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<br />Item No: 2 <br />Meeting Date: November 1, 2010 <br />Type of Business: WS <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br /> <br />To: Honorable Mayor and City Council <br /> From: Heidi Steinmetz, Economic Development Specialist <br />Item Title/Subject: Continue Discussion about Mounds View Home <br />Improvement Loan Program <br />Background <br />Over the past several months, the EDA/City Council has been discussing developing a <br />home improvement loan program to replace the EDA’s existing Housing Replacement <br />Program. City staff and the Greater Metropolitan Housing Corporation staff have <br />developed draft criteria of four loan options. The EDA reviewed the proposed criteria on <br />September 27th and October 25th. <br /> <br />Attached is a revised version of the draft criteria based on the EDA’s October 25th <br />discussion. Below is a summary of those revisions: <br /> <br />1) Asset limit criteria removed from Options 2, 3 & 4 <br />2) Deferred criteria removed and 10-year loan term added to Option 1- Demolition Loan <br /> <br />Discussion <br />On October 25th, the EDA asked to review amortization scenarios at different interest <br />rates for Option 1, the Demolition Loan. Suzanne Snyder of the Greater Metropolitan <br />Housing Corporation (GMHC) has provided the attached “face sheets” on the <br />amortization of a $10,000 loan with a repayment term of 10 years. The face sheets <br />compare monthly payment amounts, the total payment amounts and the finance <br />charges between interest rates at 0%, 1%, 2%, and 3%. <br /> <br />Recommendation <br />Staff recommends that the City Council provide direction on the loan term and interest <br />rate for Option 1. In addition, staff recommends that the City Council provide direction <br />on the remaining Options 2, 3 & 4 to be considered for approval at the November 8, <br />2010 EDA meeting. <br /> <br />Respectfully submitted, <br /> ____________________________ <br />Heidi Steinmetz, Economic Development Specialist <br /> <br /> <br />Attachments <br /> Mounds View Home Improvement Program Draft Loan Criteria <br /> Face sheets on the amortization of a $10,000 with a repayment term of 10 years at 0%, 1%, 2% & 3%