HomeMy WebLinkAboutAgenda Packets - 2025/08/04 CITY OF MOUNDS VIEW
CITY COUNCIL WORK SESSION AGENDA
MOUNDS VIEW CITY HALL
Monday, August 4, 2025
6:00 p.m.
ROLL CALL: Lindstrom, Gunn, Meehlhause, Clark, Smith
Council Work Sessions are informal gatherings of the council at which no final
decisions are made, rather consensus discussion to direct staff on council
decision items.
AGENDA ITEMS DISCUSSED BY CONSENSUS
1. Little Exchange Libraries Placed in the City ROW
2. Code Enforcement Overview & Trends-Jeremiah
3. Continued Affordable Housing Discussion-Mayor & Stantec
4. Detached ADU's Discussion-Staff & Stantec
5. EDA Loan Programs-Brian
6. SMC Construction, Inc. Development Proposal-Sinan Music
PUBLIC COMMENT
Citizens may speak to issues not on tonight's agenda. Before speaking,
please give your name and address for the minutes. Also, please limit your
comments to three minutes. As a reminder, public comment is for addressing
the Council only. Comments or concerns regarding Staff must be submitted
in writing to the Mayor or City Administrator. Failure to respect these
guidelines will result in me asking you to cease commenting and asking you
to return to your seat. That said, is there anyone here for public comment?
NEXT COUNCIL WORK SESSION: Tuesday, September 2, 2025 at 6:00 pm
NEXT COUNCIL MEETING: Monday, August 11, 2025 at 6:00 pm
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Item No: 02
MOUNDS VIEW Meeting Date: August 4, 2025
Type of Business: City Council Worksession
City Administrator Review:
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Jeremiah Anderson, Housing/Code Enforcement Inspector
Item Title/Subject: Code Enforcement Overview & Trends
Introduction:
The City of Mounds View has adopted various ordinances that regulate land use, building
construction, fire safety and outside storage and maintenance of existing buildings and
homes in the City. These ordinances are codified into the Municipal Code and include the
Zoning Code, Building Code, Fire Code, Housing Maintenance Code, and Nuisance Code.
The Community Development Department is involved with the regulation and enforcement
of said ordinances, with the goal and intent of maintaining Mounds View as a safe and
desirable place to live and work.
As the City Council was reviewing the 2026-2028 Strategic Plan update the Council
requested that staff provide a report to the City Council at a future City Council worksession
explaining the historical and current trends so that the Council has a better understanding
of the type and amount of code violations and can discuss and offer any potential solutions.
Discussion:
Mounds View recognized the importance of housing maintenance as evidenced by the
adoption of a local Housing Maintenance Code and rental dwelling license and inspection
ordinance for multi-unit dwellings that date back to the 1970's. Over time and based on
the needs of the community that ordinance has evolved to include rented duplex and
single-family homes. In 2006 the City adopted the International Property Maintenance
Code (IPMC), a companion document to the Building and Fire Code produced and
developed by the International Code Council (ICC) with local amendments and adopted in
the State of Minnesota.
It is important to note how the Zoning Code, Building Code, Fire Code, Housing
Maintenance Code and Nuisance Code work together to establish and regulate community
standards. In general, the Zoning Code establishes subdivision and lot size requirements;
defines allowed uses in different areas of the City; and establishes setbacks from property
lines. The Building Code and Fire Code regulate how one builds, erects or remodels a
structure; establishes safe methods to support loads of roofs and foundation support
systems; and to be reasonably safe from fire.
The Housing Maintenance Code and Nuisance Code define how one healthfully lives in
and maintains a structure and the outside areas. As such, the Property Maintenance Code
and Nuisance Code are essentially environmental health protection codes as the hygiene
of housing, correspondingly, is an area that deals with people's most intimate living
environments, their homes, and neighborhoods. Into the fabric of housing hygiene are
woven a wide variety of health, safety, economic, social, and political factors.
Housing and Nuisance codes have additional challenges inasmuch that they contain
important social, cultural, and psychological aspects which pertain not only to construction
standards but also the legal rights of citizens; social responsibility; and how problems in
one neighborhood, home or building might affect property values, crime and other issues
in the entire community.
The end goal of Housing Maintenance and Nuisance Code adoption is the eventual
elimination of any substandard conditions within the home, neighborhoods, and
community. This end cannot be reached effectively without adequate resources,
establishing priorities, and measurable goals.
Nearly 35-percent of the housing stock in the City of Mounds View is non-owner occupied
and rental property. Additionally, a significant amount of the housing stock in Mounds View
is aged over 50 years and a majority was constructed prior to 1980. As these structures
grow older economics dictate their income-producing potential for owner's decreases,
thereby decreasing maintenance funds and increasing their rate of deterioration. This view
of outside deterioration is a symptom of this inner struggle and is parallel to a cycle
intimately related to social disparities. Often the cycle results in homeowners and tenants
that have financial means moving on to newer areas with newer neighborhoods, homes
buildings, and resources leaving behind deteriorated buildings, homes and
neighborhoods. This cycle gives emphasis to a continued downward trend until all that
remain are debilitated structures and homes and a decreased quality of life.
Housing and property maintenance programs tend to fall into two categories: proactive
and reactive. The proactive approach attempts to determine if conditions exist that require
intervention prior to a downward trend in housing or property conditions. Reactive
programs respond to complaints about housing and property conditions. Most Cities do
not start off with the notion that they will fall into disrepair, as such many Cities navigate
into housing and property maintenance programs with a reactive approach.
Reactive or complaint driven programs satisfy the people making the complaint or referrals
and may help to improve a small part of the neighborhood, however, they do little to bring
about systematic change and improvements to the entire City due to their unsystematic
method. Often in reactive driven programs staff find themselves involved in neighborhood
disputes or tenant/ property owner disagreements, causing more serious inspection
requests to be delayed.
Proactive property maintenance programs and inspections are the most effective method
of both finding violations and measuring successful outcomes that bring about systematic
improvement. Proactive programs begin with completing assessments of neighborhoods
and determining what areas of the City have visible signs of deterioration and property
conditions. Most often, these are outside yard areas that lack maintenance, trash and
garbage accumulation outside, and deteriorated exteriors of homes and buildings. By
systematically completing an assessment of conditions in specific neighborhoods staff can
identify areas that need attention and develop an action plan for follow up and prioritization
by the City Council that is consistent with the City Strategic plan.
Strategic Plan Strategy/Goal 2026-28:
Establishing priorities for Code Enforcement is consistent with the Vision Statements,
"Maintain Effective Housing & Code Enforcement." and ... "a place where residents can
live, work, and play safely and show pride in the community"
Financial Impact:
The 2025 budget for property abatements is $2,000. The proposed 2026 City budget has
a $10,000 budget for property abatements. Abatements often are the most serious
health/safety violations and currently require City Council authorization via Resolution.
However, a summary abatement order is issued by staff and authorizes mowing long
grass, garbage removal and corrective action of immediate hazards. Abatement costs are
billed to the property where the abatement action occurred and if unpaid are brought to
the Council for special assessment to the property taxes.
Additional funding will be necessary in the future if the City Council wishes to continue to
fund housing fix up and rehab programs to support neighborhood improvement.
Recommendation:
Staff is seeking direction from the City Council to establish a proactive approach with
systematic assessments and measurable outcomes to develop the neighborhood
improvement program that solicits community spirit and cooperation to obtain compliance
in a consistent, firm and fair approach supporting the value that continues to make Mounds
View a Thriving and Desirable Community.
Respectfully submitted,
�e2"-
Jeremiah Anderson
Housing/Code Enforcement Inspector
Attachment(s):
1. None (PowerPoint presentation at meeting)
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Item No: 03
Meeting Date: August 4, 2025
M0U__NDiJSVCEW: Type of Business: Council Business
City Administrator Review NA
City of Mounds View Staff Report
To: Mounds View City Council
From: Evan Monson, AICP, Stantec, City Planner
Item Title/Subject: Affordable Housing Discussion, (Continued from June 2, 2025)
Request: Discussion Item
Introduction:
The City Council is currently discussing housing affordability as a part of their strategic planning
for the city. City staff directed our team to collect information on affordable housing to help inform
the Council during this discussion.
Analysis:
The issue of affordable housing can include a variety of programs, rules, and regulations. These
vary by local jurisdiction, county, and state.
Terms and Definitions
Affordable housing, as referred to by the Metropolitan Council in their 2050 Housing Plan, is
housing units that are affordable to households making 60% of the Area Median Income (AMI).
The Metropolitan Council requires jurisdictions to plan for new housing as a part of the
comprehensive planning process — the city's 2040 Comprehensive Plan had a requirement for
developing 59 total housing units by 2040. This included 27 units affordable to an AMI of 30% or
less, 11 units at an AMI between 31% and 50%, and 21 units at an AMI between 51% and 80%.
AMI is measured by the US Department of Housing and Urban Development using census data.
The median AMI for a family of four in the Twin Cities is currently $132,400; 60% would be
$79,440. For reference, the city's 2040 plan notes that 60% of AMI was $56,580 in 2018.
Deeply affordable housing is typically defined as units that are affordable to households making
30% of the AMI. Metropolitan Council staff further calculated rental rates and home prices that
are affordable based on different AMI levels —see figures 1 and 2 on the following page.
Naturally occurring affordable housing (NOAH) is used to refer to residential rental properties
that are affordable, but are unsubsidized by any federal program. The rents of these units are
relatively low compared to the regional housing market.
Inclusionary Zoning (IZ) is a policy that requires developers to build a percentage of
housing units within market-rate developments that are affordable to low- and middle-income
households. Jurisdictions will typically set requirements or thresholds that define what is
"affordable" and how many units must meet said requirement. For example, an IZ policy could be
that a multifamily development would have to provide 15% of units affordable to an AMI of 30%,
and 10% of units affordable to an AMI of 50%. The Federal Reserve Bank of Minneapolis issued
a quick facts sheet here in 2019 on IZ policies in the Twin Cities.
