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• ` Item No: 6A � Meeting Date: August 20, 2010 MOUNDS VIEW Type of Business: EDA Administrator Review: City of Mounds View Staff Report To: Economic Development Commission From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Continue Discussion About Housing Rehabilitation Program Options Background At the July 6th Work Session, the City Council discussed possibly amending the EDA's Housing Replacement Program to better reflect the EDA's decision in 2007 to focus the program towards only demolishing blighted homes rather than both acquiring and demolishing the homes. The Council appeared interested in the idea of eliminating the acquisition option and asked City staff to present housing rehabilitation program concepts at a future EDA meeting. The EDA reviewed five housing assistance concepts for Mounds View on August 9th and asked City staff to refine the three concepts for the City Council to discuss again at the September 6th Work Session. • Discussion Staff is suggesting that the EDC review the three concepts and provide direction to the EDA/City Council on using the EDA's existing Housing Replacement Program dollars towards funding one or more of the concepts. Since 1996, the EDA has allocated $150,000 per year towards the Housing Replacement Program. Note: The funds do not accumulate annually and the EDA cannot transfer these funds into the City's General Fund because all of the EDA's funds are Tax Increment Financing dollars. Concept 1: Mounds View Residential Rehabilitation/Code Enforcement Deferred Loan There would be two options to this loan (the rehabilitation option or the code enforcement option). The rehabilitation option repeats an existing program offered through the Housing Resource Center (the Ramsey County Residential Rehab Deferred Loan). However, due to the lack of funding and the limitation of a long waiting list, City staff suggests that the EDA offer the same program and combine it with a code enforcement option, so that Mounds View's program would be called the "Mounds View Residential Rehabilitation/Code Enforcement Deferred Loan". Below is sample program criteria: Rehabilitation Option The maximum deferred loan amount is $15,000. Eligible properties are owner-occupied single-family dwellings located in Mounds View with the Estimated Market Value at or below $251,750. Eligible work includes repairs, replacement or construction to correct local or state code violations, health and safety items and reducing long-term • maintenance and energy costs. Mounds View would offer the loan to residents in the following two tiers according to income limits according to the annually adjusted Area Median Income (AMI).