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<br />Item No: 5 <br />Meeting Date: September 7, 2010 <br />Type of Business: WS <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br /> From: Heidi Steinmetz, Economic Development Specialist <br />Item Title/Subject: Continued Discussion about Housing Program Concepts <br /> <br /> <br />Background <br />Since 1996, the EDA has allocated $150,000 per year towards its Housing <br />Replacement Program. These funds do not accumulate annually and the EDA cannot <br />transfer these funds into the City’s General Fund because all of the EDA’s funds are <br />Tax Increment Financing dollars. <br /> <br />At the July 6th Work Session, the City Council discussed possibly amending the EDA’s <br />Housing Replacement Program. This change would be to better reflect the EDA’s <br />decision in 2007 to focus the program towards only demolishing blighted homes rather <br />than both acquiring and demolishing the homes. The Council appeared interested in <br />the idea of eliminating the acquisition option and asked City staff to present housing <br />rehabilitation program concepts at a future EDA meeting. The EDA reviewed five <br />housing assistance concepts for Mounds View on August 9th and asked City staff to <br />provide additional information on the three concepts for the City Council to discuss <br />again at the September 7th Work Session. <br /> <br />The EDC reviewed the three concepts at their August 20th meeting and suggested that <br />the EDA/Council consider all three concepts, plus a demolition assistance concept. <br /> <br />Discussion <br />Below are brief summaries of the three concepts that the EDA chose on August 9th: <br /> <br />Concept 1 - Mounds View Residential Rehabilitation/Code Enforcement Deferred Loan <br />There would be two options to this loan (the rehabilitation option or the code <br />enforcement option). The rehabilitation option repeats an existing program offered <br />through the Housing Resource Center (the Ramsey County Residential Rehab Deferred <br />Loan). However, due to the lack of funding and the limitation of a long waiting list, City <br />staff suggests that the EDA offer the same program and combine it with a code <br />enforcement option, so that Mounds View’s program would be called the “Mounds View <br />Residential Rehabilitation/Code Enforcement Deferred Loan”. Applicants would have to <br />be low-income single-family Mounds View homeowners. <br /> <br />Concept 2 - Mounds View Emergency Deferred Loan <br />This program would address immediate (emergency) conditions in the home. There <br />would be no interest or payments on this loan but it would be repaid in full at time of