebuyer Assistance Program Guidelines and Description
Item                    Description of Activity (who, what, where)
  #
       The applicant selects a lender willing to participate and applies for mortgage
 3
       pre-approval.
       The applicant completes and submits the application packet, eligibility
 4     information, and a mortgage pre-approval letter from the lender and a copy of
       the homeownership training certificate of completion to Hennepin County.

 5     The applicant searches for a foreclosed property in the defined target areas.
       The applicant enters into a purchase agreement (PA) with the required NSP2
 6
       Addendum attached and contacts the lender.
       The applicant provides the PA with all addendums (NSP2, LBP, etc.) to Hennepin
 7
       County.
       Hennepin County arranges for the environmental, URA appraisal and the
 8
       inspection of the property.

 9     The lender confirms applicant’s mortgage eligibility and approves purchase.

       The lender provides required supporting loan documentation to Hennepin
 10    County (1008-uniform underwriting form, 1003–residential loan application
       form, income and asset verifications, good faith estimate, etc.).
       Hennepin County completes the environmental, URA appraisal and the required
       minimum property standards inspection (this include a lead risk assessment, if
 11    the property was built prior to 1978) and provides copies to the Borrower. If the
       work is more extensive than $500. Hennepin County will provide a simple scope
       of work.
       Borrower provides reasonable documentation of that all health and safety issues
       will be completed prior to occupancy and that the minimum property standards
 12    can be meet with-in six months. This can be providing Hennepin County with
       verification of a 203(k) loan, city required escrow or at least two bids for the
       required repairs.
       If a escrow must be established, then Hennepin County is provided with
 13    verification that the required 110% escrow can be established by Borrower. If
       Borrower is not able to then the Program funds cannot be used.
       Hennepin County reviews supporting documentation and eligibility verification
 14
       for consistency with program goals and requirements.
       Hennepin County receives a fully executed PA. Hennepin County reviews the PA
 15
       to ensure the required discount has been achieved by the Borrower.
       If Borrower and the property are eligible, Hennepin County sends Borrower an
 16    approval letter, sample loan documents and a Buyer Awareness form for
       signature.
       Hennepin County issues an approval letter to lender and reserves the funds for
 17
       the Borrower’s closing on the property.


                                      Page   - 13 -
              NSP2 Homebuyer Assistance Program Guidelines and Description
 Item                      Description of Activity (who, what, where)
   #
         The lender sends Hennepin County the final 1008 and a copy of the bank
  18
         appraisal.
         The Borrower or lender sends Hennepin County a copy of Borrower’s title
  19     commitment. The Borrower is required to purchase an Owner’s Title Insurance
         Policy. A copy of the Policy will be collected at closing.
         Borrower requests and provides Hennepin County a copy of their homeowners’
  20     policy binder, listing Hennepin County as an additional insured and additional
         mortgagee.
         Hennepin County prepares the required closing documents and requests check
  21
         for the loan closing.
         Hennepin County attends the loan closing. At the loan closing, Hennepin County
  22
         has the Borrower sign the required loan documents.
         Borrower contacts Hennepin County to report that they are ready for re-
  23
         inspection.
         If Borrower has not contacted Hennepin County for the re-inspection, then
         Hennepin that all health and safety issues will be completed prior to occupancy
  24
         and that the minimum property standards can be meet with-in six months.
         County will contact them.

XI.    Reasons for Denial or Postponement of Loan Applications

       Hennepin County will review and verify all applications for eligibility. Applicants not
       meeting the eligibility requirements will be sent a written notice explaining the
       reason(s) for denial of participation.

       No further applications will be accepted by Hennepin County where an applicant has
       been previously found to have falsified their application or misused loan funds.

       No reapplications will be accepted for one year following the applicant's cancellation
       of loan or other actions that delay the processing beyond a reasonable period of
       time. Consideration will be given to applicants who request an extension for a
       medical or family emergency, or applicants that are currently under written order to
       correct for health and safety items.

XII. Appeal Procedures

       Appeals regarding denial of a loan application or interpretation of eligibility
       requirements may be made in writing to the Director of Hennepin County Housing,
       Community Works and Transit. A written response will be provided within thirty
       (30) days.




                                         Page   - 14 -
                 NSP2 Homebuyer Assistance Program Guidelines and Description
XIII. Subordination of the Program loan

      During the term of the loan, the Borrower’s ability to use any equity in the property
      may be limited as Hennepin County WILL NOT subordinate the Program Loan to
      additional debt added after the purchase or upon refinance.

XIV. Targeted Funding

      The Program is limited to the defined target areas as indicated on Exhibit A.

XV.   Modification and Termination of Program

      Hennepin County may modify or terminate the Program as it deems appropriate, as
      required by HUD, or for the continued implementation of same, including, but not
      limited to: (1) policy revisions necessary due to a change in design of the Program
      financing mechanism; (2) policy revisions necessary due to changes in the rules and
      regulations of the Program and/or the Community Development Block Grant
      Program; and (3) to facilitate prompt and proper expenditure of NSP2 funds. Once
      Hennepin County has provided financial assistance and the mortgage executed,
      financial assistance shall not be rescinded except as provided for in the executed
      the Program Mortgage and Promissory Note.

XVI. Reuse of Repaid Funds

      Hennepin County will utilize repaid Program funds for the purpose of assisting other
      affordable housing activities within suburban Hennepin County according to federal
      regulations and/or County policies.




