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<br /> <br /> <br />November 4, 2010 <br /> <br /> <br />TO: Economic Development Authority <br /> City of Mounds View <br /> <br />cc: Heidi Steinmetz <br /> <br />FROM: Suzanne Snyder, Program Director <br /> Greater Metropolitan Housing Corporation (GMHC) <br /> <br />RE: Asset Limits on Home Improvement Loans <br /> <br /> <br />Asset limits are generally used in home improvement loan programs that are structured as <br />no-interest deferred loans. No-interest deferred loans are most often provided to very <br />low-income populations who would find it a hardship to make loan payments. The <br />purpose of adding an asset limit is to determine if a household has liquid assets beyond a <br />certain value that have the potential to increase their payment ability. It is a means of <br />further targeting the funds to those most in need. <br /> <br />I would recommend including the asset limit that was originally proposed in the <br />Emergency Deferred Program. <br /> <br />Whereas loan programs that are interest-bearing installment loans generally do not <br />impose an asset limit. These borrowers are repaying the loan in monthly payments with <br />interest. Generally these programs have already limited the population that benefits from <br />the low-interest by imposing income restrictions, such as the General Home Repair Loans <br />and Code Enforcement Loans. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />