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<br />Item No: 7A <br />Meeting Date: Nov. 22, 2010 <br />Type of Business: EDA <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br />To: Economic Development Authority <br />Cc: Economic Development Commission <br /> From: Heidi Steinmetz, Economic Development Specialist <br />Item Title/Subject: Resolution 10-EDA-261 Approving Criteria for the Mounds View <br />Home Demolition Loan <br /> <br /> <br />Background <br /> <br />Over the past several months, the EDA/City Council has been discussing developing a home <br />improvement loan program to replace the EDA’s existing Housing Replacement Program. To <br />date, the EDA/City Council has reviewed the proposed loan criteria on September 27, <br />October 25, November 1 and November 8. <br /> <br />Discussion <br /> <br />Attached is a revised version of the draft criteria for the Home Demolition Loan based on <br />input from the EDA’s November 8th meeting. The only revision since the November 8th <br />meeting was that the following language was added to the Loan Term “whichever occurs <br />first”. <br /> <br />Other <br /> <br />Commissioner Stigney requested information about the success of the loans that the Greater <br />Metropolitan Housing Corporation (GMHC) has administered for other cities. GMHC staff <br />informed City staff that their most seasoned portfolio for city loans is the City of Roseville’s <br />program, which is ten years old. Roseville offers interest-bearing installment loans and <br />GMHC has administered 57 loans for the City of Roseville. Only two of the loans through <br />Roseville’s program are 90 + days delinquent. Roseville has not written off the loans <br />because they have liens on the properties and still hope to collect on the loans, despite the <br />delinquencies. <br /> <br />GMHC also administers loan programs for the Cities of Woodbury and Shoreview. Those <br />programs are new and those cities have only made a few loans, thus no default information is <br />available. <br /> <br />Recommendation <br /> <br />City staff recommends that the EDA approve Resolution 10-EDA-261 Approving the Criteria <br />for the Mounds View Home Demolition Loan. After this approval, city staff would begin <br />marketing the program for a program launch in January 2011. After the EDA finalizes the <br />criteria, Suzanne Snyder and Marie Malrick will discuss underwriting fees with City staff and <br />then City staff would present the information to the EDA at a future meeting.