HomeMy WebLinkAbout1998-EDC-25MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION
RESOLUTION NO. 98 -EDC -25
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION RECOMMENDING THE ECONOMIC DEVELOPMENT AUTHORITY'S
APPROVAL OF TAX INCREMENT FINANCING AND PROGRAM GUIDELINES FOR THE
PROPOSED HOME IMPROVEMENT LOAN INTEREST SUBSIDY PROGRAM
WHEREAS, due to the age and condition of the city's housing stock it is important to encourage
reinvestment in the community to avoid blight and to upgrade the quality, livability and
marketability of the housing stock; and
WHEREAS, the EDC has determined that by implementing a program which subsidizes
(reduces) the interest rate for home improvement loans for all qualifying homeowners within the
city, an incentive will be provided to rehabilitate and improve the city's housing stock; and
WHEREAS, the EDC has determined that any such Home Improvement Loan Interest
Subsidy Program should have the following two components in order to accommodate all
homeowners within the City :
A. A MHFA Home Improvement Loan Interest Subsidy which will take
advantage of (and further reduce the interest rate for) existing MHFA loan programs
with below-market interest rates for qualifying low to moderate income households;
and
B. A Market Rate Home Improvement Loan Interest Subsidy for all other
qualifying homeowners within the city who would not otherwise qualify for MHFA
home improvement loans; and
WHEREAS, as part of the proposed Home Improvement Loan Interest Subsidy Program,
the EDA approved an application to the MHFA for the Community Fix -up Fund Program, which
was ultimately approved by the MHFA, and which will allow more homeowners within the City to
access low interest rate home improvement loans under the MHFA Home Improvement
Loan Interest Subsidy component of the overall Home Improvement Loan Interest Subsidy
Program; and
WHEREAS, the EDC has reviewed the attached Program Guidelines for each of the two
components of the Home Improvement Loan Interest Subsidy Program and has
determined that the guidelines are consistent with the objective of providing Mounds View
homeowners with economic incentives to rehabilitate and improve their homes; and
WHEREAS, the EDC has concluded that using tax increment funds is a necessary and
appropriate means of subsidizing the two types of loans that are envisioned under the Home
Improvement Loan Interest Subsidy Program, thereby ensuring that more Mounds View
homeowners will have access to home improvement loans at a reduced interest rate and that
PAGE TWO OF TWO
EDC RESOLUTION NO. 98 -EDC -25
there will be corresponding improvements in the quality, livability and marketability of the City's
housing stock;
NOW, THEREFORE, BE IT RESOLVED that the Economic Development Commission hereby
recommends that the Economic Development Authority:
1. Approve the allocation of a total of $75,000 in tax increment funds to administer
the two components of the Home Improvement Loan Interest Subsidy Program; i.e.,
$40,000.00 for the MHFA Home Improvement Loan Interest Subsidy component and
$35,000.00 for the Market Rate Home Improvement Loan Interest Subsidy component.
2. Approve the Program Guidelines for the MHFA Home Improvement Loan
Interest Subsidy component and the Market Rate Home Improvement Loan Interest
Subsidy component of the overall Home Improvement Loan Interest Subsidy Program.
Adopted this 25th day of June, 1998.
ATTEST:
Chair
(SEAL) ` k- - , (-)k�
City Administrator