12-15-2008 HRA MIN - Laserfiche WebLink

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Housing & Redevelopment authority December 15, 2008 Page 2 of properties. Ms. Mehelich noted that the funds are non-competitive, but the dty must justify the need. She explained that the city map utilize some funds to purchase properties either for rehabilitation or demolition, abandoned, vacant or blighted properties, not in foreclosure. MN Housing is looking for other investments that are in areas where economic development is occurring, such as the Bluffs. She also explained how the developments identified by staff are in proximity of commercial or business park areas which are experiencing economic development. Commissioner Lieser asked if the funds could be used in other areas, other than those identified in the application. Ms. Mehelich stated that as the market changes, the city may make a request to utilize funds elsewhere, by providing documentation. Ms. Mehelich explained how the funds can be used to revitalize neighborhoods with a number of foreclosures. Commissioner Motin expressed his concern that down payment assistance is provided for a buyer for a home they can't afford. Ms. Mehelich stated that in order for a home to be eligible, the home must be purchased at an average 10 percent discount of the appraised value. Commissioner Toth stated that he did not feel the program would have the same impact in Windsor Oaks as it would in Trott Brook. Discussion followed regarding the number of foreclosures in Elk River Station and how the homeowner's assoaation is affected. Mr. Gongoll asked if the HRA is comfortable with staff s recommendation to utilize a down payment program. Ms. Mehelich discussed blighted commercial areas. She noted that the end use must be public facilities such as libraries, or residential use. She noted that Otsego will be applying for a portion of the same 55330 funds. Discussion followed regarding the Bluffs. Ms. Mehelich stated that MNWest Bank is very interested in the program, and they feel strongly that this may help them. Mr. Gongoll stated that providing assistance for the Bluffs would seem to fit the definition of lessening the impact on neighborhoods. Ms. Mehelich stated that a part of the application is leveraging assistance from other parties, and the bank is interested in developing some financing programs that would be of assistance to potential buyers as well. Mr. Gongoll asked that the HRA consider authorizing staff to submit an application to Greater MN Housing Fund for technical assistance funds. MOTION BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER LIESER TO AUTHORIZE CONTRACTING WITH S.E.H. FOR GRANT WRITING SERVICES AT A COST NOT TO EXCEED $5,000. MOTION CARRIED 4-0. Mr. Gongoll stated that staff will research additional neighborhoods with the greatest need based on the number of foreclosures. Commissioner Motin suggested that Elk River Station also be included.