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Mounds View EDA January 10, 2011 <br />Regular Meeting Page 3 <br /> <br /> <br />Economic Development Specialist Steinmetz explained the City does not have a housing expert <br />on staff, which led the City to the contract with GMHC to provide housing services to Mounds <br />View residents. With the new loan programs, GMHC estimated the expense to administer each <br />loan would be $400. These fees would not be paid by the borrower but instead through EDA <br />funds as part of the EDA’s 2011 budget. <br /> <br />Economic Development Specialist Steinmetz recommended the EDA approve the GMHC <br />proposed fee to administer and arrange for the servicing of Mounds View’s Home Demolition, <br />Code Enforcement, General Home Repair and Emergency Deferred Loans with the outlined fees. <br /> <br />Vice President Stigney questioned what other cities were charged by GMHC for loan closures. <br />Economic Development Specialist Steinmetz indicated this fee was closer to $550 per loan <br />closed. <br /> <br />President Flaherty asked if the contract for housing services would assist with promoting the new <br />home loan program. Suzanne Snyder, GMHC, indicated her organization did screen clients and <br />their specific needs to assure that they fit into the best program available. This may not be a City <br />sponsored program, but rather something offered by the County or State and vice versa. <br /> <br />President Flaherty indicated the goal of the program was to improve the City’s overall housing <br />stock. He explained the home loan program was in its pilot year and would be evaluated at the <br />end of 2011. <br /> <br />MOTION/SECOND: Mueller/Hull. To Accept the Administration and Servicing Fees for the <br />Home Improvement Loans with Greater Metropolitan Housing Corporation as outlined by staff. <br /> <br />Commissioner Mueller indicated neighboring communities have utilized these types of home <br />loans for residents with great success. She thanked the EDA for coming together on this issue as <br />it would meet a great need in the community. <br /> <br /> Ayes – 5 Nays – 0 Motion carried. <br /> <br />8. REPORTS <br /> <br />None. <br /> <br />9. NEXT EDA MEETING: Monday, January 24, 2011, at 6:30 p.m. <br /> <br />10. ADJOURNMENT <br /> <br />President Flaherty adjourned the meeting at 6:50 p.m.