City Council Staff Report
8/4/2025—Discussion Item—Affordable Housing
Page 2
2025 Rental Housing
#Bedrooms 3G%AMI SO%AM1 6096AMI 80%AMI
Efficiency $694 $1,159 $1.389 $1,952
1 Bedroom 744 $1,241 $1,489 $1,985
2 Bedrooms $894 $1,490 $1,799 $2,384
3 Bedrooms $1,D32 $1,721 $2,065 $2,753
4 Bedroom $1,152 $1,920 $2,304 $3,072
Figure 1:Rental rates at differentAMI levels,per Metropolitan Council.
2025 Home Ownership
Family Income Level Affordable Home Price
80%AM1( 104,200) $306,500
60%AMI ( 79,440) $225,300
50%AMI ($66,200) $183r7D0
30 AMI($39,700) $98,000
Figure 2:Home prices at different AMI levels,per Metropolitan Council.
Programs in Minnesota
Counties, states, and non-governmental organizations offer a variety of programs that focus on
affordable housing. Staff have compiled information on some that have a focus on the
development of affordable housing in the Twin Cities.
State of Minnesota
• The Low-Income Housing Tax Credit (LIHTC) is a program through the state's housing
finance agency that connects federal tax credits to owners of qualified affordable rental
housing projects. These credits offer a 10-year reduction in tax liability and are sold to
investors in exchange for capital to build eligible affordable rental housing units through
new construction, rehabilitation, or acquisition with rehabilitation.
• The State Housing Tax Credit (SHTC) program awards funds that can be used to
support new construction, acquisition, rehabilitation, and redevelopment of sites for
housing. Eligible Minnesota taxpayers can contribute to the contribution fund and, in
return, receive a state Tax Credit Certificate (TCC). Contributions provide funding for
loans for eligible housing projects in communities throughout the state. The loans
provided through the program are funded entirely by taxpayer contributions. Loans can
be provided directly to a city or a developer.
• The Local Affordable Housing Aid program started in 2024, and distributes funds directly
to eligible cities and counties. Projects that these funds can be spent on include
emergency rental assistance, support of nonprofit affordable housing organizations, and
support of development or redevelopment projects that create a set amount of affordable
housing units for select AMI levels. A city can also donate the funds to a local housing
trust fund to be spent on projects such as those listed previously.
The Mounds View Vision
A Thriving Desirable Community
City Council Staff Report
8/4/2025—Discussion Item—Affordable Housing
Page 3
• The state housing agency also offers loan, grant, and mortgage programs to assist with
the development and rehabilitation of housing in Minnesota. These primarily are applied
for and rewarded to developers or property owners, with some grants and loans targeted
primarily to public housing or development agencies.
Metropolitan Council
• The Livable Communities Act (LCA) program through the Metropolitan Council
provides grants to projects that help `communities achieve development goals that
create more housing choice, support living wage job creation, and connect jobs,
housing, and regional amenities to create a more equitable region.' These grants can be
used on policy creation, pre-development work, site cleanup, new development, or
rehabilitation of existing housing. These grants are eligible for participating cities and
townships only; Mounds View is a participating member. Communities that are
participating members can apply for these grants, and can partner with developers or
community organizations on the grant application.
Other programs
• A Land Bank is a public entity that can acquire, hold, and sell vacant or underutilized
land for the purpose of redevelopment. An Economic Development Authority (EDA) has
similar functions and powers, but can be used for non-residential development as well.
The city already has an EDA.
• A Local Housing Trust Fund (LHTF) is a trust fund created by a local government
(either through an ordinance or a joint powers agreement) that uses public dollars to
assist with development and rehabilitation projects, as well as programs such as down
payment assistance or rental assistance. The Minnesota Housing Partnership has
created a manual to help inform communities who are interested in creating a fund.
Recommendation:
Staff recommend the Council review the information provided.
Respectfully submitted,
"', �a,
Evan Monson, AICP
City Planner
The Mounds View Vision
A Thriving Desirable Community
City of Mounds View 1 2040 Comprehensive Plan MO S VIEW
Chapter 3: Housing
INTRODUCTION
Mounds View is a suburb in the northern Twin Cities metropolitan area. A
variety of forces affect housing including demographic, regional, and local
trends, the economic climate, the availability of land, government controls and IL
the real estate market. A key factor in the City's ability to provide a livable
community has been the development and maintenance of strong
neighborhoods, which consist of a variety of housing styles and types,
ownership and rental options, and range of costs. Opinion Survey
The housing element of the Plan reviews the current housing situation and It is clear that there is public
establishes a plan to meet the city's future housing needs. In addition, this opposition to affordable housing,
element reports on four areas that the Metropolitan Council requires study and apartments.
including housing goals and policies, analysis of housing supply, anticipating
future housing needs, and outlining programs that the City plans or currently Many of the concerns may be
utilizes to achieve housing goals. attributed to the age of
apartments, many of which were
HOUSING GOALS AND POLICIES built in the 1960's and 1970's,
have been minimally improved,
The City has developed goals and policies related to housing in order to grow and lack modern amenities.
and adapt to changing conditions. The goals and policies of this chapter are
critical to guide housing that supports the community as it evolves and to The Comprehensive Plan seeks a
support projected growth. The following are the housing goals and policies for mix of housing types, supporting
Mounds View: existing single-family
neighborhoods, stabilizing the
Goal 1: Support development and redevelopment which accomplishes 2040 County Road I corridor, and
forecasted population growth and the supportive land use designations manufactured home communities,
identified in this plan. as well as redevelopment of the
Mounds View Boulevard Corridor.
Goal 2: Maintain the residential character of Mounds View.
• Preserve single-family neighborhoods.
• Reinvest in multi-family properties.
• Redevelop the Mounds View Boulevard corridor.
Goal 3: Support a mix of housing types reflective of the needs and desires of
the community.
• Preserve affordable housing while encouraging redevelopment of
multi-family properties, including manufactured home parks, such
that if publicly subsidized redevelopment occurs, there is no net-loss
of affordable housing units.
• Support Home Improvement programs and encourage their use by
residential property owners.
Chapter 3: Housing 3-1
City of Mounds View 2040 Comprehensive Plan :
l
AW F. ����k
• Coordinate with manufactured home communities on ways to
improve their neighborhoods and longevity of private infrastructure. ,
Implementation of Housing goals and policies will focus on enforcement of :____
property maintenance codes, crime reduction, preservation of urban forests,
coordination with Ramsey County and service providers to help residents
with financial and health concerns, and encourage rehabilitation and
preservation of naturally occurring affordable housing, including reducing
Mounds View Schools
stormwater inflow& infiltration at manufactured home parks. Affordable
Housing goals are most likely to be accomplished through redevelopment Mounds View ISD 621 serves
along the Boulevard, with inclusion of affordable and market-rate units. This northwestern Ramsey County.Mounds
is dependent upon the flexibility afforded by the Mixed Use zoning district, View residents are within the attendance
area of each school listed below:
allowing increased density standards. The City will adopt a Fair Housing
Policy and/or plan. Currently, the City informally implements practices Irondale High School-All students
without a coordinated plan. have a personal learning plan,guiding
their choice in classes according to their
goals and progress.The District's
EXISTING STOCK Pathways to Possibilities allows students
to pursue trades and earn college credit,
including an Associates degree while at
Mounds View was predominantly developed in the 1950's through 1970's. Irondale,along with internships with
One-level homes,split-levels, and rambler homes are typical in this city as they about 30 partnering businesses and
are in the surrounding cities. Manufactured homes provide a significant organizations.
percentage of housing units in the city and are located in three manufactured Edgewood Middle School-The middle
home parks. There are also a number of senior housing and multi-family units school has a STEAM curriculum. 60%of
built from the late 1960's through the 2000's. The farmhouses that were built students participate in music programs,
prior to 1930 and that are still standing are scattered throughout town. Figure and 40%in extracurricular activities.
3-1 shows the time period in which each house in the city was built. 47%of students are non-White. The
most popular non-English, non-native
Figure 3-2 shows the values of owner-occupied housing units. The same data languages are Spanish, Hmong,and
is not available for renter occupied units so this map excludes the values of Arabic. 47%of students are eligible forfree or reduced-price lunch.
apartments and homes in manufactured home parks.
Pinewood Elementary School-Family
Night is held each Thursday. Students in
There were 5,332 occupied housing units in Mounds View in 2016. Most grades 4 and 5 can take band,choir,or
of those units, 3,102 or 58%were single-family homes.Multi-family homes(i.e. orchestra,and Spanish. 49%of students
apartments or townhomes) made up 31% of the housing stock. A significant are non-white. 52%of students are
11% of housing units in Mounds View are manufactured homes. eligible for free or reduced-price lunch.
Sunnyside Elementary School-43%of
Approximately two-thirds of the total housing units were owner occupied. One- students are non-white. The most
third were renter occupied. A break-down of housing units by type are popular non-English,non-native
calculated In Table 3-1. languages are Spanish,Tibetan,and
Somali. 45%of students are eligible for
free or reduced-price lunch.
Table 3-1: housing unit types NUMBER OF UNITS Pike Lake Education Center-This
Owner occupied 1 3,600 68% school serves 519 all-day
kindergarteners,and are provided with
Renter occupied 1,732 32% free breakfast. 47%of students are non-
white,47%are eligible for free or
Single-family 3,102 58% reduced-price lunch.
Multi-family 1,669 31%
Manufactured homes 561 11%
Chapter 3: Housing 1 3-2
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Figure 3-1: Housing Age
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Figure 3-2: Owner Occupied Housing Values
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City of Mounds View 1 2040 Comprehensive Plan MO S VIEW
AFFORDABILITY
Residents across the Twin Cities region experience challenges affording the
costs of housing. The Department of Housing and Urban Development(HUD)
defines housing as `affordable'if its residents pay no more than 30% of their
gross income on housing and related costs. Housing costs include rent or
mortgage payments, utility bills, HOA fees or other fees associated with living
in a home. There are over twelve hundred (24%) cost burdened households
in Mounds View who do not meet that threshold.
Households are considered Cost Burdened if their housing costs account
for a high percentage of their income. Cost burdened households are classified
by household size and income as a percent of the area median income (AMI).
