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Our policy requires that only associations where the average <br />estimated value of units is at or below the MN housing first time <br />homebuyer home price, are eligible. This is a tool that truly helps <br />preserve affordable housing. The association that most recently <br />completed improvements has units that are valued at $121,000. This <br />tool provides low/mod income condo owners a financing tool that is <br />comparable to the MHFA CFUC loan available to sf detached owners. <br />The city’s oversight of construction draws provides another set of eyes <br />to workmanship and even provides Associations with abit more <br />“clout” with working out problems with contractors during <br />construction. <br />Our experience has shown that rental owners of condos have strongly <br />supported the improvements. (SLP) <br />• We have set up one HIA back in 1 998 for a townhome development in <br />Plymouth. The project included the re-siding of 57 buildings <br />consisting of 219 units. We issued bonds to pay for the project up <br />front and then each owner had the op tion of pre-paying their portion <br />or having their portion placed on their property tax statement. The <br />owners that elected to have the fee placed on their property tax <br />statement also paid interest. In ad dition to the Bonds we applied for <br />assistance through the Federal Home Loan Bank to assist 51 income <br />qualifying owners with a portion of th eir costs. This was the only way <br />at that time to assist this townhome association. They had been <br />denied traditional financing by a number of banks because they did <br />not have sufficient reserves a nd good credit. We required the <br />association to adhere to a strict financial plan that increase there <br />repair/replacement reserves. We only required income restrictions on <br />the owners who received the FHLB funds. <br /> <br />This association did come back in 2003 and requested that we assist <br />them again. However, it was determ ined that their financial situation <br />had improved and they could now obtain financing through a <br />traditional bank. <br /> <br />b. What source of funds did you use for the project? <br /> <br />• The project is being financed internally by the City as an alternative <br />to other investments. (E) <br /> <br />• Development Funds (SLP) <br /> <br /> <br />