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Authority Available to The Area Improvements Fees Bonds :. Housing Improvement Areas ~, , In 1995, Ehlers helped the City of Hopkins established and finance the State's first housing improvement area under special legislative authority. These powers have now been granted to all cities in the State. The housing improvement area is a powerful tool for addressing local housing needs. This summary highlights the key aspects of the housing improvement area. Minnesota Statutes Section 428A.11 through 428A.21. Sunset provision requires special legislation to establish an Area after June 30, 2001. Cities The housing improvement area is modeled, after the special service district: It is a defined area within a community. Within this area, the City is authorized to undertake and finance specified activities related to owner-o(;.c~'pie.d housing. Housing improvement areas can be used to undertake a wide range of activities to meet local housing needs. The discretion for specifying improvements lies with the City. The enabling ordinance for each Area will define eligible improvements. To finance these activities, the City can impose a "fee" on properties within the housing improvement area. The fee can be based on tax capacity and act like a property tax. The fee can also be imposed on any other basis determined as appropriate by the City. The City can also levy special assessments to finance housing improvements. The City can issue general obligation bonds to finance eligible activities. Fee revenues from the Area are used to pay debt service on the bonds. It is likely that the bonds will not be tax-exempt. Continued Q" ;e-.....:+. ,-~ i