Qualifications for affordable housing are dependent on income and household
size, broken down in Table 3-2. The maximum rent by income and household
size is broken down in Table 3-3. The number of cost-burdened households
by income brackets below area median income (AMI) are calculated in Table
3-4.
Hillview Avenue
Table 3-2:Income limits by household size in order to qualify for
affordable housing'
1 2 3 4 5
30%AMI $13,220 $15,100 $16,980 $18,860 $20,380
50%AMI $33,050 $22,650 $25,470 $28,290 $30,570
60%AMI $39,660 $45,300 $50,940 $56,580 $61,140
80%AMI $52,880 $60,400 $67,920 $75,440 $81,520
Table 3-3: Maximum gross rents by bedroom size for affordable
housing(post 1989)
1 2 3 4
30%AMI $531 $636 $735 $735
50%AMI $885 $1,061 $1,226 $1,367
60%AMI $1,062 $1,273 $1,471 $1,641
80%AMI $1,416 $1,698 $1,962 $2,188
Minnesota Housing Finance Agency, "Income Limits And Maximum Rents; Table K.-
Projects Placed in Service on or after 41112018". Jan 2, 2019.
Chapter 3: Housing 1 3-5
City of Mounds View 1 2040 Comprehensive Plan MOUNDS VIEW
275000
250000 F:;Oot-
225000 —
Table 3-4: Cost-Burdened by Income Households 200000
175000 at or below 30% of AMI 532 10% 150000
125000
31% to 50% of AMI 593 11% 100000
51% to 80% of AMI 144 3% 75000
000
25000 �-
0
The median home value in Mounds View was$219,100 in 2018 compared
to $208,000 in 2010. Most of the housing units in the City were affordable for ti ti ti ti ti ti ti
households earning 51%to 80%AMI.A much smaller number were affordable
to those earning a smaller percent AMI. The number of affordable units for Mounds View Median Home
Value
each income bracket below AMI are calculated in Table 3-5. suburban Ramsey county Median
Home Value
Table 3-5:Affordable Units by Income Housing Units
at or below 30%AMI 704 13%
31% to 50%AMI 1,467 28%
51% to 80%AMI 2,612 49% r�
Some housing units in Mounds View are publicly subsidized. A certain
number of those units are supplied specifically for seniors. The number of
publicly subsidized homes is calculated with sub-categories in Table 3-6.
Table 3-6: Subsidized Housing Number of Units
Publicly Subsidized 181 3%
... specifically for Seniors 40 1%
... specifically for People with Disabilities 22 <1.% °
HOUSING PROJECTIONS AND NEEDS
Reinvestment
Although Mounds View is largely built-out, it will need to continue to grow
as local and regional demographics evolve.The city will need to accommodate Many apartment buildings in Mounds
a rising population including residents of all socioeconomic backgrounds. The View were built in the 1960's and 1970'swithout indoor parking,elevators,or
Metropolitan Council requires Mounds View to supply 27 new affordable units other modern amenities,and are
by 2040. The allocation of needed units by income brackets below AMI are naturally occurring affordable housing,
calculated in Table 3-7. with rents$0.90-$1.10 per sq ft for a
two-bedroom unit($900-$1,300 per
Table 3-7: Housing Allocation by Income Required Units month),as of 2018.
at or below 30% of AMI 27 In 2018,BBH Management purchased
31% to 50% of AMI 11 the 48-unit Ridgewood Apartments. As
51% to 80% of AMI 212 leases expire,BBH has remodeled each
Total Units 59 unit,floor to ceiling, investing about
AMI-Area Median Income $10,000 per unit,with a goal of rents of
about$1 per square foot(garage extra).
Reinvestment in multi-family housing is
critical to maintain these older buildings
2"Boulevard"Apartments,constructed in 2019,includes 4-units at or below 30%AMI,and 56- and stabilize neighborhoods.
units at or below 60%AMI.
Chapter 3: Housing 1 3-6
City of Mounds View 1 2040 Comprehensive Plan MID S VIEW
The Metropolitan Council estimates that there will be an increase of 220 new
households in Mounds View between 2020 and 2040. In order to
accommodate the growth, new homes both single-family and multi-family are
likely needed. New multi-family development is likely to occur along the
Mounds View Boulevard corridor on property currently used as single-family
residential and commercial uses.
HOUSING ACTION PLAN ' '''
Mounds View intends to work with partners to develop an Action Plan that -
focuses on: r
MEN
is
1. Homeowner Assistance
2. Preservation of Affordable Housing
3. Development/Redevelopment of New Affordable Housing
Currently (2019), such efforts operate independently, rather than as a
conjoined effort. A conjoined effort will be developed as part of the City's
Strategic Plan that more clearly explains cause &effect of the City's actions. Red Oak Drive
HOMEOWNER ASSISTANCE
Many of the resources are through Ramsey County, and include loans for
moderate-income to low-income households, and weatherization programs
specific to suburban communities. A list of available resources can be found
on the City of Mounds View website. As of 2019, this list includes programs
facilitated by the Center for Energy and Environment(CEE), including;
• Suburban Ramsey County Energy Conservation Differed Loan
• Mounds View Emergency Repair Deferred Loan
• Mounds View General Home Repair Revolving Loan
• Mounds View Mobile Home Loan
• Preservation of Affordable Housing
r �
EEW
T'
_�_.........
Fairchild Avenue
Chapter 3: Housing 1 3-7
City of Mounds View 1 2040 Comprehensive Plan MO S VIEW
Mounds View includes some small homes on large lots built prior to World War
II. As homeowners move or pass away, developers have purchased,
demolished, and subdivided the properties for new construction, typically
priced between $325,000 and $425,000. The City will continue to encourage
such redevelopment, which is necessary to provide options, and to remain
competitive with surrounding communities within the School District.
Mounds View is home to three manufactured home parks consisting of 561
homes on a combined 80 acres.These properties are particularly desirable for
redevelopment due to their size, proximity to freeways, service, manufacturing
and high-tech jobs, and are walkable distances to parks and schools. These
manufactured home parks are privately owned and maintained. The City
intends to work with the owners and the Metropolitan Council to monitor private Boulevard
infrastructure for structural stability including water inflow and infiltration.
Should one or more of these parks be redeveloped, the City supports Affordable Housing costs about the same
preserving the same number of affordable housing units in its place, or within to construct as market-rate housing.
the same school attendance boundary. New affordable housing is affordable
because of subsidies provided to the
DEVELOPMENT OF NEW AFFORDABLE HOUSING developer/owner,allowing them to
reduce rent. For example,the Boulevard
Apartments(2019)costs$232,000 per
The City has preference for new market-rate housing in order to provide a unit to build,and will charge rents within
range of housing options.When warranted,the City will support new affordable 60%of the Average Monthly Income
housing projects on a case-by-case basis, preferably mixed with market rate (AMI)within Ramsey County. Four ADA
housing. It has been the City's experience that mixed affordable/market-rate accessible units will have rents within
developments are difficult to attract to Mounds View because of smaller land 30%AMI.
parcels available for redevelopment, meaning smaller projects are more likely
to be developed as all affordable, or all market-rate units with no mixture. The project received funding from
multiple sources, including;the
The City will continue to work with its partners to better understand the City's Minnesota Housing Finance Agency(IRS
Tax Credits),Metropolitan Council
place in supporting affordable housing within the larger metro area. Mounds (Livable Communities Grant), Ramsey
View is an attractive location because of the school district, proximity to County(discounted land sale),and the
freeways, and jobs. Redevelopment is likely to occur along the Mounds View City of Mounds View(Tax Increment
Boulevard corridor. Many of those parcels are guided for mixed use and higher Financing). It is these subsidies that
density housing, to better support a mix of housing, including affordable units. made the project financially feasible,and
See Chapter 1:Land Use. would not have been built but for this
assistance.
The city's location is hindered by the availability and cost of land3, limited mass
transit access, and public opposition to affordable housing due to the large
amount that already exists in the City. Part of this is public perception of"what
kind of people" live in affordable housing. The City will continue its efforts of
making Mounds View an inclusive and welcoming community.
3 The Minnesota Housing Finance Agency(MHFA)provides competitive tax credits to
qualifying affordable housing projects based on a Qualified Allocation Plan,taking into
account proximity to jobs,transit,high performing school districts,economic and racial
integration.More points tend to be awarded to those areas of higher incomes and less
integration, presenting a challenge for Mounds View which is stable and affordable, not
attracting regional attention for reinvestment,and supporting vacancy along Mounds View
Boulevard.
Chapter 3: Housing 1 3-8
City of Mounds View 1 2040 Comprehensive Plan MOUNDS VIEW
HOUSING TOOLS Federal and regional sources
of funding:
There are a number of widely used tools available to the City of Mounds View
to address housing needs within the community. Such tools include, but are Consolidated Request for
not limited to: Proposals
• Land Bank Twin Cities
Local sources of funding: 0 Livable Communities
Demonstration Account
• Creation/use of a local Housing and Redevelopment Authority(HRA), (LCDA)
Community Development Agency (CDA), or Economic Development 0 Livable Communities
Authority (EDA): State law permits cities to cooperatively plan, Demonstration Account—
undertake, construct, or operate projects that contribute to the Transit Oriented
economic welfare and public benefit of the community, including Development(TOD)
housing projects and developments, redevelopment projects, interest 0 Community Development
rate reduction programs, or any combination of these (Source: Block Grant Funds (CDBG)
Metropolitan Council). 0 HOME Investment
• Housing Bonds. Partnerships Program
• Tax Abatement: Tax abatement is a financing tool that reduces taxes (HOME)
or tax increases for owners of specific properties. Local governments
offer the tax reduction to provide a financial incentive for a public Preservation strategies:
benefit, such as creation of housing affordable to low and moderate-
income households (Source:Metropolitan Council). Project Based Rental
• Tax Increment Financing: A primary tool in economic development Assistance
and redevelopment, tax increment financing, also known as TIF, is a • Low Income Housing Tax
legislatively authorized tool available to cities and special entities such Credit Properties
as housing and redevelopment authorities. Used to finance real estate 0Public Housing
development costs, municipalities create TIF districts to encourage 0Housing Improvement
development and to pay for related public improvements and Areas (HIAs)
infrastructure needs such as streets, sidewalks, or sewer (Source: 0Community Land trusts
Metropolitan Council). 0 Low-interest rehab
programs
Local policies and strategies: • Manufactured Home Parks
• Private unsubsidized
• Effective referrals, most commonly occurring as a result of Rental or affordable housing
Zoning inspections of housing conditions beyond the owner's or
renter's ability to correct and maintain.
