06-08-2016 Workshop Packet - Laserfiche WebLink

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TO: FROM DATE; RE: o� 1ttle a11ada Mayor Keis and Members of City Council Joel Hanson, City Administrator June 3, 2016 Housing Rehabilitation Program Evaluation Report STAFF REPORT Pursuant to our goal setting session and the adoption of the subsequent action plan (Attachment #1), staff has prepared a report dealing with the creation of a housing rehab program for Little Canada. Here is what we have learned to date: Current Programs Available in Little Canada: The Greater Metropolitan Housing Corporation (GMHC) through the Housing Resource Center (HRC) located in Shoreview offers the following programs (Attachment #2): • Ramsey County Deferred Loan Program — This allows for loans up to $15,000 for residents at 80% or lower of median income (Attachment #3). Repayment is deferred until the home is sold or title transfers. County staff informed me they have a waiting list for this program. The lower income limits likely prevent rehabs of many properties in our community. • Minnesota Housing Fix Up Loan — Up to $50,000 at a fixed interest rate with a term of up to 20 years. • Minnesota Housing Rehabilitation Loan — No interest, deferred loan for very low income people. Maximum loan of $27,000 for improvements related to safety, livability, or energy improvements. Loan is forgiven if owner lives there for 15 years. • Minnesota Housing Emergency Loan — 0% interest loan for emergency conditions involving health/safety for very low income owners. The maximum amount is $15,000 and will be forgiven if owner lives there for 15 years. Suburban Ramsey County Programs: Staff also looked at what other suburban Ramsey County cities offer in terms of rehab programs. Attachniew 44 is a summary of those offerings. In looking at the this chart, you will see that there is a lot of variety in what is offered by these five cities from the standpoint of loan amounts, income limits, terms, interest rates, and eligibility. Based on discussion with the City of Roseville, they said their utilization was pretty low until they raised the eligible loan amount to $40,000 because they learned that is what was needed to get a lot of rehabs done based on needs and owner desires. Administration: Administration of a rehab program is a key factor in its success. Having been involved in operating past rehab programs, outside expertise is the best way to do this. To that end, GMHC and their HRC in Shoreview is a good option. They are operating programs for Ramsey County, the five suburbs noted earlier, and many other metro communities. They have the capacity and expertise to do this for us as well. I have invited Suzanne Snyder, Program Director, to attend Wednesday's workshop to offer her insight into rehab program issues and opportunities. Administration also involves loan applications, work write-ups, obtaining bids, review of bids, contracts, work oversight, close-out, and loan srl icing.