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Attachment B <br />94 order to make a decision regarding establishment of a Housing Improvement <br />95 Area for Westwood Village I. Therefore, council moved to re-open the Public <br />96 Hearing on Westwood Village I's request for a Housing Improvement Area <br />97 (HIA), previously closed on December 18, 2006; and approved continuation <br />98 of the hearing until additional information could be provided. (Attachment B). <br />99 <br />100 <br />101 <br />102 <br />103 <br />104 <br />3.0 Discussion <br />3.1 A HIA is a tool available to local units of government provided by MN Statute <br />429A.11 — 429A.21. The HIA can be created to help fund improvements to common <br />105 areas within housing areas that can not otherwise be economically feasible through <br />106 private financing. The HIA works similar to a public assessment process with the <br />107 payback on the cost of the improvements, plus interest and administration costs, <br />108 which are added to the taxes of the owners within the identified area over a period of <br />109 <br />110 <br />111 <br />112 <br />113 <br />114 <br />115 <br />116 <br />117 <br />118 <br />119 <br />120 <br />121 <br />122 <br />123 <br />124 <br />125 <br />126 <br />127 <br />years. <br />3.2 The HRA 2008-2012 Strategic Plan and overall goals of the City's Comprehensive <br />Plan would support use of an HIA, ("Preserve existing housing and develop new <br />housing in partnership with federal, state and regional agencies and non-profit <br />community groups and businesses.") In order to establish a housing improvement <br />area, Council must find, first, that without the establishment of the area the <br />improvements cannot be made and, second, that the proposed improvements are <br />necessary to preserve the housing units in the proposed area. <br />3.3 The Westwood Village I hired Load Bearing, Inc as construction manager to <br />represent the Townhome Association interest in the "housing improvements" that <br />include replacement of roofs, siding and trim, gutters and downspouts, soffit and <br />fascia and any necessary related improvements and repairs to the housing units and <br />garages within Westwood Village I. Load Bearing developed the specifications, put <br />the work to bid, reviewed the bids and verified that the proposals are "apples to <br />apples". Mr. Munson and Mr. Proulx from the City Inspection department reviewed <br />specifications and bids and felt that the scope of work will meet the described <br />improvements that are needed. (Attachment C). <br />3.4 Recent financial statement of the association has been reviewed by Staff and <br />indicates that, while there are funds available for routine maintenance of the <br />128 grounds, there are not adequate finances to pay for the proposed capital <br />129 improvements. Homeowners associations tend to find it nearly impossible to obtain <br />130 financing for these kinds of improvements because the association can provide little, <br />131 if any, acceptable securities. Having each owner obtain separate financing is <br />132 cumbersome and could stop a project if just one owner decides not to cooperate or <br />133 does not have adequate security for a loan. Westwood Village I did seek alternative <br />134 financing through Bremer and US Bank. Both banks declined the loan request. <br />135 (Attachment D). <br />136 3.5 State law requires that before the project can proceed, the association must provide <br />137 the City with a financial plan, prepared by a third party, showing how future capital <br />Council Meeting (09-22-08) - Page 3 of 5 <br />