• Fair Housing Policy, required in conjunction with Metropolitan Council
Livable Community Account grants.
• First time homebuyer, down payment assistance, and foreclosure
prevention programs, including the New Brighton-Mounds View
Rental Property Managers Coalition.
• Participation in housing-related organizations, partnerships, and
initiatives.
• Site Assembly, most commonly conducted in cooperation with private
owners of land adjacent to EDA land, who share a common vision for
redevelopment, and a cooperative timeline.
• Zoning and subdivision ordinances with flexible use of PUD's to
increase density where tree and open space preservation is not
necessary.
Chapter 3: Housing 3-9
City of Mounds View 1 2040 Comprehensive Plan MID S VIEW
• Rental license and inspections programs, in conjunction with a Crime
Free Multi-Family Housing program.
HOUSING IMPLEMENTATION PLAN
Housing Need Available Tool Circumstance and Potential Partners
Sequence of Use
Homeowner Assistance Home Improvement Loans,Energy The City has links on their website Center for Energy and
Conservation Deferred Loan to these resources and will provide Environment(CEE)
referrals to residents as needed.
Habitat for Humanity'A Brush with The City has links on their website Habitat for Humanity and
Kindness and Hearts&Hammers home to these resources and will provide Hearts&Hammers
repair programs referrals to residents as needed.
Homestead to reduce property taxes The City has a link on their website Ramsey County
to this resource and will provide
referrals to residents as needed.
FirstHOME Buyer Assistance Program The City has a link on their website Ramsey County
to this resource and will provide
referrals to residents as needed.
Rental license and inspections programs The City administers a rental N/A
dwelling license and inspection
program,with a Crime Free Multi-
Family Housing component.
Preservation of Affordable CDBG and HOME The City will consider sponsoring Ramsey County
Housing an application to Ramsey County
HOME or CDBS to assist with
maintenance and rehabilitation of
housing for low-and-moderate
income households.
Housing Bonds, Local EDA powers, The City will consider strategic use Ramsey County,
Community Land Trust of these tools to preserve Metropolitan Council,
threatened affordable housing,and MHFA
coordinate with others to preserve
Low-Income Housing Tax Credit
recipient properties as affordable
housing.
Housing Improvement Area (HIA) An HIA may be established to Ramsey County
improve common elements to
CIC's or manufactured home
parks,paid in whole or in part from
fees imposed within the area.
Manufactured Home Park The City will consider extending Metropolitan Council,
Preservation Tools homeownership resources to Ramsey County
Manufactured home parks and will
consider supporting a local notice
of first sale or first look provisions
to provide residents time to
consider cooperative ownership
if/when the community becomes
available for sale.
Chapter 3: Housing 1 3-10
City of Mounds View 1 2040 Comprehensive Plan MID S VIEW
Development/Redevelopment Tax Abatement,TI F The City would consider these Affordable Housing
of New Affordable Housing local tools at the request of a Developer, MHFA,
qualified developer providing Metropolitan Council
affordable housing with units
available of at least 80%AMI.
Consolidated RFP, LCDA, Site The City would consider these Affordable Housing
Assembly regional tools at the request of a Developer, MHFA,
qualified developer providing Metropolitan Council,
affordable housing with units Ramsey County
available of at least 80%AMI.
Chapter 3: Housing 3-1 1
Item No: 04
SAT Meeting Date: July 28, 2025
MIGC-T�Ws VIE I�r Type of Business: Council Business
City Administrator Review:
City of Mounds View Staff Report
To: Honorable Mayor and Mounds View City Council
From: Kribashini Moorthy, AICP, Stantec, City Planner
Evan Monson, AICP, Stantec, City Planner
Item Title/Subject: Second Reading of Approval for Detached ADU Zoning
Amendment
Request: Zoning Code Amendments
Introduction:
The City Council directed staff to review the regulation of accessory dwelling units (ADUs).
Under the existing code, ADUs are permitted only when they are attached to an existing single-
family residence. The city code refers to these as and ADU (addition) or an ADU (internal), see
the figures from § 160.087 and 160.088 of the city code below.
F
Figure 2:An example of an 'external'ADU,referred to in code as an ADU
Figure 1:An example of an ADU(internal). (addition).
An ADU (internal) is a permitted accessory use, while an ADU (addition) is a conditional use
under the current code. Detached ADUs are currently not permitted, though the city previously
reviewed allowing detached ADUs in both 2016 and 2023. In 2023, the Planning Commission
recommended amending the City Code to allow detached ADUs as a conditional use. Due to a
vacancy on the Council at that time, further consideration was tabled. The Council recently
expressed renewed interest in revisiting whether detached ADUs should be permitted within the
city.
Past Meetings:
The City of Mounds View convened a work session on June 2, 2025, that included participation
from City staff, the Planning Commission, and the City Council. There was extensive dialogue
regarding the potential allowance of detached accessory dwelling units (ADUs), including a
review of practices in peer and neighboring municipalities, as well as the broader implications of
permitting or prohibiting such units. Following this discussion, there was consensus in favor of
City Council Staff Report
7/28/2025—Amend Zoning Code—Detached ADUs
Page 2
allowing detached ADUs as a conditional use, subject to the review and implementation of
specific standards and conditions.
A draft ordinance was presented to the Planning Commission on July 2, 2025. The Planning
Commission reviewed the design standards and had considerable discussion regarding the
setbacks, required license for the detached ADU, shared water and sewer connection and
parking spaces. The Planning Commission recommended approval with changes to the
language surrounding parking spaces.
The first reading of this ordinance was presented to the City Council on July 14, 2025. During
this meeting, the Council reviewed the proposed design standards and engaged in substantive
discussion regarding various components of the ordinance, including language pertaining to
short-term rentals, additional provisions for owner responsibilities, water and sewer service
connections, maintenance of supplementary mailboxes, and foundation requirements.
Of note was the extensive deliberation surrounding water and sewer connections for detached
Accessory Dwelling Units (ADUs). Building Department staff recommended allowing shared
water and sewer connections between the primary residence and the detached ADU, as
duplexes and townhomes have historically operated with shared connections without adverse
impacts. Public Works has expressed a preference for requiring separate connections to ensure
sufficient pipe capacity and long-term infrastructure reliability.
City staff acknowledge that mandating separate water and sewer connections for detached
ADUs would impose significant financial burdens on prospective applicants. Considering this
information, planning staff propose presenting a range of options to the Council for further
evaluation regarding water and sewer service requirements for detached ADUs. A `clean' draft
is included in the meeting materials, as well as a `redlined' draft that includes changes from the
last Council meeting.
City Code:
§ 160.088 CONDITIONAL USES lists the conditional uses permitted in the Single-Family
Residential (R-1) district. The land use classifications in Mounds View follows hierarchical
zoning, where all the uses listed in the R-1 district are also allowed uses in the R-2, R-3, and R-
4 districts.
Figure 3:Example of an ADU(detached).
The Mounds View Vision
A Thriving Desirable Community
City Council Staff Report
7/28/2025—Amend Zoning Code—Detached ADUs
Page 3
If allowing detached ADUs, staff would propose a new subsection with standards specific to
detached ADUs. The proposed draft would make these a conditional use in the R-1, R-2, R-3,
and R-4 districts.
The draft ordinance is based on the current requirements for accessory buildings (160.087(A))
and ADU (internal) (160.087(J)) in the city code, the draft ordinance prepared by city staff in
2023, as well as research by current staff on neighboring communities. Staff have included
excerpts from the latest draft ordinance in italics below for the council to further consider, with
staff comments following.
• An accessory dwelling unit (detached) shall have a minimum setback from side and rear
lot lines of five (5) feet, and shall not be located within a front yard.
o Staff presume the city would not want these within the front yard (between a
house and the road).
o Staff have recommended consistent setbacks like other detached accessory
structures (such as garages), as this would allow for an applicant to have an
ADU within or above a detached garage. This would result in a dwelling being
much closer to a rear or side lot line than is allowed for a single-family house.
• Accessory dwelling units (detached) shall be licensed as a rental dwelling, and comply
with Ch. 119 of this code of ordinances.
o Use of an Accessory Dwelling Unit (detached) as a Short-Term Rental is
prohibited.
o Based on previous discussion, the city does not want to allow these units as
Short-Term Rentals.
• Accessory dwelling units (detached) shall use the same or separate water and sanitary
sewer connections, and water meter from the single-family home, subject to the
inspection by the Department of Public Works.
o If Public Works determines that the existing water and sewer is adequate for both
the primary structure and detached ADU, no separate water and sewer
connection is required.
o If Public Works determines that the service is undersized, then a separate water
and sewer connection shall be required to be installed by the applicant to serve
the detached ADU.
o The city could consider requiring shared or separate connections on a case-by-
case basis.
o If the city prefers to have all detached ADUs on separate connections, this
requirement can be revised.
The Mounds View Planning Commission reviewed the proposed draft ordinance 1045 on July 2"d
2025. The Mounds View City Council reviewed the proposed draft ordinance 1045 and held the
first reading of the ordinance on July 14, 2025.
Options:
The City Council has the following options for this item:
1. Approve of the amendment, with or without changes.
2. Deny the proposed amendment, with findings for denial.
3. Table the proposed amendment for further review/study.
The Mounds View Vision
A Thriving Desirable Community
City Council Staff Report
7/28/2025—Amend Zoning Code—Detached ADUs
Page 4
Recommendation:
Staff recommend the Council review the draft ordinance, and direct staff on potential changes
as needed. The City Council can approve of attached draft ordinance 1045, amending Chapter
160 of the city code, after completing a first and second reading.
