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City of Ramsey 2030 Comprehensive Plan Update <br />Chapter 7: Housing Plan <br />E. Housing Financial Resources <br />Providing an adequate amount of funding to assist in the implementation of the HRA Master Housing Plan is <br />an ongoing issue. The following are several options that the HRA can access either through their own power <br />or with the support of and marketing of existing programs to assist in the maintenance of the housing stock, <br />development of affordable housing and encouragement of green building and energy efficient home building <br />and renovation. The HRA evaluates the use of the tools to support the housing goals and to enable the <br />success of the implementation strategies. <br />HRA Financing Tools <br />1. HRA Levy Funds - Per Minnesota Statutes 469.033, Subdivision 6, an HRA has the authority to levy a <br />special tax upon all taxable property within the City boundaries specifically to fund the purposes of the <br />housing plan within that City. The maximum HRA levy is equal to .0144 percent of taxable market <br />value. The HRA levy is spread across all property owners including commercial and industrial <br />properties. Any HRA levy funds must be expended only for the purposes of sections 469.001 — 469.047 <br />and only through the authority of the HRA Board and with signature of the authorize representative. The <br />HRA levy must be requested annually and approved by a majority vote of the City Council. <br />2. Tax Increment Financing - The HRA has the authority, with the City support, to provide TIF assistance <br />to achieve its housing and redevelopment plans. TIF uses the increase in property taxes resulting from <br />new development to fmance qualified public improvement costs related to that development. It is this <br />increase or difference between the current property tax on a parcel of land and the estimated property tax <br />after development that is the tax increment. When TIF is used for a housing project, state law requires <br />that a certain percentage of the units be made affordable for the life of the TIF district (typically 20-25 <br />years). The HRA will consider the support and use of TIF for projects that meet the objectives of the <br />Housing Master Plan and are consistent with the City of Ramsey TIF policies. However, each project <br />will be reviewed individually and only on its ability to meet the statutory requirements <br />3. Anoka County HRA Funds — The County Housing & Redevelopment Authority levies a special tax <br />upon all taxable property within communities that participate in their program. The City of Ramsey is a <br />participant in the Anoka HRA's programs and has approximately $700,000 available funds to be used for <br />housing & redevelopment authority purposes. Of the $700,000, $300,000 is earmarked for the ACCAP <br />rental housing project at the request of the City. In addition, approximately $200,000 per year is <br />available to the City of Ramsey for HRA eligible projects. The City can access these funds through a <br />request to the County regarding the potential use of funds. The County is generally supportive of <br />requests from local communities that participate in their levy as long as the use is an HRA eligible <br />project. <br />Non-HRA Funded Financial Resources Available to Ramsey Residents <br />1. Housing Improvement Programs: <br />a) Minnesota Housing Fix -Up Loan Program - low interest rate loans to qualifying homeowners. The <br />Fix -Up Fund was established to improve the basic livability and/or energy efficiency of the <br />borrower's home <br />b) Home Rehab Loan Program — Up to $15,000 in zero interest deferred payment and interest loan <br />funds provided by Anoka County Community Development Block Grant for necessary home <br />City of Ramsey 2030 Comprehensive Plan Page 7-20 <br />