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Item No. 5 Staff Report No. 97-/9/Vid5 Meeting Date: 3/4/97 III Type of Business: Work Session WK:Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Mayor and City Council From: Jennifer Bergman, Housing Inspector Item Title/Subject: Revisions to Guidelines for Housing Replacement Program Date of Report: February 6, 1997 Summary: Staff is proposing revisions to the guidelines for the Housing Replacement Program. These revisions would allow funds to be used for demolition of dilapidated houses, without the City buying the underlying lot. Currently, the Housing Replacement Program allows for deohtior; only when the Economic Development Authority(EDA) acquires a property. The revision would allow a property owner to maintain ownership of the lot while using the funds to remove the house if the owner enters into an agreement to redevelop the lot within a certain period, of'tF oc and within EDA guidelines. • Discussion: The purpose of the Housing Replacement Program is to remove houses which are in very poor condition, thereby, assisting in the elimination of the blighting influence of substandard homes. This is accomplished by replacing smaller, dilapidated houses with new, higher valued homes. The houses targeted or approved for this program are ones which are beyond repair or tho geA of repair would exceed the total value of the property. Replacing these homes helps remove substandard homes and improve the City's overall tax base. Recently, Christopher and Sandi Pidel, owners of a house at 8300 Fairchild Avenue, asked about demolishing their home under the Housing Replacement Program. They want, however, t i maintain ownership of the property and rebuild a house on the lot. Under the current guidelines, the EDA must purchase the property, demolish the home and sell the land to a buyer/developer team for redevelopment. The current owner may or may not be successful in buying back the lot, depending on other bids received. Staff consulted with City Attorney Bob Long who suggested we make an amendment to the Housing Replacement Program allowing the funds to be used for demolition when the current owner maintains ownership rather than selling the property to the EDA. By adding this option, we would comply with the Program Objectives of the Housing Replacement Program and supply III