07-27-1998 - Laserfiche WebLink

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• Page 2 EDA July 27, 1998 MOTION/SECOND: Quick/Stigney to direct staff to continue to market the property as a subdividable lot and wait for a private proposal prior to proceeding further on the sale of the lot. VOTE: Ayes - 5 Nays - 0 Motion carried B. Discussion of Home Improvement Loan Interest Subsidy Program Dorgan gave his report as follows: Staff has been working with the EDC over the past several months to develop a Home Improvement Loan Program. Guidelines for the program have been put in resolution form which was presented to the EDA for their approval. The program was composed of two components as follows: 1. Subsidizing MHFA, Minnesota Housing Finance Agency,home improvement loans. A. Increases the maximum household income from$49,000 to $69,900 • B. To be used for homes built before 1965 2. Subsidize market rate loans by a rate of 3 percent Two financial institutions will be sponsoring the programs in the City; Western Bank and The Center for Energy Environment, a nonprofit lender. Both components would use TIF funds available through the City. The City currently has allocated$130,000 for 1998. Of that amount, $5,600 has been used leaving an available balance of$124,400. This program proposes to allocate $75,000 for intersubsidies for the two components. $40,000 for the MHFA component and $35,000 for the market rate loans. The EDA recently approved the purchase of an HRP property located at 6991 Pleasant View Drive for a price of$62,500. The funds for this property will also be allocated out of the remaining $124,000 TIF funds. Staff is recommending allocating Home Improvement Loan Interest Subsidy Program funds over a two-year period to allow the purchase of this HRP property. Stigney voiced his opposition to subsidizing home improvement loans to people that can afford II/ to do improvements with their own funds.