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Item Number: 6A <br /> Meeting Date: April 17, 2009 <br /> • Type of Business: EDC <br /> City of Mounds View Staff Report <br /> To: Economic Development Commission <br /> From: Heidi Steinmetz, Economic Development Specialist <br /> Item Title/Subject: Housing Replacement Program - Discuss Possible Policy <br /> Changes <br /> Background <br /> The EDA last updated the Housing Replacement Program criteria in July of 2007. I have <br /> attached the criteria for the EDC's reference. The EDA has geared this program toward <br /> providing demolition assistance through Tax Increment Financing (TIF), which the EDA may <br /> provide to property owners as a ten-year/forgivable deferred loan. The Housing Resource <br /> Center administers the program for Mounds View. <br /> In March and April of 2008, the EDC discussed whether to expand the Housing Replacement <br /> Program to address the needs of the current housing market. The consensus of the EDC was <br /> that the City does not need to reinvent the wheel as long as other housing organizations are <br /> meeting the needs of the community. <br /> • Discussion <br /> The question that staff wants the EDC to consider is "Should the EDA charge an application fee <br /> to cover the costs of processing a Housing Replacement Program application?" <br /> Currently, for the EDA to consider a property for this program, applicants must submit to the <br /> EDA a letter of request. There is no application fee or application form. After applicants submit <br /> their letter, they must have their house inspected to establish blight qualification. The City's <br /> Housing Inspector spends about 1.5 hours of time to complete the inspection and to write his <br /> report. Economic Development staff then composes another written report with background <br /> information and a recommendation to the EDA. <br /> It is staff's opinion that it is reasonable for the EDA to charge a fee to help cover staff time as <br /> we do with most services provided by the City. <br /> Recommendation <br /> Staff is recommending that the EDC provide a recommendation to the EDA that applicants for <br /> the Housing Replacement Program be required to submit a non-refundable application fee of <br /> $100 and a completed application form. <br /> Respectfully submitted, <br /> 4Z- <br /> • Heidi Steinmetz, Economic Development Specialist <br /> Attachment - Housing Replacement Program Policy <br />