01-28-1999 - Laserfiche WebLink

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To: Economic Development Commission Members From: Steve Dorgan, Housing Inspector [MORAN D U M Subject: Housing Grant Application Update Date: January 15, 1999 SUMMARY Staff is in the process of drafting grant applications to fund existing and proposed housing programs for the city. Applications will be made to the Minnesota Housing Finance Agency's (MHFA) Community Revitalization Fund, Metropolitan Council Local Housing Initiative Fund, and Ramsey County Community Development Block Grant Program. Funding will be sought for the following existing and proposed programs: Existing Program 1. Housing Replacement Program(HRP): The HRP was adopted by the City in 1996. Since that time, the City has purchased 4 single-family homes for the purpose of redevelopment. The homes have been demolished and the lots prepared for resale to prospective builders/developers for the construction of new single family homes. To date, acquisition, • demolition and administrative costs have been covered through Tax Increment Financing (TIF)funds. However, these funds have since depleted and limited funds are available to continue the program. Therefore, the City will make grant applications in the amount of $150,000 to both the MHFA and Ramsey County to continue the Housing Replacement Program. The grant is anticipated to provide acquisition, demolition and administrative costs for the program until the end of the year 2000. Proposed Programs 1. Interest Subsidy Home Improvement Loan Program: The EDC has previously reviewed a proposal to implement an interest subsidy home improvement loan program. Originally the proposed program was to us_e_TIF to_subsidize interest rates for home_improvement_loans. __ However, legal staff has advised that TIF funds may not be used to subsidize interest rates for single family homes improvement loans. Therefore, staff is making a grant application to the MHFA and Metropolitan Council Local Housing Incentive Account for funds that would subsidize interest rates of home improvement loans. These funds must be used for homes which household incomes are low-moderate (maximum of %115 of the area's median income). It is proposed that these funds will subsidize existing MHFA loan programs. 2. Crime Free Multi Housing Incentive Program: The City of Mounds View and the City of New Brighton assist in the coordination of the Mounds View—New Brighton Property Manager's Coalition. The Coalition was established in 1996 with members who include • owners and managers of rental properties within the two cities. One of the many functions of this group includes the promotion of Crime Free Multi-Housing certification for individual properties. A property achieves this status when they have completed three specific phases