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MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION <br />RESOLUTION NO. 98 -EDC -25 <br />CITY OF MOUNDS VIEW <br />COUNTY OF RAMSEY <br />STATE OF MINNESOTA <br />RESOLUTION RECOMMENDING THE ECONOMIC DEVELOPMENT AUTHORITY'S <br />APPROVAL OF TAX INCREMENT FINANCING AND PROGRAM GUIDELINES FOR THE <br />PROPOSED HOME IMPROVEMENT LOAN INTEREST SUBSIDY PROGRAM <br />WHEREAS, due to the age and condition of the city's housing stock it is important to encourage <br />reinvestment in the community to avoid blight and to upgrade the quality, livability and <br />marketability of the housing stock; and <br />WHEREAS, the EDC has determined that by implementing a program which subsidizes <br />(reduces) the interest rate for home improvement loans for all qualifying homeowners within the <br />city, an incentive will be provided to rehabilitate and improve the city's housing stock; and <br />WHEREAS, the EDC has determined that any such Home Improvement Loan Interest <br />Subsidy Program should have the following two components in order to accommodate all <br />homeowners within the City : <br />A. A MHFA Home Improvement Loan Interest Subsidy which will take <br />advantage of (and further reduce the interest rate for) existing MHFA loan programs <br />with below-market interest rates for qualifying low to moderate income households; <br />and <br />B. A Market Rate Home Improvement Loan Interest Subsidy for all other <br />qualifying homeowners within the city who would not otherwise qualify for MHFA <br />home improvement loans; and <br />WHEREAS, as part of the proposed Home Improvement Loan Interest Subsidy Program, <br />the EDA approved an application to the MHFA for the Community Fix -up Fund Program, which <br />was ultimately approved by the MHFA, and which will allow more homeowners within the City to <br />access low interest rate home improvement loans under the MHFA Home Improvement <br />Loan Interest Subsidy component of the overall Home Improvement Loan Interest Subsidy <br />Program; and <br />WHEREAS, the EDC has reviewed the attached Program Guidelines for each of the two <br />components of the Home Improvement Loan Interest Subsidy Program and has <br />determined that the guidelines are consistent with the objective of providing Mounds View <br />homeowners with economic incentives to rehabilitate and improve their homes; and <br />WHEREAS, the EDC has concluded that using tax increment funds is a necessary and <br />appropriate means of subsidizing the two types of loans that are envisioned under the Home <br />Improvement Loan Interest Subsidy Program, thereby ensuring that more Mounds View <br />homeowners will have access to home improvement loans at a reduced interest rate and that <br />