HomeMy WebLinkAboutAgenda Packets - 2010/07/06
CITY OF MOUNDS VIEW
CITY COUNCIL WORK SESSION AGENDA
MOUNDS VIEW CITY HALL
Tuesday, July 6, 2010
7:00 p.m.
ROLL CALL: Flaherty, Stigney, Hull, Mueller, Gunn
PUBLIC COMMENT
Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full
name and address for the minutes. Also, please limit your comments to three minutes.
Agenda Items Discussed by Consensus
1. Joint Meeting with the Streets and Utilities Committee
2. Presentation and Update about Building Code Development
3. Housing Replacement Program Review
4. 2011 Draft General Fund Budget
Next Work Session: Monday, August 2, 2010, at 7:00 p.m.
Next City Council Meeting: Monday, July 12, 2010, at 7:00 p.m.
Item No: 02
Meeting Date: July 6, 2010
Type of Business: WS
Administrator Review : ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Kathi Osmonson, Building Official/Fire Marshal
Item Title/Subject: Presentation and Update about Building Code Development
Introduction:
In 2007, I introduced the City Council to the history of building codes and requested
support in attending building code hearings and promoting residential fire sprinklers as a
code requirement. At that time, the City Council created a line item budget for building
code hearing participation and Mayor Marty supported the fire sprinkler provision so much
that he wanted to make an ordinance requiring them in the City of Mounds View.
During the July 6, 2010 W ork Session, I want to present a brief overview of how the codes
are created and an update on the progress we have made in building code development in
the last 3 years.
Respectfully submitted,
________________________
Kathi Osmonson
Building Official / Fire Marshal
HRP History
Created by HS
Page 1 of 2
Mounds View Economic Development Authority (EDA)
Housing Replacement Program History
Date Request Type Action Resolution (s)
May 1996 n/a Housing Replacement Program established 96-EDA-46
June 1996 to
July 1998
Acquisition 8265 Spring Lake Road
● EDA acquired property for cost?
● EDA authorized demolition for $6,300
● EDA sold property for $28,000
96-EDA-49 (acquire)
96-EDA-52 (demo)
97-EDA-73
97-EDA-75 (sold)
97-EDA-77
98-EDA-88
98-EDA-94 (extension)
1997 ? 8283 Long Lake Road 97-EDA-59 (no res)
1998 or 1999? ? 7861 Groveland Road
May 1997 n/a Program amended to further clarify demolition funding option 97-EDA-66
February 1998 n/a Program amended to require property value review and to allow tenant
occupied properties on a case-by-case basis and to allow a
builder/developer to purchase the property without a buyer
98-EDA-83
February 1998 Acquisition 7934 Woodlawn Drive
EDA authorized appraisal not to exceed $600
98-EDA-84
April 1998 to
Sept. 1999
Acquisition 6991 Pleasant View Drive
● EDA authorized appraisal not to exceed $400
● EDA acquired property for $60,500
● Demolition cost?
● EDA sold property for $47,250
98-EDA-87 (appraisal)
98-EDA-93 (acquire)
98-EDA-99 (acquire)
99-EDA-116 (acquire)
99-EDA-118 (revision)
May 1998 Acquisition 7761 Eastwood Road
Denied
98-EDA-91
Feb. 1999 n/a Applied for CDBG & Met Council CRF grant to continue to fund program 99-EDA-104
99-EDA-105
April-Nov.
1999
Demolition 8300 Fairchild Avenue
EDA authorized demolition not to exceed $10,000)
99-EDA-110 (demo)
99-EDA-119 (revised
demo)
June 1999 n/a Program amended to include guidelines for drafting a Development
Agreement for the sale of the property, adding a requirement for
submittal of financial guarantee by the developer to the EDA which is
100% of the min. improvement value and adding a requirement to allow
the EDA to posses the property and improvements if the developer fails
to fulfill his obligations
99-EDA-115
HRP History
Created by HS
Page 2 of 2
June 1999-
May 2000
Acquisition 2225 Hillview Road
● EDA authorized purchase of property on June 28, 1999 for cost?
● EDA authorized demolition for not to exceed $7,590
● EDA sold property for $50,000
99-EDA-114 (no res)
00-EDA-123
00-EDA-129
June 2000 Demolition 2901 Hwy 10
EDA authorized demolition for not to exceed $6,028.80
00-EDA-130
June 2004 n/a Acquisition criteria established per the modification of Mounds View’s
TIF Plan including a map and list indicating Mounds View properties
eligible for acquisition by the EDA contingent upon a willing seller.
04-EDA-188
July 2005 to
March 2007
Demolition 2617 Sherwood Road
● EDA authorized appraisal not to exceed $400
● EDA authorized demolition for $8,000
05-EDA-205
07-EDA-230
June 2007 n/a Demolition criteria established 869-07
(Planning Commission
Resolution)
July 2007 n/a EDA adopts amended program criteria 07-EDA-236
Dec. 2008 Acquisition 5066 Irondale Road 08-EDA-250 denied
April 2009 Acquisition
informal app.
