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Item 1 6 <br /> City of <br /> Elk - -� <br /> River <br /> MEMORANDUM <br /> TO: Housing and Redevelopment Authority <br /> Mayor & City Council <br /> FROM: Catherine Mehelich, Director of Economic Developmen <br /> DATE: July 29, 2002 <br /> SUBJECT: Affordable Housing Update <br /> Attached Related Information <br /> • "Homefront"—Central MN Housing Partnership 2002 Summer Newsletter. <br /> • "Richfield Rediscovered" new home construction program <br /> • • "Cities demand new vision of housing"—The Business Journal.June 21, 2002. <br /> At the June 24, 2002 joint meeting of the HRA and City Council, staff reported that the city <br /> had received a request for an apartment project,which was willing to consider affordable <br /> units contingent on financing assistance from the city. The HRA and Council indicated <br /> interest in looking at options for affordable housing with this project and directed staff to <br /> provide information on financing options. Since that time the developer has withdrawn <br /> from the proposed project. <br /> Staff met with the city's financial advisors, Ehlers &Associates, to learn about various <br /> financing options for the development of affordable housing. Ehlers &Associates indicated <br /> that financing for multi-family housing developments is extremely complex and requires <br /> staff to administer the annual reporting requirements of tenant income and rents. It was <br /> suggested that providing financing assistance for affordable single-family development might <br /> be a more workable alternative. <br /> Ehlers &Associates suggested a project similar to the attached "Richfield Rediscovered" <br /> program,which provides sites for new homes by removing substandard structures on lots <br /> throughout Richfield. Properties are purchased by the Richfield HRA through voluntary <br /> sale. Sites are cleared of the original structure and sold for redevelopment of new homes. <br /> Any such project would require additional staff time to administer unless the services are <br /> contracted. <br /> In follow up to the Central MN Housing Partnership study, staff will be conducting a <br /> detailed analysis of the housing stock with GIS (geographic information system) to clarify <br /> the extent of housing needs in the city based age of the home and market value. <br />