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<br />City Council Regular Meeting -10/09/06 <br />Minutes - Page 24 <br /> <br />Village I Town Home Association regarding establishment of a November 13, 2006 <br />Housing Improvement Area (RIA) as a method to assist in <br />financing major exterior improvements to the 47-unit town home <br />complex. <br /> <br />Ms. Bennett eXplained the purpose of the RIA as a toll for local <br />government, under MN Statute 428A.ll - 428A.21, for <br />improvements to common areas within housing areas that cannot <br />otherwise be economically feasible through private financing, <br />similar to a public assessment process with payback on the cost of <br />the improvements, plus interest and administration costs, added to <br />the taxes of owners within the identified area over a period of <br />years. <br /> <br />Ms. Bennett reviewed the pass-through financing process with <br />virtually no risk to the City or taxpayers, with one option being <br />for the City to loan the HRA funds to finance the program, with <br />the HRA designating the funds be applied to the property within <br />the HIA and paid back through assessments. Ms. Bennett noted <br />that the City's finance staff is currently working on an evaluation <br />of the best mechanism to finance the program in partnership with <br />the HRA. <br /> <br />Ms. Bennett reviewed the goals of the HRA Housing Plan to <br />"Preserve existing housing and develop new housing in <br />partnership with federal, state and regional agencies and non- <br />profit community groups and businesses," and this would serve as <br />another tool. Ms. Bennett noted that many of the City's town <br />homes and condominium units were built in the 1970's and were <br />aging, while remaining one of the most affordable housing types <br />in the community. Ms. Bennett noted that many of the <br />associations had not set aside adequate association dues to cover <br />escalating construction costs for funding capital improvements <br />without unduly increasing costs for private financing for home <br />owners in the units. <br /> <br />Miss Bennett advised that the HRA will consider a resolution at <br />their October 17, 2006 HRA meeting; consider how the RIA <br />could tie back to the HRA Housing Plan; and whether it would <br />serve as an effective method to finance Roseville housing goals, <br />other options, and consequences of such financing. Ms. Bennett <br />