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9-7-2010 Council Work Session Item 5 – Housing Program Concepts Page 2 of 3 transfer or sale of the property. Immediate conditions are generally defined as property damage beyond the homeowner's control or that are necessitated by a system or structural failure that has caused or could cause the home to be uninhabitable. Eligible repairs to the home’s exterior would be painting, roof repairs (leaks), tree removal (fallen tree from a storm), plumbing repairs (water heaters, sewer backups), heating and cooling system repairs or replacement (only during unforeseen breakdowns). Eligible applicants would be very low-income (at or below 50% of median) single-family homeowners. Concept 3 - Mounds View Foreclosure Recovery Program This program could be modeled after the City of Brooklyn Park’s Foreclosure Recovery Rehabilitation Program. The City would “vett” developers to purchase foreclosures and rehab them. Then the City would offer down payment assistance to homebuyers that purchase the rehabilitated foreclosures. Recommendation City staff recommends that the EDA/City Council use the EDA’s existing Housing Replacement Program dollars ($150,000) towards funding a “Mounds View Residential Rehabilitation Loan Program” and a “Mounds View Home Demolition Loan Program” in 2011. Staff suggests that the EDA use $130,000 of these funds towards the Residential Rehab Loan Program and $20,000 of these funds towards the Demolition Loan Program. Both programs would be one-year “demonstration” or “pilot” programs as described below: Mounds View Residential Rehab Loan Program This would be a combination of Concepts 1 & 2 (summarized earlier in this staff report) and the program would consist of the following three loan options: 1) General Residential Rehab Loan 2) Code Enforcement Loan 3) Emergency Loan There would be a total of $130,000 available in 2011 for this program. Mounds View Home Demolition Loan Program This program would allow Mounds View homeowners to apply for a loan to demolish a blighted home and the loan would be repaid at the time the property is sold. The Greater Minnesota Housing Corporation staff suggests that Mounds View set aside enough funds for two demos (about $20,000) in 2011. As mentioned above, both programs would be “demonstration” programs to be reevaluated after one year because then the EDA/City Council will have a better idea of Mounds View’s true housing assistance needs based on the usage of each program. If Mounds View homeowners demonstrate a true need for these programs in 2011, then the EDA/City Council may want to consider allocating more funding for these programs in 2012.