                                       Page   - 15 -
               NSP2 Homebuyer Assistance Program Guidelines and Description
                           Exhibit A

                         ghborhood
                      Neighborhood Stabilization Program (NSP2)
                            NSP2 Homebuyer Assistance Program
                                                      TARGET AREAS




         CITY                   CENSUS TRACTS -- ALL Block Groups
                                             202.00
    Brooklyn Center
                                             203.04

                                             268.07
                                             268.10
                                             268.11
                                             268.14
    Brooklyn Park                            268.15
                                             268.16
                                             268.18
                                             268.19
                                             268.21

                                             269.06
       Champlin
                                             269.08
                                             267.07
     Maple Grove
                                             267.10
        Mound                                276.02

Rogers/Hassan Township                       269.09
                Brooklyn Center NSP 2 Census Tracts
                     D                                            73RD W                                                                                       73RD         73RD                      73RD                        73RD                      73RD
                  AR                                                                  OODBIN




                                                                                                                                                                                                                                                               RIVERDALE
    DS                                                                                       E
PON            NG


                             INDIANA


                                                                          GRIMES
                              MAJOR




                                                                                                                                                                                                                                    BRYANT
                                                                                       72N                                                                                        WOODBINE
            WI
                                KYLE




                                                                                                                                                                                                                                                             WEST RIVER
                               JUNE




                                                                                                                                                                    OLIVER
                                                                                           D




                                                                                                                                                                                                         FREMONT
   72                                                                                                                                                                                                                                         72ND
                               LE E




                                                                                                                                                                                                          GIRARD




                                                                                                                                                                                                                                                              DALLAS
     ND                                                                                                                                                                     72ND




                                                                                                                                                                 NEWTON




                                                                                                                                                                                                       EMERSON
                                                                                                                                                                MORGAN
                                                                      FRANCE
             71S T                                                                                                                                                                            AMY




                                                                                                                                                                  KNOX
                                                                                                                                                                 LOGAN
  71S




                                                                      EWING
      T 71ST




                                                                    DREW
70TH
           REGENT




                                                      HALIFAX
                                             KYLE
           PERRY
            QUAIL




                    70TH                                                                                                                                                           70TH   70TH                                                70TH
                                                    INDIANA
 TOLEDO




                                                                                                                                                                                  IRVING
                               LEE




                                                                                                  FR O                                                                               69TH




                                                                                                                                                                                                                         EMERSON
                                                                                                             NTA                                                                           68TH
          REGENT
          TOLEDO




                                                                                                                 GE




                                                                                                                                                                                                                                                                       WILLOW
           SCOTT




                             NOBLE




                                                                        GRIMES


                                                                                       EWING




                                                                                                                                                                                                                                   ALDRICH
                      68TH            68TH                                              DREW                    68 T                     EEK




                                                                                                                                                                                                                                    CAMDEN
                                                                                                                                                                                                                                    COLFAX
                                                                                                             THU H             SHINGLE CR




                                                                                                                                                                                                                                     BRYANT
                                                                                                                 R BE                                                                                   67TH




                                                                                                                                                                                                                                      5TH
                                                                                                              67TH    R 6
                                                                                                                                                Y
           INTERSTATE 94
                          INTERSTATE 94                                                                                   7T
                                                                                                                             H            PARKWA
                                                                                                                                                                                                      20200




                                                                                                                                                                                      JAMES




                                                                                                                                                                                                                                           HIGHW
          HOWE
                                                                                                  CHOWEN


               66          66TH         66TH




                                                                                                                                                                                                                                             WILL
                  TH                                                                                                                                                                                                                66TH
                       WINCHESTER                                                                              QU
                                                                                                                                                                                                                                                  TH




                                                                                                                                                                                                                                                DUPONT
                                                                                                                  AR         LES
          65TH                                                                                                                                                                                                                                  66




                                                                                                                                                                                                                                                  OW
                     NOBLE




                                                                                                                                                                                                                                                  AY 252
                                                                                                                                                      INT                         FREEWAY
                     ORCHARD




                                                                                                                                                                                                              65TH
                                                       INDIANA
                                                        MARLIN
                      MAJOR MAJO




                                                                                                                                                            ER
           PAUL                                                                                                         65TH                                  STA
                       PERRY PERRY
  UNITY




                                                                                                                                                                 TE
                                                                                                           BEARD




                                                                                                                                                                      694         JAMES
             SCOTT




                                                                                                                        64TH                                                                                   64TH
                                                                                    FR A




                                                                                                                                                  YN




                                                                                                                                                                                                                                                         HIGHWAY 252
                                                                                                                   OHENRY                                                                 SB HWY252 TO WB I94
                                                       63RD                                                                                     KL
                                                                                        NCE




                                                                                                                                                                                                             AC
                                                                                                                                             OO

                                                                                                                                                                                                    63RD LIL
                             REGENT




BOULDER                                                   JOYCE
                              QUAIL




                                                                                                                                                                                              WN
                              NOBLE




                                                                                                                                           BR
                               KYLE




  62ND                                                                                                               20304
                                LEE




                                                                                              62ND




                                                                                                                                                                                                                                     COLFAX
                                 R




                                                                            62ND




                                                                                                                                                                                         EARLE BRO
                                                                                                                                                                                                                                                 62ND
                                                                                                                                  XERXES




                                                                           JANET




                                                                                                                                                                                                                         GIRARD
                                                                            61ST                                     61ST                                                                                                                     61ST
                                                                                                EWING




                                                                                                                                                                                                                                                             LYNDALE
                                                                                                                                                                             SUMMIT
                                                                                                            ABBOTT




