10-13-1998 EDA - Laserfiche WebLink

Home Browse Search

Item No. • Meeting Date: 10-13-98 Staff Report No. Type of Business: EDAB WK:Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Eoonomio Development Authority Staff Report To: Mounds View Economic Development Authority From: , Steve Dorgan, Housing Inspector Item Title/Subject: Home Improvement Loan Interest Subsidy Program Date of Report: October 8, 1998 SUMMARY At the workshop meeting in September 8, the Council was provided information regarding the implementation of an Interest Subsidy Home Improvement Loan program. At that time, the Council recommended staff continue to take necessary steps for the implementation of the proposed program. As proposed, the program would use Tax Increment Funds (TIF)to finance subsidies and associated administrative costs. However, since the last meeting the City Attorney 0 has informed staff that TIF may not be used to subsidize interest rates for home improvement loans. According to legal staff Minnesota State Statutes dictate that TIF funds may not be used for the purposes of subsidizing interest rates for home improvement loans. Therefore, the proposed loan subsidy program may not use TIF funds for the purposes of subsidizing interest rates. Staff has begun researching other funding sources, which the City may access to provide subsidies for the proposed program. One available option would be to apply for funding through the Metropolitan Council Livable Communities Housing Initiatives Fund. In recent conversations with Metropolitan Council staff, City staff was informed that the Home Improvement Loan Interest Subsidy Program might qualify for funding through the"Super RFP" sponsored by the Metropolitan Council and the Minnesota Housing Finance Agency. Applications for the Super RFP will be sent out in November/98 and are due in January/99. As part of the application, the City may also apply for funding associated with other housing related programs (i.e. housing replacement program, remodeling counselors). The City may apply for the Super RFP and consolidate several programs into one application. If approved, the city may receive funding for the proposed interest subsidy program as well as several other programs. The funding sources associated with the Super RFP do require that most housing programs have income related eligibility requirements for households. These requirements typically have a maximum household income threshold that is 80% of the metropolitan area median income (approximately$45,000 for a family of four). If approved, some modifications to the income requirements of the proposed program may be necessary. Staff will continue work on obtaining financial assistance for the interest subsidy program as well as other housing related programs.