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htik REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Housing and Redevelopment Authority 7.2 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> General Business October 5,2015 Colleen Eddy,ED Specialist <br /> ITEM DESCRIPTION REVIEWED By <br /> Small Cities Development Program preliminary application Amanda Othoudt, EDD <br /> authorization REVIEWED BY <br /> Cal Portner, City Administrator <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$508,500 <br /> • HRA to pledge $100,000 toward the program <br /> BACKGROUND/DISCUSSION <br /> Last year,the city completed a pre-application for a$635,000 SCDP grant,to facilitate forgivable loans <br /> for rehabilitation of owner-occupied homes in the older part of the community. This grant program was <br /> to be administered by Central Minnesota Housing Partnership (CMHP) and the HRA's financial <br /> contribution was to be $100,000. This program is different from the HRA rehabilitation loan program <br /> 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 SCDP Notes <br /> parameters loan contribution funds <br /> Low/moderate Deferred loan w/7-year term, loan is <br /> income homeowners 20,000 10% 90% forgiven 1/7th per year <br /> 50%of SCDP funds are fully forgivable after <br /> 10 years. 50%of SCDP funds is 1% <br /> Commercial 30,000 30% 70% installment loan w/15-year term <br /> The city did not receive that grant. Based on the information gained from the previous request, staff <br /> seeks authorization to reapply for 2016. 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 generally includes the downtown development on both sides of US Highway 10 <br /> and the railroad. Staff suggests an HRA contribution of$100,000. This is intended to demonstrate the <br /> city's importance in redevelopment and reinvestment, and supports the costlier commercial projects. In <br /> general, commercial projects are more visible, and often supply added interest in the program. <br /> 11 . 1111 11' <br /> NATURE <br />