                                                                                                                        60TH
                                                                                                                                            VINCENT
                                                                            SO N




                                                                                                                                                                                                                              60TH




                                                                                                                                                                                                                                                  ALDRICH
                                                    JUNE




                                                                                                                         YORK




                                                                                                                                                                                                                  FREMONT
                                                                                                                                           UPTON
                                                                        PEAR




                                                                                                                                59TH                                                                                      59TH
                                                                                        58 1/2
                                                                                                                                                                              0
                                                                          58TH                                                  NORTHWAY                                    10                       58TH
                                                                                                                                                                     AY




                                                                                                                                                                                                            EMERSON
                                     MAJOR




                                                                                                                             COUNTY ROAD 10
                                                                                                                                                                   HW




                                                                                                                                                                                                                                                  CAMDEN
                                                                                      ADMIRAL




                                                                                                                                                                                                                                                  BRYANT
                                                              HALIFAX




                                                                         57TH                                                                                      G
                                                                                                                                                                 HI           HUMBOLDT
                                                                                                                                                                        EW
                                                                                                            56TH                                                    KVI
                                                                                                                                                                                 JAMES




                                                                                                                                                                                                                                              ALDRICH
                                                                                                                                                                                IRVING
                                                                                                                                                                               LOGAN




                                                                          56TH                                                                                  OO
                                                                                                                                                                              GIRARD
                                                                                                                                                   E        C BR                                                                                                56T H
                                                                                                                                                                              KNOX




                                                                                                                                                A L I LA

                                                                                                                                                                                                                                    COLFAX




                                                                                                                                                                                                                                                                                LYN
                                                                                                                                              KD L       ERICON
                                                                                                                                                                                                                 55TH
                                                                                                            55TH                       OO




                                                                                                                                                                                                                                                                                    D
                                                                                              N OR R




                                                                                                                                 BR
                                                                                              SA




                                                                                                                                                         RUSSELL




                                                                                                                                                                                                                                                                                  ALE
                                                                                                                                                         MORGAN




                                                                                    54TH




                                                                                                                                                                                                                                                                4TH
                                                                                                 I LO




                                                                                                                                                           PENN




                                                                                                                                                                                                     54TH
                                                                                                                     BRO




                                                                                                                                                        NEWTON
                                                                                                                                                         QUEEN

                                                                                                                                                         OLIVER
                                                                                                    T HP




                                                                                     53RD                                       LILAC
                                                                          KE




                                                                                     53RD                                                                                                                                                        BELLVUE
                                                                                                                         O
                                                                        LA




                                                                                                                                  53RD
                                                                                                           ORT




                                                                                                                                                                                  53RD                                53RD                                             53RD
                                                                                                                       KLYN
                                                               IN
                                                           TW




                                                                                   52ND
                                                                                       EWING




                                                                        OAK
                                                                                                        AC
                                                                                      DREW




                                                                        51ST
                                                                                                  LIL


                                                                                                                       ZENIT




                                                                                 50TH                   50TH
                                                                                                                            H
                                                     AZELIA




                                                                                                                        49TH
                                                                                         C
                                                                                      LA
                                                                                   LI




                                     LAKESIDE                                            48TH
                                                                                        47TH




    Ü                  Hennepin County Housing Community Works and Transit
                                              Brooklyn Park NSP 2 Census Tracts

    109TH




                                                                                                           IDAHO
                                                                                                                                                                           108TH
                                                        RHODE ISLAND                                                                                                                 107TH
                        HIGHWAY 169




                                                                                                                          OXBOW CREEK                                                                               OW
                                                                                                                       10                                                                              WILL




                                                                                                                                                                                                KYLE
                                                        WINNETKA

                                                                                                                         5T 106TH
                                                                                                                           H
        ON




                                                                                                                                                                                                              SUNSET




                                                                                                                                                      H


                                                                                                                                                                             QUAIL
                                                                                                                                                    5T
  ER S




                                                                                                                                                                                                                                                          WE
                                                                                                                                                                                            M
                                                                                                                                                                                                                       104TH




                                                                                                                                                 10




                                                                                                                                                                                             AJ




                                                                                                                                                                                                                                                            ST
                                                                                                                                                                                                OR
    F




                                                                                                                                                                                                                    FALLGOLD
                                                                                                                           103RD                                                                                        ABBOTT
JEF




                                                                                                                                                103RD                         103RD




                                                                                                                                                                                                                                                                RIV
                                                                                                                                 GEOR
                                                                                                                                                                            102ND




                                                                                                                                                                                                                                                                 ER
                        101ST                                                                                                                                                     101ST




                                                                                                                                                                LAKESIDE




                                                                                                                                                                                                                   ELM
                                                                                                                                                                                                   LINDEN
                                                                                                                                      G
                                                                                                                                                                           MARIGOLD
                                                                                                                                      IA
                                                                                                                                                                                                                               99TH
                                                                                                      OAK GROVE                                                                                                                                           98TH




                                                                                                                                                                                                                                                                       O
                                                                                                                                                                            REGENT
                                                                                                                                                               RD




                                                                                                                                                                                                                                                                           LI
                                                                                                                                                                                                                                                VINCENT



                                                                                                                                                                                                                                                                             VE
                                                                                                                                       96T H
                                                                                                           HAMPSHIRE




        HIGHWAY 610 97TH                                                                                                                                                                                                                                  97TH
                                                                                                                                                        WICKFO




                                                                                                                                                                                                                                                                      PENN
                                                                                                                                                                                                                             DAYLILY




