2007-10-16_Agenda - Laserfiche WebLink

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Motion: Member Pust moved, seconded by Member Maschka, to support CCHT’s application to the Metropolitan Council’s Tax Base Revitalization Account for environmental cleanup funds to be used for the evaluation of lead and asbestos within the structures of the Har Mar Apartment Complex. Ayes: 5 Nays: 0 Abstain: 1 – Kelsey Motion carried. b. Consider Refunding and Program Modifications to the HRA Ownership Loan Program. Ms. Bennett summarized the item for consideration, explaining that the HRA had previously discussed the possibility of restructuring the HRA Ownership Loan Program. Ms. Bennett provided background information associated with the cash flow of the lo an pool and median assessed value of the homes that have received the loans. Ms. Bennett noted that the loan program has been used frequently by residents with 124 loans issued since its April of 2000. Ms . Bennett added that there are no income or assessed value limitations on the loan program as the HRA had not wanted to duplicate state or county loans that do carry these types of restrictions. Ms. Bennett r ecommended creating a median income limitation for this program, using the 120% of median income cr iterion which is currently used in other HRA loan programs, and recommended against creating an assessed value limitation. Ms. Bennett indicated that there are insufficient funds in the loan pool to issue new loans. There are 4 loan applications on hold pending the decision of th e HRA to refund the program. Ms. Bennett provided the household income amounts for the four applications ($54,457, $55,377, $62,000 and $76,000.). Ms. Bennett noted that the HRA Family Ownership Program has an assessed value limitation and a family size associated with it. Ms. Bennett added th at only four loans have been issued through this program due to those limitations. Ms. Bennett noted th at a direct mail campaign directed to eligible homes was completed in 2006 which ge nerated a lot of interest but resulted in few loans issued. Ms. Bennett recommended that the HRA consider folding the two loan programs together, adding an assessed value limitation and removing the family size lim itation to better capture households eligible for assistance. Member Pust expressed a concern that the HRA provi des assistance to residents making 120% of median income without knowing that the state and county loan programs designed for those making 80% of median income are fully utilized. Member Pust opined that there should be an assessed value limitation on the Ownership Loan program to en sure that the HRA is offering assistance to those residents with the greatest need. Member Kelsey wondered if the prin ciple and interest captured from the loan program could be rolled over to the following year (yes). Member Kelsey expressed her concern over the increasing number of foreclosures in the community wh ich may create a greater need for HRA assistance in the future. Member Kelsey suggested going through the strategic planni ng process before making any changes to existing programs. Member Masche wondered if these improvements would have taken place had the homeowners not received the HRA loan assistance. Member Pust agreed that this in formation should be captured when the loans are issued. Member Pust opined that the strategic planning discussion should take place as a way to prioritize HRA programs to match the current needs of the community. Chair Majerus suggested tabling the item until the strategic planning process has been completed. Member Kelsey suggested the possibility of a moratorium. Member Pust suggested tabling the item for further discussion at the next meeting.