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City Council Regular Meeting - 10/09/06 Minutes - Page 25 suggested several items for Council consideration: does such a financing program provide a public purpose in preserving housing stock; and if Council-supported, would the Council develop an investment policy and determine a cap on the percentage of the investment portfolio that should be invested in this type of security. Discussion included the association's lack of forethought in building capital improvement reserves into their association dues over the past years, thus creating this financing dilemma; the need for the associations to build reserves for future capital improvements; availability of this program for multi-unit facilities, not individual homeowners and statutory requirements; difficulty for associations to obtain favorable financing due to lack of collateral, given ownership of units by homeowners, not the association; and availability offunding sources. Councilmember Ihlan expressed concern that this appeared to be rewarding bad management practices for homeowner associations, and provided an option not available to other homeowners. Councilmember Ihlan requested more information on standards for financing and assurances that no other financing methods were available; proof that the homeowner's association tried to get financing and was turned down; and if financing such a program with taxpayer monies was the best use of public funds. Councilmember Pust sought additional information regarding other communities use of such a financing tool; and rationale for involvement or refusal for involvement. Councilmember Kough spoke in support of the financing as a way to put the City's reserves to a good use. Discussion included a higher return on the investment for financing than being realized for the City's reserve funds; costs incurred to be passed along to the homeowners as administrative fees, with the City Councilor HRA monitoring the financing on a long-term basis; and ability to renovate deteriorating multi-unit housing within the City for the benefit of neighborhoods and the City as a whole.