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EDC Minutes August 20, 2010 Page 2 of 3 Concept 1: Mounds View Residential Rehabilitation/Code Enforcement Deferred Loan Concept 2: Mounds View "Immediate Need" Deferred Loan Concept 3: Mounds View Foreclosure Recovery Program Ms. Steinmetz added that the City has an annual contract with the Housing Resource Center to administer several home improvement loans available to Ramsey County residents. The Housing Resource Center also offers free home remodeling advice to Mounds View homeowners. Commissioner Johnson asked if there are income limits to the free services offered by the Housing Resource Center. Ms. Steinmetz said there are no income limits. Commissioner Johnson asked what constitutes a "housing developer" in the sample criteria for Concept 3. Ms. Steinmetz answered that a "housing developer" would be considered the homeowner. Community Development Director Ken Roberts added that the homeowner probably bought the foreclosure from a bank. Ms. Steinmetz added that city staff, the EDA or the Council have not discussed these details yet. Mr. Roberts added that if the EDA were to approve Concept 3, the City would "vett" any developer that would try and do improvements on a foreclosed home in Mounds View. Commissioner Belting asked if the EDA transfers the $150,000 of Housing Replacement Program Tax Increment Financing (TIF) funds towards forming a new Mounds View home improvement loan program; would there be more TIF available to fund a similar program the following year? Ms. Steinmetz said there is unobligated TIF available that the EDA could choose to use towards Mounds View's housing needs. Mr. Roberts reminded the EDC, however, that the Council's first priority is to use the EDA's TIF funds towards the Street Project. Ms. Steinmetz urged the EDC, EDA and City Council to remember that traditional Economic Development involves job creation and housing assistance. Commissioner Belting agreed. Commissioner Belting asked how the Housing Resource Center administers loans, specifically if the funds are released before the work is completed. Ms. Steinmetz said that the Housing Resource Center administers loans like banks do. Mr. Roberts added that the funds would be paid to the contractor. Commissioner Larson said that he thinks that the EDA should add a demolition loan concept to their list of concepts. He added that homeowners are probably not going to make $20,000 of improvements to a $90,000 house. He said that it makes more sense to remove a blighted home and replace it with a larger, more valuable home. The EDC agreed and said that the City should develop criteria for determining which homes would be eligible for demolition. Commissioner Belting said that he likes all three concepts and $150,000 seems like a reasonable amount of funding for this program but that the City will not know the proper amount of funding is needed until the program is implemented. Commissioner Entsminger said that she does not agree with forgiving loans. Commissioner Belting agreed.