                                                                                                                                                                                                                                                                               R
                                                                                                                                                                                                                                                                                           96T
                                                                                                                                                                                                                                                                                                   H
                                                      WINNETKA




                                                                                                                                                                                                                                                          94T
                                                                                                                                                                                                95TH                                                            H                  95TH
                                                                                                                                                                                                                                                                  93RD
                                                                           WEST BROADWAY




    93RD                     7TH                                                              93RD                                                                                                                         HIGHWAY 61
                                                                                                                                                                                                                                      0                                                                     93RD




                                                                                                                                                                                                                                                                        ED
                                                                                                                             92N D                                          92ND                                      CA
                                       AY 169




                                                                                                                                                                                                                                                                                IN
                                                                                           91ST
                                                                                                                                                                                         91




                                                                                                                                                                                                                                                      WINDSOR
                                                                                                                                                                                                                             MB                                                                             92ND




                                                                                                                                                                                                                                                                                                   IRVING
                                                                                                                                                                                                                                                                    STRATFORD
                                                                                                                            NEDDERSEN




                                                                                                                                                                                                                                                                                  BR
                                                                                                                                                                           TR




                                                                                                                                                                                                                                  RI
                                                                                                                                                                                           ST

                                                                                            SE                                                                                                                                         DG
                                                                                                                                                                                                                    90TH




                                                                                                                                                                                                                                                                                       OO
                                                                                                                                                                              IN




                                                                                               TZ                                                                                        89TH                                            E
                                                                                                              LE
                                                                                                                            DOUGLAS




                                                                                                                                                                89T
                                                                                                                                                                                IT Y




                                                                                                                                                                                                            HILL
                                  HIGHW




                                                                                                                                                                                                                                                                                           K
                                              89TH                                                                     R                                            H                                                                                                                                       89TH
                                                                                                  JERSEY
                                                                        NEVADA




                                                                                                                                                                 KI                                                    26821
                                                           MAPLEBROOK
                             WYOMING




                                                                                                                                                                                                             SW I
                                                                                                                                                88TH                   NG                                                                                                                                    88TH
                              XYLON




                                                                                                                                                                          S                                                                                                      87TH
                                                                                                                                                                                                                         K
                                                                                                                                                                                                                 CK

                                                                                                                                                                                    OOK                                   O
                                                                                                                                                                             EDINBR                                                               TE




                                                                                                                                                                                                                                                                                                                                       R
                                                                                                                                                                                                                      BRO
                                                                                                                                                                                                                                                     L




                                                                                                                                                                                                                                                                                                                                        IV
                                                                                                                                                                                                                                                            FO
                                                                                                                                       ADAIR




                                                                                                                                                                                                                                                                                                             HIGHWAY 252




                                                                                                                                                                                                                                                                                                                                           ER
                                                                                                                                                                                                                                                               R    D
                           LAND




                                                                                                                                                                           84TH                     85TH




                                                                                                                                                                                                                                                                                                                                             VI
                                                                                                                                                                                                                    EDIN




                                                                                                                                                                                                                                                                                                                                              EW
                                                                                                                                                                                                                                                                                           LOGAN
                                                                                                                       84TH




                                                                                                                                                                                                                                                                                QU
                                                                                                                                                  84 1/2                                                                          84TH 84TH




                                                                                                                                                                                                                                                                                                                            DUPONT
                       L AK E




  83RD                                                                                                83RD                                                                                 83RD



                                                                                                                                                                                                                                                                                   E
                                                                                                                                                                     83RD                                                                                                                                                              83RD
                 COLLEGE PARK
                                                                                                                                                                                                            ND




                                                                                                                                                                                                                                                                                  EN
                                                                                                                                                        XENIA




                                                                                                                                                                                                                                            PEARSON




                                                                                                                                                                                                                                                                                                                                              WEST RIVE
                                                                                                                                                                                                                                                                                                                                     82ND
                                                                                                                                                                                                       82




                      82ND                                                                                                                                                                81ST




                                                                                                                                                                                                                                                                                               SIERRA
                                                                                                                                                                                                               81ST
                                                                                                                                                            81ST
                                                                              26816                                                                                                                                                                                                                                                   81ST




                                                                                                                                                                                                                                                                                                                                                SUNK
        GREEN HAVEN                                                                                                    81ST                                                                                                                 80TH
                                                                                                                              COLORADO




                                                                                                                                                                                                                                                                      H
                                                                                                                                                                                                                                                                80T
                                                                                                                                                                                                                                LA




                                                                                                                                                                                                          LE




                                                                                                                                                                                                                                                                                                                               80TH
                                                                                                                                                                                                      KDA
                                                                                                                                                                                               NOBLE




                                                                                                                                                          80TH
                                                                                                                                                                                                                                   D

                                                                                                                                                                                                                                           VINCENT




                                                                                                                                                                                                  ROO
                                                                                                                                                                                                                                           XERXES




                                              79TH
                                                                                                                                                YATES




                                                                                                                                                                                                B
                                                                                                                                                          26810                                                                                                                                             79TH




                                                                                                                                                                                                                                                                                                                                                      IST
                                                                                                                           TESSMAN




                                                        78TH
                                                                                                                                                                                                        26811                                                   26814                                                                    79TH




                                                                                                                                                                                                                                                                                                                                                        R
                                                                                                                                                                                            JUNE




                               78TH                         78T                                                                                                    77T H
                                                                H                                                                                                                                                                                                                                                 77TH
                                                                                                                                                                                                                                                                                                                                      26815
                                                                                                                                                                                 PERRY




