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• <br /> Oct-06-68 05:15pm From-KENNEDY & GRAVEN +6123376310 T-164 P.02/03 F-334 <br /> 470 Pillsbury Ccnrcr <br /> keit nedy 20u South Sixth Sitter <br /> Munucapolis MN 55402 <br /> (612) 337-9300 cckphofl <br /> \.1t f iiVC[l (612) 337-9310 fax <br /> C M A R T E R E G <br /> c-mail'artyaokenncdy-gravrn corn <br /> SCOTT J. RIGCs <br /> Attorney at Law <br /> (612)337-9260 <br /> stiggs kennedy-gravcn.com <br /> October 8, 1998 <br /> VIA FACSIMILE AND <br /> REGULAR MAIL <br /> Mr. Steve Dorgan <br /> Housing Inspector <br /> City of Mounds View <br /> 2401 Highway 10 <br /> Mounds View,MN 55112 <br /> RE: Home Improvement Loan Subsidy Program <br /> • Dear Steve: <br /> I am writing in reference to our review of the City of Mounds View's proposed home <br /> improvement loan subsidy program. As you know, based upon our review of the applicable <br /> statutory authority for this matter, such a loan subsidy program which utilizes tax increment <br /> financing("TIF") dollars is not permitted for the program as presently proposed. <br /> The general authority for such an interest rate reduction program is found in Minnesota Statutes <br /> Section 469.012, subd. 7 through subd. 9. However, if the source of funding for the interest rate <br /> reduction program would be TIF monies, the limitation found at Minnesota Statutes Section <br /> 469.176, subd. 4f(3) prohibits the use of tax increments in an interest rate reduction program for <br /> owper-occupied single family dwelling,, the main objective of the loan program. The authority <br /> for an interest rate reduction program utilizing TIF monies is available, however, for a rental- <br /> type housing program. <br /> Despite the limitation for an interest rate reduction program utilizing TIF funds, as presently <br /> proposed by the City of Mounds View, the City is pg prevented from making a direct loan-type <br /> program to owner-occupied home housing units. The authority found at Minnesota Statutes <br /> Section 469.012, subd. 6 as to rehabilitation loans and grants, would provide sufficient authority <br /> for the City or the FDA to make direct loans for rehabilitation purposes to properties owned by <br /> persons of low and moderate income within the city limits. While the administrative duties of <br /> 111 the City or EDA would be greater under such a direct loan-type program, it would permit the <br /> City to pursue and fulfill the objectives of a low interest loan program for renovation of <br /> substandard owner-occupied housing within the city limits. <br /> SJR-151333 <br /> 0205-13 <br />