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