                                                 BROOKLYN
                                                                                           KENTUCKY




                                                                                                                                                                                         LEE




                                                                                                                                                                                                                                                                                                                           76TH
                                                                                                                                                                                                                                    75




                                                                                                                                                                                                                                                                                  NEWTON



                                                             76TH                                                                                                                                                                                                                                                                         76TH
                                                                                                                                                                   IM
          NORTHLAND




                                                                                                                                                                                                                                           TH
                        BOONE




                                                                                                                                                                           PE




                                                                                                                                                                                                                                                                                               JAMES
                                                                                                                                                                                                                      DREW
                                                                 JO




                                                                                                                                           75TH                                              75TH                                                                                                       MEADOWWOOD
                                                                                                                                                                                                                                B E A RD
                                                                                                                                                                            RI




                                                                                                                74 1/2                                                                                                                                                                                                74TH
                                                                    L   LY




                                                                                                                                                                                AL
                                                                                                                                                          UN




                                                                                                                                                                                                                                                                                                                74TH RD
                                                                                                                                                                                                LE




                                                                                                                                                                                                                                                                                                                     73
                                                                                                                                                             I




                                                                    73RD                                                                   73RD
                                                                                                                                                                TY




                                                                                                                                                                                                                                                                                                           73RD 73RD
                                                                                                                                                                                              KY




                                                                                           2681871ST 26819
                                                      WINNETKA

                                                                         CO
                                                                              UN



                                                                                                       IDAHO
                                                                                                      JANELL




                       26807
                                                                                 TY




                                                                                                                                           IA
                                                                                                                           BETH                  69TH
                                                                                    R




                                      MODERN 68TH
                                                                                           OA




                                                                                                       INTERSTAT
ERICKSON                                                                                                                                 E 94
                                                                                            D8




                                              67TH
                                         IRIS
                                                                                                                                                   ZANE
   FLAG




                                                                                                 1




                                                                                                               66TH
                                                        ASTER
                                              XYLON




                                                                                                                                                                WELCOME




                                                                                                                                      65TH
                       LL




                                                                                                                                 FLORIDA




                                                                                                           64TH
                                                             QUEBEC
                      CAVE




                                                                                                                                   DOUGLAS
                                                              UTAH
        R




                                                               SUMTER
    ATU




                                                                                             63RD
                                      YUKON

                                                 SUNNY
  DEC




                                                                                                      62ND




  Ü                                              Hennepin County Housing Community Works and Transit
                 DA
                                                                                                   Champlin NSP 2 Census Tracts




                                        W
                                         ES
                   YT




                                                 T
 YORKTOWN


                     O




                                                     RI
                      N




                                                           VE
                                                                 R
                         VALLEY FORGE
                                        TILDEN




                                                                        131
                                                               BELLE AIR




                                                                                   ST               WE
                                                 REVERE




                                                                                                           ST
                                                                                                                R IV
                                                                                                            ER
                                                                            MONTICELLO




                                                                                                   SU
                                                                                          BAXTER




                                                                                                     NS
                                                                        E




                                                                                                                                      RI




                                                                                                       ET D
                                                                                                                                        VE




                                                                                                            EA
                                                      QUAKER




                                                                                                               N
                                                                                                                                                      R




                                                                                                                                                                                  BR
                                                                                                                                                                    H
                                                                                                                                      BUSINESS PARK

                                                                                                                                                              7T




                                                                                                                                                                                        AD
                                                           HAYDEN LAKE                                                                                                                         FO
                                                                                                                                                         124TH                                   R
                                                                                                                                                                                                       D
                                                                                                     124TH
                                                                                                                                                                                            RIV       W
                                                                                                     1 23 R                                                                                            ES
                                                                                                           D                                          122ND                              T R ER S
                                                                                                                             ENSIGN




                                                                                                                                                                                            IV    HO
                                                                                                                                                                                 LUDWIG        ER   RE
                                                                                                                                                                                121ST HEARD
                                                                                                                                                  JEFFERSON




                                                                                                                                                                                                UTAH




                                                                                                                                                                                                                                         120TH
                                                                                                                                                                                                                  26906                                     TH
ZACHARY




                                                                                                                                                                                                                                                         119119TH
                                                                                                                                                                                                                                          KENTUCKY




                                                                                                                                                                                       TE
                                                                                                                                                                                                                                                                                    MI




                                                                                                                                                                                                               118TH
                                                                                                                                                                                            XA
                                                                                                                                                                                                                                                                             A IR
                                                                                                                                                                                                                                                                                       SS
                                                                                                                                                                   EMERY




                                                                                                                                                                                               S                                                     118TH
                                                                                                                                                                                                                                                                                         ISS
                                                                                                                                                                                                                                                                            AD




                                                                                                                                                                           117TH
                                                                                                                                                                                                                                                      FLORIDA




                                                                                             LAKESIDE
                                                                                                                               CHAMPLIN




                                                                                                                                                                                                                                                                                            IPP
                                                                                                                                                                                                                                                     GEORGIA
                                                                                                                                                                           WISCONSIN




                                                          HIL                                                                                                                          116TH                                116TH
                                                             LTO
                                                                                                                                                                                                                                                                                               I




                                                                                              EL                                                                                                                                                                          115TH
                                                                                                                                                              YUKON




                                                                                                                                                                                                               116TH
                                                                                                                                                                                                                                                                DOUGLAS




                                                                 P                              M
                                                                                                                                                                                                        UTAH




