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8-20-2010 EDC Meeting Item 6A—Housing Assistance Concepts Page 3 of 3 This program would assist low-income (at or below 50% AMI) homeowners to address immediate conditions in the home. There would be no interest or payments on this loan but it would be repaid in full at time of transfer or sale of the property. The loan amount would be between $1,000 to $5,000. Immediate conditions are generally defined as property damage beyond the homeowner's control or that are necessitated by a system or structural failure that has caused or could cause the home to be uninhabitable. Eligible repairs to the home's exterior would be painting, roof repairs (leaks), tree removal (fallen tree from a storm), plumbing repairs (water heaters, sewer backups), heating and cooling system repairs or replacement (only during unforeseen breakdowns). Concept 3: Mounds View Foreclosure Recovery Program This program could be modeled after the City of Brooklyn Park's efforts to provide down payment assistance of up to $7,500 to homebuyers that purchase homes that have been rehabilitated by for-profit and non-profit housing developers that have partnered with the City. The homebuyers would have to purchase the homes through the housing developer. Recommendation Staff is requesting that the EDC provide direction to the EDA/City Council on using the EDA's existing Housing Replacement Program dollars towards funding one or more of the S three concepts mentioned above. Staff will present the EDC's input to the City Council at the September 6th Work Session. No matter the outcome of the EDC and EDA/Council's discussions about housing assistance, the Housing Resource Center would assist City staff in developing and refining program criteria. The Housing Resource Center would also administer the program (s) for a fee per loan closed. Respectfully submitted, /46;Zi 6 Heidi Steinmetz, Economic Development Specialist •