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<br />Item No: 5C <br />Meeting Date: April 19, 2013 <br />Type of Business: EDC <br />Administrator Review : ____ <br /> <br />City of Mounds View Staff Report <br /> <br /> <br /> <br />To: Economic Development Commission (EDC) <br />From: Heidi Steinmetz, Economic Development Specialist <br />Item Title/Subject: Review Home Improvement Loan Program <br /> <br /> <br />Background <br />The Home Improvement Loan Program was created by the EDA in late 2010 to provide <br />additional home improvement loan options to Mounds View residents. Shown below, the <br />program offers four types of loans, three of which cater to low-income residents who may <br />not qualify for traditional home improvement loan financing. <br /> <br />Loan Name Loan Amount Interest Rate Payment Type <br />Home Demolition Up to $10,000 3% Fixed <br />Code Enforcement Up to $7,000 0% Fixed <br />General Home Repair Up to $10,000 3% Fixed <br />Emergency Deferred Up to $7,000 0% Deferred <br /> <br />Attached is the loan criteria for each of the four loans. <br /> <br />Since the program’s inception, two loans have closed; one for a bathroom remodel an d <br />another for a new roof. A third loan (a home demolition loan) is expected to close on <br />Tuesday. Including the third loan, the total loan funds used will be about $24,000. The <br />total loan fund budget for 20 13 is $150,000. <br /> <br />Side Note: The Housing Resource Center administers loans for Mounds View, Woodbury, <br />Shoreview, Roseville, Oakdale and Minnesota Housing, all of which have been less <br />productive in the past several years. Housing Resource Center staff suggests reasons for <br />the decrease in loans could be the economic downturn, including unemployment stress, <br />and the decrease in property values. <br /> <br />Discussion <br />Since the City Council’s 2013 Priority Statement (see attached) relates to the revitalization <br />of County Road 10, should the Home Improvement Loan Program be discontinued and the <br />funds transferred towards County Road 10 revitalization? <br /> <br />Also, was the Home Demolition Loan amount supposed to cover all of the costs associated <br />with the demolition project? If so, City staff would suggest amending the Home Demolition <br />Loan amount to at least $12,000. <br /> <br /> <br /> <br /> <br />