Laserfiche WebLink
Staff Memo • <br /> To: Economic Development Commission Members <br /> From: Cathy Bennett, Director of Economic Development <br /> Date: July 17, 1997 <br /> Subject: Consideration of Establishing a Loan Program for the Improvement <br /> (5.B.) of Multi-Family Housing and Manufactured Homes <br /> Summary: <br /> The EDC is being asked to evaluate the possibility of using tax increment funds to <br /> assist residents in the rehabilitation of homes located in the manufactured home <br /> parks and provide low interest loans to encourage owners of rental units to make <br /> improvements. <br /> The Situation: <br /> Currently, owners of manufactured homes are constructing their own additions. <br /> State law requires that additions must be prefabricated. The additions that are being <br /> built are now is disrepair. They have leaks with faulty construction which create an <br /> unsafe health environment such as molding and insects. The City has the authority to <br /> require the owners to tear down these additions since they were not constructed per <br /> State building code. The problem is that the people who own the homes are not <br /> able to afford the prefabricated additions to replace the defective ones but they still <br /> desperately need the living space. <br /> In addition, many of Mounds View's rental units are deteriorating and have <br /> significant deferred maintenance problems. It has been very difficult to encourage <br /> owners to take advantage of County and State Funding to make improvements to the <br /> properties. One reason is that many of the programs require a financial commitment <br /> from the owner to receive the funding and the reporting requirements are onerous. <br /> The City can not apply for these funds without the participation of the owners. Many <br /> of the properties are in such disrepair that minor improvements do not generate <br /> enough incentive to increase rents as a financial payback. Therefore, any <br /> improvements beyond minor maintenance is never accomplished. <br /> Possible Solution: <br /> With regards to the manufactured home parks, staff is suggesting that a loan • <br /> program be established for the owners for the prefabricated additions to replace the <br /> ones that are a health hazard and need to be removed. The loan could be forgivable <br />