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RHRA Meeting <br />Minutes – Monday, May 25, 2016 <br />Page 18 <br />1 At the request of Member Willmus, Ms. Kelsey confirmed that this fund had <br />2 been used to acquire properties on Cope Avenue, with the city having accrued <br />3 funds from the RHRA, creating the current account balance from that <br />4 transaction. <br />5 <br />6 Housing Improvement Areas (HIA) (attachment J) <br />7 Ms. Kelsey reported that Ramsey County now has this ability, but they had no <br />8 money available to fund HIAs, part of their rationale for seeking EDA status in <br />9 the last legislative session. <br />10 <br />11 Discussion ensued as to options for an HIA such as bonding even though <br />12 complicated for residents to pay off an assessment if selling their home as the <br />13 assessment needed to run for the full bonding period. <br />14 <br />15 EDA Attorney Ingram clarified that the program’s sunset clause had been <br />16 eliminated all together now. <br />17 <br />18 Member Willmus stated he wasn’t very interested in providing this duplicative <br />19 service. Member Willmus noted his difficulty in advocating the program, <br />20 particularly due to impacts to individual property owners within these <br />21 developments. Member Willmus stated his concern with the realistic operation <br />22 of an HIA. <br />23 <br />24 President Roe noted that the intent was that associations should have their <br />25 finances in sufficient order that such a program wasn’t needed, and this was <br />26 intended as a safety net for those older associations without sufficient financial <br />27 upgrades, since new requirements were now in place in establishing <br />28 associations. <br />29 <br />30 Member McGehee agreed with Member Willmus on HIA’s. <br />31 <br />32 Member Laliberte agreed she wasn’t a big fan of this program, especially if <br />33 Ramsey County had the ability to use the program. <br />34 <br />35 Ms. Kelsey advised that there was no money involved, other than as another <br />36 financing tool available; and it involved a case-by-case determination based on <br />37 economies of scale (e.g. bonding), and required audited financial statements, <br />38 creating an extra cost for associations, as well as a study for long-term <br />39 expenses or improvements and how to address those costs. <br />40 <br />41 At the request of Mayor Roe, Ms. Kelsey advised that associations do not have <br />42 to provide an annual financial condition reporting to the City. <br />43 <br />44 County and State Home Improvement Loan Programs (Attachment K) <br />45 Ms. Kelsey reported that changes had been made in the program based on <br />46 lower bank interest rates; with an annual review typically done, and now at the <br /> <br />