Agenda Packets - 1985/01/02 - Laserfiche WebLink

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DS-2. HOUSING (B) In 1981, 1982, 1983, and 1984 the legislature enacted several allocation plans which divide bonding authority between cities in the state. Because of 10 increased needs and abilities of cities to conduct local housing bond programs, the current allocation to cities in inadequate. In addition, the Leageu recommends that the competitive system administered by MHFA be changed as follows: 1) The procedures and deadlines for receiving an allocation should be better publicized to cities by publishing notice in the state register and other means. 2) 100 percent of the loans should be reserved for the first six months for families and individuals with incomes below 80 percent of the maximum family income. 3) Only projects which will receive municipal sewer and water services should be eligible for financing. 4) Cities which have not received an allocation in the past two years (with the exception of Minneapolis, St. Paul, and Duluth) or cities which have joint programs should receive preference. 5) If all factors are equal, and there are more programs than there are funds available, programs should be selected by lot. 6) The non -bond proceeds criteria should be eliminated because it encourages inappropriate "bidding wars" among cities and because it tends to favor new construction projects over existing housing and rehab projects. 7) The state law regarding the review of housing plans by RDCs or Metropolitan Council should be clarified to expedite the review process. 8) Tl:e League supports the continuation of state income tax exemption of interest or, mortgage revenue bonds. 9) MHFA should be required to reserve 100 percent of its bond program for six months for applicants below the 80 percent of the program income limits, and comply with other limits imposed on local programs. 10) MHFA should be required to submit its multi -family bonds issue to the city in which the development is located for review and approval. The MHFA project should be consistent with the city's multi -family bond policy and the project should be reviewed by the Metropolitan Council or by the city's regional development commission. DS-3. MUNICIPAL SERVICE DISTRICTS (B) The League supports legislation which would allow cities to create ipal service districts. Cities should be allowed to finance the types of vements listed in M.S. 429.021 (relating to the construction, replacement, aintenance of such thines as streets, sidewalks, cutters. storm and -35-