06-06-2007 - Laserfiche WebLink

Home Browse Search

Item No: 6B Meeting Date: June 6, 2007 Type of Business: Discussion City of Mounds View Staff Report To: Mounds View Planning Commission From: Jim Ericson, Community Development Director Item Title/Subject: Review Housing Replacement Program Guidelines and Criteria Introduction: The Mounds View Economic Development Authority (EDA) provides the funding for the City’s Housing Replacement Program. The Mounds View EDA reviewed the program guidelines at their meeting on April 9, 2007 and suggested the Planning Commission also conduct a review and recommend any changes which may be considered appropriate. The Planning Commission reviewed the program guidelines on May 2, 2007, and considered possible revisions to the guidelines addressing potential criteria for the demolition option. Also discussed was the shift of focus from acquisition to demolition. Rather than acquisition being the focus of the program, the Commission felt that the demolition option should be the focus. The City Council concurred with this change in program focus at their May 7, 2007, work session meeting. Discussion: Based upon the discussion at the Planning Commission’s May 2 meeting, a number of changes were made to the program guidelines. The purpose and objectives remain the same, as do the property criteria. The primary changes relate to the program focus and the funding criteria for demolition assistance. Program Focus. The program guidelines have been revised to switch the primary focus from outright acquisition to the demolition assistance component, shifting the acquisition to a secondary option. Funding Criteria. While the Commission did not reach a consensus on all of the possible funding criteria, there was unanimous agreement that there be some funding criteria tied to the assistance. One specific area discussed was whether funding should be based on need. From a staff perspective, limiting the funding to only those who demonstrate a need may be somewhat short-sighted, but on the other hand, if a property owner has the financial means to effectuate the demolition and the new home construction, why provide assistance? Based on the discussion, the following funding criteria have been added to the program guidelines: 1. Evidence of construction financing 2. Demolition assistance provided ONLY in the form of a deferred non-assumable loan, forgivable after five years 3. The property shall be owner-occupied by the applicant receiving the funding 4. Maximum amount of assistance limited to a one-time $10,000 loan 5. New home construction shall satisfy minimum new home construction requirements