Respectfully submitted,
Evan Monson, AICP
City Planner
Attachment(s): Draft Ordinance — Clean
Draft Ordinance— Redlined
The Mounds View Vision
A Thriving Desirable Community
ORDINANCE 1045
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AN ORDINANCE AMENDING Title XV,
CHAPTER 160 OF THE MOUNDS VIEW MUNICIPAL CODE
ON STANDARDS RELATING TO DETACHED ACCESSORY DWELLING UNITS
The City of Mounds View Ordains:
Section 1.Background; authority.
1.01. The City of Mounds View("City")has adopted a zoning ordinance pursuant to the authority granted
by the Municipal Planning Act. M.S. §§ 462.351 to 462.365, inclusive, as they may be amended
from time to time.
1.02. Sections 160.450 and 160.451 of the Mounds View Zoning Ordinance detail the process and
requirements for amending the zoning code.
1.03. Legislative Findings: The City Council finds that allowing owner-occupied properties to include a
detached accessory dwelling unit(ADU) serves the public interest by expanding long-term housing
opportunities within established neighborhoods. This policy is intended to support homeowners in
providing safe, code-compliant living spaces for others while preserving neighborhood character,
minimizing impacts on surrounding properties, and reinforcing the stability and vitality of
residential communities.
Section 2.The City Council of the City of Mounds View hereby amends Title XV. Land Usage, Section §
160.012 by adding the underlined as follows:
§ 160.012 DEFINITIONS.
DWELLING UNIT,ACCESSORY.A dwelling unit that is a smaller, independent residential dwelling
unit located on the same lot as a single-family dwelling to which it is accessory to, and is internal or
an addition onto the principal dwelling, or detached from the principal dwelling.AD Us can be
converted portions of or additions onto existing homes, new stand-alone accessory structures, or
converted portions of existing stand-alone accessory structures.
SHORT-TERM RENTAL.A non-owner-occupied dwelling unit rented for a period of thirty(30)
consecutive days or less. The use of recreational vehicles, campers or other similar vehicles as rentals
shall be prohibited.
Section 3.The City Council of the City of Mounds View hereby amends Title XV: Land Usage, Section
160.088 by adding the underlined material as follows:
(I) Accessory Dwellingdetached)
ti
1) One accessory dwelling unit(detached)may be located on a lot occupied by home.
The lot must comply with minimum dimensional standards.
a) An accessory dwelling unit(detached) shall not be permitted on a lot that has an accessory.
dwelling unit(addition)or accessory dwelling unit(internal).
2) Either the single-family home or the detached accessory dwelling unit shall be occupied by the
property owner. The property shall be homesteaded,designating it as the owner's primary residence.
a) Prior to the issuance of the Certificate of Occupancy for the accessory dwelling unit(detached),
least one of the units must be occupied by the owner and a restrictive covenant must be submitted
for review by the City Attorney and recorded against the property.
3) An accessory dwelling unit(detached) shall have a minimum gross floor area of 300 square feet and a
maximum gross floor area of 50% of the primary residence.
a) The footprint of an accessory dwelling unit(detached) shall count towards the maximum area
allowed for accessory buildings as specified in §160.087(A)(2).
4) The exterior design of the accessory dwelling unit shall be consistent with the character of the single-
family home.
5) An accessory dwelling unit shall be constructed on permanent foundation made of concrete, concrete
block or wood and anchoring ystem in accordance with the State Building
6) An accessory dwelling unit(detached) shall not exceed 18 feet or that of the principal structure,
whichever is less, in heir hl
7) An accessory dwelling unit(detached) shall have a pitch or slope of at least 2-12,but no steeper than
12-12. Rounded, dome or geodesic dome roofs are not allowed.
8) An accessory dwelling unit(detached) shall have a minimum setback from side and rear lot lines of
five(5) feet, and shall not be located closer to the front lot line than the single-family home.
9) A minimum of one off-street parking apace shall be provided for the accessory dwelling unit;
10) Accessory dwelling units(detached) shall be licensed as a rental dwelling, and comply with Ch. 119
of this code of ordinances.
a) Use of an Accessory Dwelling Unit(detached) as a Short-Term Rental is prohibited.
11) Accessory dwelling (detached) shall use the same or separate water and sanitary sewer
connections, and water meter from the single-family home, subject to the inspection by the
Department of Public Works.
a) If Public Works determines that the existing water and sewer is adequate for both the primary
structure and detached ADU,no separate water and sewer connection is required.
b) If Public Works determines that the service is undersized,then a separate water and sewer
connection shall be required to be installed b, t�pplicant to serve the detached ADU.
12) An accessory dwelling unit(detached) shall have a different address than the primary residence (such
as, 2401-A).Addressing shall be compliant with §§ 150.020 through 150.022 of this chapter.
13) if the mailbox post-ts owned a-ad maintained by the eit-,-then the pr-opeftqw-per-shall r-eimbufs&4he
eity for-a ,alteratrons or-Tepbeenpenr
14) Property owner is responsible for additional quarterly utility fees upon creation of an accessory
dwelling unit, to include the following: sewer service charge; surface water management utili , fee;
and street lighting utility fee.
15) An accessory dwelling unit(detached,} be permitted to be within a legally nonconforming
detached accessory structure,provided the accessory dwelling unit(detached) does not increase the
nonconformity of the detached accessory structure.
Section 4.In accordance with Section 3.07 of the City Charter, and assuming at least four-fifths of the
City Council vote to adopt this ordinance,City staff shall have the following summary printed in the
official City newspaper in lieu of the complete ordinance:
Section 5.This ordinance shall take effect and be in force 30 days from and after its passage and
publication.
Introduction and First Reading by the Mounds View City Council on July 14, 2025.
Second Reading and Adoption by the Mounds View City Council on July 28, 2025
Publication Date: July 30, 2025.
Zach Lindstrom,Mayor
Attest:
Nyle Zikmund, City Administrator
(SEAL)
ORDINANCE 1045
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AN ORDINANCE AMENDING Title XV,
CHAPTER 160 OF THE MOUNDS VIEW MUNICIPAL CODE
ON STANDARDS RELATING TO DETACHED ACCESSORY DWELLING UNITS
The City of Mounds View Ordains:
Section 1.Background; authority.
1.01. The City of Mounds View("City")has adopted a zoning ordinance pursuant to the authority granted
by the Municipal Planning Act. M.S. §§ 462.351 to 462.365, inclusive, as they may be amended
from time to time.
1.02. Sections 160.450 and 160.451 of the Mounds View Zoning Ordinance detail the process and
requirements for amending the zoning code.
1.03. Legislative Findings: The City Council finds that allowing owner-occupied properties to include a
detached accessory dwelling unit(ADU) serves the public interest by expanding long-term housing
opportunities within established neighborhoods. This policy is intended to support homeowners in
providing safe,code-compliant living spaces for others while preserving neighborhood character,
minimizing impacts on surrounding properties,and reinforcing the stability and vitality of
residential communities.
Section 2.The City Council of the City of Mounds View hereby amends Title XV: Land Usage, Section§
160.012 by adding the underlined as follows:
§ 160.012 DEFINITIONS.
DWELLING UNIT,ACCESSORY.A dwelling unit that is a smaller independent residential dwelling
unit located on the same lot as a single-family dwelling to which it is accessory to, and is internal or
an addition onto the principal dwelling, or detached from the principal dwelling.AD Us can be
converted portions of or additions onto existing homes, new stand-alone accessory structures, or
converted portions of existing stand-alone accessory structures-
SHORT-TERM RENTAL.A non-owner-occupied dwelling unit rented for a period of thirty (30)
consecutive days or less. The use of recreational vehicles, campers, or other similar vehicles as short-
term rentals shall be prohibited.
Section 3.The City Council of the City of Mounds View hereby amends Title XV: Land Usage, Section
160.088 by adding the underlined material as follows:
(1) Accessory Dwellingdetached)
ti
ull
1) One accessory dwelling unit(detached)may be located on a lot occupied by home.
The lot must comply with minimum dimensional standards.
a) An accessory dwelling unit(detached) shall not be permitted on a lot that has an accessory
dwelling unit(addition)or accessory dwelling unit(internal).
2) Either the single-family home or the detached accessory dwelling unit shall be occupied by the
property owner. The property shall be homesteaded, designating it as the owner's primary residence.
a) Prior to the issuance of the Certificate of Occupancy for the accessory dwelling unit(detached),
least one of the units must be occupied by the owner and a restrictive covenant must be submitted
for review by the City Attorney and recorded against the property.
3) An accessory dwelling unit(detached) shall have a minimum gross floor area of 300 square feet and a
maximum,gross floor area of 50% of the primary residence.
a) The footprint of an accessory dwelling unit(detached) shall count towards the maximum area
allowed for accessory buildings as specified in§160.087(A)(2).
4) The exterior design of the accessory dwelling unit shall be consistent with the character of the single-
family home.
5) An accessory dwelling unit shall be constructed on permanent foundation made of concrete, concrete
block or wood and anchoring system in accordance with the State Building
6) An accessory dwelling unit(detached) shall not exceed 18 feet or that of the principal structure,
whichever is less, in height.
7) An accessory dwelling unit(detached) shall have a pitch or slope of at least 2-12,but no steeper than
12-12. Rounded, dome or,geodesic dome roofs are not allowed.
8) An accessory dwelling unit(detached) shall have a minimum setback from side and rear lot lines of
five(5) feet, and shall not be located closer to the front lot line than the single-family home.
9) A minimum of one off-street parking space shall be provided for the accessory dwelling unit.
10) Accessory dwelling units shall be licensed as a rental dwelling, and comply with Ch. 119 of this code
of ordinances.
a) Use of an Accessory Dwellingdetached) as a Short-Term Rental is prohibited.
11) Accessory DwellingUnits nits (detached) shall use the same or separate water and sanitary sewer
connections, and water meter from the single-family home, subject to inspection by the Department
of Public Works.
a) If Public Works determines that the existing water and sewer is adequate for both the primary
structure and detached ADU,no separate water and sewer connection is required.
b) If Public Works determines that the existing service is undersized,then a separate water and
sewer connection shall be required to be installed by the applicant to serve the detached ADU.
