03-26-1998 - Laserfiche WebLink

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Staff Memo - Proposed Loan Program March 13, 1998 • Page 2 Code Compliance: Repair of items not compliant with required housing and building codes. Improvements for Disabled Persons: Improvements which provide increased accessibility throughout the home for disabled persons. Structural Repairs: Repairs to the structural portions of the home, walls, foundation, supports, roof, etc. Floors and Ceilings: Repair or replace floors and ceilings. Interior and Exterior Walls: Repair of interior and exterior walls. Foundation Repair: Repair to the building foundations. Increase Esthetics: It was suggested by the commission that one possible criteria may be to consider home improvements which increase the esthetics of the neighborhood. These may include, painting, landscaping, and general maintenance to the exterior home and yard. • NONELIGIBLE IMPROVEMENTS At the last commission meeting,the EDC requested specific improvements not be eligible through a proposed home loan program. Items discussed included; saunas, hot tubs, swimming pools, and the like. • The commission expressed concern that qualifying improvements should increase tax value of the property and the surrounding neighborhood. By specifying noneligible improvements, the goals of the program may be more clearly defined. THIS OLD HOUSE "This Old House" is a statewide program administered through the counties. The program provides tax exemptions for home improvements which add tax value to the property. Home improvements that qualify for the program must occur between the years 1993 and 2003. With the exception of core cities (Minneapolis and St. Paul)qualifying homes must have an assessed value which is less than $150,000. Qualifying exemptions are for work which does not exceed a$50,000 value. Eligible homes must also be at least 35 years old and have a homestead classification. Homes which are 35-69 years old qualify for a 50% of the exemption. Homes which are 70 years old or older qualify for 100% of the tax exemption. The tax exemption is a 10 year term beginning from the date of improvement. After which,the increased value is phased in over a five year period. If the home is sold,the tax exemption is lost. However, past years exemptions are not required to be payed back. The "This Old House" program provides an incentive for homeowners to make improvements to their homes without increasing the property tax. Approximately half of Mounds View homes fall within the programs guidelines of less than a$150,000 value and being at least 35 years old. The program provides an incentive for Mounds View homeowners to make home improvements without an increased tax burden. However, a portion of the tax base is lost from homes qualifying for the program.