05-12-1997 EDA - Laserfiche WebLink

Home Browse Search

Item No. Staff Report No. Vi¢— 7—71G Meeting Date: 5/12/97 • Type of Business: EDA Business WK: Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of Mounds View Staff Report To: EDA President and Board Members From: Jennifer Bergman, Housing Inspector Item Title/Subject: Consideration of Resolution No. 97-EDA66 approving amendments to the Housing Replacement Program Date of Report: May 12, 1997 Summary: This request is for approval of revisions to the guidelines for the Housing Replacement Program which would allow two program options. Staff introduced these changes to the Economic Development Authority (EDA) at the March Work Session. The revisions would add an option where funds could be used for demolition of dilapidated houses, without the City buying the underlying lot. The property owner would maintain ownership of the lot while using the funds to remove the house if the owner entered into an agreement to redevelop the lot within a certain period of time and within EDA guidelines. This option was suggested by Bob Long, after staff received a request from a property owner who wanted demolition funds but wanted to keep the • lot and rebuild. Currently, the Housing Replacement Program allows for demolition only when the EDA acquires a property. By adding this option, we would comply with the Program Objectives of the Housing Replacement Program and supply another alternative for improving the housing stock and comply with the three program objectives. 1. Replace deteriorating lower value housing on scattered sites throughout the City with larger, higher value housing designed for families. 2. Eliminate the blighting influence of substandard housing, thus improving residential neighborhoods. 3. Increase the availability of quality housing for families. In order to use the demolition funds under this program, the EDA would require the property owner to execute a development agreement stipulating that the replacement home be built within a certain period of time and meet EDA specifications. We would anticipate that the new house would add to the City's tax base because of its higher value, which would eventually repay the City's investment through higher property tax revenues. The Housing Replacement Program is funded from money generated by the City's tax increment financing districts. In addition, Staff has amended a number of items to improve the readability of the guidelines. The changes have been indicated by underlining the new information and crossing out the old