06-08-2016 Workshop Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL WORKSHOP JUNE 8, 2016 The City Administrator stated that the Little Canada Economic Development Authority powers will likely need to be modified to allow for Housing Redevelopment Authority powers in order to be able to have additional rights to generate funds through levies if the Council desired. He explained that about $160,000 could be generated through a levy, or the City could use the Country Drive Tax Increment Finance funds since it is a pre -1990 district that has more flexibility in what and where the funds can be used. He stated that the Greater Metropolitan Housing Corporation charges a reasonable fee on each loan they complete. He noted that they work with a non-profit organization that services the loans. Suzanne Snyder, Director of Housing Resource Center Programs for Greater Metropolitan Housing Corporation stated their goal is to further affordable housing efforts. She explained their Housing Resource Center program has offices placed strategically in metro suburban areas to provide direct housing services for residents in their surrounding neighborhoods. She noted that the Shoreview location has two lending staff and two construction managers to provide financing and technical expertise for homeowners. Ms. Snyder stated the Greater Metropolitan Housing Corporation uses money from a variety of lending sources in order to provide loans to a variety of income levels and projects. She noted that Ramsey County allocates a significant amount of money towards housing programs, but there is a wait list for these funds. She stated that Ramsey County allocated $400,000 in 2016 for housing programs. She explained cities that have their own housing rehabilitation programs supply the funds from a levy or mortgage revenue bonds, or some budget money from their general fund or use Tax Increment Finance funds. Some cities choose to direct their housing program funds to rental properties or energy efficiency improvements. She noted that the City of Roseville lifted their loan income limits and raised the loan amounts to $40,000 in order to get more use. Ms. Snyder stated that the Housing Resource Center staff does everything from taking the initial phone call and applications to final inspection and paying the contractors. She noted that the loan funds are escrowed until the work is complete and satisfactory, and then a two-party check is issued to the homeowner and contractor. She explained that there are some programs available with no income limits, and cities can decide on their own programs and rules. Ms. Snyder stated that HUD income limits are the standard used, and in 2016, the Average Median Income for the Twin Cities metro area is $85,800 for a family of four. She noted that depending on the funding source for a loan, sometimes there are no income rules. She explained that Minnesota Housing funds can be used for mobile homes, whereas Ramsey County funds cannot be. Ms. Snyder stated that the Greater Metropolitan Housing Corporation also has a lot of 2