03-26-1998 - Laserfiche WebLink

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K 5 ,8 • J To: Economic Development Commission Members From: Steve Dorgan, Housing Inspector MEMORANDUM Subject: Proposed Loan Programs Date: March 13, 1998 BACKGROUND At the EDC meeting on February 26, the commission reviewed information regarding a city sponsored home improvement loan program. The commission directed staff to provide additional information including examples of guidelines for loan eligibility and criteria for improvements from existing loan programs. Also requested was information regarding Ramsey County's "This Old House"program. A brief description of this program has been provided as well. In keeping with the promotion of home improvement within the city, staff has recently explored opportunities to establish a city sponsored home improvement or remodeling fair. It may be timely to consider additional incentives to promote home improvement within the city. LOAN ELIGIBILITY GUIDELINES The following are examples of eligibility criteria the commission may consider as part of a city sponsored home improvement loan program. Criteria was obtained from existing loan programs currently provided by various counties, cities and lending agencies. • Income Limit: Most loan programs establish a maximum household income limit for qualifying applicants. Household income limits for these programs range from $10,000 - $49,000. Because loan funds are limited,the income limit is designed to stimulate home improvements for households which may not have borrowed through a conventional loan. No Income Limit: Two programs were found to have no income limits. One program was for rental properties only and the other was limited to energy efficiency improvements. Interest Rates: Interest rates vary for each program ranging from 2-8%. Most rates are based on household income, with the lower rates going to lower income households. ELIGIBLE IMPROVEMENTS The commission requested a set of improvements be provided as potential guidelines for the proposed loan program. The commission requested consideration of exterior and interior improvements which enhance or maintain property values. The following are qualifying improvements from loan programs currently offered to Mounds View homeowners. Basic Livability: Improvements which increase the basic livability of the home. Most all improvements are covered by this criteria. Energy Efficiency: Insulation, windows, furnace, air conditioning,water heater,windows, • doors.