Agenda - Council Work Session - 04/13/2004

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To develop and administer an interest reduction program to assist the financing of the construction, rehabilitation, or purchase of low or moderate- income housing. While HRAs have the legal authority to "do whatever is necessary and convenient: to implement redevelopment, they are subject to the ordinances and laws of the city. The city council must approve HRA plans before the housing and redevelopment authority may begin implementation. Reasons Why the City would Consider Creation of an HRA There are many reasons why the City of Ramsey would consider the creation of its own HRA. Among those reasons, and not limited to, are some of the following considerations: Fiscal sell-sufficiency. Due to the nature of the programs HR_As deal with, they can fund projects usually outside the general government budget with minimal direct impact on the city budget. The enabling legislation also allows for a one- third mill levy and the use of revenue bonds. · Greater efficiency. Because of the specialized functions of an HRA, i~t can organize its operations in a certain area better than general government--focusing resources on the delivery of a specific program, rather than on a wide range of conventional services. · Flexibility. An H1L& can act swiftly to meet a problem and has the flexibility to be more immvative than a city council in developing new approaches. Furthermore, it has the ability to coordinate public and private resources to solve problems. HIL4 Levv The City of Ramsey has already implemented an HRA levy. The levy is recommended by the Economic Development Authority, which also has its own HRA statutory authority. The creation o f an independent HRA would retain the powers of HRA levy. Action Statement: Based on the Council's discussion. CCWS: 04/13/04