12) An accessory dwelling unit(detached) shall have a different address than the primary residence(such
as, 2401-A).Addressing shall be compliant with §§ 150.020 through 150.022 of this chapter.
13) Property owner is responsible for additional quarterly utility fees upon creation of an accessory
dwelling unit,to include the following: sewer service charge; surface water management utility fee;
and street lighting utili , fee.
14) An accessory dwelling unit(detached)may be permitted to be within a legally nonconforming
detached accessory structure,provided the accessory dwelling unit(detached) does not increase the
nonconformity of the detached accessory structure.
Section 4.In accordance with Section 3.07 of the City Charter, and assuming at least four-fifths of the
City Council vote to adopt this ordinance,City staff shall have the following summary printed in the
official City newspaper in lieu of the complete ordinance:
Section 5.This ordinance shall take effect and be in force 30 days from and after its passage and
publication.
Introduction and First Reading by the Mounds View City Council on July 14,2025.
Second Reading and Adoption by the Mounds View City Council on July 28,2025
Publication Date: July 30,2025.
Zach Lindstrom,Mayor
Attest:
Nyle Zikmund, City Administrator
(SEAL)
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA
COUNTY OF RAMSEY
I,Kayla Tsuchiya,being duly sworn on oath, CITY OF MOUNDS VIEW
says: that she is,and during all times herein state has RAMSEY COUNTY,
MINNESOTA
been,Inside Sales Representative of Northwest PUBLIC HEARING NOTICE
Publication,LLC.,Publisher of the newspaper known NOTICE is HEREBY GIVEN
as the Saint Paul Pioneer Pressity
a news p p a er of that th nds p C Council will hold q a public
General circulation within the City of St. Paul and the heart ng on may July
8,2025,of 5:00 ns at
surrounding Counties of Minnesota and Wisconsin a Mounds Viev+ iry Hall,
including Ramsey and Kanabec. 2401
0 loya d,Mou+ds View,
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Ramsey County,State of Minnesota
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Item No: 05
025
MOLADS VIEW Meeting Date:August sc sion
Type of Business: Council Discussion
City Administrator Review:
City of Mounds view Staff Report
To: Honorable Mayor and City Council
From: Brian Beeman, Assistant City Administrator
Item Title/Subject: EDA vs Ramsey County Loan Programs
Introduction: At the July 7, 2025 worksession in reviewing the preliminary 2026 budget the City Council
directed staff to find out what loan programs Ramsey County is offering versus the City of Mounds View
EDA. Although a budget was approved to continue the EDA loan programs for 2025 and to continue the
loan servicing agreement with the Center for Energy and Environment (CEE) the loan programs for 2025
have been on hold due to the lack of funding.
Potential applicants have been turned away, and the contract with the Center for Energy and Environment
(CEE) was not renewed. CEE services the EDA's loan programs by reviewing loan applications, working
with the client,filing liens and collecting payments, keeping the loan policies updated, marketing the various
loans, and a variety of other services. The Council also briefly discussed the Forgivable Loan Program for
small businesses among other EDA loan programs and their current relevance. Preliminarily the Council
decided to allocate $30,000 for the Housing Loan Programs and $30,000 for the Business Loan Programs
for 2026 as a cap and allow staff to determine which loan programs to fund up to the cap.
Discussion:
Staff has prepared a comparison chart of the various loan programs offered.The City Council to review and
discuss which loan programs the EDA should continue to support starting January 2026.
Strategic Plan Strategy/Goal:
A progressive city that is welcoming and desirable destination to all ages and cultures, who seek progress
through partnership, and a place where residents can live, work and play safely and show pride in the
community.
Financial Impact:
None
Recommendation:
Review the attached loan comparison chart, determine which loan programs to continue to support for
2026. Staff recommends continuing the EDA loan programs for 2026 and renewing the agreement with
CEE.
Respectfully submitted,
9Y&W41--
Brian Beeman
City Administrator
Attachment(s):
1. EDA vs Ramsey County Comparison Chart
2. Loan Program Guidelines
3. Total Program Budget
HOUSING
Mounds View EDA Ramsey Count
FIRSTHOME DOWN PAYMENT ASSISTANCE
PROGRAM
(Fully Utilized, wait list until more funding is
available)
The FirstHome Program assists first-time and
first-generation homebuyers with low-to-
moderate incomes who are purchasing homes in
NO PROGRAM AVAILABLE Suburban Ramsey County. First-time
homebuyers may qualify for an interest free
deferred loan of up to $20,000. First-generation
buyers may qualify for an interest-free deferred
loan of up to 25% of the purchase price (loan not
to exceed $93,150). Additionally, first-generation
loans are forgiven at 5% per year and fully
forgiven if buyers remain in the home for at least
20 years. www.ramseycounty.us/firsthome
FirstHome(aD-co.ramsey.mn.us
RESIDENTIAL HOME RESIDENTIAL REHAB DEFERRED LOAN
IMPROVEMENT LOAN PROGRAM PROGRAM
For income based households wishing (Fully Utilized, wait list until more funding is
to make external or internal available)
improvements to owner-occupied 1-4
unit home. (roof, siding, paint, This program provides up to $20,000 interest
landscaping, etc.) ($2,000-15,000 per free loans to eligible owners of owner-occupied
loan at 34% interest) homes in suburban Ramsey County to help
homeowners with low-to-moderate incomes to
3% for households with income less make health and safety improvements, repairs
than or equal to 80% of HUD Area and fix code related issues.
Median Income. https://www.ramseVcountV.us/residents/property-
home/homebuyer-homeowner-programs/home-
4% for households with income improvement-programs
greater than 80% of HUD Area Median
Income
RESIDENTIAL EMERGENCY
REPAIR LOAN
For owner-occupied 1-4 units,
emergency repair of roofs, replace
heater, leaky windows, rotting fascia,
holes in siding, crumbling brick or
concreate, deteriorated retaining walls, NO PROGRAM AVAILABLE
correction of code violations that deem
an immediate safety/health hazard,
etc. Imminent conditions that makes a
house uninhabitable, dangerous to
occupants, or is capable of causing
severe health problems. ($1,000-
$5,000 per loan at 0% interest
RESIDENTIAL MOBILE HOME CRITICAL REPAIR GRANT PROGRAM
IMPROVEMENT LOAN
(Fully Utilized, wait list until more funding is
available
The Mounds View Vision
A Thriving Desirable Community
For external/internal improvements,
garage, decks, porches, skirting, roof, This program provides up to $10,000 grants to
retaining walls, landscaping, fences, eligible owners of owner-occupied homes and
etc. ($2,000-$10,000 per loan at 34% mobile/manufactured homes in suburban
interest income based) Budget Ramsey County to help homeowners with low-
Agreement = $75,000 to-moderate incomes to make health and safety
improvements, repairs and fix code related
issues.
https://www.ramseycounty.us/residents/propertV-
home/homebuyer-homeowner-programs/home-
improvement-programs
HOME ENERGY SQUAD
(City pays 50% of fee for residents to
get an energy audit. Currently, $100 NO PROGRAM AVAILABLE
total or$50 City share) Homeowner is
on their own to fund the actual
improvements, but CEE will inspect
and manager project.
RESIDENTIAL 0% SEWER LOAN
CLEAN WATER PARTNERSHIP
(CWP) LOAN PROGRAM
(No longer funded)
$1,000420,000 For homeowners in
need of funds to make corrections for
I&I Point of Sale inspection results. NO PROGRAM AVAILABLE
Homeowners must make corrections
before selling home. Lateral sewer line
excavation & replacement, lining or re-
lining lateral sewer lines, water
softener replacement, cleaning ponds
due to city assessment and installing
rain-gardens. Agreement with CEE to
service applications and loans.
BUSINESS
EDA Ramsey Count
BUSINESS IMPROVEMENT
LOAN
The Mounds View Vision
A Thriving Desirable Community
50/50 EDA/Bank partnership loan
up to $50,000 per business. For NO PROGRAM AVAILABLE
external/internal building
improvements including HVAC.
Must be in business for at least 2
ears or more.
FORGIVABLE BUSINESS LOAN
For startup businesses,
external/internal improvements,
HVAC, parking lots, signage, NO PROGRAM AVAILABLE
painting, etc. $5,000 per year per
business over three years not to
exceed $15,000. 100% forgivable
after 1 year in same location.
OPEN TO BUSINESS
The Open to Business program provides direct
technical assistance and other forms of support to
small business owners and entrepreneurs at no
cost. All current business owners and aspiring
NO PROGRAM AVAILABLE entrepreneurs intending to establish, purchase or
improve a business within the county are eligible
and encouraged to participate.
https://www.ramseycou nty.us/businesses/workforce-
business-development/open-business
COMMERCIAL 0% SEWER LOAN
CLEAN WATER PARTNERSHIP
(CWP) LOAN PROGRAM
(No longer funded)
$5,000450,000 For commercial,
mixed-use and multi-family (5+
units) business owners in need of
funds to make corrections for I&I NO PROGRAM AVAILABLE
Point of Sale inspection results.
Business owners must make
corrections before selling business.
Lateral sewer line excavation &
replacement, lining or re-lining
lateral sewer lines, water softener
replacement, cleaning ponds due
to city assessment and installing
rain-gardens. Agreement with CEE
to service applications and loans.
The Mounds View Vision
A Thriving Desirable Community
EXHIBIT A4
PROGRAM GUIDELINES
Exhibit A4 Page 1
Agreement between the City of Mounds View and Center for Energy and Environment
MOUNDS VIEW LOAN PROGRAM GUIDELINES
The City of Mounds View EDA is making funds available for homeowners to make improvements to their
properties. The Mounds View Loan Program is designed to supplement existing loan programs available
from MHFA, CEE, private lenders and other housing resources. This program is not intended to be the
sole source of improvement funds available to the City. Center for Energy and Environment shall serve
as the administrator for the Mounds View Loan Program and will secure the most beneficial financing
based on the borrower's needs independent of the funding source.