2949 County Road 10
No resolution - denied
June 2009 &
2010
Acquisition
informal app.
8271 Long Lake Road
Work Session discussions
No resolution - denied
July 2010 Acquisition 7968 Edgewood Drive To be considered by EDA
on July 12, 2010
Code Enforcement Rehabilitation Program
The Code Enforcement Rehabilitation Program assists low-
income owners of homes that are owner-occupied to
eliminate exterior code violations, and to improve and
preserve neighborhoods at the same time.
What is the Code Enforcement Rehabilitation
Program?
Up to $2,500 per unit is available to assist income-eligible
owners of homes that are owner-occupied, who have
received notice of code violations, to make the necessary
repairs to bring their home into compliance. Eligible repairs
may include the following:
Exterior painting •
Rafters, soffit and fascia repair •
Window glass and screens •
Railings and stairs •
Landings and porches •
Yard maintenance and debris removal when done in
conjunction with repairs to the home.
•
Ineligible repairs include:
Repairs to mobile homes •
Driveways, sidewalks and paved areas; and •
Removal of inoperable vehicles •
Client Eligibility
To receive repair work, the applicant must demonstrate ownership of the unit and it must be his or her
primary residence.
Total household income cannot exceed 80% of the area median income, adjusted for family size, as defined
by the United States Department of Housing and Urban Development. Applicants must demonstrate proof of
income.
Department of Housing and Urban Development (HUD) Income Guidelines (as of May 2010)
(Family Size - Max Gross Income)
1 Person - $35,700 •
2 Persons - $40,800 •
3 Persons - $45,900 •
4 Persons - $50,950 •
5 Persons - $55,050 •
6 Persons - $59,150 •
7 Persons - $63,200 •
8 Persons - $67,300 •
HOW TO APPLY:
For more information or to initiate the application process, please call Robin Slade at 891-6528 or click here
to obtain the application (PDF).
Page 1 of 2Code Enforcement Rehabilitation Program - Talgov.com
6/30/2010http://www.talgov.com/ecd/housing/codeenforce.cfm
N O R T H M E T R O1170 Lepak Court • Shoreview, MN 55126 Phone (651) 486-7401 • Fax (651) 486-7424 www.housingresourcecenter.org • www.gmhchousing.orgMOUNDS VIEW HOMEOWNERS Are you thinking about making some improvements around the house? Before you begin your home improvement project call the HousingResource Center - NorthMetro at (651) 486-7401. A program of the Greater Metropolitan Housing Corporation, the HousingResource Center – NorthMetro is a non-profit organization offering several financial programs to Mounds View homeowners.RAMSEY COUNTY RESIDENTIAL REHABILITATION DEFERRED LOAN MHFA FIX-UP FUND LOAN MHFA REHABILITATION DEFERRED LOAN MHFA RENTAL REHAB LOAN PROGRAM SENIOR HOUSING REGENERATION PROGRAM Maximum deferred loan amount is $15,000. Eligible work shall include repairs, replacement or construction to correct local or state code violation, health and safety items, also reduce long-term maintenance and energy costs. The HousingResource Center offers this loan to Suburban Ramsey County residents in two tiers according to income limits - 2009 Area Median Income (AMI) adjusted annually. Low-Income Homeowners: (at or below 50% AMI) Limit for a family of four under $41,950 annual income. The loan is totally forgiven if the homeowner remains in the home for 10 years. Moderate Income Homeowners: (between 50% and 80% of AMI) Limit up to $64,000 annual income for a household of four. The loan is deferred, without interest or payments, repaid in full at time of transfer or sale of the property. Eligible Properties: Properties located within Suburban Ramsey County (excluding the city of St. Paul). Owner-occupied single-family dwellings with the Estimated Market Value at or below $251,750. The Housing ResourceCenter offers a low interest loan from the Minnesota Housing Finance Agency (MHFA) called the Fix-up Fund loan. Maximum loan amount is $35,000. The low interest rate is fixed for terms up to 20 years.Qualified homeowners must have a household gross annual income at or below $96,500. This loan can be used to repair, remodel or improve the energy efficiency of your home. Energy Saver Rebate: With energy-saving improvements, homeowners may be eligible for a rebate of 35% up to $10,000. Another loan program that MHFA is offering through the Housing Resource Center is the Rehabilitation Deferred Loan.With this loan, homeowners can get up to $15,000 in basic home repairs. This 0% interest loan is completely forgivenafter 20 years.Qualifiedhomeowners must have an annual gross income at or below 30% of the area median income (ex: $25,200 for a family of four). Rental property owners may borrow up to $25,000 for a one or two unit property, or $10,000 per unit for larger properties. The maximum loan amount is $100,000.The interest rate is 6%, and the term of the loan may be up to 15 years. At the time the property improvements are completed and the units are rented, 75% of the units must be occupied by persons with an income less than 80% of the median income.This program was designed by the Greater Metropolitan Housing Corporation (GMHC) to benefit older adults and new families. GMHC will purchase homes at fair market value from seniors who are moving into assisted living facilities, nursing homes or senior rental apartments. GMHC then fixes up the home and sells it to an eligible first time homebuyer. There are several homes in this program that are for sale in the North Metro area. The HousingResource Center provides FREE constructionconsultations to residents of Mounds View. Our Construction Manager will provide information on construction, building codes and permits; conduct site visits with homeowners regarding home improvements; assist in reviewing contractor bids, proposals and estimates in the planning stage; and assist homeowners during the construction process.
