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Mounds View Planning Commission May 2, 2007 Regular Meeting Page 2 ________________________________________________________________________ 6. Other Planning Activity A. Review Housing Replacement Program Guidelines and Criteria Community Development Director Ericson reported the Housing Replacement Program Guidelines and Criteria were last reviewed in 2004. He stated it was set into motion about 1995 in response to blighted property. Director Ericson explained there are two parts of the program, the first being the acquisition and demolition of the property, after which the property is then offered to a developer. He stated the second component is to provide only demolition assistance. He indicated the second option was meant to encourage residents to stay in the community, either by demolishing either own house or one on another lot. Director Ericson reported a resident recently applied for and was approved for the demolition assistance option through the EDA, however, there really is no criteria for this program and the EDA thought there should be. He stated the acquisition portion of the program does contain some criteria. He commented the City Council asked the Planning Commission to look at potential criteria to implement and to make recommendations back to the Council. Director Ericson stated the Housing Replacement Program is a voluntary program. He commented on the rumors and miscommunications that the City created a list to acquire certain properties. He explained the list of properties was created at the direction of the Office of the State Auditor. He explained the City could acquire property only if it was specifically listed in the TIF plan. He explained the City looked at which parcels would qualify under the blight guidelines. He stressed the City is not attempting to force anyone out of his or her home. Director Ericson recommended the guidelines associated with the demolition assistance component of the program could include the financial status of the applicant based on need, residency requirements for a specific number of years, ownership and residence of the property, a neighborhood analysis of the property, a maximum award, and a deferred loan program. Director Ericson stated City Council would consider the possibility of a deferred loan program. He asked how the Commission felt if money was provided to demolish the old property, the owner then builds a new home, sells it, and moved out of the community. He commented the City Council would like the Planning Commission’s thoughts on criteria. Director Ericson suggested setting a maximum dollar amount and reviewing it every two years or so. He commented creating a deferred loan program to discourage blight and help property owners stay in the community made sense. Director Ericson stated the purpose of the Housing Replacement Program is to reduce the social costs of blight, improve residential neighborhoods, and increase the tax base. He explained the objectives of the program are to replace deteriorated lower value housing with higher valued housing, eliminate blight, and increase the availability of quality housing for families.