Residential Home Improvement Loan Program
Interest Rate: 3%for households with income less than or equal to 80%of HUD Area Median Income
4%for households with income greater than 80%of HUD Area Median Income
***Income shall be determined by projected income for the next year and is based on household size.
Amortization Type: Amortizing (Monthly Payments Required)
Loan Amount: Minimum of$2,000 and Maximum of$15,000.
Loan term: Generally, one year per$1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower's ability to repay the loan. The minimum term is 1 year; the maximum
term will be 10 years.
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Mounds View.Townhomes and Condominiums are eligible.
Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes and
properties used for commercial purposes.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens.
TAX IDENTIFICATION NUMBERS (ITIN)ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers,
and Properties held in the name of a business.
Ownership/Occupancy: Owner-occupied only.
Exhibit A4 Page 2
Agreement between the City of Mounds View and Center for Energy and Environment
Loan-to-Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 110%of the property value. Half of the improvement value may be added to the initial
property value.
Income Limit: There is no maximum income limit
Debt-to-Income Ratio: Applicant must have the ability to repay the loan.An applicant who has a debt
to income ratio in excess of 50%will be ineligible to receive financing.
Credit Requirements: 1)All mortgage payments must be current and reflect no 30 day late payments
history in the past 12 month period (without reasonable explanation) 2)All real estate taxes must be
current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at
least 18 months prior to loan closing. 5)The redemption period on prior foreclosures must have
occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day
late payments on credit report. Any 60 day late requires a documented explanation and reasonable
reasons; medical, unemployment, divorce. 7) No defaulted government loans.
Multiple Loans per Property: More than one loan per property is allowed, however,the outstanding
balance(s) cannot exceed $15,000.
Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that
improve the basic livability of the property. Garages, decks, porches, retaining walls, landscaping and
fences can be repaired, replaced or built as new construction. Contractors must be properly licensed
and permits must be obtained when required.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel),
and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT
allowed.
Bids: Only 1 bid is required. All contractors must be properly licensed.
Sweat Equity/ Homeowner Labor: Work may be performed by property owners on a "sweat equity'
basis. Loan funds may be used only for the purchase of materials. Loan funds may be used to rent
tools/equipment.
Post Installation Inspection: Permits must be obtained and signed off by a City inspector where
required; when not required, a post installation inspection will be performed by CEE to ensure the work
has been completed before any funds will be released.
Loan Security: All loans will be secured with a mortgage in favor of the City of Mounds View EDA.
Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees,title, flood
certificate, credit report and any other fees associated with the loan. All fees may be financed in the
loan.
Exhibit A4 Page 3
Agreement between the City of Mounds View and Center for Energy and Environment
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE's
underwriting guidelines. CEE's decision shall be final. Appeals can be made to the City of Mounds View.
Work Completion: All work must be completed within 120 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
Residential 0% Clean Water Partnership (CWP) Loan Program
Interest Rate: 0%
Amortization Type: Amortizing (Monthly Payments Required)
Loan Amount: Minimum of$1,000 and Maximum of$20,000.
Loan term: Up to 5 years for loan amounts equal to or less than $10,000 and up to 10 years for loan
amounts greater than $10,000. Generally, one year per$1,000 borrowed. This will be somewhat
flexible depending on the size of the loan and the borrower's ability to repay the loan. The minimum
term is 1 year.
Eligible Properties: 1-4 unit owner-occupied and non-owner occupied properties located within the
geographical boundaries of the City of Mounds View. Mobile Homes,Townhomes and Condominiums
are eligible.
Ineligible Properties: Dwellings with more than four units, co-operatives and properties used for
commercial purposes.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens.
TAX IDENTIFICATION NUMBERS (ITIN)ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: Foreign Nationals, illegal residents and properties
held in the name of a business.
Ownership/Occupancy: Owner and non-owner occupied.
Loan-to-Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 110%of the property value. Half of the improvement value may be added to the initial
property value. There is no Loan-to-Value Ratio required for mobile homes.
Income Limit: There is no maximum income limit.
Exhibit A4 Page 4
Agreement between the City of Mounds View and Center for Energy and Environment
Debt-to-Income Ratio: 50%. Applicant must have the ability to repay the loan.
Credit Requirements: 1)All mortgage payments must be current and reflect no 30 day late payment
history in the past 12 month period (without reasonable explanation) 2)All real estate taxes must be
current 3) No outstanding judgements or collections 4) Bankruptcy must have been discharged for at
least 18 months prior to loan closing 5)The redemption period on prior foreclosures must have
occurred at least 18 months prior to the loan application date 6) Generally, no more than two 60-day
late payments on credit report. Any 60 day late requires a documented explanation and reasonable
reasons; medical, unemployment, divorce 7) No defaulted government loans
Multiple Loans per Property: More than one loan per property is allowed, however,the outstanding
balance(s) cannot exceed $20,000.
Eligible Use of Funds: Loans may be used to finance projects that are eligible for the Clean Water
Partnership (CWP) Program. These include, but are not limited to: lateral sewer line excavation and
replacement, lining or re-lining lateral sewer lines,water softener replacement, cleaning ponds due to
city assessment and installing rain-gardens. Contractors must be properly licensed and permits must be
obtained when required.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Questionable improvements will be brought to the City.
Bids: Only one bid is required. All contractors must be properly licensed.
Sweat Equity/ Homeowner Labor: Work may be performed by property owners on a "sweat equity"
basis. Loan funds may be used only for the purchase of materials and not to compensate for labor. Loan
funds can be used to rent tools/equipment.
Post Installation Inspection: Permits must be obtained and signed off by a City inspector where
required; when not required, a post installation inspection will be performed by CEE to ensure the work
has been completed before any funds will be released.
Loan Security: All loans will be secured with a mortgage in favor of the City of Mounds View EDA, unless
a mobile home. If the improvements are for a mobile home a lien is filed on the title.
Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees,title, flood
certificate, credit report and any other fees associated with the loan. All fees may be financed in the
loan amount.
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE's
underwriting guidelines. Appeals can be made to the City of Mounds View.
Work Completion: All work must be completed within 120 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
Exhibit A4 Page 5
Agreement between the City of Mounds View and Center for Energy and Environment
Commercial 0% Clean Water Partnership (CWP) Loan Program
Interest Rate: 0%
Amortization Type: Amortizing (Monthly Payments Required)
Loan Amount: Minimum of$5,000 and Maximum of$50,000.
Loan term: Up to 5 years for loan amounts equal to or less than $10,000 and up to 10 years for loan
amounts greater than $10,000. Generally, one year per$1,000 borrowed. This will be somewhat
flexible depending on the size of the loan and the borrower's ability to repay the loan. The minimum
term is 1 year.
Eligible Properties: Commercial, Mixed-Use and Multi-Family(5+ units) properties located within the
geographical boundaries of the City of Mounds View. Associations are eligible.
Ineligible Properties: Dwellings with less than five (5) units, co-operatives and properties used for
residential only purposes.
Eligible Borrowers: All borrowers must be a registered business with the MN Secretary of State or legal
residents of the United States, as evidenced by a social security number, Including: U.S. Citizens,
Permanent Resident Aliens, Non-Permanent Resident Aliens.TAX IDENTIFICATION NUMBERS (ITIN)ARE
NOT ACCEPTABLE. The borrower(s) must own the property.
Ineligible Borrowers: Including but not limited to: Tenants, Foreign Nationals, illegal residents and
businesses not registered with the MN Secretary of State.
Ownership/Occupancy: Owner and non-owner occupied.
Loan-to-Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 110%of the property value. Half of the improvement value may be added to the initial
property value. Exceptions may be made by the City.
Income Limit: There is no maximum income limit.
Debt-to-Income Ratio: Not applicable if the loan is in the name of a business, but the business must
show a positive cash flow from the most recent tax return. If the business has not filed a tax return a
year-to-date Profit& Loss Statement must be provided. If the business is new a budget shall be
provided and brought to the City for review. If the property is in the name of an individual the Debt to
Income requirement is 50%.
Exhibit A4 Page 6
Agreement between the City of Mounds View and Center for Energy and Environment
Credit Requirements: 1)All mortgage payments must be current and reflect no 30 day late payment
history in the past 12 month period (without reasonable explanation) 2)All real estate taxes must be
current. If the loan is made to an individual they must meet the credit requirements of the Residential
CWP Program.
Multiple Loans per Property: More than one loan per property is allowed, however,the outstanding
balance(s) cannot exceed $50,000.
Eligible Use of Funds: Loans may be used to finance projects that are eligible for the Clean Water
Partnership (CWP) Program. These include, but are not limited to: lateral sewer line excavation and
replacement, lining or re-lining lateral sewer lines,water softener replacement, cleaning ponds due to
city assessment and installing rain-gardens. Contractors must be properly licensed and permits must be
obtained when required. Assessments made by an Association are eligible.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Questionable improvements will be brought to the City.
Bids: Only one bid is required. All contractors must be properly licensed.
Sweat Equity Labor: Work may be performed by property owners on a "sweat equity" basis. Loan
funds may be used only for the purchase of materials and not to compensate for labor. Loan funds can
be used to rent tools/equipment.
Post Installation Inspection: Permits must be obtained and signed off by a City inspector where
required; when not required, a post installation inspection will be performed by CEE to ensure the work
has been completed before any funds will be released.
Loan Security: All loans will be secured with a mortgage in favor of the City of Mounds View EDA.
Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees,title, flood
certificate, credit report and any other fees associated with the loan. All fees may be financed in the
loan amount.
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE's
underwriting guidelines. Appeals can be made to the City of Mounds View.
Work Completion: All work must be completed within 120 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
Exhibit A4 Page 7
Agreement between the City of Mounds View and Center for Energy and Environment
Residential Mobile Improvement Loan Program
Interest Rate: 3%for households with income less than or equal to 80%of HUD Area Median Income
4%for households with income greater than 80%of HUD Area Median Income
'Income shall be determined by projected income for the next 12 months and is based on
household size.
Amortization Type: Amortizing. Closed-end (Monthly Payments Required)
Loan Amount: Minimum of$2,000 and Maximum of$10,000.
Loan term: Generally, one year per$1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower's ability to repay the loan. The minimum term is 1 year; the maximum
term will be 7 years.
