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0 Staff Memo <br /> To: Economic Development Commission Members <br /> From: Cathy Bennett, Director of Economic Development <br /> Date: July 17, 1997 <br /> Subject: Discussion of Loan Program for Rehabilitation of Manufactured <br /> (5.B.) Homes <br /> Summary: <br /> The EDC is being asked to evaluate the possibility of using tax increment funds to <br /> assist residents in the rehabilitation of homes located in the manufactured home <br /> parks. <br /> The Situation: <br /> Currently, owners of manufactured homes are constructing their own additions. <br /> 0 State law requires that additions must be prefabricated. The additions that are being <br /> built are now is disrepair. They have leaks with faulty construction which create an <br /> unsafe health environment such as molding and insects. The City has the authority to <br /> require the owners to tear down these additions since they were not constructed per <br /> State building code. The problem is that the people who own the homes are not <br /> able to afford the prefabricated additions to replace the defective ones but they still <br /> desperately need the living space. <br /> Possible Solution: <br /> Staff though that we could provide a loan to the owners for the prefabricated <br /> additions to replace the ones that are a health hazard and need to be removed. The <br /> loan could be forgivable after a number of years or payment due upon sale of the <br /> home. We could also require that the recipient of the loan be required to attend a <br /> property management class to help them self police problems that arise within these <br /> manufactured home parks. The questions arise when we begin to look at what type <br /> of security we would be able to have on the loan. One possibility is to put a lien on <br /> the property for the value of the loan. Of course we would need to be assured that <br /> the value of the manufactured home at least is equal to loan amount. Another <br /> question would be the administration of the loan? <br /> The Building Inspector, Rick Jarson, will be available to address the situation and <br /> • provide information regarding the number of current cases that would qualify and <br /> how much a typical prefab addition would cost. <br />