                                                                                         PAR      C                                                                                                                           115 1/2
                                                                                             KSID REE                                                                                                                                                                     114TH
                                                                                                 E    K                                                                                                                    114TH
            GOOSE LAKE




                                                          TI
                                                                                                                                                                                                                                                                             ZANE
                                                                                                                                                                                               WINNETKA




                                                             LBU                                       WH
                                                 HI                                                      I TE
                                                                                                                                                                                                                                                                                             VERA CRUZ




                                                    D            RY                                                                                                                                                                                  Y
                                                                                                                            OA                                                                                 26908
                                                                                                                                                                                                                                                                                     XENIA




                                                          DE                                                                     KS                                                                                                            SE            NY 112TH
                                                                                                      DS




                                                                                                                                                                      XYLON




                                                             N                                                                                                                                                                             R               TA
                                                                                                                                                                                                                                        JE
                                                                                           INDEPENDENCE




                                                                                                                                                                                                                                                       RIT                                               OX
                                                                                                                                                                                                                             MARYLAND




                                                               O
                                                                                         W OO




                                                                 AK                                                                                                                                                                                  B           111TH                                      B   OW
                                                                                                                JEFFERSON




                                                                   S
                                                                                                                                                                                                                  QU E B
                                                                                                                                                                                          UTAH
                                                                                                                                                                                        SUMTER
                                                                                                                                                         ZEALAND




                                                                                                                                                                                                                                                       110TH                                                                 MI
                                                                                                                                                                                                                                                                                                                               SS
                                                                                                                                                                                                                                             IDAHO




                                                                                                                                                                                                                                                       109TH                                                                        IS
                                                                                                                                                                                                                                                                                                                     NOBLE




                                                 109TH                                                                                                                                                                                                                                                                                   SI
                                                                                                                                                                                                                    EC




                                                                                                                                                                                                                                                                                                         109TH                                PP
                                                                                                                                                                                                                                                                                                                                                   I




                                                                                                            Hennepin County Housing Community Works and Transit
                                                                                                                                                                                                                                                                                                         Ü
                                                                Maple Grove NSP 2 Census Tracts




                                                                                                                                                                                                                                                                                                                                                           QUAKER
                                                                                                                                                                                                                                                                                                                                108




                                                                                                                                                                                                                                                                                                                                                                                         LANCASTER
                                                                                           107TH




                                                                   HOLLY




                                                                                                                                                                                                                                                                                                                                   TH

                                                                                                                                                                                                                                                                                                                                                     B OU N
                                                                                                                                                      TER                                                                                                                                                                     10 5 T
                                                                                                     105TH                                                       RIT




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                                                                                                                                                                                                                                                                                                                                        H




                                                                                                                                                                                                                                                                                                                                                                        HAN
                                                                                                                                                                    OR
                                                                                                                                                                       IAL




                                                                                                                                                                                                                                                                                                                                                       DARY
                            TROY




                                                                                                                                                                                                                                                                                                                                                                    NAT
                                                                                                                                                                                       CO                                                                                                                                     102                                               102N
                                                                  HOLLY

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                                                                                                                                                                                                                                               26707




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                                                                                                                                                                                         UN
                            101ST                                                                                                                                                                       TY
                                                                                     IN

                                                                                                                                                                                                               RO                                                                               101ST




                                                                                                                                                                                                                                                                                                                                                                    ORLEANS
                                                                                                                                                                                                                                                                                                                                                                                   NAT
                                                                                                                                                                                                                                                                                     TH
                                                                                     TE

    100TH                                                                                                                                                                                                             AD                                                         100           99T
                                                                                                                              GROVE
                                                                                           RS




                                                                                                                                                                                                                                                                       IVES
                                                                                                                                                      99TH 99TH                                                                 81                                                                 H




                                                                                                                                                                                                                                                                                                                                                                                         HA N
                        98TH                                                                                                                                                                                                                                                                H
                                                                                                                                                                                                                                                                                         98T 98TH
                                                     LAWNDALE




                                                                                              TA




                                                                                                                                                                                                        FERNBROOK




                                                                                                                                                                                                                                                                                                                                                       REVERE
                                                                                                                                                                                                                  LIS
                                                                                                TE



COUNTY ROAD 30                                                                                                                                                                                                                                                                 97TH     97TH                                                                                            97TH




                                                                                                                                                                                                               OD
                                                                                                                                                        MIN
                                                                                                   9




                                                                                                                                                                                                             A PO
                                                                                                                                                                                                                96TH




                                                                                                                                                                                                                                                                                                                                UNION TERRACE
                                                                                                             4



                                                                                                                                  UPLAND                                                                                                                                                                                                                        96TH




                                                                                                                                                                                                                                                                                                                                  WELLINGTON
                                                                                                                                                                    96TH




                                                                                                                                                                                                           WO
                                                                                           96TH                                                                                                                                                                 95


                                                                                                                                                            NE




                                                                                                                                                                                                      XENIUM




                                                                                                                                                                                                                                                                                                        DEERWOOD

                                                                                                                                                                                                                                                                                                                    ZACHARY
           95TH                                                                                                                                                                                                                                                                           95TH




                                                                                                                                                                                                        AN N
                                                                                                                      95                        95TH                                                                                                               T   H                                                                                    95TH




                                                                                                                                                                                       UNDERWOOD TEAK
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                                                                93RD                                                                                                                                                                                                       94TH                                                                            94TH
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                                                                                                                                                                                                                                     93RD




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                                                                                                                                                            92ND                                         D




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                                                                                                                                                                                                                                                                                                                   91ST
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                                                                                                                                      ND
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                                                                                                                 ST




