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<br />Ramsey's BRA has the capability to initiate local housing programs to create additional <br />incentive for buyers to consider purchasing a home in Ramsey (see Exhibit B). These programs <br />could focus on two primary housing programs: homebuyer assistance and housing <br />rehabilitation/fix-up funds. A homebuyerassistance program would include down payment <br />and/or closing cost assistance; housing rehab would be for home improvements. These local <br />assistance initiatives can supplement existing programs offered by other agencies, thereby <br />reaching a wider income level. The programs would be customized to meet Ramsey's goals and <br />needs. Examples ofterms would include: <br /> <br />o low or no interest loan <br />o forgivable or payable upon sale of property <br />o flexibility on income limits <br />o target foreclosed/vacant homes or specific neighborhoods <br />o may operate as a revolving loan fund to sustain the program <br /> <br />There are two major agencies that assisfcommunities with creating and implementing local loan <br />programs: Greater Metropolitan Housing Corporation (GMHC) and Center for Energy and <br />Environment (CEE). For information purposes, a staff member from GMHC will be present on <br />July 22 to share their expertise and answer questions about the various programs. <br /> <br />ATTACHMENTS: <br /> <br />1) Exhibit A - Existing Home Ownership And Fix-Up Programs <br />2) Exhibit B - Options For Home Ownership and Fix-Up Programs in Ramsey <br />3) Map of foreclosed properties <br /> <br />STAFF RECOMMENDATION: <br /> <br />Staff is recommending the BRA focus homeowner assistance programs on foreclosed and/or <br />vacant properties. No other outside agency specifically targets foreclosed/vacant homes, and it is <br />often difficult to obtain fmancing for them. Also, Staff recommends starting a program that has <br />higher income limits or eliminates income limits, especially if purchasing a foreclosed/vacant <br />home. The City ofAnoka's BRA is in the process of writing a program that provides grants to <br />people purchasing foreclosed or vacant homes that is not income dependent. Staff also <br />recommends exploring options for targeting additional homeowner assistance specifically in <br />neighborhoods experiencing instability due to the market. <br /> <br />If the BRA makes a decision to initiate some local assistance programs, then Staff would suggest <br />meeting with both GMHC and CEE in order to select a program administrator. <br /> <br />BOARD ACTION: <br /> <br />Discuss viable housing programs and selection of an organization to administer these programs. <br /> <br />Reviewed By: <br />City Administrator <br />BRA 7.22.08 <br /> <br />raiJ <br /> <br />i <br /> <br />8 <br />