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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 finance 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 />