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                                                                                                                                                                                                                                                     PINEVIEW




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                                                                                                             WE




                                                                  88T                                                                                                                DALLAS                                                                     89TH
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            88                                                        H                                                                                                                                                                                                                               88TH




                                                                                                                                                                                                                                                                                                                                                                          MONTICELLO
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                                                                                                                                                                                SYCAMORE
                                                                                                                                                                                ELM CREEK
                                                                                                                                                                                                                                                                               87TH
                                    87TH
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                                                                                                                                                                                                                                                                                 86TH
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                 82                                                                                                                                    ES                                                                                                                                                                                             85TH
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                                                                                                                                                       ID




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                                                                                                                                                                                                                                                                                                                   PH


                                                                                                                                                                                                                                                                                                                                 TAT
                                                                                                                                                                                                                                     INTERSTATE 49




                                                                                           72ND                                                 72ND                                                                                                                                                                                 E9
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                                                                                                                                                                                                                                                                                                                    EA


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                                                                                                                               71ST
                                                                                                                                                                                                                                                                                                                                                        N
                                                                                                                                                                                                                                                                                                                        SA



                                    70TH
                                                                                                                                                  ORCHID




                                                                                                             70TH
                                                    LAWNDALE




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                                                                                                                                                                                                                                                                                                                              NT



                                                                                                                                                                                                                     70
                                                                                                                                                                                                                                                                     Y




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                                                                                                                                                                                                                                                                                                                                            EN

                                       69TH                                                                                                                                                                            TH
                                                                                                                                                                                                                                                                 RE
                                                                                                                                                                               SUNNYSLOPE




                                                                                                                                    H
                                                                                                                                                                                                                                                                                      HEMLOCK




                                                                                                                                68T                                                                                                                                                                                  69TH
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                                                                                                                                                                                                                                                                CA




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                                                                               N




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                                                                                                                                                                                                 SS




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                                                                                                                                                                                                    LA
                                                                                                                                                                                                    ESS
                                                                                                STO




                                                                                                                                                                                                                                                                     62ND
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                                                                                                                                                  62ND
                                                                                                                               A ND




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                                                                                                                                                                                                                                                                                                                                                                62ND
                                                                                                   CK




                              Ü
                                                                                                                                                                                                               E




                         Hennepin County Housing Community Works and Transit


                                                                                     9/15/2010
                                         Mound NSP 2 Census Tracts




                                                                                                                        RD
                                                                                                                    EBI
                                                                                                                  VE
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                                                                                                                                                                         IS
                                                                                                      ERN
                                                                                                    WAR




Ü                                                                Hennepin County Housing Community Works and Transit
                               Rogers Area NSP 2 Census Tract




                                                                                                                                                                                                                                                                  R
                                                                                                                                                                                                                                     FREDERICK




                                                                                                                                                                                                                                                              RIVE
                                                                                                                                                                                                                         COUNTRY




                                                                                                                                                                                                                                                                W
                                                                                                                                                                                                GE         147TH




                                                                                                                                                                                                                                                            CRO
                                                                                                                                                                           RID
                                                                                                                                                                       OAK




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                                                                                                                                                                              STARLITE
                                                                                                                                                                                         144TH




                                                                                                                                                                                                      HIGHWAY 101




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                                                                                                                                                                                                         JAMES
                                                                                                                                                            ROBERT




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                                                                                                                                         JO




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                                                                                                                                            D
                                                                                                                                                                                         141ST
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                                                                                                                                                                                                                                                              Y
                                                                                                                                                                          ORCH                                                                          HARMON
                                                                                                                                                                               ID
                                                                                                                                                 OAKWOOD
                                                                                                                WILLANDALE




                                                                                                                                                           HYNES                                 137TH
                                                                                                                                135T
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                                                                                                                                                                          RE
                                                                                                                                                                            D
                                                                                               AKE                                                                                                                                                          133RD




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                                                                                                                                                              9
                                                                                                                                                      129TH TH



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                                                                                                                                                                                                                                                                B RO
                                                                                                                                                127TH    128TH ROUILLARD


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                                                                                                                                                                                                           VALLEY VIEW                                        LIND
                                                                                                                                                                                                                                                                               EN
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                                                                                                     BECHTOLD




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                                                                                                                                                                     TILTON
                                                                      W HI




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                                                                                           MN




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                                                                       TE T




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                       109TH                                                                                                                                                                            109TH
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                                                                                                                                                109TH
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  TH




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                                                                           AI L
   8
10




                                                                                                                                 TRAIL HAVEN
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                  10




           Hennepin County Housing Community Works and Transit


                                                                                                                                                                                     Ü
                                      Exhibit B


                                  Neighborhood Stabilization Program(NSP2)
                                       NSP2 Homebuyer Assistance Program
                                                       LOAN OFFICER CERTIFICATION




Loan Officer:           ________________________________________________
Company:                ________________________________________________
Telephone number:       ________________________________________________


I hereby certify that I would like access the Program for my Borrower,
___________________ (Borrowers Name) and that I must meet Hennepin County’s
expectations. I hereby certify that:

       I have read the NSP2 Homebuyer Assistance Program Description and
        Guidelines and agree to work within them; and
       I have read the NSP2 Frequently Asked Questions (FAQ’S); and
       I have approval from my lending institution to participate; and
       I have ensured the Program has been reviewed and approved, as eligible
        subordinate financing mechanisms, by my lending institution; and
       I understand I am not authorized to pre-approve a Borrower for an amount that
        includes any Program assistance; and
       I understand I do not make the determination of eligibility for, nor determine the
        level of Program assistance for the Borrower.
       I do not expect Hennepin County staff to provide Program information
        (guidelines, information, sample document, etc.) that is available to download
        from the NSP website to provide to Borrowers, underwriters, real estate agents,
        etc.; and
       I will follow the Program guidelines and cooperate with Hennepin County staff;
        and
       I am willing and able to provide information to Hennepin County that is required
        to assist in the implementation of the Program in accordance to the guidelines
        and descriptions; and
       I know and agree to plan for the required 45 day processing window Hennepin
        County needs to get to closing. The 45 days starts from the date an eligible
        borrower submits a Purchase Agreement on an eligible property.


