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<br />CASE # I <br /> <br />TITLE: <br /> <br />DISCUSS OPTIONS FOR CREATING HOUSING ASSISTANCE <br />PROGRAMS FOR THE CITY OF RAMSEY <br /> <br />BY: <br /> <br />Sylvia Frolik, HRA Executive Director <br />Breanne DaInes, Associate Planner <br /> <br />INTRODUCTION: <br /> <br />The City of Ramsey is experiencing an increase in the number of foreclosures, as are many cities <br />in the metro area and throughout the country. In 2006, the Anoka County Sheriff's Department <br />processed 57 foreclosures within the City of Ramsey. In 2007, the number increased to 135, <br />representing a 136% increase. Thus far this year, 165 foreclosures have been processed, putting <br />the City on track for another 144% increase (330 foreclosures) from last year, which will <br />represent approximately 4% of the housing stock. <br /> <br />. There are many causes for the increase in foreclosures. One significant cause is the downward <br />shift in the value of homes. A study conducted by Boston's Federal Reserve noted that during <br />periods of exceptionally high appreciation there are exceptionally low foreclosure rates, even <br />during a recession and conversely during periods of low appreciation, there is an increase in <br />foreclosure rates. Another factor is past lending practices that offered loose verification policies <br />and "teaser" rates on mortgage loans. To be sure, there are other factors contributing to the rise. <br />in foreclosures, and it is difficult to formulate a solution to the complex problem that often <br />comes with negative neighborhood impacts. <br /> <br />It is in the City's best interest to pursue partnerships with other agencies and to investigate <br />. programs to stabilize Ramsey's housing inventory. Staff is offering a three tiered approach: <br /> <br />1. Initiate local funding programs that spur purchase of foreclosed and vacant homes in <br />Ramsey. <br /> <br />2. Reduce the number offoreclosures through foreclosure prevention programming and <br />credit counseling. <br /> <br />3. Identify and secure vacant homes (a task force would be very useful for this purpose). <br /> <br />DISCUSSION POINTS: <br /> <br />In order to determine the most pertinent and valuable programs for Ramsey's HRA to pursue, it <br />is critical to research the existing housing programs, what they offer, and their terms. The State <br />of Minnesota, through an organization called Minnesota Housing (formerly MHF A), Anoka <br />County, and the Anoka County C9mmunity Action Program (ACCAP) fund a variety of housing <br />programs. Exhibit A highlights the terms and criteria for a majority of the existing program <br />offered to residents. <br /> <br />7 <br />