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Other metropolitan cities l�ave used this method to assist in renovating larger multifamily complexes. <br />Specifically, Coon Rapids have successfully issued several HIA's to assist in completing improvements <br />within multifamily units. <br />What may occur if a HIA is not created for Westwoad Village I? <br />b. Improvements are delayed or not completed and there will be further deterioration <br />to the complex and the neighborhood. In this case, if the property is not maintained <br />the City may end up dealing with it in a more drastic arid costly manner through <br />redevelopment. <br />c. If the association requires that the improvements be made, many of the owners will <br />be forced to either financially overextend themselves or to sell their unit. <br />Staff Recommendation <br />It is acknowledged that other public policy issues might trump some of the financial issues. <br />However, if the Council approves the proposed financing package, Staff makes the following <br />recommendations. <br />1) Establishment of a Housing Improvement Area for Wes#woad Village I would achieve <br />the housing goals in the HRA Housing Plan as outlined above. <br />2) There should be verification that there are inadequate association reserves to pay for the <br />improvements. <br />3) The majority (at least 51%) of the owners have a household income at or below 120% <br />of the area median income. <br />4) The improvements are a necessary and a required maintenance item that if not <br />completed will begin to deteriorate the livability of the units which will be verified by <br />an inspection of the property by the City Building Official. <br />5) The term of the HIA financing would be advantageous to the owners in comparison <br />with local banking financing at between 15-20 years. <br />6) The interest rate on the loan (assessment) should be 1% higher than what the City could <br />earn on a similar investment <br />The �RA Board delayed acting on support of a HIA for Westwood Village until after this work <br />session and additional information was collected. However, their findings of support would also <br />be based upon the items outlined above. <br />Final Comments <br />Staff will be available at the meeting to address any further inquiries. <br />� <br />