Loan Officer Signature: ____________________________________________
Date                    _______________________
                                        Exhibit C

                                   Neighborhood Stabilization Program(NSP2)
                                        NSP2 Homebuyer Assistance Program
                                      Neighborhood Stabilization Program Addendum


This Neighborhood Stabilization Program Addendum (Addendum) is to be made part of the
Purchase    Agreement     (Agreement)    dated  ______________,     20__,   between
_________________________________ (Seller) and ___________________________
(Buyer), for the property located at: ________________________________________,
____________, MN, ______ (the Property)

A.     Purchase Discount
The Buyer’s obligation to close this transaction with federal assistance is expressly
contingent upon the results of an appraisal ordered by Hennepin County. The Buyer is
using certain federal funds that require the purchase price to be at or below 99 percent
of the appraised value on the appraisal ordered by Hennepin County. The Buyer shall be
allowed 10 days after the date of this Agreement to cancel based on the appraisal if the
condition cannot be met, in which event this Agreement will be null and void and the
Seller shall return all earnest money to the Buyer.

B.     Environmental Review
Notwithstanding any provision of this Agreement, the parties hereto agree and
acknowledge that this Agreement does not constitute a commitment of funds or site
approval, and that such commitment of funds or approval may occur only upon
satisfactory completion of an environmental review and receipt by Hennepin County under
24 CFR Part §58. The parties further agree that the provision of any fund to the purchase
is conditioned on Hennepin County’s determination to proceed with, modify or cancel the
purchase based on the results of said environmental review. Further, the buyer shall not
undertake or commit any funds to physical or choice-limiting actions, including property
acquisition, demolition, movement, rehabilitations, conversion, repair, construction, or
execution of a construction contract prior to the environmental clearance, as denial of any
funds to purchase may result.

C.     Minimum Property Standards
Seller shall allow Hennepin County to complete an inspection of the property within 10
days after the date of this Agreement to establish if the property will meet the Hennepin
Housing Consortium New Construction and Rehabilitation Standards (Standards). If
Hennepin County determines that the property does not meet the Standards, the Buyer
shall have the right to cancel this Agreement, in which event, this Agreement will be null
and void and the Seller shall return all earnest money to the Buyer.




Seller’s Initials _________

Buyer’s Initials _________    ________
                                            -1-
                                        Exhibit C

                                   Neighborhood Stabilization Program(NSP2)
                                        NSP2 Homebuyer Assistance Program
                                     Neighborhood Stabilization Program Addendum



D.     Disclosure to Seller with Voluntary, Arm’s Length Purchase Offer
This is to inform you the Buyer would like to purchase the property under this Agreement
to owner occupy, if a satisfactory agreement can be reached. This purchase may receive
funding assistance from the U.S. Department of Housing and Urban Development (HUD).
Please be advised that the Buyer does not have authority to acquire your property by
eminent domain. In the event we cannot reach an amicable agreement for the purchase
of your property, the Buyer will not pursue this proposed acquisition.
The property is listed for purchase at ($)_________________. The Buyer is prepared to
offer you ($)_________________________ to purchase your property and receive clear
title to the property under the conditions described in the attached Agreement. The Buyer
believes this amount represents the current market value of your property. Under NSP2,
we are required to purchase foreclosed property at a discount from is current appraised
value. Depending upon the results of our appraisal, our final purchase offer may differ
from the amount noted above.
Since the purchase would be a voluntary acquisition, arm’s length transaction, you would
not be eligible for relocation payments or other relocation assistance in accordance with
the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA).
In accordance with the Uniform Relocation Assistance and Real Property Acquisition
Policies Act (URA), owner-occupants who move as a result of a voluntary acquisition are
not eligible for relocation assistance. A tenant-occupant who moves as a result of a
voluntary acquisition for a federally-assisted project may be eligible for relocation
assistance. Such displaced persons may include not only current lawful occupants, but
also former tenants required to move for any reason other than an eviction for cause in
accordance with applicable federal, state, and local law. If your property is currently
tenant-occupied or a tenant lawfully occupied your property on or after February
17, 2009, we need to know immediately in order to inform Hennepin County.
Further, you should not order current occupant(s) to move, or fail to renew a lease, in
order to sell the property to us as vacant. Also, as indicated in the contract of sale, this
offer is made on the condition that if the property is vacant then no tenant will be
permitted to occupy the property before the sale is complete.
Again, if you do not wish to sell the property, the Buyer will take no further action to
acquire it. If you are willing to sell the property under the conditions described in this
Agreement, please sign the Agreement and initial this Addendum. Your signature on the
Agreement and your initials on this Addendum constitute acknowledgement that you have
received this disclosure. Please contact the Buyer if you have any questions about this
disclosure.



Seller’s Initials _________

Buyer’s Initials _________    ________
                                            -2-

				
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