2.0 HRSR 12-15-2008 - Laserfiche WebLink

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At~nlication Criteria The attached press release from the League of Minnesota Cities provides a good outline of the formula that Minnesota Housing Finance Agency (NIHFA) used to determine the distribution of the federal funds. The allocations are distributed to zip codes -not cities specifically. In our case, the 55330 zip code is eligible to receive $715,446 in NSP funds. Therefore, Elk River's portion of the allocation will likely be less, depending on the foreclosure situation in Otsego that lies within the 55330 zip code. And, as noted in the attached Neighborhood Stabilization Program Application Update, "5) If your dip code ~yosses multiple jurisdictions, you will need to demonstrate in your application bozoyou are coordinating with the otherjurisdictions." We are coordinating these discussions with Otsego. Further, an integral part of the application requires us to identify "target" neighborhoods where the funds will be used; i.e., we cannot establish a down payment assistance program for the entire city. Elk River Situation Since the last HRA meeting, staff has been gathering the following data in order to assess Elk River's foreclosure situation and impacts: a. List of foreclosures obtained from Sherburne County since January 2008. b. Map of affected neighborhoods. - # of foreclosures in each subdivision. - % of foreclosures/number of housing lots. c. Photos of vacant, foreclosed, blighted properties. An overview of these findings will be presented at the HRA meeting. Internally, a strategy meeting was held which included Police Chief Jeff Beahen, Code Enforcement Officer Dave Hetrick, and Community Development staff to discuss the data and identify neighborhoods which appear to have the greatest foreclosure impacts (identified on the attached map): - The Bluffs - Windsor Oaks of Elk River - Park Pointe - Trott Brook Proposed Use of NSP Funds Based on the HRA's previous discussions and with the available data, a logical use of funds may be to provide down payment assistance to stimulate home buying activity and decrease the number of vacated foreclosed single-family homes in these hardest-hit neighborhoods. It will also fulfill the criteria of helping to stabilize the neighborhood and stimulate the market. In addition to the down payment assistance program, staff recommends that we keep our options open in order to address vacant or abandoned properties as we continue to evaluate the various neighborhoods and their impacts. Additional information is identified on the attached Foreclosure Recovery Strategies table which offers a list of model programs.