Eligible Properties: Residential mobile homes located within the geographical boundaries of the City of
Mounds View.
Ineligible Properties: Non owner-occupied , cooperatives,time shares, properties held in the name of a
trust and properties used for commercial purposes.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens.
TAX IDENTIFICATION NUMBERS (ITIN)ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non-Occupant Co-Borrowers,
and Properties held in the name of a trust or business.
Ownership/Occupancy: Owner-occupied only.
Loan-to-Value Ratio: Not applicable
Income Limit: There is no maximum income limit.
Debt-to-Income Ratio: Applicant must have the ability to repay the loan.An applicant who has a debt
to income ratio in excess of 50%will be ineligible to receive financing.
Credit Requirements: 1)All mortgage payments must be current and reflect no 30 day late payments
history in the past 12 month period (without reasonable explanation) 2)All real estate taxes must be
current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at
least 18 months prior to loan closing. 5)The redemption period on prior foreclosures must have
occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day
Exhibit A4 Page 8
Agreement between the City of Mounds View and Center for Energy and Environment
late payments on credit report. Any 60 day late requires a documented explanation and reasonable
reasons; medical, unemployment, divorce. 7) No defaulted government loans.
Multiple Loans per Property: More than one loan per property is allowed, however,the outstanding
balance(s) cannot exceed $10,000.
Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that
improve the basic livability of the property. Garages, decks, porches, retaining walls, landscaping and
fences can be repaired, replaced or built as new construction. Contractors must be properly licensed
and permits must be obtained when required.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc.), furniture, non-permanent appliances (unless part of a full kitchen remodel),
and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT
allowed.
Bids: Only 1 bid is required. All contractors must be properly licensed.
Sweat Equity/ Homeowner Labor: Work may be performed by property owners on a "sweat equity'
basis. Loan funds may be used only for the purchase of materials. Loan funds may be used to rent tools/
equipment.
Post Installation Inspection: Permits must be obtained and signed off by a City inspector where
required; when not required, a post installation inspection will be performed by CEE to ensure the work
has been completed before any funds will be released.
Loan Security: All loans will be secured by a lien in favor of the City of Mounds View EDA.
Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees, title,flood
certificate, credit report and any other fees associated with the loan. All fees may be financed in the
loan amount .
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE's
underwriting guidelines. CEE's decision shall be final. Appeals can be made to the City of Mounds View.
Work Completion: All work must be completed within 120 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
Residential Emergency Repair Deferred Loan Program
Exhibit A4 Page 9
Agreement between the City of Mounds View and Center for Energy and Environment
The intent of the Mounds View Emergency Repair Deferred Loan Program is to provide assistance to
property owners in the City of Mounds View who face emergency home repairs and cannot qualify for
other housing related programs to remedy the situation.
Interest Rate: 0%
Loan Amount: Minimum loan is$1,000. Maximum loan is $5,000 within any time period.
Loan term: Loan will be deferred until the borrower sells or transfers title of the property, at which time
100%of the loan is due.
Eligible Properties: Owner-occupied properties with up to 4 dwelling units located within the
boundaries of the City of Mounds View. Condominiums, mobile homes and townhomes are eligible.
Ineligible Properties: Dwellings that are more than 4 units (these would be considered apartment and
hence commercial properties), cooperatives, time shares, and properties used for commercial purposes.
Eligible Borrowers: Owners of 1-4 unit properties within the City of Mounds View who meet the
program guideline criteria.The borrower must not be eligible for any other financing administered by
CEE in order to obtain an Emergency Program loan.
Ineligible Borrowers: Include but are not limited to: nonresident owners, non-occupant co-borrowers,
properties held in the name of a business.
Ownership/Occupancy: Only owner-occupied. Contract for Deeds are eligible.
Loan-to-Value Ratio: Not applicable
Income Limit: Household income must be less than 80%of HUD Area Median Income based on
projected income over the next year.
Debt-to-Income Ratio: Not applicable
Multiple Loans per Property/Borrower: Multiple emergency loans on a property are allowed if the
balance is within the overall maximum loan limit.
Eligible Improvements: An emergency is defined as an imminent condition that makes a house
uninhabitable, dangerous to the occupants, or is capable of causing severe health problems. Repairs
that will remedy such emergency repairs are eligible. Examples of eligible repairs include, but are not
limited to, water lines, sewer service,fire hazards, repair to exterior steps, railings, retaining walls, water
seepage into basement, structural problems, or replacement of a furnace or hot water heater.
Repairs that remedy code violations and those needed to address home repairs before they
significantly de-value the home and become much more serious problems, are also eligible
whether or not the city has issued a code violation. Examples of eligible repairs include, but are
not limited to, leakage around windows, rotting fascia, holes in siding, roof leakage, crumbling
brick or concrete and deteriorated retaining walls. CEE will determine eligibility of projects.
Exhibit A4 Page 10
Agreement between the City of Mounds View and Center for Energy and Environment
Ineligible Improvements: Work initiated prior to the loan being approved and closed. Personal
property items, including appliances, furniture, hot tubs, swimming pools, and other luxury items,
exterior plumbing (e.g. sprinkler systems), non-permanent landscaping fixtures (e.g. potted plants,
furniture, bird feeders), repairs to property used for business or trade purposes, refinancing existing
indebtedness, and labor costs of borrowers and/or residents. CEE will refer to the City whenever
eligibility of an improvement project is questionable.
Bidding: Except when labor is provided by the borrower,the borrower must provide a minimum of 1
bid for each improvement project under$5,000 and 2 bids for each project more than $5,000.All
contractors must be properly licensed. Permits must be obtained when required by City ordinance.
Sweat Equity: Not permitted
Property Inspection: Required. Eligible improvements will be determined through an analysis of the
emergency condition of the property. A CEE staff member will perform the analysis to determine the
severity of the situation.
Post Installation Inspection: Properties are subject to a post installation inspection by a CEE staff
member when a permit is not required. Where a permit is required,the work must be signed-off by a
City inspector prior to release of funds.
Work Completion: All work must be completed within 30 days of loan closing. Extensions may be
granted by CEE.
Borrower Fees: Borrower will be responsible for mortgage filing and service fees, flood certificate and
credit report fees all of which may be financed in the loan amount.
Underwriting Decision: CEE will review the application and submitted documentation for consideration
for other home improvement programs prior to considering the application for the Emergency Repair
Loan Program. CEE will approve or deny loans based on income verification and other criteria.This is a
last resort program.The borrower must not be eligible for any other financing administered by CEE in
order to obtain an Emergency Repair Deferred loan. CEE's decision shall be final.
Loan Security: All loans will be secured with a mortgage(lien for mobile homes) in favor of the City of
Mounds View EDA.
Exhibit A4 Page 11
Agreement between the City of Mounds View and Center for Energy and Environment
General Program Conditions
Application Processing: Loans will be distributed on a first come first serve basis as applicants qualify.
Applicants must provide a completed application package including the following in order to be
considered for funding.
➢ Completed and signed application form
➢ Proof of income
➢ Bids or estimates for proposed projects
➢ Other miscellaneous documents CEE may require
Contractors/Permits: Contractors must be properly licensed. Permits must be obtained when required
by City ordinance.
Program Costs: Loan origination, post installation inspection and remodeling advisor visit fees will be
paid per the Program Budget. Loan program marketing efforts will be billed directly to the City of
Mounds View EDA and is a separate expense should the City of Mounds View EDA choose to commission
CEE for marketing support. Borrowers will pay all mortgage filing fees and related closing costs.
Total Proiect Cost: It is the borrower's responsibility to obtain the amount of funds necessary to finance
the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower
must obtain the additional funds and show verification of the additional funds in order to be approved
for the loan.
Disbursement Process: Payment to the contractor(or owner in sweat equity situations) will be made
upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the
completion of the work. The following items must be received prior to final disbursement of funds:
• Final invoice or proposal from contractor(or materials list from supplier);
• Final inspection verification by a City Inspector(or CEE);
• Completion certificate(s) signed by borrower and contractor;
• Lien waiver for entire cost of work; and
• Evidence of City permit (if required).
Exhibit A4 Page 12
Agreement between the City of Mounds View and Center for Energy and Environment
EXHIBIT B4
TOTAL PROGRAM BUDGET $21075,000
MOUNDS VIEW LOAN PROGRAM BUDGET
A. Loan Program Budget Allocation for the Residential Home Improvement, Mobile Home
Improvement and-Emergency Repair Deferred Loan Programs: $75,000
• Annual Administration Fee: $5,000
• Administration Fees applicable to the Residential Home Improvement, Mobile Home
and Emergency Repair Deferred Loan Programs
B. Loan Program Budget Allocation for the Residential and Commercial 0%Clean Water
Partnership(CWP) Loan Programs: $2,000,000
• Origination Fees and Post Installation Inspection Fees are not included in the Program
Budget. These fees shall be paid by the City of Mounds View EDA.
Budget Notes:
1. Funds to be transferred between Budget Categories in this Exhibit that do not change the Total
Contract Amount must be approved in writing by the City of Mounds View EDA.
2. CEE shall submit monthly invoices to the City of Mounds View EDA for the loan principal and
administrative fees and quarterly invoices for the aged delinquency reporting services.
3. Services performed by CEE will initially be funded from the Total Program Budget as stated above
and paid in accordance with the following schedule.
(a) Loan Origination Fee for all Residential Loans $750 per loan closed
(b) Loan Origination Fee for all Commercial CWP Loans $1,050 per loan closed
(c) Post Installation & Emergency Inspection $150.00 per inspection
(d) Annual Administration Fee $5,000
The Annual Administration Fee is payable on January 15Y of each year the contract is active.
4. Marketing
Marketing efforts will be supported by CEE and marketing costs are not included in the
administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged
only for hours directly related to the labor of all program marketing. CEE will also be reimbursed
by the City of Mounds View EDA for any non-labor, out-of-pocket expenses relating to these
services on a dollar-for-dollar basis.
Exhibit B4#3993 Page 1
Agreement between the City of Mounds View EDA and Center for Energy and Environment