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Staff Memo -Multi-Jurisdictional Remodeling Planbook <br /> April 28, 1999 <br /> Page 2 <br /> 2) Minnesota Housing Finance Agency-Loan <br /> Staff has recently contacted the Minnesota Housing Finance Agency(MHFA)to explore <br /> options, which may be available to finance the requested improvements. According to the <br /> MHFA, the City may apply for funding to provide a loan to the Knollwood Green Association. <br /> Applications are accepted biannually with the next submittal scheduled for June of 1999. <br /> However, there is no guarantee that the funds would be approved. In addition, the MHFA <br /> indicates that no funds have ever been issued to a condominium association through available <br /> programs. <br /> 3) Issuance of a Bond <br /> The city may issue a bond to provide funds for the principle of a loan to the Knollwood Green <br /> Association. However, the loan requested is for $100,000 and the amount may not substantiate <br /> the City issuing a bond. <br /> DISCUSSION <br /> A recent inspection has shown that the current condition of the buildings to be good. The <br /> immediate need for assistance by the City may not be warranted. However, if the City decides to <br /> provide assistance to the Knollwood Green Association in financing a loan for the requested <br /> improvements, several options are available. In conversations with the MHFA, indications are that <br /> approval of an application for funding to finance a loan through the City for an owner occupied <br /> townhome association is unlikely. And due to the process and effort involved in issuing a bond, it <br /> would not be recommended for a loan amount of only $100,000. The most viable option to provide <br /> funding to the Knollwood Green Association would be for the City to establish a Housing <br /> Improvement Area, whereby the city may cosign a loan and established criteria for levying <br /> assessments in the event of default on the loan by the association. <br /> OPTIONS <br /> 1) Direct staff to create an ordinance which would establish a"Housing Improvement Area" for <br /> the Knollwood Green Condominiums for the purpose of the city entering into an agreement <br /> for the purpose of cosigning a loan for the requested improvements. The ordinance would <br /> establish the criteria by which the city would cosign a loan and necessary assessment <br /> measures required in the event the townhouse association defaults on the loan. <br /> 2) Deny the request by the Knollwood Green Condominium Association for the City to assist in <br /> financing exterior improvements at this time. <br /> Steve Dorgan, Housing Inspector <br /> 612/717-4023 <br /> email steved@rcmnet.org <br /> Attachments: Letter—Knollwood Green Condominium Association <br />