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<br /> <br /> <br /> <br /> 5 <br />Other metropolitan cities have 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 /> <br />What may occur if a HIA is not created for Westwood Village I? <br /> <br />b. Improvements are delayed or not complete d 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 and costly manner through <br />redevelopment. <br /> <br />c. If the association requires that the improvements be made, many of the owners will <br />be forced to either financially overexte nd themselves or to sell their unit. <br /> <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 /> <br />1) Establishment of a Housing Improvement Ar ea for Westwood Village I would achieve <br />the housing goals in the HRA Hous ing Plan as outlined above. <br /> <br />2) There should be verification that there are inad equate association reserves to pay for the <br />improvements. <br /> <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 /> <br />4) The improvements are a necessary and a required maintenance item that if not <br />completed will begin to deteriorate the livabilit y of the units which will be verified by <br />an inspection of the property by the City Building Official. <br /> <br />5) The term of the HIA financing would be ad vantageous to the owners in comparison <br />with local banking financing at between 15-20 years. <br /> <br />6) The interest rate on the loan (assessment) s hould be 1% higher than what the City could <br />earn on a similar investment <br /> <br />The HRA Board delayed acting on support of a HI A for Westwood Village until after this work <br />session and additional information wa s collected. However, their findings of support would also <br />be based upon the items outlined above. <br /> <br />Final Comments <br />Staff will be available at the meeting to address any further inquiries. <br />