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<br />City Council Study Session - 11/20/06 <br />Minutes - Page 6 <br /> <br />the issue was on the HRA discussion on November 21, 2006. <br />Ms. Bennett noted that income data from residents of the <br />complex was being obtained and evaluated to determine needs. <br /> <br />Councilmember Maschka, as HRA Liaison, concurred with the <br />order of consideration and discussion. <br /> <br />Additional discussion included income levels and percentages; <br />risks involved in government backed surety and assessments <br />leined against a property; determination of a globalized need; <br />Mr. Miller's recommendation to add an additional 1% interest <br />rate to accommodate the risk; and rationale for creation of <br />RIA's. <br /> <br />Councilmember Ihlan opined that the policy decision before the <br />Council was related to use of public funds and whether the City <br />wanted to go into the financing business for private home <br />owners; whether to use public funds to benefit one housing <br />project, rather than benefiting the entire community through <br />maintenance of city-owned facilities. Councilmember Ihlan was <br />not supportive of such a use of public funds. <br /> <br />Mayor Klausing recognized Councilmember Ihlan's concerns; <br />however noted that if the City's multi-family complexes started <br />to deteriorate, there followed a general decay in others, increased <br />crime and other community-wide impacts. <br /> <br />Ms. Bennett noted that the City did have the inventory data on <br />multi-family housing in the community as studied several years <br />ago; and noted that there were a number of older multi-family <br />complexes that may be in need of this type of improvement, but <br />that the City didn't have a source of funds to provide assistance. <br />Ms. Bennett noted that another method would be to build a fund <br />or pay back part of the loan early, and seek funds through the <br />Metropolitan Council of Ramsey County to provide seed money <br />to market the program at a broader level. Ms. Bennett suggested <br />that the City could charge the CHRA to look at methods and <br />other sources of funding to pay back the loan first; and to <br />developer other broader strategies to support a larger bond issue. <br /> <br />Additional discussion included types of funding available; which <br />