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Staff Memo - Proposed Loan Program <br /> February 20, 1998 <br /> • Page 5 <br /> melded rate between 5-6%. <br /> Option 4. Originate Only <br /> Western Bank would originate the loan for a fee using City of Mounds View funds and assign it <br /> to a loan servicer. The city would set the interest rate. <br /> DISCUSSION <br /> Staff has reviewed loan programs currently offered to Mounds View homeowners. The majority of <br /> existing loan programs offer low-interest ranging from 2-8%. However,the household income <br /> requirements for these programs limit the number of qualifying homeowners for the lower interest rates <br /> of 2-6%. Mounds View homeowners with middle incomes would most likely not qualify for the lower <br /> interest rates offered through existing loan programs. Therefore, the city may considerX offering a low <br /> interest loan program to a wider range of the city's homeowners to promote remodeling and renovation <br /> of the city's housing stock. The proposed programs may be modified to include a variety of scenarios <br /> for a low-interest loan program offered by the city. When considering a city sponsored loan program, <br /> existing programs offered by other agencies should be considered so that efforts are not duplicated. <br /> ACTION TO BE CONSIDERED <br /> Provide staff direction to further explore opportunities for creating a low-interest loan program for the <br /> city. Specifically, what type of loan would the commission want to see offered through a city sponsored <br /> •program. Areas to consider include, interest rates, qualifications for home owners (applicants), income <br /> limits,type of improvements. <br /> • <br /> Steve Dorgan <br /> Housing Inspector <br /> 717-4023 <br /> Attachments: Exhibit A: Letter from Western Bank <br /> Exhibit B: Letter form Center for Energy and Environment <br /> N:\DATA\GROUPS\ECONDEVNEDA-EDC12 26 98.MEM <br /> • <br />