Item #: 3
Meeting Date: July 6, 2010
Type of Business: WS
Administrator Review : ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Heidi Steinmetz, Economic Development Specialist
Item Title/Subject: Housing Replacement Program Review
Background
About the Program
The Mounds View Economic Development Authority (EDA) created the Housing
Replacement Program in May of 1996 (14 years ago). The program allows the EDA to
provide Tax Increment Financing (TIF) assistance to homeowners or developers for
demolition or acquisition assistance through the program. The intent of the program is to
replace blighted homes with new homes that increase and maximize the value of the
individual property and increase the value of the surrounding neighborhood. The program
is a traditional neighborhood revitalization program.
The financial assistance provided by the EDA through the Housing Replacement Program
is a ten-year/forgivable deferred loan. In other words, if the homeowner or developer owns
the property for ten years after the contractor builds the home, the EDA completely forgives
the loan. The Housing Resource Center administers the program on behalf of Mounds
View. The City pays an annual fee to the Housing Resource Center to administer this
program and to provide other housing-related services to Mounds View residents.
Attached is a list of programs available to residents through the Housing Resource Center.
Program Usage
Since the program’s inception in 1996, the EDA has been involved with the acquisition
and/or demolition of about five homes in Mounds View. To date, the EDA has received
twelve formal applications for the program and two informal applications. Residents
submitted the informal applications and asked the EDA to discuss the acquisition of their
homes but did not want to apply for the program.
Program Amendments
Per the attached program history, the EDA has amended the program several times. The
last time the EDA discussed the program was in late 2008 when the EDA considered
updating the outdated list of parcels eligible for the program. The EDA declined to do so
because the City’s public finance advisors estimated the cost of updating the list would be
$3,000.
July 6, 2010 Council Work Session
Item 3 – Housing Replacement Program Review
Page 2 of 3
Discussion
Recent EDA Actions
Since December of 2008, the EDA has denied the last three requests from residents
inquiring about the program’s acquisition option. These actions are consistent with the
EDA’s decision in 2007 to refocus the program towards demolition of blighted properties
rather than the acquisition option.
Based on the EDA’s recent actions, the City’s current budgetary crisis and the effect of
today’s economy on homeowners’ ability to maintain their homes, staff is suggesting that
the EDA consider refocusing the Housing Replacement Program.
Ideas for Refocusing the Program
Refocusing the Housing Replacement Program could mean using 2011 Housing
Replacement Program funds towards implementing two of the Council’s 2010 goals &
priorities. These are to “Continue Emphasis on Code Enforcement throughout the City”
and to “Continue Focus on Issues Relating to Home Foreclosures and Vacancies” (the
Council does not have a formal goal or priority to revitalize neighborhoods through the
replacement of housing).
Since 1996, the EDA has annually allocated $150,000 toward the Housing Replacement
Program. When the EDA discusses its 2011 budget, staff would like the EDA to consider
maintaining the $150,000 for neighborhood revitalization purposes. However, rather than
keeping the Housing Replacement Program, staff is suggesting that the EDA consider
reallocating $100,000 towards a code enforcement rehabilitation program and $50,000
towards a housing demolition program. The Housing Resource Center would administer
both programs per the annual fee that the City already pays the Housing Resource Center;
however, the City would need to discuss the details of the programs with the Housing
Resource Center.
About Possible New Programs
A code enforcement rehabilitation program would provide low-income homeowners who
have received notice of code violations from the City with the ability to bring their home into
compliance. Attached is an example of such a program from the City of Tallahassee, FL.
Tallahassee offers this program as an interest free/no-monthly payment loan up to $2,500
per unit. The loan is forgivable after five years if the homeowner remains in the home.
Another example of a code rehab program is the City of Minneapolis’s code abatement
loan program. Minneapolis offers an interest-free loan for up to $20,000 for code
abatements for households that are within 50 percent of the median income for the Twin
Cities Metro area. The homeowner repays the City for the loan when the owner sells the
house.
A housing demolition program would have the same criteria as Mounds View is Housing
Replacement Program but would not offer acquisition assistance.
July 6, 2010 Council Work Session
Item 3 – Housing Replacement Program Review
Page 3 of 3
Recommendation
Staff recommends that the City Council provide direction about using $150,000 in the 2011
EDA budget for neighborhood revitalization purposes. Staff recommends that the City do
this with a code enforcement rehabilitation program and a housing demolition program.
Respectfully submitted,
____________________________
Heidi Steinmetz, Economic Development Specialist
Attachments
• Housing Resource Center programs
• Housing Replacement Program history
• Code Enforcement Rehabilitation Program Summary & Application, City of Tallahassee, FL