08/26/08 Special Meeting - Laserfiche WebLink

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May 13, 2008 Motion carried. V oting Yes: Chairperson Olson, Commissioners Strommen, Look, Dehen, Elvig, and Jeffrey. Voting No: None. Absent: Commissioner Gamec. HRA BUSINESS Case #1: Discuss Options for Creating Housing Assistance Programs for the City of Ramsey BRA Executive Director Sylvia Frolik stated that staff has researched existing homeowners and fix-up programs which she has outlined on Exhibit A in the packet. She stated that they have also taken a look at options for home ownership and fix-up programs in the City which are outlined in Exhibit B. She stated that the City can set the terms for these programs, including deferred interest or lower interest rates, minimum and maximum loan amounts. She noted that these programs could be doubled up with other programs to supplement other agency's programs. She noted that Suzanne Snyder of the Greater Minnesota Housing Corporation (GMHC) is present to answer any questions the BRA may have. She stated that staff is recommending a three-tiered approach: 1. Initiate local funding programs that spur purchase of foreclosed and vacant homes; 2. Reduce the number of foreclosures through prevention programming and credit counseling; 3. Identify aIld secure vacant homes. She stated that sh~ feels forming a task force would be very helpful for identifying and securing vacant homes. Councilmember Elvig stated that he wanted this issue discussed because there are a lot of people in the community losing their homes and he wanted to see if there was something the City could do to help. He stated that he feels that the banks and private home buyers are not getting connected because there are still programs where people can get into homes for zero down. He stated that these programs need to be marketed so people know they are available. He stated that he wants Ramsey to be a robust community and if nothing is done, his fear is that corporate opportunists will start purchasing these homes and turn them into rental properties, which would not be in the City's best interest. BRA Executive Director Frolik stated that she agrees that in addition to possible incentive' programs, marketing is important. She stated that even if the City decided not to initiate a local program, it could still market the existing programs. Councilmember Elvig stated that Anoka had a problem with landlords not keeping the buildings up to an acceptable level, so they created an incentive program that gave very low interest rate loans for the properties if they lived there for a certain number of years. Ch,!irperson Olson noted that this is one of the programs listed on Exhibit B. She stated that she would also like to consider giving incentives to investors that the money can be used to fix up the properties, but it must be sold to somebody who will live there and the property cannot be rented out. Housing and Redevelopment Authority / July 22, 2008 Page 2 of 8 2