06-20-2007 - Laserfiche WebLink

Home Browse Search

Item No: 6A Meeting Date: June 20, 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 again on June 6, 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. The Planning Commission suggested a few additional changes to the guidelines and standards and asked staff to bring back the final version along with a resolution recommending approval to the City Council. 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. The Commission agreed that there should be criteria associated with the financing of a demolition. Specific criteria include, blight, zoning and comp plan consistency, a development agreement, demolition contract and funding mechanism, in the form of a five year forgivable loan not to exceed $10,000. The loan and all associated paperwork would be administered by the Housing Resource Center at no additional cost to the City. Requiring that the funding be in the form of a forgivable loan will promote owner-occupation and may dissuade individuals who already have sufficient funds from applying for the assistance. The only change made to these criteria since the June 6th meeting was the addition of the following sentence to the first criteria: “Applicants shall demonstrate proof of construction financing in a form acceptable to the City.” Ultimately, the desired outcomes (to encourage neighborhood revitalization and property reinvestment, eliminate blighted housing and enhance the tax base) will be achieved by adopting these changes.