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Chair Olson stated that her experience is that there aren't that many people who are willing to put in that much sweat equity. She stated that she sold a home to an investor who fixed a home up and resold it. She stated that she had people that came through before and after that said that if they knew the house could be fixed up like this, they would have bought it. She stated that a lot of people don't have a lot of imagination when they are walking through what they consider to be a dump. She stated that investors have that kind of imagination. Commissioner Look stated that the investors are already buying these homes, and asked what incentive the City can give them. Chair Olson stated that funding is a much larger issue for investors than it is for home owners. Commissioner Strommen stated that she is stuck. She stated that, on one hand, she is where CommissionerElvig is, and would like to have the money go to the people that will build their lives into the community. She stated that Chair Olson has professional experience in this field, but she has no idea what the right answer is, for example, why other communities made the decisions they. did. She stated that she would like to have the experts tell us why the City may not want to include investors and vice versa. . HRA Executive Director Frolik stated that perhaps the City could ask them for an option of investors in the RFP. Commissioner Elvig stated that his suggestion would be that the City give a series of bullets that can have options like that. Chair Olson stated that perhaps investors could have a higher percentage loan, for a two year loan term, for example. . Commissioner Dehen stated that he is not an advocate of giving things away. He stated that there always needs to be "skin in the game", so there is accountability. He stated that he would be against forgiveness of any type of debt. He stated that he likes the idea of helping out first time home buyers, because he had trouble himself when he got out of law school. He stated that his parents had to co-sign for him on his first home, because he couldn't get credit. Commisisoner Elvig stated that he feels it should be for anybody, not just first time home buyers. He stated that older people are also in peril because of the current economy on their 401k plans. He suggested options to include in the RFP would be: investors; all homes; no income limits; any foreclosed property in the City; any property in the City; for down payment; and for rehab. He stated that he sees this as a conventional loan, with low interest. Chair Olson stated that in addition to foreclosed properties, she thinks the City should include pre-foreclosures also, that are in the short sale stage. She stated that some of the first time home buyer programs require home ownership training and suggested that be something that could be offered with a City program also. Commissioner Stromrtlen agreed Housing and Redevelopment Authority I December 1, 2008 Page 5 of9 5