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El REQUEST FOR ACTION <br /> River <br /> To ITEM NUMBER <br /> Housing and Redevelopment Authority 7.1 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> General Business November 3, 2014 Jeremy Barnhart,Deputy Director, <br /> Community Operations and <br /> Development Director <br /> ITEM DESCRIPTION REVIEWED By <br /> Small Cities Development Program preliminary application <br /> authorization REVIEWED BY <br /> ACTION REQUESTED <br /> Authorize,by motion, the following items related to the Small Cities Development Program (SCDP) <br /> CMHP to make a pre-application for the grant in the amount of$635,000, <br /> HRA to pledge $100,000 toward the program. <br /> BACKGROUND/DISCUSSION <br /> Last year, the City completed a pre-application for a $575,000 Small Cities Development Program <br /> (SCDP) grant, to facilitate forgivable loans for rehabilitation of owner-occupied homes in the older part <br /> of the community. This grant program was to be administered by Central Minnesota Housing <br /> Partnership (CMHP) and the HRA's financial contribution was to be $50,000. This program is different <br /> from the $50,000 HRA rehabilitation loan program currently underway, also administered by CMHP. <br /> The grant funds a program that offers low interest and forgivable loans to owner occupied residential <br /> dwellings, and commercial properties. <br /> Potential grant Max Owner Grant Notes <br /> parameters loan contribution funds <br /> Owner occupied 20,000 10% 90% Forgivable after 7 years <br /> 50%of grant funds is forgivable after 10 <br /> years. 50%grant funds is 1%for 15 <br /> Commercial 37,500 30% 70% years <br /> The City did not receive that grant. Based on the information gained from the previous request, staff <br /> seeks authorization to reapply for 2015. Some of the comments received from last year's application are <br /> being addressed,including the suggestion to add commercial properties, and to reduce the study area. <br /> The suggested study area is generally the eastern half of the HRA loan program, and includes downtown <br /> development on both sides of US 10 and the railroad. Staff suggests an HRA contribution of$100,000. <br /> This is intended to demonstrate the City's importance in redevelopment and reinvestment, and supports <br /> the costlier commercial projects. In general, commercial projects are more visible, and often supply <br /> POWERED BY <br /> NATURE <br />